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Home , Chak (village)

CIRCULATMNGCopy RETURN TO ;D BERETURNED TOREPORTS DESK REPOR?TS DZ-;( ReportNo. 447-IN WITHIN Appraisalof the RajasthanCanal ONE W^KS CommandArea Development Project Public Disclosure Authorized in India

July 1, 1974 FILECOPY Asia ProjectsDepartment Irrigation and Area Development Division I Notfor PublicUse Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of the InternationalBank for Reconstructionand Development InternationalDevelopment Association

This report was prepared for official use only by the BankGroup. It may not be published, quoted or cited without BankGroup authorization. The Bank Group does not accept responsibilityfor the accuracyor completenessof the report. CURRENCYEQUIVALENTS

US$1.00 = Rupees(Rs) 8.002 Rs 1.00 = US$0.125 US$1 million Rs 8,000,000 Rs 1 million = US$125,000

WEIGHTSAND MEASURES(METRIC SYSTEM)

1 meter (n) = 3.28 feet 1 kilometer (km) = 0.62 miles 1 hectare (ha) = 2.47 acres 1 cubic meter (i 3 ) = 35.3 cubic feet 1 million cubic meters (Mm3) = 810 acre-feet 1 ton = 1,000 kilogram (kg) = 2,205 pounds 1 megawatt (MW) - 1,340 horsepower (hp)

/1 This has been taken as the short-term average exchange rate. The Indian Rupee is linked to the Pound Sterling and recent rates with the United States Dollar have varied between US$1.00 - Rs 7.60 and Rs 8.70 in recent months. ABBREVIATIONS

ARC = AgriculturalRefinance Corporation CAA = Command Area Authority CAD&WU = Command Area Development and Water Utilization CWPC = Central Water and Power Commission FAO = Food and Agriculture Organizationof the United Nations GOI = Government of India GOR = Government of Rajasthan ICAR = Indian Council on AgriculturalResearch LS = Lump Sum O&M = Operation and Maintenance PWD = Public Works Department (Rajasthan) RCP - Rajasthan Canal Project RMC - Rajasthan Main Canal RLDC - Rajasthan Land Development Corporation USBR - United States Bureau of Reclamation UNDP - United Nations Development Program VLW = Village Level Worker vpd = Vehicles per day

GLOSSARY

Abadi Village Bajra = Pearl Millet Bigha = Traditional land mieasure = 0.25 ha Chak - Area served by a watercourse,about 120 ha Gur Unrefined (brown) sugar Jowar = Sorghum Kharif = Wet season (June to September) Mandi - Town market Meruba = Traditional land measure - 6.32 ha Panchayat - Village council Patwari - Village-level revenue or irrigationofficial Rabi - Dry season (October to February) Tal - Silty clay soils with strong saline/alkaline properties

FISCAL YEAR

GOI, GOR, and agencies - April 1 - March 31

ARC, RLDC, Cooperatives - July 1 - June 30

Commercial Banks - January 1 - December 31

INDIA

APPRAISALOF THE RAJASTHANCANAL COMMAND AREA DEVELOPMENTPROJECT

TABLE OF CONTENTS

Page No.

SUMMARY AND CONCLUSIONS ...... i - iv

I. INTRODUCTION ...... 1

II. BACKGROUND ... . 1

The Economy...... * ...... 1 Agriculture in India . . 2 Agriculture in Rajasthan . .2 Project Formulation ...... 3

III. THE PROJECT AREA. 4

General... 4 Climate.... 5 Topography,Soils and Drainage .... 5 Farm Size and Land Tenure . .. 6 Town and Village Settlements. 6 Irrigationand Land Development .... 6 Agricultural Production ... 7 Marketing and Transportation .... 7 Environment and Health .. 8 Present Problems . .. 8

IV. THE PROJECT ...... 9

Project Works ...... 9 Water Supply, Demand and Quality ...... 11 EngineeringDesign . .12 Construction Methods ...... 13 Implementation Schedule . .... 13 Cost Estimates...... 13 Financing .... 14 Procurement ...... 15 Disbursements ...... 16 Accounts and Audits .... 17 EnvironmentalEffects of the Project . . . 17

This report is based on the findings of an appraisalmission composed of Messrs. G. J. Tibor, W. G. Rodger, J. K. Lee, K. V. S. K. Nathan (IDA), and Messrs. D. K. Jones, D. Benor, A. M. Jensen and W. L. McCaig (Consult- ants). Messrs. G. von Gontard, R. L. P. Harris and P. W. Whitford also contributed to the report. -2-

Page No.

V. ORGANIZATION AND MANAGEMENT ...... 18

Project Implementation . .18 Rajasthan Land Development Corporation 19 Financing of On-Farm Development Works 19 Agricultural Supporting Services. 20 Agricultural Credit ...... 22 Operation and Maintenance 22 Cost Recovery ...... 23 Monitoring of Project Benefits ...... #.... 23

VI. PRODUCTION, MARKET PROSPECTS, PRICES AND FARMERS' INCOME...... O.-* ...... 24

Production...... *.... 24 Market Prospects ... 24 Prices.. 25 Famers' Income ...... 25

VII. BENEFITS AND JUSTIFICATION . ... . 25

VIII. AGREEMENTS REACHED AND RECONMENDATIONS...... 26

ANNEXES

1. Climatic Data 2. Topography and Soils 3. Project Wcrks 4. Water Supply, Demand and Quality 5. Colonization 6. Cost Estimates 7. Equipment Requirements 8. Scheduling of Expenditure and Disbursements 9. Organization, Management and Project Financing 10. Rajasthan Land Development Corporation 11. Operation and Maintenance 12. Agricultural Supporting Services 13. Agricultural Production 14. Marketing, Processing, Storage and Prices 15. Farm Budgets 16. Economic Analysis -3-

CHARTS

8638 ImplementationSchedule 8599 OrganizationChart - State Level 8640 OrganizationChart - Command Area Authority 8639 OrganizationChart - Irrigation,Land Development,Afforestation 8641 Project Activity Diagram

MAPS

10883 Location Map 10884 Project Area 10885 On-Farm Development in Chak 23 KD(A)

REFERENCES

1. "Report to the Government of Rajasthan on Land Leveling Works", William L. McCaig, February 1974.

2. "Report on Afforestation and Sand Dune Stabilization", A. M. Jensen, November 1973.

3. "Report to Government of Rajasthan on Rajasthan Canal Command Area Development Project Extension Service", Daniel Benor, January 1974.

4. "Rajasthan Canal and Chambal Command Area Development Projects: SupplementaryNote on Agricultural Credit", FAO/IBRD CooperativeProgrami, October 1973.

INDLA

APPRAISAL OF THE RAJASTHAN CANAL COMMAND AREA DEVELOPMENTPROJECT

SUMMARYAND CONCLUSIONS i. The proposed project, together with the Chambal Command Area Devel- opment Project (Rajasthan),would be the first in India ror command area development- the provision of all the necessary physical works and agricultural supporting services to enable full realizationof the benefits of existing irrigation projects. Such projects have been given high priority in India's developmentplanning and further projects of this kind are being prepared for Bank Group consideration. ii. India's development program for the next five years gives greater emphasis than previous plans to alleviating poverty and creating employment, particularlyin the agriculturalsector, which engages 70% of the population. Despite the impressive results of the green revolution in some areas, overall growth in agricultural output has barely kept pace with population increases. The expansion and improvement of irrigation development must play a major part in future food production. iii. Over one-third of Rajasthan, one of the larger but more sparsely populated states of India, is desert, and irrigation development is therefore of high priority. The northwest desert area has been the scene of large irrigation developmentsin the past. Under the post-World War II interstate water agreements, corollary to the Indus Water Treaty, Rajasthan was allocated 9,900 Mm3 of water annually for the 1.15 million ha Rajasthan Canal Project (RCP) as its share of the Beas and Ravi River waters. Work on diversion to the RCP commenced in the early 1950's and by 1961 the Rajasthan Main Canal (fed by a 214 km feeder canal from Harike Barrage on the Sutlej River) had reached the upper parts of the command area and irrigation gradually commenced. By the end of 1973, the Main Canal and its distributary system (down to about 150 ha turnout level) commanded nearly the whole of the RCP Stage I area of 540,000 ha. However, land effectively irrigated is probably no more than 30% of the commanded area, due to the lack of assured year-round water supplies, the heavy loss of water through the unlined distributary canals and watercourses, and to the poor state of preparation of the virgin desert lands (undulating dunes and saline flats). Consequently, permanent settlement of the area by previously landless farmers is also lagging seriously behind projected plans. With completion of the main regulating storage dam at Pong on the Beas River in 1974, perennial irrigation supplies will be available to the RCP for the first time.

iv. The proposed project covers 200,000 ha of irrigable land in two blocks within Stage I of RCP. It would integrate the activities of all the developmentagencies engaged in the area, complete all the necessary - ii - infrastructure, on-farm land development works and permanent settlement, and provide greatly enhanced agricultural supporting services. v. The proposed projectwould include: the lining of 915 km of distributarycanals; the constructionof 431 km of roads and water supplies for 100 villages; pasture developmentand afforestationof 35,000 ha of high shifting sand dune lands surroundingthe irrigatedarea; and provision of 46,000 nutrient tons of various fertilizersto build up and restore soil fertility. On-farm developmentworks under the project include lining of 5,800 km of watercourses,land shaping of 12,000 ha and reclamation of 17,000 ha of sodic soils. The project would assist the farmers to complete a further 26,000 ha of land shaping and 17,000 ha of soils reclamation and to improve their on-farm field channels. vi. Project implementation would take six years and would use labor- intensive methods, wherever feasible. The use of heavy machinery would be mainly confined to land shaping. vii. The process of settling about 33,000 families on 6.32 ha farms in the project area is expected to be completedby mid-1974. These settlers are drawn from landless agriculturallaborers in adjacent agriculturalareas and from temporary tenants dwelling in the area. They would purchase their farms from the GOR over a 15-year period with an interest free loan. viii. Total project costs are estimated at US$174 million with a foreign exchange compontentof US$47.1 million (27%). The proposed IDA Credit of US$83.0 million would finance the foreign exchange costs of the project and 28% of the local costs. The Government of India (GOI) would relend the proceeds of the Credit (except disbursementsfor on-farm developmentand fertilizer)to the Governmentof Rajasthan (GOR) in accordancewith its standard arrangementsfor State developmentprojects. Fertilizer purchases by GOI would be financed directly by the Credit. On-farm works would be financed mainly by the farmers, using loans from GOl and the commercial banks. These banks would be refinanced 80% by the Agricultural Refinance Corporation of the GOI. All funds for on-farm development would be channeled through a new agency, the Rajasthan Land Development Corporation (RLDC), to be set up by GOR. ix. Out of US$10.2 million worth of vehicles and equipment to be procured under the project, US$6.3 million would be subject to international competitive bidding and US$1.0 million, which for reasons of efficiency are not suitable for international tendering, would be purchased through normal GOR procurement procedures. The balance of US$2.9 million would be reserved for local procurement and would not be eligible for financing under the Credit. Fertilizer procurement under the project would be combined with the regular All-India procurement. Because of presentworld shortages, an "international shopping" procedure would be used. All fertilizer to be financed under the Credit would be procured in the first year of project implementation. It would not be practicable to group the civil works under the project (estimated to cost US$86.3 million, includingconstruction materials and machinery supplied by the project authorities) into contracts - iii - large enough to be of interest to international contractors. These works would be carried out over a period of six years by small, mainly annual contracts to be advertised locally or, where this is not practicable,by force account. x. In order to ensure full cooperation between all the departments concernedwith command area development, GOR is setting up a Command Area Development and Water Utilization Department at State level and a Rajasthan Canal Command Area Authority (CAA) to manage the project. The CAA would be headed by an Area Development Commissionerand would have four departments: Irrigation and Land Development,Agriculture, Revenue, and Colonizationand Cooperatives. The Commissionerwould have coordinatingauthority over the remaining project activities, roads, afforestationand village water supplies. xi. On-farm development, within a tertiary command area, would be compulsory. RLDCwould prepare loan applications for these farmers eligible for commercial credit. Other farmers would receive special loans from RLDC, using GOI funds. Subsidies would be available for several categories of disadvantaged farmers. xii. The extension service is being reorganized and will make use of progressive farmers as part-time extension workers. Insitutional credit would grow under the project, mainly through an expansion of the role of the commercialbanks. Improvements in the methods of irrigation rotation would be introducedunder the project and irrigation charges would be raised to cover the full cost of operating and maintaining the project works. A special Government committee would be established to recommend arrangements for the recovery of project costs, taking into account the farmers' incentives and capacity to pay. xiii. Agriculturalproduction in the project area is based largely on cotton and wheat, with millet, pulses, gram, fodder, and mustard as secondary crops. Increased production under the proposed project would result from an increased cropping intensity (from 90% at present to 130%), from accel- erating land development and from increased crop yields, the latter resulting from the introductionof better practices and increased inputs, including assured on-farm water deliveries. Production of most crops would more than double, with wheat and cotton achieving particularlyrapid growth. Marketing prospects for all the crops are good. Processing, storage and marketing facilities are generally satisfactoryfor the present levels of production. GOR has investmentsplanned in all these areas which should be adequate for projected conditions at full project development. xiv. Farm income would on the average rise from Rs 5,300/year to Rs 16,500 in ten years and repayment of project charges, including commercial bank credit, would be within the farmers' repayment capability, provided that up to two-years' grace were given on the repayment of principal. xv. The project would provide the equivalent of 70,000 additional jobs and would lead to an increase in the net value of production of Rs 255 million (US$32 million) per year in ten years' time and Rb 350 million jS$44 - iv - million) at full development in Year 21. The economic rate of return is estimated at 25%, using a 25-year evaluation period and shadow prices for farm labor, which are about 10% above the normal market wage rate at peak seasons. The rate of return is rather sensitive to the pace of agricultural development, which emphasizes the need for an effective extension service. xvi. The project would be suitable for an IDA Credit of US$83.0 million. The borrower would be India. EiDIA

APPRAISALOF THE RAJASTHAN CANALCOMMAND AREA DEVELOPMENT PROJECT

I. INTRODUCTION

1.01 The Government of India (GOI) has requestedIDA assistancein financing the construction of the Rajasthan Canal Command Area Development Project, in the State of Rajasthan. The project would include the completion and modernization of the irrigation network in the project area, on-farm development,roads, afforestation,village water supplies and agricultural supportingservices. This project and the recently approved Chambal CommandArea DevelopmentProject, would be the first Bank Group investments in Rajasthan, apart from components of various nationwideprojects. The two projects are also the first Bank Group assistance to comnand area development 1/ in India. The Bank Group has previouslyassisted nine irrigation, drainage and flood control projects in India, as well as ten agricultural credit and a number of other agriculturalprojects.

1.02 The soils and water managementaspects of irrigationdevelopment in the Rajasthan Canal Project (RCP) area were studiedby a UNDP/FAO team between 1966 and 1971. Many of the results obtained in that study, particularly the soil surveys, have been used in formulatingthe project. The project was prepared by the Government of Rajasthan (GOR) in a feasibility report dated May 1971. Further preparation was assisted by a team from the FAO/IBRD CooperativeProgram, resulting in a report (No. 29/73 IND 17) dated 29 September,1973. The present report is based on the findings of an appraisal mission, comprisingMessrs. G.J. Tibor, W.G. Rodger, J.K. Lee, K.V.S.K. Nathan (IDA), and Messrs. D.K. Jones, D. Benor and W.L. McCaig (Consultants),which visited India in November, 1973.

II. BACKGROUND

The Economy

2.01 India covers some 3,270,000 km , of which 43% is arable and about 9% is under some kind of irrigation. India's population is about 580 million, with a recent growth rate of 2.2%. Population growth and a relatively poor natural resource base have imposed sharp limitationson India's economic growth. However, since the inception of economic developmentplanning in

1/ "Command Area Development"means the provision of all necessary physical works and agricultural supporting services to enable realization of the full productivepotential of an existing irrigationproject. - 2 -

1950 national income has grown at nearly 4% per year, compared with an average growth rate of less than 1% during the preceding 50 years. In 1970. per capita GNP was about US$110.

2.02 GOI's development program for the next five years aims at an econemic growth rate of 5.5%, but with greater emphasis than in previous plan- on alleviating poverty and creating employment. This would be accom- plished by promoting labor-intensivetechniques, raising the productivity of subsistence farmers (especially disadvantaged ones), a national program to supply the minimum needs of the poorest segments of the population, and tax ueasures to curb consumptionby the richer classes. However, these objectives are likely to be difficult to attain.

Agriculture in India

2.03 About 70% of India's population are engaged in agriculture and the sector accounts for about 45% of GNP. Agriculture also provides the major part of India's exports, the most important commoditiesbeing jute, tea, leather, cotton goods and cashews. Since 1965, India has changed the emphasis of its development efforts from industry to agriculture and has given priority to acceleratingthe spread of modern technology,by increasing the availabilityof high-yieldingseeds and fertilizer, expanding irrigation and developingmodern credit institutions. Yet, despite the impressive results of the green revolution in some areas since 1967, the overall growth rate in agriculturaloutput in the ten;-yearperiod ending in 1972, was only 3%, which was little more than population growth and slightly lower than the growth rate in the previous decade. However, these figures conceal an important structural change: growth in production is now coming primarily from yield increasesrather than from increases in area cropped, as has traditionallybeen the case.

2.04 The green revolution has mainly affected wheat and its effects have been concentratedin the northwesternstates which are well endowed with irrigation facilities. The spread of high-yielding rice varieties has been disappointingly slow, due to inadequatewater control, low levels of fertilizer application and, for the last two years, a shortage of fertilizer. Other crops have had stagnant or low growth rates.

2.05 Despite the progress made in food production,India's agriculture still depends heavily on the vagaries of the weather, as shown by the 1972/3 drought when reserve stocks were seriously reduced and large amounts of grain had to be imported. A major factor in reducing India's dependence on the weather will be the expansionof irrigation and the more effective use of existing irrigationpotential.

Agriculure in RaJ as than

2.06 Rajasthan is the second-largest state in India, with an area of 34 million ha (Map 10883), but it has one of the smaller populations, about 27 million, of whom 80% are rural. The northwesternpart of the state is -3- arid, with rainfall less than 300 mm, and crains towards the Indus River. The southwesternpart, with rainfalls of 8C0 to 950 mm, can be classed as semi-arid and drains mostly to the Chambal River and thence to the Ganga system.

2.07 About 37% (13 million ha) of the state is desert and is largely uncultivated. Forests cover 1 million ha and 14.3 million ha are under rainfed crops, mainly millet, sorghum and gram (chickpea). About 2.1 million ha are irrigated, 55% from dug wells, 35% from public canal systems and 10% from tanks. Irrigated crops include: cotton, wheat, paddy, sugarcane, millet, pulses, oilseeds, fruit and vegetables.

2.08 Current development planning in Rajasthan is designed to achieve an overall growth rate of 5% in the state domestic product, including a 4.4% growth rate in the agriculturalsector. Public investmentof Rs 6,350 million is envisaged,of which 40% would go to irrigation projects and a further 10% to other agriculturalprojects. Major projects in the agricultural sector tc be financed in the next five years include the Chambal and Rajasthan Canal Command Area DevelopmentProjects, the Drought Prone Area Program (all of which are proposed for Bank Group assistance),the Crash Scheme for Rural Employment, soil conservation,and animal husbandry. The bulk of funds in the irrigationbudget would be for the Rajasthan Canal Project, Stage II, for which considerableGOI assistance is available. This program also includes assistance for cooperativesand community development.

Project Formulation

2.09 Concern has been growing in India for the past several years over the inadequate utilizationof irrigation systems. Between 1950 and 1972, 10 million ha of new land was provided with irrigation facilitiesbut only 80% of this potential is being utilized and much of that in an inefficient manner. The reasons for the underutilizationof existing facilities,which is becoming a serious constraint on India's ability to meet its food production needs, are discussed at length in the "Report of the Irrigation Commission 1972" and include: a lack of watercourses,drains, and roads, inadequate land leveling, insufficientagricultural supporting services, and a lack of administrativecoordination. It has been unofficiallyesti- mated that some 10 million ha of recently completed irrigation projects require additional investmentsof between US$200 and US$500 per ha before they can become fully productive. As a result, a Command Area Development (CAD) Department has been set up within the GOI Ministry of Food and Agriculture and a list of high priority projects has been drawn up.

2.10 Several IDA agriculturalcredit projects presently provide financing through commercial credit institutionsfor the constructionof on-farm works. Responsibility for carrying out the works under these projects rests with the farmers who, with few exceptions,have been unable to organize themselves to construct and maintain the necessary works. As -4- a result, the implementationrate of on-farm works under these and other major irrigationprojects in India has been disappointing. In addition these schemes make no provision for the concurrent improvement and expansion of the irrigation, drainage and road networks, which is essential for the efficientuse of available water. An acceleration in the rate of implementation of on-farm works will require a transfer of responsibility for their execution to a project authority. It will also require legislation under which on-farm works can be associatedwith minor realignment of farm boundaries and with execution of the work no longer being left to the discretion of individual farmers, although they would be expected to repay the cost of the works. GOI has agreed in principle to restrict assistance for CAD projects to States which agree to implement them along these lines.

2.11 At the request of GOI, a Bank Group IrrigationReconnaissance Hission visited India in November, 1972, to review the need for CAD and its suitability for Bank Group assistance. The mission confirmed the urgent need for CAD and identified several projects as having high prio-ity for investment. Accordingly, the FAO/IBRD Cooperative Program was esked to assist in the further preparation of the Chambal and Rajasthan Canal Command Area Development Projects. At present, two further projects are under preparation for Bank Group consideration.

2.12 India's development program for the next five years emphasizes command area development and GOI and the States have discussed the kind of administrative and financial arrangements needed to carry out such projects. In general, the approach will be to achieve integrateddevel- opment of the land, water and human resources of irrigated areas through a unified project management. Details of this approach, for the present project, are described in Chapter V.

III. THE PROJECT AREA

General

3.01 The project, located in the northern desert region of Rajasthan State, is part of Stage I of the on-going Rajasthan Canal Project (RCP). The oroject area borders Pakistan on the west, Punjab State on the east, the irrigationprojects of Gang and Bhakra in the north (Map 10883), and lies in GanganagarDistrict of Bikaner administrativedivision. Before the introductionof irrigation in 1962 the whole area was sparsely populated by nomads. The Rajasthan desert is among the harshest environments in India, with rolling sand dunes and large expanses of saline soils. In- tense heat and violent sandstorms make the area difficult for any form of permanent settlement, without water for irrigation development, large scale afforestation and the leaching of the saline soils. The RCP, one of India's largest irrigation projects,was conceived to reclaim this desert. The Rajasthan Canal Board was set up by GOR to implement the project. - 5-

3.02 Wat:erfrom the Sutlej River, an eastern tributary of the Indus System, is conveyed from the Harike Barrage to the project area through a 214 km long feeder canal. The 472 km Rajasthan Main Canal (RMC), with a carrying capacity of some 530 m3 /s at its head, will supply water to the 1.15 million ha irrigable area, which is divided into two stages. Stage I, currently being developed, covers an irrigable area of 540,000 ha. The completion of the Pong Dam, on the Beas River, with assistance from Credit 89-IN, will enable year-round irrigation.

3.03 The proposed project, which is located in the Stage I area, includes 200,000 ha of irrigable land and an additional 35,000 ha of high sand dunes. The irrigable area is divided into two adjacent blocks, each of 100,000 ha (Maps 10883 and 10884). The entire area is irrigated by gravity. Block B has been partially developed, as water has been available for this area since 1962. In Block A, to the southwest of Block B, water became available only in the last three years and this area still lacks roads and permanent settlement.

Climate

3.04 The climate is semi-arid with most of the annual rainfall (average 300 mm) occuring in the June-October monsoon season (kharif). It is cool and dry in the winter (rabi) season. From March to June, the weather is very hot with strong winds and sandstorms. With irrigation, climatic conditions are favorable for a wide range of grain and fibre crops. Details on climate are presented in Annex 1.

Topography, Soils and Drainage

3.05 The project area is located in ax.ancient flood plain of the Indus River System. In recent geological times, the alluvial soils have been overlain and mixed with windblown sand from the southwest, resulting in a vast expanse of low and often shifting sand dunes interspersedwith large interdunal flats. The increasing aridity of the climate after the westward shift of the river system gave rise to soils with moderate to strong sodic (saline/alkaline) properties in parts of the project area; these silty clay soils (tal) are, however, amenable to reclamation through leaching. The low rolling sand dune areas, on the other hand, require land shaping and leveling for irrigation. Of the project area of 235,000 ha, 200,000 ha would be suitable for irrigation development,the remainder consisting of high dunes requiring stabilizationthrough controlled pasture development. About 108,000 ha are presently irrigated. The remainder of the potentially irrigable area consists of 34,000 ha of tal soils and 58,000 ha of low sand dunes. Agriculturaldevelopment on similar tal and sandy soils in the neighboring Gang and Bhakra irrigation projects has confirmed that a high level of fertility can be achieved with good cultivation practice. Details on soils and topography are presented in Annex 2. - 6 -

3.06 The area has no draini.geproblems. The soils are permeableand groundwateris at a considerabledepth (50 m). With lined canals and farm distributionsystems, and efficientuse of water after the initial leaching and developmentperiod, the rise of the deep water table should average less than 30 cm per year. Flooding, which occurs annually along the Ghaggar River flood plain, in a 5-10 km wide belt between Blocks A and B, is usually of short duration.

Farm Size and Land Tenure

3.07 The entire RCP area is being settled by landless farmers from nearby areas (Annex 5). The area has been subdivided into 6.32 ha farm units. Each settler purchasesone farm unit from GOR at an average cost of Rs 16,755, repayable over 15 years without interest. Pre-1955 tenant farmers living in the project area receive one farm unit free and have the option of purchasing one additional unit. Settlers receive permanent title to their farms after they have completedfull payment. Settlementtakes place soon after irrigationfacilities are completed in each area. Block B is almost entirely settled and settlers have been chosen for all the unoc- cupied parts of Block A. Permanent land allotment in the project area is expected to be completed in July 1974. In order to prevent overgrazingand to ensure the success of the sand dune stabilizationcomponent of the project (para 4.07), GOR has agreed that no uncommanded(i.e. high dune) land would be allotted to settlers.

Town and Village Settlements

3.08 The project area is populatedby about 100,000people living in 69 villages and in the small townshipsof Bijeynagar,Anupgarh and Rawatsar. When fully developed,the populationmay reach about 400,000, occupying 227 villages and nine market towns. GOR has reserved land for this final developmentlevel and plans to equip all towns and villages with basic services (water supply, shopping areas, storage and marketing facilities,schools and health clinics).

Irrigationand Land Development

3.09 By the end of 1973, the RajasthanCanal Board had completed the iaio canal and 915 km of unlined distributioncanals serving the project AreLe Ine followingnomenclature is used for the canal system, in decreas- ing order of size: main, branch, distributary,minor, watercourse,and field channel. A watercourseserves an irrigationservice unit (chak) which covers an average of 120 ha (20 farmers) and is communallyowned (Map 10885). A field channel is a private ditch within a farm. In 1967, GOR decided to line the distributionnetwork to reduce leakage and some lining work has since been completed in the more seriouslyaffected stretches. The RajasthanCanal Board is also continuingwork in the Stage II area and plans to complete it within ten to fifteen years. -7-

3.10 On-farm development works (land shaping and construction of watercourses and field channels) have beran started throughout the project area, with most of the work being done by the farmers themselves. In a small part of Block B, where water supplies are perennial, cropping intensitiesof up to 130% have been achieved on limited areas. In most of the block, however, after 12 years of irrigation,cropping intensitiesare still less than 80X, and only 70% of the land commanded is irrigable;most of the high dune areas in the command area are substantiallyuntouched. In Block A, after four years of development,only about 30% of the irrigable land is cultivated.

3.11 In general, the project area has had an assured irrigation supply only in the kharif season. Following the completion of the Pong Reservoir in 1974, water supplies will be perennial for the entire area. Full benefits from this supply cannot be achieved, however, until canal lining works and land development are completed. At present, water supply is inadequate,as large amounts of water are lost due to seepage along some 5,000 km of unlined watercourses.

AgriculturalProduction

3.12 Without irrigation,agricultural production in the project area is characteristicof a semi-arid desert zone. Only in one year out of five is rainfall sufficient to support a full millet crop in the kharif season, and gram or mustard in the rabi season. Most of the area's production has been based on extensively grazed livestock. With the introductionof irrigation, a wide range of crops has become feasible. Cotton, wheat, and pulses are the main crops with mustard, sorghum, berseem (fodder),and some vegetables as minor crops. Paddy is grown as part of the tal soils reclamation process. The very small sugarcane production is solely for on-farm consumption. Present yields of the main crops, cotton (1.2 ton/ha) and wheat (1.6 ton/ha), are low and reflect the limited supply of water and other farm inputs (fertilizer,quality seeds and plant protection),combined with unimproved farm practices.

3.13 Farm animals include large numbers of draft oxen, milk cows and camels. Farm activities are almost entirely carried out by hand or with animal power. Custom hiring of tractors is, however, on the increase and would be essential for the initial cultivation of the tal soils. Details of agriculturalproduction are presented in Annex 13.

Marketing and Transportation

3.14 Bullock carts are the normal means for transportingproduce to the town markets (mandis). Marketing conditions are regulated by GOR through local committees. Recent shortages have led to black market prices well above Government support prices.

3.15 The main population centers, Bikaner, Hanumangarh, and Ganganagar, near the project area are connected to the all-India rail and road networks. Withfn the project area, however, only a skeletal road system exists. Block B is relatively well served, being interconnected to the adjacent townT of Suratgarh and Hanumangarh with their well-developedmarketing, processing,and storage facilities. By contrast,Block A has only a single, all-weatherroad along its main axis from the established townshipsof Bijeynagar and Anupgarh in the north, to the small communitiesof Gharsana and Fawala ln the south. The existing conrnectionbetween Blocks A and B is along the single tenuous route from Suratgarh to Bijeynagar. A single road links Gharsana to Bikaner, the administrative headquarters of the regica. The very few village roads are passable only with difficulty, Substantial road improvementsare required, especially for the transport of the large marketableagricultural su=plus, which would be generatedby the project. Details of the road network are presented in Annex 3.

Environmentand Health

3.16 Without irrigation,the northern Rajasthan desert is a harsh environment. With the introductionof irrigationin the RCP area and in the Gang/Bhakraareas several years ago, the environmentis being improved through the planting of shelter belts along canals and roads. Similar measures, together with controlledpasture development to arrest the shifting sand dunes, are required in the project area.

3.17 Experience in the Gang/Bhakra area, and in the developed parts of the RCP area, has shown that health improvement has generally followed irrigationdevelopment, as settlers have gained access to more modern health facilities. Much remains to be done, however, particularlyin preventive medicine. As the population density grows in the project area, the danger of major infectiousdiseases will increase and effectivesurveillance and control measures will have to be introduced,including the provisionof sanitary water supplies (para 4.09).

Present Problems

3.18 GOR's efforts to increase agriculturalproduction in the project area are currently constrainedby the following factors:

(a) Lack of land leveling of the high dune areas and lack of land reclamationof some of the tal soils;

(b) The absence of lined watercourses,which reduces water availabilityand limits the introductionof a rational water management system;

(d) An inadequateroad network, resultingin high transport costs and a hindering of permanent settlement in Block A; -9-

(e) An extension service which is only partly effective, due to organizationalproblems and a lack of training;

(f) Lack of adequate dune stabilizationworks and measures to control wind-blown sand, causing high maintenance costs for canals and roads and hindering farming operations;

(g) Shortage of essential inputs, mainly fertilizers;and

(h) Insufficientcoordination between the Government agencies responsible for the various services to agriculture.

The proposed project would attempt to overcome these problems.

IV. THE PROJECT

4.01 The proposed project would provide for improved irrigation facilities and roads, land developmentworks, supporting agriculturalservices to some 33,000 small farming families, constructionof village water supplies and implementationof an afforestationprogram.

Project Works

4.02 The project works have been selected on a priority basis, within organizationaland budgetary constraints. The physical works and inputs to be financed under the project are described briefly below and in more detail in Annex 3.

4.03 Land Development - Preliminary surveys show that an estimated 58,000 ha of sand dunes within the irrigable command area (200,000ha) have not been leveled by the settlers and are presently unirrigable. On the basis of a detailed topographicalsurvey of the area, to be carried out under the project, these lands would be divided into two categories. Category I would cover land which the farmer, using his own equipment, could level over the next five years. Category II, which is estimated at 32,000 ha, would require mechanical means and more sophisticated leveling techniques (Reference 1) and would be carried out by the project authority.

4.04 Reclamation of some 17,000 ha of the most seriously affected saline tal soils would be carried out, using heavy equipment for deep plowing and subsoiling,prior to leaching and rice cultivationby the farmer. Before commencingwith the reclamationwork in this area (includingthe lining of watercourses), GOR would carry out a study of reclamation techniques, their cost, and the economic justification of these works. This study would help to determine the required subsidy level on these soils, and the miostappro- priate reclamation techniques. Results of the study would be forwarded to - 10 - the Association within two years of Credit signing. Farmers would reclaim another 17,000 ha of less seriously affected tal soils by themselves with technical supervision provided under the project.

4.05 Concurrently with the implementation of land leveling, some 5,800 km of watercourses would be lined. Existing watercourses would be realigned where necessary, reshaped and lined with one course of brick tiles.

4.06 Lining of the Irrigation System - Canal lining would increase canal carrying capacities and reduce seepage and operational losses. The works are essential to increase irrigation intensities in the project area, as present carrying capacities and conveyance losses limit water deliveries to the farms. A total of 915 km of canals would be lined with a double layer of 5 cm thick brick tile set in cement mortar.

4.07 Afforestation - The afforestation component would be vital in mitigating the harsh environment in the project area and would also reduce canal and road maintenance costs. Under the project, about 5,700 km of canals and roads would be provided with shelter belts to stop windblown sand from clogging and covering them. Some 35,000 ha of uncommanded high sand dunes bordering on irrigated land would be stabilized and planted with shrubs and grasses for controlled pasture development (Reference 2). Irrigated village firewood plantations would be established on 1,800 ha.

4.08 Roads - The project includes 431 km of major market, feeder and village roads, in order to provide adequate access to all villages in the project area. The lack of drainage problems and favorable foundation conditions along the proposed road alignments make construction of the network relatively cheap. A description of each road included in the project is given in Annex 3.

4.09 Domestic Water Supply - Existing village water supplies are unsanitary. The project would introduce a filtered and disinfected water supply in 100 villages thus considerably reducing the danger of waterborne diseases.

4.10 Fertilizers - Land leveling works would disturb the soil profile and result in a temporary loss of fertility. In addition, the project farmors would assume a heavy debt for the cost of land development which could only be repaid if satisfactory yields were obtained. Under present conditions of fertilizer shortage, GOI allocations, even to irrigated areas, are likely to fall well short of requirements. It is important therefore that the farmers have guaranteed access to fertilizer and the project includes provision for the import of 46,000 nutrient tons of various fertilizers (Annex 12), which would supply the difference between present allocations and recommended levels of use for the first three years after land development. As this fertilizer would be needed to restore soil - 11 - fertility,it may properly be regarded as a capital expenditure. GOI agreed to allocate yearly to the State of Rajasthanbetween 1975 and 1984 fertilizer in the quantity and of the types financed out of the proceeds of the Credit. On its part, GOR undertook to ensure that fertilizerin the quantity and of the types to be financed out of the proceeds of the Credit would be made available to farmers in Block A and B of the project. GOI and GOR also confirmed their respective intention to take all steps as shall be reasonable to ensure that the balance of farmers' fertilizerrequirements over that part financed under the project would be met and to keep the Association informed if there is any shortfall in the forecast availabilityof such fertilizer. Further details of fertilizerrequirements and the arrangements for the distributionand monitoringof the sale of such fertilizerare presented in Annex 12.

4.11 Other Project Components- Vehicles and equipmentwould be provided for project administration,construction of the force account portions of the work, and for the agriculturalsupport services. The project also includes financial provisionsfor project administration, extension services and the operation and maintenance (O&M) of the physical facilitiesduring the project implementationperiod. Since Block A is largely uninhabited, each major works item includes a componentfor temporarybuildings for offices and staff housing during construction. Some of these buildings would be suitable for later conversionto offices and housing for O&M and extension personnel.

Water Supply, Demand and Quality

4.12 Water Supply - Water far crop productionin the project area would be derived mainly from stream flow originating in the Ravi and Beas Rivers and diverted to the Rajasthan Canal through the Harike Barrage on the Sutlej River below its confluence with the Beas River (Map 10884). Hydrological records of both rivers and reservoir operations studies of Pong Dam on the Beas River and the proposed Thien Dam on the Ravi River indicate (tentatively) that an annual supply of about 9,000 Mm3 to the RCP area is available seven years out of ten; the presently designed RCP diversionpattern makes 52% of this water available in the June through October period and 48% available in November through May. Reservoir releases for irrigationhave priority over hydroelectricdemands.

4.13 Water Demand - The projected cropping pattern (130% cropping intensity) has been devised to maximize returns to the farmers from the expected amount of water to be deliveredto them and includes 96% of comparatively lightly irrigated crops such as mustard, gram, millet together with 34% of the more heavily water demandingcrops such as cotton, paddy, fodder, and sugarcane. It also conforms to the seasonal diversion release pattern described in para 4.12 above. Yearly effective rainfall, taken as 50% of the average rainfall in the project area, is about 140 am. The projected cropping pattern water demand would require a gross supply of 1,860 Mm3 per year for the 200,000 ha area at an estimated 65% overall irrigation efficiency; the correspondingwater demand, if the whole 540 000 ha Stage I area were developed to similar standard, would be 5,100 Mm1 per year. GOR has agreed to ensure that sufficientwater would be diverted to the project area to permit an irrigated cropping intensity of 130% per year in seven years out of ten.

4.14 The present ove_all irri6ation operating efficierLcy in the Stage I RCP area is only 35% to 430 due to leakage from unlined channels, :nadequate operating procedures and poor on-farm water management. The maximak cropping intensitywhich could be achieved in the future with the present irri- gaticn system and water management practices is estimated to be about 90%. The project would remove existing constraintson better water use by implementing a fully lined canal system, institutingnew operation procedures, assisting the constructionof permanent field channels on the farms, and providing guidance to farmers on better water management. These measures would result in a rapid increase in irrigationefficiency to an estimated 65% after project completion. Arrangementswould be made under the project for continuousmonitoring of water conveyance losses in the main distribution system and irrigationefficiencies on the farms.

4.15 Until the entire RCP area is developed (10 to 15 years), there will be large surpluses of water. However, unless the whole area is fully equipped and developed to the standards envisaged in the present project, it would not be possible to irrigate the entire 1.15 million ha with the water supply available in the future.

4.16 Water Quality - The quality of the Indus Basin water, which is diverted to the RCP, is high and suitable for sustained irrigation. Exist- ing groundwateris saline and unsuitablefor irrigation or domestic water supply. Details of water supply and demand are given in Annex 4. EngineeringDesign

4.17 Designs for land developmentworks would be prepared by the Land DevelopmentCircles of the Command Area Authority on a chak-by-chak basis. Designs for some 6,000 ha are already available and appropriate land leveling standardshave been drawn up (Reference 1). In order to prepare detailed designs for each farm in the estimated 58,000 ha area requiring land leveling (32,000 ha by the project authority and 26,000 ha by the farmers),some 87,000 ha would have to be surveyed. Contract drawings for canal lining works would be prepared by the IrrigationCircles to the ~,CPstandard, which is acceptable. Road work designs and drawings would follew Indian Roads Congress staidards (Annex 3) which are acceptable, and woul,1 be undertaken by the PWD. A typical outline design is available for thtie -illage water supply, storage and treatmentworks. This mode' design *oulA be modified by the Water Supply Department to fit conditions at individual viilage sites. - 13 -

ConstructionMethods

4.18 Labor intensive methods would be used for most of the project construction. However, contracts would provide for mobilization advances to enable contractors to purchase simple tools and equipment where appropriate to increase the productivityof labor. Certain kinds of works, notably heavy land leveling and compaction of roads, would require machinery. For land leveling, a 105 hp crawler tractor and a 6 yd3 scraper have been proposed as the basic machines (Reference1), while for lighter land shaping, a small tractor-drawn scraper or a land plane would be used. For all operations, trucks and field vehicles, workshop, survey and office equipment would be required. Equipment to be procured under the project is listed in Annex 7.

ImplementationSchedule

4.19 Project implementationwould take about six years (Chart 8638). Land developmentworks would take five years to complete and the speed of executionwould be governed by the rate at which detailed survey plans for land leveling are prepared and agreed with the individual farmers. GOR has already started detailed survey work on 30,000 ha to reduce delays to a minimum. Land development plans must be completed at least nine months before construction.

Cost Estimates

4.20 Total project costs are estimated at US$174.0, of which the foreign exchange componentwould be US$47.1 or 27% of total project cost. Esti- mated costs are based on price levels prevailing in December 1973 and include the effects of a sharp increase in the costs of gasoline and diesel just prior to that date. Expected price increases for civil works and fertilizers, beginning at 17% in the first year and tapering to 11% in the third year and varying similarly between 12% and 7% for administrativeand operating costs, have been included and are considered reasonable since the projetctwould be constructedby labor-intensivemethods and the cost of labor in India is not expected to rise as rapidly as world commodity prices. Estimated price increases equal 45% of the basic cost of the total project. Physical contingenciesvarying between 10% and 20% have been included, according to the status of planning and design. A breakdown of project costs is presented in Annex 6 and is summarized below: - 14 -

% of Item Local Foreign Total Local Foreign Total Total ------Rs million------US$ million-----

Canal Lining 233.6 42.4 276.0 29.2 5.3 34.5 20 Roads 54.4 6.4 60.8 6.8 0.8 7.6 4 Afforestation 40.0 4.8 44.8 5.0 0.6 5.6 3 Village Water Supply 14.4 1.6 16.0 1.8 0.2 2.0 1 Land Development 234.4 58.4 292.8 29.3 7.3 36.6 21 Supplementary Fertilizer 8.0 149.6 157.6 1.0 18.7 19.7 12 Project OperatingCost 63.2 6.4 69.6 7.9 0.8 8.7 5

Sub-total 648.0 269.6 917.6 81.0 33.7 114.7 66

Physical Contingencies 49.6 10.4 60.0 6.2 1.3 7.5 4 Estimated Price Increases 317.6 96.8 414.4 39.7 12.1 51.8 30

Total Project Cost 1,015.2 376.8 1,392.0 126.9 47.1 174.0 100

Financing

4.21 The proposed IDA Credit of US$83.0 million would finance the foreign exchange component of the project (US$47.1million) and 28% of the local costs, or 48% of the total project cast. The Credit would be made to GOI. GOR would finance canal lining, village water supply, roads and afforestationworks from its developmentbudget, which includes a GOI contribution. Operationand maintenancecosts would be financed by GOR from its regular budget.

4.22 Assuranceswere obtained from GOI that: (a) the proceeds of the Credit, except disbursementsfor on-farm developmentand fertilizer,would be made available to GOR; and (b) that GOI would cause GOR to make arrange- mientsin its annual developmentplans for the provision of funds required for the implementation of the project in accordance with a detailed implementation schedule which shall be acceptable to IDA. At the same time, COR has agreed to furnish to the Association, not later than February 1

',n each year, a detailed project implementationschedule acceptable to the Associationfor the next fiscal year.

4.23 Fertilizer purchases under the projectwould be financed directly by the Credit. On-farm developmentworks would be financed mainly by the farmers, using credit funds provided by GOI and the commercial banks. De- tails are given in paras 5.08 to 5.12 and Annexes 7 and 8. Commercial bank loans would be refinanced 80% by the AgriculturalRefinance Corporation (ARC) of the GOI, a sound institutionwhich has been the channel for several previous IDA Credits. A condition of effectivenessof the proposed Credit would be that a SubsidiaryLoan Agreement satisfactoryto IDA had been executed between GOI and ARC. - 15 -

Procurement

4.24 Vehicles and Equipment - The estimated cost of vehicles and equipment for project management,force account constructionand for hire to contractors (Annex 7), is US$10.2 million.. Out of this total, US$6.3 million would be subject to internationalcompetitLve bidding in accordancewith Bank Group Guidelines. A preference limited to 15% of the cif price of imported goods, or the prevailing customs cuty if lower, would be extended to local manufacturersin the evaluationof bids. About US$1.0 million worth of equipment and vehicles, consistingof groups of contracts costing less than US$100,000each, which for reasons of efficiency are not suitable for internationaltendering, would be purchased through normal GOR procurement procedures,which are satisfactory. The balance of US$2.9 million, consisting of field vehicles and five ton trucks would be reserved for local procurement and would not be eligible for reimbursement out of the proceeds of the Credit.

4.25 Civil Works - A review has been made of the suitabilityof the project civil works for grouping into large contracts. The following conclusions were reached (amounts shown are basic costs, net of physical and price contingenciesbut include the cost of materials such as cement, steel and coal, which are supplied by GOR at a fixed price to the contractors):

(a) Canal lining works (US$34.5million) - Canal lining works would have to be carried out within the brief periods of canal shutdown (normally 15 days per month). The UNDP Studies (para 1.02) showed that the least cost method of lining is with brick tiles manufacturedat a large number of scatteredbrick kilns, each operated from a small clay deposit located in the vicinity of the constructionsite. Under these conditions,it would not be feasible to group these works into large contracts;

(b) Roads (US$7.6 million) - Because of the need for the road program to keep pace with the other project elements the works must be spread over six years. The road works would have to be grouped into one large contract in order to be of any interest to large contractors. This would be an inefficient procedure for what are basically simple repetitive tasks which could be performed by small contractors using labor intensive methods at lower costs. Moreover, in the case of a large contract the problem, both for the contractor and the PWD engineers, in coordinatingthe road- works with the execution of other project elements outside the contract, would be difficult and likely to result in unnecessary high construction and supervision costs; - 16 -

(c) Village Water Supplies (US$2.0million) - These works would be individuallysmall and scattered over 100 widely dispersed sites and over a 6-year period. They would thereforenot be suitable for grouping into a single contract; and

(d) On-Farm Development (US$36.6 million) - These works would need to be planned and executed at short notice to coincide with the acceptance of land developmentplans by the farmers, as well as to avoid the growing season. On a particular farm of 6 ha, three different implementationprocedures may be required: leveling by the farmer using his own labor and implements, leveling by a small local contractor using camel carts and labor gangs, and heavy machinery for leveling a high dune. For these reasons, the on-farm development works cannot be grouped into large multi-year contracts.

Because of the conditions in the project area just described and the nature of the works to be carried out - the improvementand upgrading of an operating irrigationsystem - none of the civil works could be grouped into contracts large enough to be of interest to internationalcontractors. It is therefore proposed to carry out the works by small, mainly annual, contracts to be advertised locally or, where this is not practicable,by force account. Force account works would probably include about 60% of the on-farm works, or about 27% of all the civil works. The firms likely to bid on small contracts would not possess the necessary equipment. For road works, the necessary equipment would be simple and unlikely to be misused and would therefore be hired out by the project organization to successful bidders. Part of the on-farm developmentworks require more sophisticatedmachinery and it has not been possible to devise a method of making such machinery available to contractors. Therefore, the portions of these works requiring sophisticatedmachinery would be executed by force account.

4.26 Fertilizer- For efficiency, procurement of fertilizerunder the project would be combined with the regular bulk procurement of fertilizer by the India Tender Board, which is responsible for procuring India's entire needs for imported fertilizer. Because of the present extremely tight world supply situation, the India Tender Board's current procedure provides for "internationalshopping", which includes seeking price quotations from possible suppliers,followed by price negotiationswith the bidders to obtain the lowest price. Under the present scarcity conditions, and given the fact that the project fertilizerwould be procured in the first year of project implementation,the above procedure would be satisfactoryprovided at least three quotations are invited.

Disbursements

4.27 Disbursementswould be made at the rate of 100% against the cif cost of directly imported equipment and fertilizer,or the ex-factoryprice for equipment manufacturedlocally, and at the rate of 70% for imported equipment procured locally. Disbursementsfor civil works carried out by - 17 -

contractors and by force account would be on a percentage basis. Disburse- ment for force account would be made against a certificate of expenditure from the Command Area Authority,the documentationfor which would not be submitted for review but would be retained by the Authority and would be available for inspectionduring project supervision. The estimated schedule of expenditureson the project, the proposed allocationof the proceeds of the Credit, and a semi-annualdisbursement schedule are presented in Annex 8. Any savings in the Credit account would be reallocatedby increasing the percentagedisbursement for civil works. It is expected that disbursementswould be completedby June 30, 1981, about one year after completionof project construction.

Accounts and Audits

4.28 The Command Area Authority (CAA), as part of a GOR department, would be subject to the usual Government control and auditing procedures. Assuranceswere obtained from GOR that the accounts and financialstatements of the CAA would be audited each year in accordancewith sound auditing principlesand that certifiedcopies of such financialstatement and the report of such audit would be submitted to IDA within four months after the end of each fiscal year.

4.29 A similar assurancewas obtained from GOR in respect of the Rajasthan Land Development Corporation (RLDC), except that independentauditors would be required. Auditing proceduresfor ARC are laid down in previous Credit Agreements. An assurancewas also obtained that ARC would require the commercial banks participatingin the project (para 5.08) to maintain separate accounts for project lending; and ensure that the annual audited accounts of such banks (includingan analysis of overdues and bad debts) would be submitted to IDA within four months of the end of their fiscal year, together with a statement of project lending for such banks, certifiedby ARC.

EnvironmentalEffects of the Project

4.30 The project would do much to alleviate the harsh environmentof the command area. Afforestationworks would reduce erosion and the debili- tating effects of the hot sand-ladenwinds in May and June. A sanitary water supply in 100 of the project area villages would reduce the incidence of waterborne diseases. The project extensionservice would advise farmers on the judicious selectionand use of pesticides to minimize environmental damage. GOR is also consideringthe introductionof a program to monitor and control water-associateddiseases. is -

V. ORGANIZATIONAND MANAGEMENT

Project Implementation

5.01 This project is among the first of many command area development projecLS throughoutIndia scheduled for implementationin the next few -ears. Tnerefore, there has been concern ooth at the Central and State leve:s to devise organizationalarrangements which could be duplicated elsewhere. Because of the nature of the project, maximum coordinationof all project activities is necessary, and to achieve this, GOR has created a Com- mand Area Development Water Utilization (CAD & WU) Department at State level and the Rajasthan Canal Command Area Authority (CAA) in the project area. Full details are given in Annex 9.

5.02 The CAD & WU Department (Chart 8599) within the Ministry of Agri- culture, is headed by a Secretary, who is guided on policy matters by a Coordination Committee for Command Area Development. This Committee is chaired by the Chief Minister and includes the Ministers, Secretariesand other senior officials of all the departments concerned. To assist the Secretary CAD&WU in his day to day operations,a small coordinatingcommittee would be set up by the Chief Secretary GOR.

5.03 The CAA, which has been establishedby executive order, is headed by an Area Development Commissioner,an administratorwith the powers of Chief Engineer (Irrigation),Director of Agriculture,Revenue Divisional Comrissionerand Registrar of Cooperatives. The existing staff of the Irrigation,Agriculture, Revenue and Cooperative Departments in the project area would be transferredto the CAA by the end of 1974. As well as having direct responsibilityfor these functions, the Commissionerhas coordinating powers for roads, forestry,water supply and other relevant activities in the project area (Chart 8640). To assist in the latter functions, a Command Area ConsultativeCommittee is being set up, comprising representativesof the district administration and the departments not directly under the CAA. ThE GOR Public Works Department (PWD), Forestry and Water Supply Departmentswould each set up special Circles to design and construct their respective parts of the project works.

5.01, The CAA would be organized into four departments: Agriculture, heaeed by a Joint Director of Agriculture,responsible for research, extension and coordinationof the supply of inputs; Irrigation and Land Development, headed by a Chief Engineer (under the technical supervision of the Rajasthan Can.1 Board) who would be responsiblefor all irrigation and land develop- men:.;Cooperatives and Colonization,headed by a Joint Registrar, responsible for all colonizationactivities in the project area and for the setting up of -rillage cooperatives;and a Revenue Department, responsiblefor collection of taxes and for processing loan applications. - 19 -

5.05 Agreement was reached that the Area Development Commissionerwould be appointed in consultationwith GOI. The establishmentof the CAA, with organization,board membership and powers satisfactory to the Association would be a condition of effectivenessof the proposed Credit.

Rajasthan Land Development Corporation

5.06 The Rajasthan Land Development Corporation (RLDC) would be a statutory corporationto be set up under an Act, which has been drafted by GOR. This legislationwould, inter alia, empower RLDC to carry out on-farm development on a compulsoryb3sis. It would be a condition of effectiveness of the proposed Credit that RLDC has been duly established under the laws of Rajasthan with capitalization,board membership and powers satisfactory to the Association.

5.07 RLDC would have a Board of Directors, chaired by the Secretary, CAD & WU and including GOI and ARC representatives, the CAMCommissioner, the managing director of RLDC and other non-official members. The purpose of RLDCwould be to act as a financial intermediary for the on-farm development component of the project, which would be largely financed by credit to the farmers since GOR budgetary funds are limited. RLDC's share capital of Rs 100 million, would be subscribed equally by GOI and GOR and would be used as operating capital to provide advances to the CAM for on-farm works and equipment purchases. Full details of RLDC, including financial statements, are shown in Annex 10.

Financing of On-Farm Development Works

5.08 For on-farm developmentworks, a cost estimate for each farm would be prepared by the CM and passed to the RLDC. The RLDC would determine the farmer's eligibility for a commercialbank loan and, if eligible,would prepare a loan applicationwhich would be submitted to a selected commercial bank. The amount of the loan would cover the full cost of on-farm development less any subsidy (para 5.12). The banks would have the power to reject applicationsbut only on well-definedcriteria, which would be laid down under their refinancingagreements with ARC (para 4.23).

5.09 Commercialbank loans to the farmers would have a maturity of up to 15 years, with interest of not less than 9.5% and a grace period of not more than two years. The financial impact of these terms is discussed in para 6.07. These loans would be secured by a mortgage on the land holding and the banks would be solely responsible for loan recovery. ARC would refinance 80% of the commercial loans at its standard interest rate, currently 7%.

5.10 Farmers ineligible for commercial loans would receive an unsecured "special loan" from RLDC, using funds provided by GOI. The usual reasons for ineligibility include: lack of a clear title, arrears in loan repayments to - 20 -

Government agencies, and the refusal to accept a commercial loan. GORhas agreed to update land records and carry out a campaign to recover farmers' debts to the State and local Government agencies and banks before carrying out on-farm development in any area. Even with such a campaign, it is estimated that up to 20% of the on-farm works would require special loans.

5.11 Special loans would normally have stiffer terms than commercial loans, in order to give an incentive for farmers to become eligible for the latter. Farmers receiving special loans who later became eligible for a commercial loan would be encouraged to convert, so as to reduce RLDC's liabilities. However, farmers who are eligible for, but refuse to accept, commercial loans would have to pay an additional interest penalty. Special loans would be recovered through a surcharge on the existing land tax.

5.12 GOI would subsidize certain categories of disadvantagedfarmers under its program to alleviate rural poverty. These categorieswould include those farmers whose land leveling or reclamationcost is much above average. In these cases, which apply to about 10,000 ha, the subsidy would equal those costs of land leveling which are determinedby the CAA to be beyond the farmers' capacity to pay. GOI has agreed to send to the Association by the end of 1974, details of the guidelines to be applied in these cases.

AgriculturalSupporting Services

5.13 To maximize the benefits of the proposed investmentsin physical facilities,complementary and closely coordinated efforts are needed in all the agriculturalsupporting services. The present status and proposed improvements for each service are describedbelow. Reference 3 gives full details of the plan for extension services in the project area, which is being implementedby GOR. Other supporting services are described in detail in Annex 12.

5.14 Research - Varietal and crop trials research on the major crops is being undertaken in the project area and applied research on water use, fertilizerresponse and soil fertilityis being carried out at Barore and hanumangarhResearch Farms. These programswould be continued under the project, as they are well oriented to the needs of the area, and special emphasiswould be given to better irrigationand soil reclamationpractices. ^ project would firance some equipment and vehicles for the research stations atLs;kaner, Hanumangarhand Barore. Cooperationbetween research and extension personnelwould be facilitatedby a proposed Project Extension Council.

5.15 Extension - Extension activities in the project area are supervised at present by a Joint Director of Extension at the Regional level. Respon- sibility for extension work in the project area is divided between two District AgriculturalOfficers, one for each of the areas A and B, who are assisted at present by 27 AgriculturalExtension Officers and 75 Village Level Workers (VLW's), all of whom are employed by the Department of Agriculture. In addition, there are two AgriculturalExtension Officers and 35 VLW's who are employed by the panchayats (villagecommittees). While the basic extensionstructure is adequate,much needs to be done to improve its - 21 -

effectiveness. Progressive farmers would be enrolled as part-time workers under the new program, which also includes staff housing, equipment and vehicles, to be provided under the project. Extension efforts would be concentratedinitially on the major crops, with special emphasis on improvements not requiring cash outlays from the farmers. The extension program would be continuouslyevaluated and programs would be updated to meet the needs of the area farmers.

5.16 Soil Surveys - The soil survey unit of the RCP AgriculturalRe- search Organization is carrying out a detailed soil survey of the project area, which is 10% complete at present. This work would be continued with special emphasis on delineatingsodic soils.

5.17 Fertilizer - The project farmers are strongly aware of the need for fertilizer and would use optimum amounts, at least on high-yieldingvar- ieties of wheat, cotton, and paddy if supplies were available. Nationally, fertilizer supplies are about 60% of demand but, in the project area, availability seems to be as low as 30%. Fertilizers are allocated through cooperatives, private dealers and at agro-centers,with irrigated areas receiving a higher allocation. India's import program has had to be cut back because of a doubling of world prices and world-wide scarcities but recent Bank surveys show that the fertilizer supply situation in India should ease over the next five years, as new plants are constructedand the price of imports de- clines.

5.18 The need for assured supplies of fertilizer in the development period is critical because the project area soils are inherently poor in nutrients. Following land leveling in the dune areas and reclamation of the tal soils, a drop in fertility can be expected because the top soils are removed and leaching takes place. Supplementary fertilizer supplies would be procured under the project. Proposed arrangements for distribution are described in Annex 12. Project fertilizerwould be sold to the farmers at the prevailing market price.

5.19 Seed - The main source of new seed in the project area is the Department of Agriculturewhich supplies about 90% of the demand for hybrid varieties and 30% to 40% of the requirementsfor wheat seed, the remainder being supplied through private growers. GOR has recognized the need for state-wide improvementsin seed multiplicationand distributionand has agreed to prepare, within one year of Credit signing, a project to meet this need. As the projected benefits used in project evaluation are based on present conditions of seed availability, the proposed seed project would enhance the economic viability of the present project.

5.20 Farmers' Organizations. Existing farmers' organizationsinclude village cooperative societies and informal water users groups. There is a need to develop a strong irrigation association in each chak in order to ensure the timely distributionof irrigation water. Farmers' organizations required to disseminateextension informationwould be the responsibility of the extensionworkers. Village cooperativesocieties have not, so far, - 22 -

proved very successful in the project area. As population settlement and project area development is completed,there will be an increasingneed for multi-purposevillage cooperativesresponsible for credit, farm inputs and marketing. The Joint Registrar of Cooperativesand Colonization in the CAA would be responsible for guiding the formation of new cooperativesand strengthening the management of the existing ones.

Agricultural Credit

5.21 Sources of production credit in the project area include private money lenders, the cooperativas and commercial banks. Longer-term loans are provided by the Land Developamnt Banks and the comercial banks, Terms and conditions of the institutional lenders are satisfactory and some subsidies are available to disadvantagedfarmers. However, the overall lending volume is limited mainly by an unsatisfactory level of loan recovery. Total production credit requirements at full project development have been estimated at Rs 120 million per year based on an assumption that 75% of inputs would be purchased on credit. Much of this requirementwould be met through an expansion of the role of commercial banks. GOR has agreed to take steps to ensure adequate availability of production credit for project farmers from participating banks and cooperatives.

Operation and Maintenance

5.22 Operation and maintenance (0&1M4of the irrigation system would be the responsibility of the Chief Engineer, Irrigation and Land Development. In addition to his responsibilitiesfor project construction,he would be responsible for two O&MCircles operating in the project area. Each Circle would be responsible for a number of canal commands. Water would be supplied rotationally to blocks of 1,200 to 1,500 ha. The agricultural staff, in coordinationwith an irrigationadvisory conmittee to be set up for each block, would draw up irrigation schedules in accordance with the farm management plans. The schedules would be prepared at least three months before the start of each crop season. The VLW's of the extension service, together with the irrigation patwaris (ditchriders) would help farmers to implement the rotational schedules within each chak. The annual O&M cost of the system down to the chak outlet would be about Rs 36/ha. Roads would continue to be maintained by the PWDand funding would be increased to a satisfactory level, estimated at Rs 3,500/km. The village water supplies would be operated and maintained by the panchayats,with technical assistanceand chemicalsbeing provided by GOR's Water Supply Department. Details of O&M are given in Annex 11.

5.23 Assurances were obtained from GOR that it would furnish to the Association not later than February 15 in each year, estimates for the cost of operation and maintenance of the project works referred to above for the next fiscal year, in such detail as the Association shall reasonably request for the Association'scomments. - 23 -

Cost Recovery

5.24 Water charges are presently being levied on all land actually irrigated,with different rates for the various crops. The average charge per ha approximatesthe O&M cost of the irrigation system, or Rs 36/ha. The projected farm budgets (Annex 15) show that it would be within the capacity of the project area farmers to pay this O&M charge, in addition to land purchase and on-farm development loan repayments and a further levy to cover the cost of canal lining, assuming a GOI subsidy for those farmers with excessive leveling costs (para 5.12). New settlers are charged an average of Rs 16,755 for their land, paid over 15 years, which is intended to recover a substantial part of the costs already incurred in constructing the major irrigation facilities and other infrastructure. To recover a reasonable proportion (50%) of the cost of canal lining works under the present project, an additional charge of Rs 700/ha over ten years would be required. The present worth of the canal lining works, together with O&M costs over 30 years, would be Rs 286 million, using a discount rate of 12%. The estimated revenues from water charges and the lining charge would represent a cost recovery ratio of 40%. The exact amount of the charge and recovery terms would be established by a special GOR committee. Assurances were obtained from GOR that it would: (a) not later than June 30, 1976, levy and collect irrigation charges from farmers in the project area in amounts sufficient to cover the annual cost of operating and maintaining the irrigation system; (b) adjust the charges under (a) periodically to ensure that total yearly receipts from such charges equal the projected yearly operating and maintenance costs of the irrigation system; and (c) establish a committee and cause it to recommend, not later than December 31, 1978, arrangements for the recovery of project costs to the extent practicable, over a period of not more than 50 years, which would take into account the farmers' incentiveand capacity to pay. Upon receipt of the committee's recommendations,GOR would furnish them to IDA and after consideration of the committee'srecommendations, make arrangements for the recovery of such costs.

Monitoring of Project Benefits

5.25 A small group attached to the Area Development Commissioner would be responsible for monitoring project benefits, including the compilation of statisticson cropping patterns and yields, farm management surveys, and other special studies. - 24 -

VI. PRODUCTION,MARKEr PROSPECTS, PRICES AND FARMERS' INCOME

Production

6.01 The project would lead to a more intensive cropping pattern and higher yields. It would significantly inczease the marketable production of all crops, particularly wheat and cotton. Annual cotton production would increase from the current 23,000 tons to 115,000 tons at full devwelopment. Wheat production would increase from 38,000 tons to 276,000 tons. The diet-valuablepulses would increase from 9,000 tons to 36,000 tons aad fodder from 125,000 tons to 585,000 tons. The latter would be sufficient to sustain the animal stock required for farm cultivationactivities and domestic milk consumption. Millet would continue to be an important (kharif) cereal crop for local consumption. Paddy and sugarcane would be grown on small areas, the former on tal soils during the soil reclamation period. The present aud projected cropping patterns and production data are shown in Annex 13.

6.02 Under the project, cropping intensitieswould increase from 90% to 130% over 200,000 ha. In the kharif season, the increase would be from the present 41% to 56% and in rabi from 49% to 74%. The more intensive cropping reflects the increase of cotton and pulses in the kharif and of wheat, gram and mustard in rabi. Although most farm activities would continue to be carried out by animal power, farm mechanization,through private contractors, would increase to meet a more exacting cropping calendar. In the future, more and more of the land preparation work in the tal soils would be done by tractors,which are more suitable than oxen or bullocks for this work.

6.03 Present yields in most of the project area are constrained by shortages of water and fertilizers, and inadequate agricultural practices (particularlyplant protection, seeding rates, and irrigation practices). Estimated yields at full development (Annex 13) are based on yields now being achieved by the few farmers in the neighbouring projects who have access to reliable irrigation and have improved their agricultural practices. The projected yields also take account of the heavy extension effort to be provided as part of the project (Reference 3). As a result of the emphasis on extension work in the project, it is expected that 73% of full benefits would be reached by year eleven and full development would be reached in year 21. Without the project, new technology would be adopted slowly and yields would increase gradually, reaching "with project" levels only in year 25.

Market Prospects

6.04 By year six of the project, the marketable surplus of the four leadl'ngcrops is projected as follows: wheat - 170,000 tons; cotton - 82,000 tons; gram - 50,000 tons; and mustard - 26,000 tons (Annex 14). By comparison with the projected increase in national requirements,these marketable surpluses are quite small and could easily be absorbed. Following the construction of the proposed road network, access to potential markets in the neighbouring states of Punjab, Haryana and Uttar Pradesh would be siguificantly eased. Communications within the State of Rajasthan are satisfactory. - 25 -

6.05 Increasedproduction would requireadditional processing facilities and storage. Privatesector entrepreneurs, already active in the townsof Ganganagar,Hanumangarh and Suratgarh,are expectedto providethese. Cotton ginning and associated oil processing facilities have been established in response to increasing production from the Gang/Bhakra areas and are expected to increase their production capacity following the development of the project area. Flour mills, oil extraction mills and sugarcane processing mills exist in the area and are expected to increase their capacity with the build-up of production. Further details on marketing, processing, and storage are shown in Annex 14.

Prices 6.06 The farm-gate prices used for the major crops (wheat, cotton and millet)were derivedfrom Bank forecastsfor 1980 of world marketprices. These prices correspond with actual farm-gate prices in the project area in recent "normal" years. For the other crops, production is relatively small and is consumed domestically. Actual farm-gate prices over the last few years, adjusted to early 1974 price levels, were used both for ecouomic and financial analysis. Full details are given in Annex 14. Farmers' Income 6.07 As farmers in this area will have a considerable debt burden, their financial position was examined in some detail. Farms of 6.32 ha (6 ha net) on sandy and on tal soils were examined, over a period of 20 years. After making appropriate deductions for hired labor, farm inputs (such as fertilizer, seed and plant protection)and water chargesand allowinga family consumption of Rs 5,000 per year, the cash position of the project farmers was shown to be satisfactory. They would be able to meet their debt obligations on land purchase of up to Rs 20,000 and an on-farm development loans up to Rs 15,000. In most cases,however, one or two years'grace on the repayment of principal would be needed to cushion the new settlers against unforeseendifficulties and expenses(Annei 15).

VII. BENEFITSAND JUSTIFICATION

7.01 Upon completion, the project would provide year-round irrigation to 200,000ha including92,000 ha of new land developedunder the project. It would also bring 35,000ha of non-irrigablesand dunes surroundingthe irrigated areas under controlled pasture development, thus mitigating the present harsh desert environment. The project would complete a road network in this previouslyinaccessible area which would ensure the free flow of marketable agricultural surpluses and provide an essential means of social improvementfor the rural population.In Block A, the projectwould complete the long delayedland settlement,and, overall,the projectwould assist the permanentsettlement of 33,000landless farmers, who with their families, total about 200,000presently underprivileged people. Projectbenefits would accruelargely from the acceleratedland developmentof 92,000ha and from the increased cropping intensity and higher crop yields on the whol'.~ 200,000 ha - 26 -

area. The incrementalnet value of productionin Year 11 would be Rs 254 million and, at full development at Year 21, Rs 350 million.

7.02 At present, underemploymentof farm labor in the project area is widespread throughoutthe year with an estimated 24 million man-days annually available, compared with a demand of 8 million man-days. With the project, labor demand would increase to 29 million man-days, the incrementaldemand being equivalentto 70,000 fill-time jobs. The project would provide full employment for the farm families settled in the area as well as seasonal employment (in the cotton picking months of October and November) for an additional 100,000migrant laborers from adjacent agriculturalareas. In the prevailingregional climate of unemployment,this migration is a practicable propositioaand constitutesan additionalbenefit arising from the project. The average opportunitycost of incrementalfarm labor was evaluated at Rs 5.5 per man-day, which is 10% higher than the assumed normal market wage in the project area at peak seasons.

7.03 The economic rate of return (Annex 16) on the project is estimated to be about 25% based on the following assumptions: a 25-year project evaluation period; first benefits in Year 2 and full development in Year 21; all investmentcosts, excepting price contingencies,included; incremental farm labor costs evaluated at Rs 41.0 million at full development;and all inputs and outputs evaluated at projected 1980 market prices (expressed in 1974 constant prices).

7.04 The sensitivity of the rate of return to each of the important assumptions made in formulatingand evaluating the project was tested. The return was moderately sensitive to changes in benefits (the return declining to 18% with a decrease of 25% in benefits) and to changes in costing incremental farm labour requirements(the return rising to 28% when the incremental labour was costed at zero). The return is, however, rather sensitive to the rate of agriculturaldevelopment, which emphasizes the need for an effective extension service.

VIII. AGREEMENTSREACHED AND RECOMMENDATIONS

' AJ1 Assurances have been obtained from GOI that:

(a) it would allocate yearly to the State of Rajasthan between 1975 and 1984, fertilizerin the quantity and of the types financed out of the proceeds of the Credit (para 4.10).

Agreement was also reached with GOR on the following principal points: - 27 -

(b) fertilizer in the quantity and of the types to be financed out of the proceeds of the Credit would be made available to farmers in Blocks A and B of the project and all possible steps would be taken to ensure that the balance of farmers' fertilizer requirementsover that part financed under the project would be met (para 4.10); and

(c) GORwould levy and collect an irrigation charge in amounts sufficient to cover the annual cost of operating and maintaining the project facilities. These charges would be adjusted periodically (para 5.24);

8.02 Proposed conditions of Credit effectivenesswould be:

(a) that a subsidiary loan agreement satisfactoryto the Associationhad been executed between GOI and ARC (para 4.23);

(b) the establishmentof the CAA with organization,board membership and powers satisfactoryto the Association (para 5.05); and

(c) the establishmentof the RLDC with capitalization,board membership and powers satisfactoryto the Association (para 5.06).

8.03 The proposed project would be suitable for an IDA Credit of US$83 million. The Borrower would be India.

ANNEX1

INDIA

RAJASTHANCANAL COMMAND AREA DEVELOPMENTPROJECT

Climatic Data

1. The climate of the project area is semi-arid and three seasons may be distinguished: the kharif or wet season (June to September),the cooler rabi or winter season (October to February) and the very hot premonsoon season (March to May). Very strong and hot winds are common in the premonsoon season causing severe sandstorms which blot out the countryside sometimes for several days. The mean average yearly rainfall over the project area is about 300 mm (Table 1), with wide variations from year to year. Although low temperaturesare occasionallyrecorded, the average daily minimum for the winter months is about 8C and the area is frost-free. Humidity varies considerably, it is low during the premonsoon hot season, moderate during the cooler rabi season and high during the latter part of the monsoon season. Pan evaporation totals some 3,000 mm/year at Hanumangarh Research Farm.

2. The main climatic constraint under non-irrigatedconditions is the short duration of the wet sea3on and the low and very variable rainfall. Millet (bajra) and sorghum (jowar) can be raised in the kharif season if rainfall is between 200 mm to 300 mm. Using stored soil moisture in above average rainfall years, a crop of mustard or gram can be grown in rabi.

ANNEX 1 Table 1

INDIA

RAJASTHANCANAL COMMAND AREA DEVEIOPMENTPROJECT

Climatic Data

Station: Ganganagar (30-year record)

Air Temperature Mean Mean Highest Lowest Mean Mean Daily Daily in the in the Relative Mean Wind Month Maximum Minimum Month Month Humidity Rainfall Speed ------…°C------%- -- mm--- ka/hr

January 20.5 4.7 25.2 0.6 48 14.6 4.0 February 24.1 7.5 27.6 2.1 55 9.4 5.0 March 29.6 11.1 35.8 6.3 47 13.6 6.4 April 36.3 13.2 42.1 12.5 31 5.6 6.8 May 41.5 24.o 46.1 18.2 25 11.6 8.0 June 42.1 28.0 46.2 22.3 36 35.5 10.7

July 38.8 28.1 43.5 24.0 55 68.7 13.3 August 37.3 26.9 40.6 23.8 63 76.8 8.0 September 36.6 24.1 40.2 19.9 54 40.5 6.2 October 35.0 17.0 38.2 11.7 43 2.8 4.7 November 39.4 8.9 33.6 5.5 47 1.6 3.3 December 23.3 5.5 27.8 2.0 59 6.6 3.4

Average Annual Rainfall:,287 mm

ANNEX2 Page 1

INDIA

RAJASTHANCANAL COMMAND AREA DEVELOPMENTPROJECT

Topographyand Soils

General

1. The 1,150,000ha RCP area is situated in the ancient inactive flood plain of the eastern branches of the Indus River system. The 235,000ha 1/ project area is located in the northwesternquadrant of the RCP project area (Map 10884). In geologicallyrecent times, parts of the flood plain alluvium have been covered by wind blown sand dune formation,resulting in a gently rolling topographyinterspersed by fairly large expanses of completelyflat land,

Topography

2. The RCP area has been mapped by the Survey of India and the irrigation departmentat a scales of 1:63,360 and 1:15,840with 1 ft contour intervalsin the flat parts of the area and 3 ft contour intervalsin the rolling parts. More than a quarter of the project area is in need of various degrees of land leveling. Preliminaryestimates indicate that approximately 32,000 ha of low to medium height dunes will have to be leveled using heavy machinery.

Soils

3. Two main soil groups have been identified,viz, flood plain soils and aeolian soils. 2/ The flood plain soils are deep, calcareous and generally saline-alkaline(sodic) in varying degrees; they are highly strati- fied and extremelyvariable within short distances;their water retention capacity is good. The aeolian soils cover the sandy plains, parts of the intez-dunalflats and the high dune areas. They are generally deep, coarse- textured, calcareous,of low fertility,highly susceptibleto wind erosion and excessivelypermeable. An occasionalcalcareous hard pan at 50 - 100 cm depth may reduce drainability. Both soil groups have been successfullyir- rigated in Block B of the project.

I/ This includes 200,000 ha of irrigable land and 35,000 ha of unirrigable high sand dunes.

2/ Semi-detailed soil surveys were carried out by GORwith UNDP assistance in the UNDP/FAOProject, IND 24, "Soil Survey and Soil and Water Management Research and Demonstration in the Rajasthan Canal Area". ANNEX 2 Page 2

4. A semi-detailed soil survey has grouped both soil types into irrigation capability classes, withi constraints marked with an identifying letter, as follows:

(s) = excessively sandy soil;

(t) = rolling topography requiring leveling; and

(d) = drainability, i.e. heavier soils with drainage constraints. 1/

The irrigation capability is classed II, III, IV in descending order of suitability. No soils below Class IV are included in the project area. The following table gives the classification of the project area soils:

Irrigation Capability Classification Block A Block B Total ------h-ha-

Already irrigated 36,000 72,000 108,000

Flood plain soils requiring reclamation (IIId and IVd) 34,000 - 34,000

Low sand dunes requiring leveling and shaping (IIIt and IVt) 30,000 28,000 58,000

Totals 100,000 100,000 200,000

5. The high dune areas, covering an additional 35,000 ha of VIt soils within the project area, have been excluded from irrigation development but are proposed for sand dune stabilization and controlled pasture development works.

b. Some 34,000 ha of IIId and IVd soils, known locally as tal soils, in Block A require reclamation by leaching and heavy plowing, associated with minor soil amendments; of these areas some 17,000 lha are more severely affected and would require reclamation by the project authorities. Farmers -uldi reclain another 17,000 ha of less seriously affected tal soils by themselves with technical supervision from the project.

7. During project preparation, the irrigability of the IIId and IVd class soils was investigated. Doubts about the irrigability of these soils relate to both the apparently high level of salts and to the capability of thiese hieavierlenticular soils to mainitain through-profile drainage. Previous experimental work at Barore Research Farm, and by farmers in the

1/ These drainiageconstraints relate to the top 50 cm of the soil profile and have been successfully overcome during cultivation, which has included leaching and plowing. ANNEX2 Page 3 project area had demonstratedthat reclamationof these soils by leaching (associatedwith wet paddy cultivationover periods of up to five years) was feasible. However, it was concluded that more detailed and systematic investigationswould be needed. For this purpose, a number of experimental plots were set up and additional soil sampling and testing carried out during project preparation. Model treatmentsapplied included the following, singly and in combination:

(a) leaching;

(b) addition of gypsum;

(d) addition of sand; and

(e) growth of green manure crops.

8. These experimentsare still incompletebut results to date tend to confirm that most of the tal soils are amenable to reclamation through simple leaching. The investigationsalso indicated that chemical analyses carried out by the UNDP project apparently overestimated the salt content in these soils due to faulty methodology. Infiltration and permeability tests showed, however, that certain sub-groupsof the heavier and sodic tal soils presented a more lasting problem although, again, these were not believed to be intractable. Farms in this soil category were visited during appraisal and the mission agreed with the earlier findings of a Bank mission 1/ that these soils, estimated to be not more than 17,000 ha, would require special attention under the project. The precise extent and location of these soils would be finalizedby the project authority, during detailed land development surveys. Before commencing with the reclamationwork in this area (including the lining of watercourses),GOR would complete the experiments already initiated,as well as carry out an additional study of reclamationtechniques, their cost, and the economic justificationof these works. This study would help to determine the required subsidy level to farmers who cultivate these soils, and the most appropriate reclamation techniques. Results of the study would be forwarded to IDA within two years of credit signing. For cost estimate purposes, the followingworks and services were assumed to be carried out under the project:

(a) deep and repeated plowing by tractors;

(b) addition of gypsum;

1/ A mission of soils experts composed to Messrs. M. Fireman (IDA), 14.Peters (USBR) and R. Winger (USBR) appraised these soils in June 1973. A detailed report is on file. A'NEX 2 Page 4

(d) special supervisionby the Extension Service including introductionof practices proven on the research farm and during on-farm reclamationtrials. ANNEX3 Page 1

INDIA

RAJASTHAN CANAL COMMAND AREA DEVELOPMENTPROJECT

Project Works

A. Past Development

1. The Rajasthan Canal Project was conceived in 1948 with the objective of conveying part of India's share of the Indus waters, in a 214 Km feeder canal through the intervening State of Punjab, to the northwest desert lands oi Rajasthan. The Harike diversion barrage on the Sutlej River was completed in 1952 and work then continued on the feeder canal. The Main Canal alignment in Rajasthan was finalized in 1954 and the irrigation command area (Map 10883) surveyed in detail between 1957 and 1960.

2. On the basis of a detailed project report prepared by the Central Water and Power Commission (CWPC), the project was approved by the Planning Commission and sanctioned by GOR in 1958. Construction commenced in the same year and in 1961 water became available in the upstream parts of Stage I (Block B).

3. From 1963 onwards, both the scope and the details of the project were gradually modified and in 1971 GOR reported 1/ that the main features of the revised project were to be as follows:

(a) Irrigation sources - Beas and Ravi Rivers;

(b) Storage Reservoirs - Pong (Beas River) and Thien (Ravi River);

(c) Link Canals - Connecting Thien reservoir to Beas River; and Pandoh diversion dam on the Upper Beas River to the Bhakra Dam on the Sutlej River.

(d) Annual Water Diversion: 9,900 Mm3 2/ at Harike Barrage on the Sutlej River below its confluence with the Beas River;

1/ Government of Rajasthan "Report on Development of the RCP Command Area", May, 1971.

2/ 9,000 Mm3 is tentatively estimated as available in seven out of ten years (see Annex 4). ANNEX3 Page 2

(e) Rajasthan Feeder Canal (lined): 214 km long from Harike Barrage to the head of the RajasthanMain Canal;

(f) Rajasthan Main Canal (RMC) (lined) 1/: 472 km long with a head discharge of 530 m3/s;

(g) DistributionSysten (lined) 2/: Approximately6,000 km of branch, distributaryand minor canals;

(h) Irrigation Command Area (net): 1,150,000ha; 540,000 ha in Stage I and 610,000 ha in Stage II;

(i) Irrigation Intensity: 110%;

(j) IrrigationEfficiency: 70%; and

(k) Total Estimated Cost: Rs 2,700 million (US$338million).

4. The 1971 report also stated that if funds were available to the Rajasthan Canal Board at the rate of Rs 120 to 130 million per year, the RCP could be completed in ten years.

5. By the end of 1973, some 400 km of the Rajasthan Feeder Canal and the RMC were completed, togetherwith the entire distributionsystem for Stage I; the distributionis still, however, unlined. Constructionof the Main Canal is continuing in the Stage II area.

6. In 1966, IDA provided a Credit of US$23 million (89-IN) to finance part of the equipment needed for the Pong Dam, the Pandah Dam, the Beas- Sutlej link canal (Map 10884) and associatedhydro-electric developments. The remaining foreign exchange costs were financed by the United States. With the commissioning of the Pong Dam in 1974, a perennial water supply will be available for the Stage I area. The smaller Thien Reservoiron the Ravi River, expected to be built during the next five years, will further increase the availablewater supply.

B. Present Problems

7. Throughout its twenty years' history, the project's progress has always been constrained by insufficient budgetary allocations. Moreover, irrigation criteria have altered greatly since the original project concept; from a rather extensive irrigation concept the emphasis has changed to intensivewater applicationrates and a fuller use of the irrigated land.

1/ GOR decision to line the RMC was taken in 1963.

2/ GOR decision to line the distributionsystem was taken in 1967. ANNEX3 Page 3

In order to satisfy these requirements,1/ with the same gross allocations of water, the irrigationsystem (which originallywas planned with only the RajasthanFeeder Canal lined) was gradually replannedwith a fully-lined distributionsystem; additional funds to date, however, have been provided miinly for lining of the RMC.

8. Considerableamounts of water are wasted today in the unlined distributioncanals and along the farmer-builtwatercourses serving the individualfarm holdings; the result is a limited and intermittentwater supply at the outlets to the farms.

9. Water distributionto the fields and on the fields is also unsa- tisfactoryas the fields are poorly leveled and lack proper field channels. After more than 10 years of irrigation,many farmers in Block B of Stage I have managed to level only some 70% of their land and even this land is in most cases only roughly leveled. On a large part of Block A, after three to four years of irrigation,only 30% of the land is cropped annually. Block B is fully settled but Block A is only sparsely inhabited and largely devoid of essential infrastructuresuch as markets, roads, village water supplies and dune stabilizationworks.

10. The Governmentof Rajasthan (GOR), realizing the inadequaciesof the project as described above, has devised a six-year program to correct the above deficiencies,on about 200,000 ha (40% of Stage I area). The present project would constitutethe first stage of developmentof the whole command area of the Rajasthan Canal Project.

C. Descriptionof Project Works -

On-farm Development

11. qLandSh2ij - The project area is characterized by sand dunes and interdunal flat lands (Annex 2). Some 58,000 ha of the sand dunes areas require land shaping and leveling. Land which can be leveled by the farmers withioutproject financial assistanceduring the six-year project implementation period is estimated at 26,000 ha. Experience in the adjacent Gang-Bhakrairrigation project and the developed parts of Block B of the project area indicates that farmers will carry out such leveling work gradually on all plots requiring only a relativelysmall amount of leveling, which a farmer can accomplishwith his own resources. Leveling requirements would be planned by the Command Area Authority (CAA) before the start of the on-farm developmentprogram. General principlesfor establishingthe rules

1/ See Annex 4 for discussion of water supply.

2/ Details of the road works are presented separatelyin Part D. ANNEX 3 Page 4 and procedureshave been discussed,and it has been estimated that farmers would be expected to carry out some 1,500 m3 of excavationand fill and that the remaining levelingwould be carried out by the CAA. Project cost estimates and machine requirements were based on the assumption that project leveling would cover 32,000 ha and would require about 23 Mm3 of excavation and fill.

12. Adequate planning and estimationdata for land levelingwere obtained during project preparation. About 6,000 ha in different soil categories were surveyed and land-levelingplans prepared; some 600 ha have been leveled in 0.24 ha (one bigha) plots using different implementationtech- niques. The Land DevelopmentDivisions in the CAA IrrigationCircles would survey, design and supervise implementationof the land levelingwork. Tech- niques and methodologyare given in Reference 1. Some 85,000 to 90,000 ha of land would have to be surveyed and land leveling plans prepared in order to identify the 32,000 ha of land, requiringproject leveling. Implementa- tion would be 60% by force account, 20% by locally contractedmachine work and 20% by manual and animal labor provided by small piece-work contractors.

13. WatercourseLining - Concurrentlywith the implementationof land leveling on the chaks, some 5,800 km of watercourseswould be lined. The watercourseswould be constructedfor a minimum capacity of 57 1/s. Lining would be by a 5 cm single-layer of brick tile set in cement mortar. The lining was chosen after careful investigations of alternatives over a number of years. 1/ The work would also include constructionof division boxes, bridges, culverts, falls and farm outlets, with one outlet for two farms. The work would be carried out on a year-round basis by small contractors. 3rick tiles would be supplied by the Irrigation Department at the work sites from kilns operated by brick supply contractors. A number of kilns would have to be set up in the project area as output is limited by the availability of clay at each kiln site. The same kilns would also supply bricks for the distributionsystem canal lining work (para 17), and for the constructionof project housing.

14. Soil Reclamation- Up to 34,000 ha of the flood plain soils are of moderate to severe salinity-alkalinityand require reclamationby leaching. tialfthis area is seriouslyaffected. The formulationof a detailed program for reclaiming these soils will have to await results of experiments to be wrri& Gout under the project (Annex 2). Favorable results have been achieved on similar soils in neighboringdistricts with deep plowing and leaching, followed by paddy cultivationover a period of up to five years. Project cost estimates include funds for heavy plowing and some soil amendmentworks in the most severely affected areas (17,000h1a). This area is being demarcated by an ongoing detailed soil survey.

1/ GOR Preparation Report "Land Shaping and Watercourse Lining", October, 1973, and UNDP/FAO Project Report IND 24, 1971. ANNEX 3 Page 5

15. Field Channels - Each farm would be sub-dividedinto some 25 fields of 0.24 ha each. Field channels would be required to convey water from the farm outlet to the fields. Farmers in the project area and in the adjacent Gang-Bhakra area have proved adept at constructilg these field channels. They would, however, require some technical assistancein planning more efficient layouts and for the constructionof division and cross structures. Plans for these would be drawn up by the IrrigationDepartment while design- ing the watercourses and would be implemented by the farmers with the assistance of project masons and under the guidance of project technicians.

Canal Lining Works

16. Lining works have already been completed in some of the canal stretcheswhere heavy seepage has been observed. Proposed canal lining works under the project in Blocks A and B include:

Length (km)

(a) Anupgarh and Suratgarh Branch Canal; 206

(b) Naurangdesarand Rawatsar Distributary Canals; 72

(d) Minor canals. 293

Total 915

Canal closures for lining would be closely coordinatedwith agricultural operations so as not to interrupt essential water supplies to the farmers.

17. For the canal lining,,the existing earth section would be reshaped and then lined with a double layer of 5 cm thick brick tile set in cement mortar. Various types of canal linings have been evaluated and brick tile lining has been found most suitable, as no aggregate for concrete lining is available in the project area. The work would be carried out by local contractors under the supervisionof the IrrigationCircles. The Irrigation Circles would be responsiblefor the supply of materials for the contractors. Constructionmaterials would be supplied to the widely dispersed work sites by contractorsunder separate supply and transport contracts.

Afforestationand Sand Dune Stabilization

18. A detailed descriptionof these works is given in Reference 2. The project area is characterizedby small irrigationcommands interspersed by shifting dunes. Most of the dune areas have not been allocated to settlers. Sand laden hot winds blow for three months during the early summer blotting out the countryside, endangering exposed human and animal life, ANNEX 3 Page 6 cutting road communications,damaging crops and silting canals and watercourses. Experience from the adjacent Gang-Bhakrairrigation command areas indicate that shelter belts along canals and roads are effectiveprotection from sand encroachmentand for the subdivisionof agriculturalland into sheltered blocks to protect crops and habitations.

19. Control measures (fencing,planting of drought-resistantspecies) on unallocateddune land would reduce dune movement and provide controlled pasture developmentfor the increasedanimal population of the area. The project would complete forestry shelter belt work throughoutBlocks A and B, and continue with the ongoing dune stabilizationprogram and would include:

(a) Roadside plantation 220 km

(b) Canal side plantation 5,500 km

(d) Pasture developmentin uncommandedand dune areas 35,000 ha

Village Water Supply

20. Each village is planned for a population of approximately 1,000 persons. GOR had originally intended to construct basic services for all villages in the project area but because of budgetary constraints, these works were excluded and the proposed project would include water supply facilities for 100 villages, largely in Block A. The only suitable source of fresh water for the project villages is from the irrigationnetwork. Since the canals are operated on a rotational schedule with 10-day shut- downs, storage tanks are necessary. Each village would be provided with a brick lined storage tank of 2,000 m3 capacity for a 14-day supply, a gravity flow arrangementfor siltation, slow sand filtration,and chlorinationand a closed concrete well fitted with hand pumps for drawoff. The system would be operated and maintained by the village panchayats under the supervision of the GORWater Supply Department (Annex 11).

D. Roads

Introduction

21. Thie project would result in increased agriculturalproduction, new village settlements,expansion of existing villages and the developmentof existing and new towns, particularly the market towns. The project includes the constructionof 431 km of paved roads to provide year-round access to tkAe villages and to link the market towns to the rest of the country by an expansion of the network within the project area. The roads included are (Map 10884): ANNEX 3 Page 7

Length km

2 State Ilighways (Major Market Roads) 87

3 Major District Roads (Feeder Roads) 93

52 Village Roads 251

Total 431

22. There is a skeletal roads system in both Blocks A and B of the project and the Rajasthan Public Works Department (PWD) is slowly extending the State Highway network to serve these areas but much remains to be done, especially in Block A, where two new markets are to be located (Gharsana and Rawala) and 108 new villages are to be sited. A greater part of the road program in length (58%) would be devoted to the construction of village roads but three Major District Roads and two State Highways would also be constructed to act as feeder and major market roads. Most of the roads are aimed at helping the agricultural development of new areas and boosting agricultural production in areas already under cultivation. The program would enable the farmer to transport his marketable produce at lower cost.

Preparation of Road Program

23. The road surveys, including soils and materials surveys, final engineering and documentation would be undertaken by the PWD. The PWD would establish a separate Circle for the detailed engineering and supervision of construction. Preliminary traffic forecasts have been made and preliminary engineering work has been carried out by the State PWD to enable cost estimates to be prepared. These cost estimates have been checked and updated and they are satisfactory. The topography is flat, the materials and methods of construction are traditional and no serious construction problems are anticipated.

24. The roads would be desi,gned for a life of 15 years, after which rehabilitation works would probably be required. The pavement design would be based on traffic volumes (Table 1) predicted for the period 1980-1994 when full agricultural production is expected to be achieved. The road design standards are generally those adopted by the Indian Roads Congress and they are satisfactory (Table 2). In order to maintain these roads under desert conditions all roads, including the village roads, would have a bitu- menised surface. No natural aggregates satisfactory for road pavement construction are available locally. Crushed stone would be used in base construction and the nearest source is Bikaner, about 130-160 km away from the project area. Broken brick would be used as sub-base material and whole bricks laid in sand would serve as hard shoulders. No major bridges are required. ANNEX 3 Page 8

Execution of Road Program

25. General. The PWD would employ local contractorsto carry out the road works and bidding proceduressatisfactory to the Associationwould be adopted. There are about 40 local contractorsin the State who can execute works to the value of Rs 10-20 million per year. The local contractors usually hire equipment from the PWD and purchase of certain items of equipment has been included in the project (Annex 7, Table 3). The equipment would be the property of the PWD and, on completionof the works, would be used for road maintenance. During the initial six-year constructionperiod, the equipment in good order would be made available on hire to project contractors.

26. ConstructionSchedule. Constructionwould be phased over six years as shown in the ImplementationSchedule (Chart 8638).

27. General Conditionsof Contract. The general conditions of contract currently used in road constructioncontracts require certain amendments to place the contractor in an equitable position in his contractual relationshipwith the State Government. Similar problems exist for other types of civil works contracts and GOR would amend the general conditions of contract.

Descriptionof Project Roads State Highways (Major Market Roads)

28. Gharsana Junction/Rawala/Berianwali(64 km). This road commences about 8 km from Gharsana on the Gharsana/ChattargarhRoad and traverses the middla of the southern part of Block A and terminates at the market town of Berianwali. The northern part of Block A is already served by an existing road and the extensionwould link the new markets to be establishedat G(harsana and Rawala and would eventually form part of the State Highway network linking the southern part of the command area with Bikaner. This road is expected to carry a peak traffic volume of 400 vpd in 1994, mainly truck and bus traffic.

29. Jhakharianwali/RawatsarRoad (23 km). Rawatsar is a major market Lowli in Block B and is already linked to the State Highway network to the east of Block B. The PWD has begun constructinga road running west to east tlhrouglhBlock B from Suratgarh, an importantjunction on the north-south national highway. The road proposed in this project is the uncompleted secti.n between Jhakharianwali and Rawatsar and the completed road would provide outlets from Block B to the west and to the east. This road is expected to carry a peak traffic volume of about 300 vpd in 1994. For each of the above roads, about 60% of this traffic would consist of truck and bus traffic. ANNEX3 Page 9

Nor District Roads (Feeder Roads)

30. Salimpura/Sara Road (40 km). This road runs west to east across the northern part of Block A and joins the north-southNational Highway from Bikaner to Ganganagar at Sara. It serves as a feeder road collecting all traffic from farms and villages and leading it to the State Highway running north to south to the west of Block A and the National Highway running north to south to the east of Block A. This road is expected to carry a peak traffic volume of about 240 vpd in 1994.

31. Rawala/Khanuwali Road (20 km). This road would serve as a feeder road collecting all traffic generatedby the agriculturalproduction and farm and village settlements on the southern part of Block A and leading it to the market town of Rawala which will be linked to the State Highway running north-south through Anupgarh and Gharsana. This road is expected to carry a peak traffic volume of about 150 vpd in 1994.

32. Thalarka/MundaRoad (33 km). This road would serve as a feeder road, collecting all traffic generated by agriculturalproduction and farm and village settlementsin the north-east corner of Block B and leading it to the State Highway passing through the market town of Rawatsar at the Thalarka end and a major district road heading towards the market town and rail head at Hanumangarh at the Munda end. This road is expected to carry a peak traffic volume of about 240 vpd in 1994. For each of the above roads, 75% of this traffic will consist of truck, tractor (with trailer) and bus traffic.

Village Roads (251 km)

33. There would be 191 km of village roads in Block A and 60 km in Block B. The roads would vary in length from 1 km to 20 km. They would provide access to villages mostly in Block A. Table 3 shows the list of village roads to be constructed in this project. The traffic volume expected is light and would not exceed 50 vpd for the whole period up to 1994. The village roads are not shown on Map 10884, as the precise location of each road has to be finalized in consultationand agreement with the CAA.

INDIA

RAJASTHANCANAL COMMAND AREA DEVELOPMENTPROJECT

Traffic Forecasts for 19941/

Peak Heavy Traffic Average Daily Average Daily Average Daily (Trucks, Tractors with Light Traffic Peak Traffic Traffic Traffic Trailers & Buses) (Cars)W/ (All Vehicles) (Heavy Vehicles) (All Vehicles)

A. State Highways (MaJorMarket Roads M GharsanaUawala4 BerianwaliRoad 240 160 400 104 264 (ii) Jhakharianwali/Rawatsar Road 180 120 300 78 198 B. Major District Roads (i) Salimpura/Sara Road 180 60 240 78 130 (ii)Rawala/Khanuwali Road 110 40 150 42 82 (iii)Thalarka/Munda Road 180 60 240 78 138

1/ Slowmoving vehicles excluded. / Assumedto have no significantseasonal variation. ANNEX 3 Table 2

INDIA

RAJASTHANCANAL COMMAND AREA DEVELOPMENTPROJECT

Design Standards for Roads

Major District Village Class of Road Scate Highway Road Road (Major Market Road) (Feeder Road

Design Speed (km/h) 80.0 65.0 4o.o

Pavement width (m) 3.8 3.8 3.8

Hard shoulder width (m) 1.7 1.7 -

Formation width (m) 9.5 9.5 7.2

Right of way (m) 30.0 24.o 18.0

Stopping sight distance (m) 110 90 50

Passing sight distance (m) 450 300 275

Maximum super elevation (%) 6.7 6.7 6.7

Minimum horizontal radius (m) 240 150 70

Pavement Design: In accordance with the Guidelines for the Design of Flexible Pavements (Indian Roads Congress: 37-1970).

Source: Indian Roads Congress and Rajasthan PWD. ANNEX 3 Table 3 P-age- I

INDIA

RAJASTHAN CANAL COMMANDAREA DEVELOPMENTPROJECT

List of Village Roads -/

Block "A" Length (km)

1. Approach Road from Sara/SalimpuraRoad to Abadi No. 22 (1 BGM) 2

2. Approach Road from Sara/SalimpuraRoad to Abadis Nos. 28, 20 (55 DP) and Malasar 5

3. From Bijeynagar/RaisinghnagarRoad to Abadi No. 25 (6JRK) 4

4. From Ramsinghpur to Sara/SalimpuraRoad linking Abadis Nos. 41 (3 RBM), 43 (3 DJB), 44 (2 APD) 20

5. From Jetsar/RaisinghnagarRoad to Bijeynagar/ RaisinghnagarRoad linking Abadis Nos. 40 (11 BLM), 34 (10 BLM, Baluchia) and 69 (7 BLM) 10

6. From Road No. 2 above to 8 BLM 3

7. From Bijeynagar to RaisinghnagarRoad to Abadi No. 35 (5 BLM) 2

8. From Bijeynagar/RaisinghnagarRoad to Abadi No. 35 (4 BLD) 3

9. From Sara/SalimpuraRoad to Abadi No. 31 (2 KM) 5

10. From Jetsar/RaisinghnagarRoad to 15 BLD & Abadi No. 42 (16 BLD) 3

11. From Jetsar/RaisinghnagarRoad to 23 APD 15

12. From Raisinghnagar/AnupgarhRoad to Abadi No. 45 (4 RTM, 5 UDM) 8

13. From Abadi No. 47 A (13 APD) to Abadi No. 49 (14 APD) 4

14. From Salimpura/SaraRoad to Abadis Nos. 9 (PTD) and 55 (12 PTD) 5

1/ Abadi means village, 1 BOM, 4 BLD, etc. are reference symbols for identificationof the chaks where villages are sited. ANNEX 3 Table 3 Page 2 Block "A" (contd.) Length (km)

15. From Salimpura/Sara Road to 6 PTD to Abadi No. 45A 2

16. From Raisinghnagar/Anupgarh Road to Abadi No. 57 A (7 LPM) 1

17. -rom Raisinghnagar/Anupgarh Road to Abadi No. 56 (3 BWM via 19 PTD) 7

18. From Raisinghnagar/Anupgarh Road to Abadi No. 57 (22 PTD) 3

19. From Raisinghnagar/Anupgarh Road to Abadi No. 58 and to Abadi No. 26 (SJM) via Salimpura 7

20. From Raisinghnagar/Anupgarh Road to Abadi No. 61 (7 BWM) 2

21. From Raisinghnagar/Anupgarh Road to 4 BNM 4

22. From Raisinghnagar/Anupgarh Road to 65 APM via Abadi No. 64 & 5 APM 7

23. From Raisinghnagar/Anupgarh Road to 4 LM via Abadi Nos. 16 (2PGM) and 15 (9A) 10

24. From approach road to Abadi No. 22 to Abadi No. 13 (4A) via Abadi No. 5A 3

25. From Anupgarh/Gharsana Road to Abadi (No. (3 K) 1.5

26. From Anupgarh/Gharsana Road to Abadi No. 29 (6 P) 1.5

27. From Anupgarh/Gharsana Road to Abadi No. 3 DD via Abadi No. 40 (9MD), Abadi No. 8 (6 MD) and Abadi No. 28 (4 MD) 5

28. Kupli/Gharsana Road to Abadi No. 3 (DD) via 2 JSM and 27 AJM 5

29. Gharsana/Ramsinghpur Road to Kamrania via Abadis Nos. 25 (2PM) & 26 (2 KM) 8

30. From Anupgarh/Gharsana/Chattargarh Road to 1 FM via 1 MLD, Abadi No. 45 (28 AS) & 9 DD 10

31. From Anupgarlh/Gharsana/Chattargarh Road to Abadi No. 46 4

32. From Anupgarh/Gharsana/Chattargarh Road to 3 MM 2

33. From Anupgarh/Gharsana/Chattargarh Road to Abadi No. 41 (12 ll) via 15 MD, 12 MD & 13 MD 8

34. From AnupgarhlGharsana/Chattargarh Road to Rawala Village 5 191 ANNEX 3 Table 3 Page 3

Block "B" Len8th (km)

1. Approach road from Thalarka/Munda Road to village Kerala Abadi No. 9 3

2. Approach road from Thalarka/Munda Road to Abadi No. 2 (Rampura) 3

3. From Rawatsar/Nohar Road to Abadi No. 16 (RWD) 4

4. From Tibbi/Chainya Road to Abadi No. 2 (MZW) 2

5. Ranjitpura to meet Munda/Meharwa Road via Abadi No. 16 and 3 including approaches to Abadi No. 5 13

6. Approach Road from Rawatsar/Nohar Road to Budwalia Abadi No. 11 2

7. Approach Road from Tibbi/Chainya Road to Abadi No. 5 (2 MZW) 2

8. Approach Road to Abadi No. 4 (1 NWM) from Rawatsar/ Aanumangarh Road 2

9. Approach Road to Arayanwali (22 NDR) from Pillibangan/ Rawatsar Road 6

10. Approach Road to Zorawarpura from Pillibangan/Rawatear Road 1

11. Approach Road to 6 HLM from Zakhranwali/Rawatsar Road 2

12. Approach Road to 6 HIM from Abadi No. 19 (31 NDR) from from Pillibangan/Rawatsar Road 2

13. Zakharanwali/Panditanwali Road to Abadi 22 (40 NDR) 2

14. Badopal/Zakhranwali Road to Abadi No. 3 (3 STP) 4

15. Pillibangan/Rawatsar Road to Abadi No. 23 (45 NDR) 2

16. Approach Road to Nihalpura Abadi No. 25 (3 NSW) from Road to Daulatabad ki Dhani 3

17. Approach Road to STB from Suratgarh/Badopal/ Zakhranwali Road 2

18. Approach Road to Rangmahal, 5 STB & 10 NSW from Suratgarh/ Badopal Road to Manak Theri 5 60

Source: Rajasthan PWD.

ANNEX4 Page 1

INDIA

RAJASTHANCANAL COMMAND AREA DEVELOPMENTPROJECT

Water Supply, Demand and Quai4ty

1. This Annex includes:

IrrigationWater Supply - Storage and Diversion System

- RCP Canal conveyance system capacity and efficiency

- Chaggar river flood diversion and storage system

IrrigationWater Demand - Crop Water Requirements - Gross Water Requirements

- IrrigationWater Balance

- IrrigationWater Quality

IrriEationWater SupplY - Storage and Diversion System

2. Under the terms of the Indus Water Treaty the streamflowof the Beas and Ravi rivers was allocated to India. The annual share of the RCP was determined by the inter-state agreement as 9,900 Mm3 (para 6).

3. The water storage regulation and diversion system is shown on Map 10884 and principal capacity details are listed in Table 1. The system so far completedconsists of:

A Diversion Barrage at Harike on the Sutlej river;

A RegulatingStorage Reservoir at Pong on the Beas river (reservoirfilling planned for mid-1974);

The M-B link canal from the Ravi to the Beas river;

The RajasthanMain Canal completed for Stage I and continuing to the Stage II area;

(An additional storage reservoir is also planned for early completion at Thien on the Ravi river.) ANNEX 4 Page 2

4. The completed works at Bhakra Reservoir on the Sutlej River serve the Bhakra Command Area which also benefits from the Pandoh Diversion Dam and the corresponding B-S link canal from the Upper Beas River to the Sutlej river above Bhakra; water surplus to Bhakra demand passes down the Sutlej river and is available at Harike barrage for the Rajasthan Canal Project system.

5. The liarike barrage also serves the Gang canal command area in Rajasthan through the Ferozpur Feeder link can.al and the Bikaner-Gang canal system. A link canal has also been completed from the Rajasthan Main canal to the Bhakra canal to boost the supply to the Rajasthan sector of the Bhakra command area; annual diversions on this link are small.

6. Multi-purpose reservoir studies which have been conducted by GWPC 1/ with the Indus (Beas, Ravi, and Sutlej Rivers) storage and diversion system serving the RCP area, together with basic streamflow frequency analyses, indicates that 9,000 Mm3 per year is available at Harike Barrage for the RCP area in at least 70% of the years 2/. Hydroelectric power production, a feature of the dam and link canal systems on the main rivers, is generally consistent with irrigation demand; no difficulties are anticipated as releases for irrigation have priority in practice. Table 1 gives relevant streamflow data at Herike barrage for the design water year adopted by CWPC.

Raj_astthan Canal P ct Convyacej ttm Clc y

7. The RCP canal system (Map 10884) comprises:

(a) The Rajasthan Main Canal, of 530 m 3Is capacity, discharging to:

(b) The Anupgarh Shaka Branch canal serving part of Block A of the project area;

(d) The Naurangdesar and Rawatsar Distributary canals supplied directly from the Rajasthan Main Canal and serving part of Block B; and

1/ CWPC is the Central Water and Power Commission. This organization is expected to carry out more sophisticated operations studies on the Eastern Indus storage and diversion system with the objective of making more intensive use of the available water resources; these studies would be completed well before Stage II of the RCP is completed in 10 to 15 years' time.

2/ This is a tentative appraisal only and subject to modification when the hydrology is thoroughly reviewed by CWPC. ANNEX4 Page 3

(e) The network of distributaryand minor canals supplied from the Branch canals and serving the watercourses within the individual 120 ha irrigation service units (chaks).

Only the main canal is presently lined. The unlined distributarycanals are designed to carry 0.4 litres/sec/haof net command area with about 33% additional discharge capacity after lining (when freeboard is slightly reduced); chak watercourseshave at least 50% additionaldischarge capacity over their original design. Safe operation of these canals at high capacity during summer peak irrigationdemand, is dependent on their being lined as proposed in the project. The Rajasthan Feeder and Main canal will have considerablespare capacity until the Stage II area is developed. Thereafter it will be fully utilized and would have sufficient capacity to meet the likely peak monthly demands; under pre-project conditions,the overall system efficiency (conveyanceand application)does rLotexceed 40%. After project implementationoverall efficiency is projected at 65%. Further improvement in overall efficiency can be foreseenwithin ten to fifteen years with the impact of better on-farm water distributionand improvementof field water application techniquesfor specific crops.

Ghaggar River Flood Diversion and Storage System

8. In recent years, floods from the Ghaggar River have threatened the Hanumangarh urban and rural areas. A river diversion channel discharging into a system of 16 flood storage reservoirswas therefore constructed and is expected to be in service in 1974. This flood water contributes to the ground-waterrecharge of the narrow belt of land between Blocks A and B; supplementarysurface water irrigation is also expected to be occasionally available by direct supply from these reservoirs. The flood diversion and storage features are shown in Map 10884.

Irrigation Water Demand

Cro! Water Requirements

9. Experimentalwork on crop water requirementsin the project area commenced in 1967/68 at Hanumangarh and Barore Research Farms. About three years valid data is available.

10. In the extremely arid climate, close estimation of plant consumptive use was difficult. An approach relating the water requirementsto crop yields was therefore developed on the two research farms. Based on soil moisture analyses, on measured relationshipsbetween consumptiveuse and open pan evaporation,and Blaney Criddle evapotranspirationestimates, irrigation scheduleswere set up for the range of crops to be grown in the project area, viz. wheat, cotton, fodder, pulses, paddy, and oil seeds. These irrigationschedules were then applied on the research farms, tested, and modified in the light of the resulting crop yields obtained, taking into account the rainfall actually experienced.

11. On these bases and taking into account an effective rainfall of 140 mm (comparedwith the annual average value of 280 mm), the projected ANTEX 4 Page 4 monthly crop water requirementsfor the projected cropping pattern were determined (Table 2). Standard irrigation applicationsare usually 75 mm and 100 mm varying with local field experience.

Grs ater Reuirements

12. The net monthly irrigationwater requirementsin the field were converted to monthly irrigationdiversion demand at Harike barrage, using the overall (applicationand conveyance) efficienciesof 65% with- project and 40% without-project;the respective cropping intensities are 130% and 90% (the latter with Pong Reservoir). These values are summarized in Table 2.

Irrigation Water Balance

13. The water supplies available at Harike barrage and the water demand for the Stage I RCP development, including the proposed CAD project, are shown in Tables 1 and 2.

14. For conservativeassumption of water demand in the future, two assumptionswere checked: (a) that the whole of the 540,000 ha Stage I would be developed to the same intensity as the 200,000 ha project area; this results in a gross annual water demand of the order of 5,100 Mm3; and (b) that, after serving the 200,000 ha project to the full planned intensity the balance of 340,000 ha in Stage I would be supplied only through unlined canals, resulting in an unimproved irrigationefficiency of 40% and a correspondingcropping intensity of 90%; this gave an annual gross water demand at HIarikeof the order of 5,300 Mm3. Details are given in Table 2.

15. A similar procedure was carried o-utfor full developmentof the RCP project (Stage I & II), i.e. when the whole 1.15 million ha are planned to be irrigated 10 years to 15 years from now. This balance is, of course, indicative only. The conclusion reached was the RCP area could be fully irrigated under conditions similar to (a) or (b) in para 14 above, only if an increase in irrigation efficiencieswere achieved, through channel lining and improved water practices. Monthly reservoir releases would also have to be adjusted in order to meet this demand. If the anticipated increases in irrigation efficiency were not realized, it would not be pos- 6 ble to irrigate the entire RCP area and sustain a 130% cropping intensity.

1. Tie irrigationcanal system capacity is adequate to meet demands for the projected cropping pattern except in August and October in exceptionallydrv years; for such years irrigationquantities will have to be reduced resulting in slightly reduced yields of pulses and fodder. IrrigationWater Quality

17. The canal water is derived from the well proven Ravi and Beas River water and is of high quality (ClSl) 1/ suitable for sustained irrigation.

1/ UNDP/FAO Report SF/IND (Technical Report No. 3). ANN3 4

RAJASTHANCANAL CC[*AD AREADEVELOPMENT PROJECT

Water Supply

A, Reservoir Capacity (Live Storage) on Besas and Ravi Rivers

Beas River: Pong Reservoir (existing) 4,1c0 mm3 Ravi River: Thien Reservoir (planned) 2,300 Mm3

B. Rajasthaxi Main Canal (RMC) Capacity

Peak discharge capacity at Cana3l Head. 530 m3< (18,500 ft 3/sec) Peak monthly capacity 1,370 Mm

C. Annual Water S%pplies to RMC 1/

CWC design water year diversion to RMC 9,400 Mm3 $/ 70", dependable water year diversion to RMC 9,000 MM3

D. Avoilable Diversions to Rajasthan Canal at Harike Barrage

(CwPC design water year, based on period 1921-L46)

Mcnth and Unre*ilated. Releees from Storage Period Flow Thien?- Pong Bhakra Total -(-ft./s) - at

June 11-20 8,972 - 1,625 - 10,597 June 21-30 12,379 - - - 12,379 July 12,066 - - - 12,066 918 AUugust 12,06 - - - 12,066 918 SGpt 1-10 13,633 - - - 13,633 1,OO4 Sept 11-20 13,633 - - - 1 ,633 Sept 21-30 9,053 - 4,580 - 13,633 October 3,008 - 12,662 - 15,6?0 1,,172 November 1,985 - 10,551 - 12,536 923 Decemnber 2,1t.4 - 5,821 - 7,835 596 January 1,129 3,576 - 1 ,563 6,268 477 February 3,119 - 6,,91 0 - 10,,029 689 YLTirch 3,857 702 5,470 - 10,029 762 AprilL 5,126 - 1,612 - 6,738 496 Ylay 6,798 - 254 - 7,052 536- June 1-10 8,0405 - 3,974 - 12,379 867

Total (Mm3 ) 9,378

1/ This value is derived from CWPCreservoir operation studies. /7 This is an order of magnitude only based on a tentative appraisal Of the dependable water resources. COWPCis expected to update and reappraise its hydrological studies of the Ravi, Beas and. Sutlej Rivers within the next few yoars, well before Stage II of RCP is operational. 3/ After constrmction of ThieonDam. INDIA

RAJASTHAN CANAL CCMMANDAREA DEVELOPWNT PROJECT

1/ Monthly Water Requirementsaat Fteld Plot and Corresponding Water Demand at Harike Barrage

P r e s e n t C r o p p i n g P a t t e r n -Sugarcane- -- Cotton--- - MilLet - -- Pulses--- -- Fodder--- Groundnuts --- Paddy------Wheat--- -- Mustard-- --- Gram--- Total Water Demand Cropped Area (ha) 0.01 0.16 0.06 0.12 0.30 0.02 0.02 0.25 0.15 0,08 0.90 At Harike Barrage mm mi/ha mm m3iha m m3/ha m 37a mm_ mm3/ha m_ m3ha -mm m/ha mm m3/ha mm m3/ha mm m3/a m3/ha for 340,000 ha_/

January ------75 60 75 60 120 102 February 100 10 ------75 180 75 60 100 80 330 281 March ------75 180 - - - - 180 153 April 75 10 - - - - - 75 25 - - - - 150 360 - - - - 395 336 May 150 20 100 160 - - - 75 25 - - 150 30 ------235 200 June 225 30 75 120 - - - 150 50 75 20 150 30 - - - 250 212 July 225 30 150 240 75 45 75 90 150 50 75 20 225 50 ------525 446 August 225 30 175 320 75 45 75 90 75 25 75 20 300 60 - - - - _ - 590 502 September 200 20 100 160 75 45 100 120 75 25 150 40 300 60 - - - - 470 399 October 100 10 150 240 75 45 - - - - 100 30 75 10 - - 75 60 75 60 455 386 November 100 10 ------75 180 75 60 - - 250 213 December 100 10 - - - - - _ - - - 75 180 - _ - 190 162

Total: 1,500 130 750 1,240 300 180 250 300 600 200 475 130 1,200 240 450 1,080 300 240 250 200 3,990 3,392

P r o i e c t e d C r o p p i n g P a t t e r n Berseem Water Demaind Sugarcane Cotton X4illet Pulses Fodder Groundnuts Paddy Wheat Mustard Gram & Others Total ZWU,OWO 540,UDo 4/ Cropped Area (ha) 0.01 0.23 0.0 14 0.05 0.05 0.03 0.35 0.12 0.25 0.02 1.30 he area -he- rea ------3/hah------

January ------90 180 20 290 89 241 February 10 ------200 90 250 20 570 175 473 March ------260 - - 30 290 89 241 April 10 - - - 40 - - 520 - - 50 620 190 514 May 20 230 - - 40 - 50 - - - 20 360 110 299 June 30 180 - - 80 40 50 - - - - 380 117 315 3uly 30 350 40 110 80 40 70 - - - - 720 221 598 August 30 400 - 40 110 40 40 90 - - - - 750 230 622 September 20 230 40 140 40 80 90 - - - 20 660 203 548 October 10 350 40 - - 50 20 - 90 180 20 760 233 631 November 10 ------260 90 - 20 380 116 315 December 10 - - - - - 260 - - 20 290 89 241

Total 180 1,740 160 360 320 250 370 1,500 360 610 220 6,070 1,862 5,038

Grand Total Stage I: 5,254

1/ Water requirements are net of effective rainfall and based on actual water use at Hansaugngrh Research Farm. Paddy is grown only on the heavy tal soils. 2/ Water demand for 340,0no ha at 407. irrigation efficiency (540,000 ha - 200,000 he). 3/ Rounded. 4/ Water demand for 540,000 ha at 65% irrigation efficiency. ANNEX5 Page 1

INDIA

RAJASTHANCANAL COMIAND AREA DEVELOPMENT PROJECT

Colonization

Back~ound

1. According to the 1961 Census, the RCP area had a populationof 188,000with an average density of 5 persons per square km. Concurrently with the introductionof irrigation,GOR embarked on a settlement (colonization) program with the twin objectivesof land reform and permanent settlement of the area. Most of the land in the project area belonged to the GOR. The program consisted of the:

(a) demarcationof land commandedby the RCP irrigation system;

(b) subdivisionof the command area, on a rectangularbasis, into uniform farms of 6.32 ha each (1 meruba);

(d) permanent land allotment to pre-1955 tenants of the area;

(e) permanent land allotment to various categoriesof farmers, with priority given to landless agriculturallaborers of nearby villages and farmers resident in Rajasthan State before 1955; and

(f) permanent land allotment to a limited number of people in special categories.

2. Responsibilityfor implementingthis program was vested in the ColonizationDepartment, set up for this purpose in 1955. The cadastral survey and mapping was entrusted to the Survey of India and to the Irrigation Department (RCP).

Legislat ion

3. A number of laws have been enacted to give legal sanction to the various colonizationmeasures. Colonizationrules were promulgatedunder the acts. To date, the legislationcomprises:

(a) The RaJasthanColonization Act;

(b) The RajasthanColonization (GeneralColony Conditions) Rules 1955; ANNEX 5 Page 2

(d) The RajasthanColonization (Pre-1955 Temporary Tenants, Government Land Allotment) Conditions 1971;

(e) The Rajasthan Colonization(Post-1955 Temporary Tenants, Temporary cultivationleaseholds); and

(f) The Impositionof Ceilings on AgriculturalLand Holdings Ordinance 1973.

Land Allotment

4. The standard land allotmentunit is 6.32 ha (1 meruba). Alloca- tion is by lottery among qualified farmers. An experimentalsale of 200 lots in 1969 raised political difficultiesand was immediatelyabandoned. The terms on which holdings are allocated are as follows:

(a) Pre-1955 Tenants - can obtain rights to 1 meruba at no financial cost (and they may acquire a second meruba, at a cash cost of Rs 16,755;)

(b) Tenants - whose rights were attributedbetween 1955 and 1960 can obtain 1 meruba at a cost of Rs 16,755; this payable by members of scheduled tribes and castes over a period of 17 years and by others by paying i's 5,000 in the first year and the balance over a period of ; years; and

5. Existing land holdings above the land ceiling (AgriculturalLand Holdings Ordinance 1973) revert to the State for redistribution. Land reservationsfor public purposes cover village and market sites and canal reserves.

Persons Qualified for Land Allotment

The followingpriorities in land allocation were used:

(a) Pre-1955 landless farmers (temporarycultivators);

(b) Post-1955 farmers (temporarycultivators);

(d) Landless farmers belonging to the Tehsils 1/ in which the land is situated; l/ Tehsil Is the standard subdivision of an administrative district. ANNEX 5 Page 3

(e) Landless farmers of other Tehsils in the district; and

(f) Other landless farmers belonging to other districts of Rajasthan.

7. In addition, certain special categories of allottees have been defined by the Government. These are strictly limited in number and include displaced farmers from the reservoir area of the Pong Dam, ex-landlords, resettled soldiers and their dependents.

Proess of Colonization

8. The status of land allocation at December 1972 was as follows:

Land already allotted 115,000 ha Reserved land in temporary occupation 110,000 ha Unalloted land 161,000 ha

386,000 ha

As at December 1972 the balance of 154,000 ha in Stage I had apparently come within the detailed planning procedures of the ColonizationDepartment.

9. During 1973, land allocation continued at an acceleratedpace. GOR's intention is that all available land in Blocks A and B would be permanently alloted before July 1974. The ColonizationDepartment has recently been reorganizedand strengthenedand is now working to stricter timetables. All chak maps for the project area are already in the hands of the ColonizationOfficers. Eligible settlers are available for the land remaining to be allotted, many of whom now cultivate land in Block A and the western part of Block B on a temporary lease basis.

ANNEX 6 Table 1

INDIA

RAJASTHAN CANAL COMMANDAREA DEVELOPMENTPROJECT

Summary of Cost Estimates Foreign Exchange Item Local Fore'gn Total Local Forein Total % ----Rs Million - --- US$ Millaon------

Infrastructural Works

1. Canal lining (Table 2) 233.6 42.4 276.0 29.2 5.3 34.5 15 2. Roads (Table 3) 54.4 6.4 60.8 6.8 0.8 7.6 10 3. Afforestation(Table 4) 40.0 4.8 44.8 5.0 0.6 5.0o 10 4. Village Water Supply (Table 5) 14.4 1.6 16.0 1.8 0.2 2.0 10

Sub-Total 342.4 55.2 397.6 42.8 o.9 49.7 5. Land DevelopmentWorks (Table 6) - 234.4 58.4 292.8 29.3 7.3 36.6 20

6. SupplementaryFertilizer 8.o 149.6 157.6 1.0 18.7 19.7 95

Sub-Total 584.8 263.2 848.0 73.1 32.9 106.0

Physical Contingencies 49.6 10.4 60.0 6.2 1.3 7.5 17

Sub-Total 634.4 273.6 908.0 79.3 34.2 113.5

Expected Price Increases 296.4 94.5 390.9 37.1 11.8 48.9 24

Sub-Total 930.8 368.1 1,298.9 116.4 46.0 162.4

7. Project Administrative OperatingCosts during IZi1am enintatlion (Table 7) 63.2 6.4 69.6 7.9 0.8 8.7 10

Expected Price Increases 21.2 2.3 23.5 2.6 0.3 2.9 10

Sub-Total 84.4 8.7 93.1 10.5 1.1 11.O

Total Project Cost 1,015.2 376.8 1,392.0 126.9 47.1 174.0 27 ANNEX 6 Table 2

MIA

R.AJASTHLNCAiL COMMANDAREA DEVELOPMOTPROJECT

Cost Estimates: Canal Linirng

Ifter lantity Unit Rate Total Cost T97 (Rs II)

1 . Earthwork 915 km 45,800 41.9

2~Lininjg

Amupagarh i Suratgarh Branches 206 km 528,000 108.8 Naurangdesar & Rawatsar Distributaries 72 km 25c,oo0 18.0 Other Distributary Canals 3344 km 143,000 49.02 Minor Canals 293 km 66,000 19.3

Sub-Total 915 237 .2

3. Miscellaneous works .LS . 2i3

4. h;ngtneerang and Administration . . 36.0

Sub-Total 276.0

5. Physical Contingencies (10,) 24.C

Tltal 300.C ANNEX 6 Table 3

M:IA

RAJASTHANCAuNAL COMMAND AREA DEVELOPMENTPROJECT

Cost Estimates: Roads

Item LCnth Cost (Rs M)

1. Land Acquisition e4o3

2. Construction of New Roads

A. State Hi ahways(Major Market Roads) i Gharsana/Rawala/Berianwal-a Road 64 10.4 (ii) Jhakharianwali/Rawatsar Road 23 307

B. Major District Roads (Feeder Roads) (i) Salimpura/Sara Road 40 6.9 (ii) Rawala/Kha,uwali Road 20 3e3 (iii) Thalarka/Muncda Road 33 5e4

C. Other Roads (Village Roads) 251 21.6

Sub-Total 431 51.3

3. Administration,Design and Supervision 2.0

4. Vehicles and Equipment 1/ 3.2

Sub-Total 60.8

5. Physical Contingencies (10%) 5.6

Total 66.4

1/ For proj,ectsupervision and hire to contractors. After project completion,the equipment would be used for road maintenance. ANNEX 6 Table 4

TNDIA

RAJASTHANCANAL COMMAND AREA. DEVELOPMENT PROE CT

Cost Estimates: Afforestation

Ttem Quantity Unit Rate Total Cost (Rb) (Rs M)

Roadside plantation 223 km 5,800 1.3

Canalside plantation 5,500 km 2,100 11.5

Village firewood plantation 1,800 ha 2,500 4.5

Pasture development 35,000 ha 440 15.4

Equipment 2.2

Buildings 1.3

Administration & supervision 8.6 3ub-Total 44.8

Phys3ical contingencies ( 1i03) .3 Total 48.1 ANNEX6 Table 5

INIA

RAJASTHANCANAL COMMAND AREA DEVELOPMNT PROJECT

Cost Estimates: Village Water Supplies

Item Quantity Unit Rate Total Cost ~ T-((Rs M) Rawiwater storage tank 100 No. 51,000 5.1

Reinforced concrete slow sand filter 100 No. 51,000 5,1

Reinforced concrete clear water tank 100 No. 21,000 2.1

Handpump 100 No. 5,500 0.5

Chlorination plant 100 No. 2,000 0.2

Buil dingo 100 Not 14.,000 1.4

Sub-Total 144

Administration - 10% 1e4

Vebhicles 0.2

Sub-Total i 6. O

Physicaa contingencies - 10% 1i4

Total 17 .4 ANNEX6 Table 6

INDTA

?At ASTRA1NJCANAL COMMAN3)AREA DEVhLOPMN PROJJECT

Ccst i stimnates: Land Development

item QUantity Unit Rate Total Cost (Rs (Rs5M)

10 ILand Shaping

Survey & layout 87,000 ha 100 8.7 Leveling and grading 32,000 ha 1,498 47.9

Sub-Total 56 . 6

2. Watercou rse Lining

Channel shaping ha 114 Structures . ha 93 Brick liniing ha 514

Sub-Total 200,000 ha 721 144.2

3. Soil Reclamation (provisiona,l) 17,000 ha 800 13.6

4. On-Farm Field Channels (provisional) 200, 000 ha 192 38.4

5. Engineering & Administration - 15% 30.2 o; Ternporury Btiildings 9.8

Sub -Total 292.8

7. Pbysical Contingencies

Land shaping - 20; il.3 Watercourses - 10% 14.5

Total 318.6 ANNEX6 Table 7

INDIA

RAJASTHANCANAL COMMAND AREA DEVELOPMENTPROJECT

Cost Estimates: Project Operating Costs

Total Cost Annual Cost at During Project FU11 Development Implementation ---- Rs Million-

0 & M of Irrigation System

Staff 1.2 Maintenance of canal liningI/ 6.o

Total: Irrigation System 7.2 43.2

Note: Annual cost is equivalent to Rs36/ha

Extension & Research

Extension Service2/ Staff 2.9 Other annual costs 0.9

Sub-Total: 3.8

Research3/ Staff 1.0 Other annual costs including travel allowances, maintenance of building and vehicles, replacement of equipment O.6

Sub-Total: 1.6

Total: Extension & Research 5.4 26.[-!/

Total: Project Operating Costs 69.6

1/ Estimated at 3% per year of present net value of lining (Rs200 million). 2/ Details are given in Reference 3. 3/ Costs chargeable to the Project are 50% of the total, by/ Full cost reached in Year 3.

ANNEX 7

INDIA

RAJASTHAUNCANAL COMMANDAREA DEVELOPMENTPROJECT

Equipment Requirements

1. Estimated equipment requirements for project management, for construction of the force account portions of the project works (para 4.18), and for hire to contractors, in tie case of roads, are listed in the following tables. These lists should be used a guide only and would be revised as detailed project planning progresses, and more experience is gained with various construction methods. This is particularly so for on-farm development works, and therefore, the services of an expert (recruited under the Chambal Project) would be available to assist in equipment selection. It is also proposed that the second batch of on-farm development equipment be ordered following field evaluation of the initial order and a decision that the balance of the on-farm development works would be executed by force account. A nine-month delivery period for imported equipment has been assumed.

2. Prices shown in the tables are in late-1973 currency values. To obtain expected actual costs, price contingencies are computed as follows:

---- IDA Fiscal Year----- Item 1974/5 1976/6 1976/7 Total …-- --Rs ------Million------

Land Development (Table 1) 33.1 - 4.4 37.5

Irrigation (Table 2) 20.0 5.1 - 25.1

Road Equipment (Table 3) 3.8 - - 3.8

Forestry (Table 4) 2.2 - - 2.2

Village Water Suppy (Table 4) 0.3 - - 0.3

Agricultural Support Services (Table 5) 1.7 - - 1.7 Sub-Total 61.1 5.1 4.4 70.6

Price Contingencies - % (14) (25) (32.5) (16) Price Contingencies - Rs Million 8.6 1.3 1.4 11.3 Total 69.7 6.4 5.8 81.9

Total Cost of Equipment: US$10.2 million of which, foreign exchange (90%): US$ 9.2 million

ANNEX7 Table 1 Pae 1 IND1A

RAJASTHANCANAL COMMAND AREA DEVELOPMENTPROJECT

.Equipment List: Land Development (,land Shaping and Lining Watercourses)

Unit Method oL' Item Quantity Price TotaIl Procurement!/ --- Rs '000---- 1 Land Shaping i) General Field vehicles (jeeps) 30 30 900 RP Workshop equipment and tools - LS 200 LCB 1o,bile workshop 4 175 700 LCB 1i:4ricator truck 3 100 300 ICB Four-wheel drive trucks, 5 ton 32 100 3,200 RP Trailer tractors 12 6 72 LCB Water tanker 25 5 125 RP Diesel tanker, 5 ton 4 100 400 RP Sub-Total 5,897 Spare Parts - 15% 883

Sub-Total 6,780

(ii) XeavyLand Sh ing Equipment Bulldozer 90-105 hp with' attachments 31 323 10,013 ICB Carryall Scraper 4-6 cu yd 28 100 2,800 ICB Wheel Tractor 75-90 hp 49 oO 2,940 ICB Drag Scraper 3-4 cu yd 49 15 735 LCB Motor Grader 7 250 1,750 IOB 40-ton Trailer and Tractor 1 500 500 ICB Lubricator Truck 4 100 400 IOB Support Equipment - LS 416 LCB

Sub-Total 19,554 Spare Parts - 25% 4,88? Sub-Total 24,443

Sub-Tbtal (i) + (ii) (carried forward) 31,223

1/ IOB - InternationalCompetitive Bidding. LCB - Local Competitive Bidding. RP - Reserved Procurement. ANNEX 7 Table 1 Page I

Unit Method of Item Quantity Price Total Procurementl/ --- Rs '000----

Sub-Total (i) + (ii) (brought forward) 31,223

2. Watercourse Lhinin EquiPRment Four-wheel drive trucks., 5 ton 40 100 4,000 RP Field vehicles 40 30 1,200 rP Pump set 50 5 250 LCP

Sub-Total 5,450 Spare Parts - 15% 818

Sub-Total 6,268

Total 37,491

1/ ICB - International Competitive Bidding. LCB - Local Competitive Bid(ding. HP - Reserved Procuremnt. ANNEX7 Table 2

INDIA

RAJASTHANCANAL CONMAND AREA DEVELOPMENTPROJECT

Equipment List: Irrigation (Canal Lining and Operation and Maintenance)

Unit Nlethod of Item Quantity Price Total Procurement2i --- Rs ' 0 -

Project Management Field vehicles (jeeps) including 15% spare parts 10 35 35o RP Survey equipment - LS o20 LCR Office and Design equipment - LS 100 LCB Operation & Maintenance equipment, field vehicles (jeeps) including 15% spare parts 50 35 1,75o RP

Sub-Total 2,820

ConstructionEquipment (Canal Lining) Traxcavator 12 900 10,800 ICB Four-wheel drive transport trucks, 5 tons 24 100 2,400 kp Diesel Tanlcer 1 100 100 RP Bulldozer, 90-105 hp with attachments 12 323 3,876 ICB Pump set 100 5 500 LCB Workshop equipment and tools - LS 200 LCT Field vehicles 50 30 1,500 RP

Sub-Total 19,376 Spare Parts - 15% 2,904

Sub-Total 22,280

Total 25,100

1/ ICB - InternationalCompetitive Bidding. LOB - Local Competitive Bidding. RP - Reserved Procurement.

ANNEX 7 Table 3

INDIA

RAJASTHAN CANAL COMMAND AREA DEVELOPMENTPROJECT

Equipment List: Roads (Constructionand Maintenance)

Unit Method of Item Quantity Price Total Procurrm. entl/

Construction

Rollers 12 105 1,2vO ICB

Bitumen Mixers, 6-10 ton 5 75 375 ICB

Tar Boilers 20 8 160 LCB

Sand Ploughs 1 200 200 LCB

Bulldozers, 180 hp 2 450 900 ICB

Field vehicles 4 30 120 RP

Spare Parts - 15% - - 400

Sub-Total 3,415

Maintenance

Field vehicles including Spare 12 35 420 RP Parts Total 3,835

1/ ICB - International Competitive Bidding. LCB - Local Competitive Bidding. RP - Reserved Procurement. ANNEX7 Table 4

INDIA

RAJASTHANCANAL COMKAND AREA DEVELOPMENTPROJECT

Equipment List: Forestry and Village Water Supplies

Unit Mcthod of Item Quantity Price Total Proc urernent-L --- Rs ' 00-

Forestry

Field vehicles, including 15% Spare Parts: construction 18 35 AS30 RP maintenance 4 35 140 VP

Equipment _ LS 1, 430

Sub-Total 2,200

Village Water Supplies

Field vehicles, including 15% Spare Parts: construction 4 35 140 RP maintenance 4 35 140 RP

Sub-Total 280

Total 2, 480

1/ RP - Reserved Procurement. ANNEX7 Table 5

INDIA

RAJASTHANCANAL COMMAND AREA DEVELOPMENTPROJECT

Equipment List: Agricultural Support Services

Unit Method of Item Quantity Price Total Procurementi/' --- Rs '000---

Extension Service

Field vehicles 1lI 30 420 RI"

Bicycles, motorcycles, etc. 30 6 1 8(0 LCIB

Motorcycles 144 2.5 35"0 LCD

Spare Parts - 15% - - 140

Sub-Total 1,100

Research Service

Field vehicles, including 15% Spare Parts . 10 35 350 RP

Laboratory and field equipment - LS 200 LOBt

Sub-Total 550

Total i,650

1/ RP - Reserved Procurement. LCB - Local Competitive Bidding.

ANNEX8 Table t

INDIA

RAJASTHANCANAL COMMAND AREA DEVELOPMENTPROJECT

Schedule of Expenditures

Total IDA Fiscal Years Item Cost 1974/51975/6 1976/7,1977/8 1978/9 1979/80 ------Rs Million-

Infrastructural Wbrk

1. Canal Lining 276.0 22.1 33.1 55.2 55.2 55.2 55.2 2. Roads 61.1 4.9 7.3 12.3 12.2 12.2 12.2 3. Afforestation 45.1 3.6 5.4 9.o 9.o 9.0 9.1 4. Village Water Supply 15.4 1.2 1.9 3.1 3.1 3.1 3.0

Sub-Total 397.6 31.8 47.7 79.6 79.5 79.5 79.5

5. Land Development 292.8 43.9 58.6 73.2 73.2 43.9 - 6. Supplementary Fertilizer 157.6 157.6 - - - - -

Sub-Total 848.0 233.3 106.3 152.8 152.7 123.4 79.5 Physical Co-n- tingencies 60.0 6.6 9.3 13.3 13.3 10.7 6.8

Sub-Total 908.0 239.9 115.6 166.1 166.0 134.1 86.3

Expected Price Increases - % 42 17 31 42 53 64 75 - Rs Million 390.9 42.1 36.5 70.9 89.2 86.8 65.4

Sub-Total 1,298.9 282.0 152.1 237.0 255.2 220.9 151.7

7. Operating Cost during implementation 69.6 10.41' 8.9 11.0 12.0 13.2 14.1 Expected Price Increases - % 34 1? 22 29 36 43 50 - Rs Million 23.5 1.2 2.0 3.2 4.3 5.7 7.1

Sub-Total 93.1 11.6 109 14.2 16.3 18.9 21,2

Total Project Cost -. 1,392.0 293.6 163.0 251.2 271.5 239.8 172.9

1/ This includes vehicle and ecuipmentpurchases of Rs4.4 million.

ANNEX'3 Table 2 Page 1 INDIA

RA.JASTHANCANAL COMMAND AREA DEVELOPMENTPROJECT

Allocation of the Proceeds of the Credit

Estimated Cost,/ Proposed Allocation Category Total Foreign of Credit -US$ Million-

I. Civil Works (a) Infrastructure 49.7 6.9 Price Contingencies 26.3 4.2 Less equipmentwith Price Contingency (4.5) (4.,1)

Sub-Total 71.5 7.0 30.( Disbursementwoulq be for 42% of total co8tb/

(b) On-Farm Development 36.6 7.3 Price Contingencies 19.3 4.5 Less equipmentwith Price Contingency (5.5) (5.o)

Sub-Total 5o.4 6.8 21.4 Disbursementwould be for 42% of total costb/

II. Equipment and Vehicles 8.8 7.9 0i3c/ (a)Directly imported, (100% cif) (b)Locally manufactured, (100% ex-factory) (c)Imported items procured locally, (70%)

III. Fertilizer 19.7 18.7 18.7 Disbursement would be 100% of foreign cost

Sub-Total (carried forward) 150.4 40.4 76.4>

a/ See Annex 6, Table 1 for cost estimates, and Annex 7, Page 1 for equipment component. b/ Percentage shown would be applied to civil works net of equipment use for force account works and hire to contractors. The percentage would be reviewed periodically during project implementation. c/ Excludes items for reserved procurement. ANNEX 8 Table 2 Page ?

Estimated Costa' Proposed Allocation Category Total Foreign of Credit ------U Million------

Sub-Total (brought forward) i5o.4 o4 74o4

IV. Unallocated Civil Works - Physical Contingency 7.5 1.3 Equipmenb Price Contingency 1 .4 1.3 Fertilizer Price Contingency 3.3 3.1

Sub-Total 12.2 5.7

Sub-Total (I - IV) 102. 4h6.1 83.0

Project Operating Cost_/ 11.4 1.0

Total 174hO 47.1 83.C

a See Annex 6, Table 1 for cost estimates,and Annex 7, Page 1 for equipment component. b/ Equal to foreign cost plus 10% of local costs. _/ No disbursementagainst this item. ANNEX8 Table 3

INDIA

RAJASrHANCANAL COMW{ND AREA DEVELOPMENTPROJECT

Estimated Schedule of Disbursements

IDA Fiscal Year Accumulated Disbursements and Semester US$ Million Equivalent

1975 lst 2nd 3.0

1976 1st 23.0 2nd 32.0

1977 lst 37.0 2nd 42.0

1978 1st 48.0 2nd 56.o

1979 1st 62.0 2nd 69.0

1980 1st 74.0 2nd 79.0

1981 1st 82.0 2nd 83.0

Proposed Closing Date: June 30, 1981

ANNEX 9 Page 1

INDIA

RAJASTHIANCANAL COMMANDAREA DEVELOPMENTPROJECT

Organization, Management and Project Financing

Project Management and Coordination

1. The proposed project is one of many similar proposed command area developmentprojects throughoutIndia scheduled for implementationin the next few years. Therefore, there has been concern both at the Central and State level to devise organizationalarrangements which could readily be duplicated elsewhere. Such projects would typicallyrehabilitate, complete and modernize the irrigation,drainage and road networks in a command area, carry out land developmentworks on the farmers' fields to enable better irrigation practices, and would improve agriculturalsupport services. To carry out such a program in a coordinated and efficient manner, would require a unified project organization. As a minimum, the project organization should direct and control all activities of the Irrigation,Agriculture, Revenue, and Colonisationand CooperativesDepartments and to coordinate programs of the other departments dealing with rural development in the command areas concerned.

2. In view of the above considerations,the Government of Rajasthan (GOR) has establishedat the State level, a Command Area Development and Water Utilization (CAD & WU) Department headed by a Secretary reporting to the Minister of Agriculture,and a Command Area Authority in the project area, headed by an Area Development Commissioner(Charts 8599 and 8640). A State-level CoordinationCommittee for Command Area Developmentand Water Utilization is being set up, chaired by the Chief Minister of Rajasthan and comprising the Ministers, Secretaries and Directors of all departments concerned (Table 1). A small coordinatingcommittee would be set up by the Chief Secretary to assist the Secretary Command Area Developmentand Water Utilization in his day to day activities. During the next five years, the CAD & WU Departmentwould be dealing primarilywith the implementationof the Rajasthan Canal CAD Project, the Chambal CAD Project and the Gang-Bhakra CAD Project (not proposed for IDA financing).

Command Area Autliority (CAA)

3. The CAA'was set up in March 1974 and is governed by a Board, chiaired by the Area Development Commissioner,and comprising the secretaries of the departments concerned and representativesof credit institutions (Table 2). An Area DevelopmentCommissioner will be appointed in consultation witlhGOI. A Command Area ConsultativeCommittee would be established to advise the Commissioner. It would comprise representativesof the District Administrationsand the Directors of developmentdepartments not directly controlled by the Area DevelopmentCommissioner. ANNEX 9 Page 2

4. The Area DevelopmentCommissioner would be responsiblefor the planning and implementationof all irrigationand on-farm developmentworks, for all agriculturalsupporting services,and for the organizationand management of cooperativesin the project area. As Revenue Coinnissionerand Member of the Board of Revenue, he would also be responsible for all Col- lectors and revenue officers in the command area. Through the Command Area ConsultativeCommittee he would also coordinateall other developmentactivi- ties (such as roads, afforestationand village water supply) in the project area. Separate Circles would be set up in each of the Departments of Public Works (PWD), Forestry and Water Supply to design and construct their respective works in the project area.

5. The CAAwould be organized into four departments (Chart 8640):

(a) The Agriculture Department, headed by a Joint Director of Agriculture. The Department would be responsible for research, extension and other agricultural activities. The organizationof the extensionservice is described in detail in Reference 3;

(b) The Colonizationand CooperativesDepartment, headed by a Joint Registrar of Cooperatives. The department would be responsiblefor all colonizationactivities and the organizationand initial management of village credit cooperativeand marketing societies;

(c) The Revenue Department,hieaded jointly by the Collectors. The departmentwould be responsiblefor taking legal action to make land developmentcompulsory, for land registration and correction of land records, for the preparation of loan applicationsand for the recovery of special loans and for the pre-extensionservice (para 9); and

(d) The Irrigationand Land DevelopmentDepartment, headed by a ClhiefEngineer. Although part of the CAA, the department's technicalsupervision would be through the Rajasthan Canal Board, a semi-autonomousorganization reporting to the Minister of Irrigation and responsiblefor the design and construction of the RCP.

The Irrigation and Land Development Department (Chart 8639) would have two operationalunits: (a) the Land DevelopmentUnit, under an Assistant Chief Engitneer,would be responsiblefor all on-farm development works (leveling,watercourse lining and field channel construction). It would be organized in four Land DevelopmentCircles, each composed of four Land DevelopmentDivisions; and (b) the Operationsand MaintenanceUnit under the Chief Engineer, would have two Operation and Maintenance Circles, with three Operation and Maintenance Divisions each, and one Mechanical Division. The Operation and Maintenance Circles would be responsible for the operation and maintenanceof the entire canal system and for the supply ANNEX9 Page 3 of water to the individualchak outlets. They would coordinate all water release schedules with the extension service.

Financing of Proiect Works (see also Annex 10)

7. Irrigation,roads and afforestationworks would be financed by annual allocations from the GOR budget. A new head of expenditure, "Com- mand Area Development",has been created within the AgriculturalSector of the GOI and GOR development programs. A new budget head for "Command Area Development"has also been created in the GOR budget to cover:

(a) Non-Plan (i.e. recurrent) outlays for the existing Agricul- ture, Irrigationand CooperativesDepartments in the project area; and

(b) New Plan (i.e. capital) allocations for these departments.

Budgetary earmarkings for the command areas would also be made for all the other development departments concerned, namely, Roads, Forestry, Animal Husbandry, Sheep and Wool, Dairy, Education, Medical and Public Health, Water Supply, Town Planning and Power. For the Rajasthan Canal Command Area, only the Roads, Forestry, and Water Supply componentswould be significantenough for separate inclusion in the proposed project.

8. As implementationof a systematic on-farm developmentprogram must include whole chaks (Annex 3), developmentwould be compulsory and the cost of works would be recovered from the beneficiaries or from the land benefitted. Legal powers-to carry out such compulsory on-farm development and to recover the costs of developmentwould be available under the:

(a) Rajasthan ColonizationAct, as amended;

(b) Rajasthan Irrigation and Drainage Act, as amended; antd

Amendments of the Rajasthan Colonizationand Irrigation and Drainage Acts have been sanctioned. ThieRLDC Act has already been drafted. After discus- sions with the AgriculturalRefinance Corporation (ARC), the commercial banks and the Banking Department of the Government of India, the draft Act has been revised and will be submitted to the State Cabinet for approval by July 1, 1974.

9. The success of a chak-wide on-farm development program is, however, not only dependent on the available legal instruments but also on the will- inignessof the great majority of the farmers to participate in the program. A special effort would tlhereforebe made by the CAM to convince farmers that the proposed works would be to their benefit. The Revenue Department would lead a pre-extensioneffort in the chaks scheduled for on-farm development. The pre-extension teams would be reinforced, as required, by agricultural extension specialistsand with land development engineers who would explain ANNEX 9 Page 4 the proposed program and demonstratethe effect of the development to the villagers. Slides, short films and inspection tours to existing developments in the Droject area would be organized. The pre-extensioneffort would be implementedin two phases: the first phase before the initial survey work is carried out: and the second phase at the time when the chak files are ready to be discussedby the Revenue Department personnelwith the village authoritiesand the farmers.

10. Most of the on-farm developmentworks implementedirn the last few years were financed directly from GOR's developmentbudget, with cost recovery scheduled through betterment levies on the developed land. Collec- tion of the levies however was not effective as local pressures, in many instances, forced Government :o suspend collectionsor cancel them completely.

11. The proposed financing plan for on-farm developmentworks under the project is aimed at keeping GOR's budgetary liabilities to a minimum. Financingwould be provided to farmers from two sources: commercial and land developmentbank loans and "special loans", from GOI. Long-term loans from commercialand land developmentbanks secured by mortgages on the land scheduled for development,would provide the major source of finance for on-farm development. Eighty percent of such loan amounts would be refinancedby ARC. Commercial and land developmentbanks would establish their usual direct relationshipwith their borrowers and use their own loan recoverymechanisms. An effort would be made to ensure that as many farmers as possible were eligible for commercialbank loans, through a campaign to update land records and to recover past debt arrears. This would be desirable, as alternativesources of finance, such as special loans (Annex 12), would be subject to some degree of political pressure. Low recoverieswould place an unacceptableburden on the GOR budget (para 14).

12. Farmers ineligiblefor commercial loans because of defective land titles or because of overdues on debts to local authorities,cooperatives or commercial financinginstitutions, would be provided with unsecured 'special loans' from the Rajasthan Land Development Corporation (RLDC) to he set up for the project (Annex 10). An estimated 20% of the on-farm dev- elosment works would be financed in this way. Funds would be provided by .1I to TlOC at 7% interest for a period of fifteen years and on-lent at an Kste>est ante ahove that for commercial loans. Farmers who would be eligible rn*ercTl loans but who, for any reason, refuse to apply for such loans, woulh be provided with special loans at a higher rate of interest. All sDecial loans would be recovered through a surcharge on the existing land tax.

13. Farm Budget calculations (Annex 15) indicate that, even under rather conservative assumptions, an investment of Rs 15,000 per ha for on-farm development works cou1ld be repaid by most of the farmers. However, topographical conditions vary within a chak and, in some cases, although the total on-farm development costs of a chak may average less than this sum, the development cost of individual holdings might in some cases be considerablv more. In such cases the repayment capacity of the affected ANNEX 9 Page 5 farmers would be investigated,)y the CAA and either the loan limit raised, or if the farmerswere unable Lo carry a loan in excess of Rs 15,000, a GOI disadvantaged farmer subsidy would be provided. An estimated 5% of tne farm holdings in the high dune area would receive these subsidies. Farmers receiving loans for land developmentwould qualify for grace periods depending on the financial viability of their farms during the initial years of development. It is presently estimated that 25% of the 34,000 farmers would require up to 2-year grace periods.

14. RLDC would act as an agent for the participatingcommercial and land developmentbanks for the preparationand initial processing of loan applications,for the channeling of GOI subsidies and for providing special loans to ineligible farmers. As a Government corporation,its liabilities, as a result of slow loan recoveries,will effect the GOR Budget. To reduce these liabilitiesto a minimum, all farmers eligible for commercialcredit will be directed to participatingbanks. Although legal powers would be available (para 8) to enforce compulsoryland development,it would not be possible to force farmers to apply for commercial loans. Land developmentworks for farmers who refuse commercial credit would be financed from RLDC special loan funds. To reduce the number of such cases, these loans would carry harsher repayment conditions (para 12). The RLDC Act would provide the necessary legal powers for such compulsory funding.

15. RLDC would channel all commercial credit, special loans and subsidies to the CM which would carry out the on-farm works (Annex 3). To ensure an uninterrupted work program, RLDC would advance construction funds to the CAA pending the scrutiny and sanction of loan applications by its own staff and the commercial banks. Interest charges for these funds would be financed from RLDC's own resources (Annex 10).

16. To date, the commercial and land development banks active in the project area have had varying standards of eligibility for granting long-term loans and have required different types of documentation for their loan applications. Under the proposed new procedures, RLDC and the participating banks would draw up a standardized application form, which would be used for the preparation of all commercial and special loan applications. All applications would be prepared by the Revenue Department of the CAA under the general supervision of the RLDC branch office. The use of Revenue staff for this work would be advantageous as they keep the land records necessary for executing mortgages, they are the designated agencies, under the Rajasthan Colonization Act, for issuing the compulsory land development notices to farmers and they have an extensive field organization in place. Commercial and land development banks would second representatives to the CAM to ensure that standards for loan applications were being adhered to.

17. Loan applications would be based on the chak and farmers' files (Reference 1). RLDC would receive these files from the Land Development Circle of the CAA. The loan amount would be based on the estimated cost for land levelingworks on the farmer's original holding and a proportional share of the construction cost of the watercourses, drains and roads. The completed loan applications would be returned from the field and processed ANNEX 9 Page 6 by the RLDC branch office. Eligible farmers wno have signed loan applications would be referred for financing to the lead commercial bank for that part of the project area or to a land development bank. The bank would revies tne application and, within a stipulated time, inform RLDC whether the loan would be sanctioned. A,)plications of eligible farmers who have been refused by a bank would be reviewed by an appeal commission, composed of a representative of the bank, the Regional Director of RLDC in the project area and an independent chairman. Eligible farmers who lhave refused to sign a loan application, ineligible farmers and farmers whose loan applications Llave been refused by the banks and such refusal upheld by the appeal commission, would be financed by special loans through RLDC.

18. GOR and ARC have aprointed a committee to draw up a banking plan, divicing the project area into zones of operation for the one lead bank, and four commercial banks and land development banks participating in the SCIerLe. Ihe lead bank would be responsible for coordinating all banking activities in its district. The other banks would be assignec smaller operating areas. Few bank branches exist in the project area at present though reasonf able facilities exist in adjacent towns. The need for additional branches would be investigated under the banking plan. Staff training would be required. TAe financial position of the participating banks is satisfactory and, with ARC refinancing 80% of the loan amounts, no shortage of funds is anticipated. ANHEX 9 Table 1

INDIA

RAJASTHAN CANAL C(OMMANDAREA DEVELOPMENTPROJECT

Coordination Committee for Command Area Development and Water Utilisation

Chief Minister Chairman

Minister for Irrigation

Mfinister for Agriculture

Minister for Planning

Minister for Finance

Minister for Cooperation

Minister for Revenue

Chief Secretary

Agriculture Production Secretary

Special Secretary, Planning

Commissioner, Irrigation and Power

Financial Commissioner

Revenue Commissioner

Chairman, Rajasthan Canal Board

Chief Engineer, Irrigation

Area Development Commissioner (Rajasthan Canal)

Area Development Commissioner (Chambal)

Area Development Commissioner (Gang-Bhakra)

Secretary, Command Area Development and Water Ultilization Department Member Secretary

Representatives of the MSinistry of Agriculture and the Planning Commission equal or above the rank of Joint Secretary will also be members ANNEX9 Table 2

INDIA

RAJASTHANCANAL COMMAND AREA DEVELOPMENTPROJECT

Command Area Board

Area Development Commissioner Chairman and Administrator

Secretary, Rajasthan Canal and Chairman, Rajasthan Canal Board of his Representa- tive Member

Secretary, CAD & WU Member

Financial Commissioneror his Representative Member

Revenue & Forest Commissioneror his Representative Member

Special Secretary Planning Member

ColonizationCommissioner Member

A Representativeof Credit Institutions Member

Two Nominees from Pramukhs and other Elected Representatives Members

Two Representativesfrom the Farmers, one of which will be from Weaker Sections Members

Deputy Area Development Commissioner Member-Secretary ANNEX 1 0 Page 1

INDIA

RAJASTHAN COMMANDAREA DEVELOPMDENTPROJECT

Rajasthan Laid Development Corporation

General

1. The proposed Rajasthan Land Development Corporation (RLDC) would be a statutory corporationof the State of Rajasthan created for the purpose of:

(a) undertakingprograms of on-farm developmentworks in Rajasthan;

(b) operating as an agexrcyfor financing these programs; and

2. The proposed Corporationwould finance land development projects in which participationby all the concerned landholders is made compulsory by law and for which repayment is obligatory. The RLDC Act stipulates, in this connection, that it shall be obligatory for all holders of land coming within the purview of an RLDC compulsory land development scheme to apply for ordinary bank loans, if they have the legal capacity to do so, or otherwise accept "special loans" from the Corporation. The farmers would also have the options of doing the work themselves or paying cash for it.

3. The Revenue Department would have special powers to facilitate the recovery of special loans on behalf of RLDC including:

(a) the power to take over the management of the lands of defaulting cultivatorsuntil all sums due are realized;

(b) In the case of lands irrigatedby a Government-owned irrigation source, the power to stop the supply of irrigationwater to such land; and

4. The share capital of RLDC would be made up of equal contributions from GOI and GOR. Funds for special loans would be lent by GOI to RLDC through GOR. RLDC would also be able to borrow short-term funds from sanks. RLDC would supervise the preparation of loan applications, assign .L;many of them as possible to commercial and land development banks, and rinance the others itself as special loans (Annex 7). It would also channel to the CAM, in pace with construction, the proceeds of these loans as well. as of its own loans. It would be responsible for the collection of the special loans.

Organization and Management

5. The RLDC headquarters in Jaipur would be organized as follows:

CHAIRMAN (Secretary, CAD & WU ex-officio)

Managing Director

Chief Loans Chief Technical Chief Legal Officer Officer Officer Accountant

Lending & Project. Loan Agreements Borrowing AppraisaL Accounts

The Board of Directors of RLDC would be appointed by the shareholders (GOI and GOR) and would consist of the following:

(a) Chairman, Secretary CAD & WU (Ex-officio);

(b) Representative of the Managing Director, ARC;

(d) Representative of the Joint Secretary (CAD), GOI;

(e) Other representatives of the OI from the Planning Commission and the Ministry of Finance;

(f) Area Development Commissioner (Rajasthan Canal);

(g) Area Development Commissioner (Chambal); and

(h) Managing Director, RLDC. ANNEXt0 Page 3

The Headquartersstaff would consist of:

(a) Managing Director; ) (b) Chief Loans Officer; ) (c) AssistantLoan Officer - Loans; ) Loans (d) Assistant Loan Officer - Borrowing; ) Division (e) Assistants; ) (f) Chief Accountant; ) (g) Three Accountants; ) Accounts (h) Junior Accountants; ) Division (i) Legal Officer; ) Legal (j) Legal Assistant; ) Division (k) Clhief Technical Officer; and ) Appraisal (1) Project Officers (as required). ) Division

The Project Appraisal Division would consist of one or two technical experts. If necessary,RLDC would borrow its experts from the CAD & WU Department of the GOR.

6. RLDCwould set up a small branch office in the Chambal project area to coordinateits field activities. This office would consist of a Loan Officer, an Accountant and a number of supportingpersonnel. In addition many officers of the CAM would also have power to act as agents of RLDC in preparing and sanctioningloan applications.

Financing of On-Farm Development

7. On-farm developmentworks would be implementedby the CAA and financed by the farmers, through long-termbank or special loans. Bank loans would be for at least ten years with an appropriate grace period on the repaymentof principal. Heavier repayment conditionswould apply to special loans (Annex 9). Disadvantagedfarmers (small and marginal farmers, and farmerswith excessive land shaping or reclamationcosts) would receive a GOI subsidy of up to 33% of the cost of on-farm development. All subsidiesand loans would be channeled to the CAA through RLDC.

8. Table 1 gives a breakdown of on-farm developmentcosts in constant prices over the six-year developmentperiod and the sources of funds for this project and the Chambal Command Area DevelopmentProject. Engineeringcosts, which are included in the land development costs to be financed by the farmers, would be covered initially from budgetary allocations by GOR. RLDC would withold an equivalent amount from the loan amounts made available to it, to meet its own operating costs. ANNEX 10 Page 4

9. The following diagram-shows the flow of funds:

Government of Rajasthan -I y Government of Indial

I I ,

| CM Al Implementation Agencies -(x + y + s) -e RLDC --x-- Participating -0.8 x- Banks

Repayment

Development x = commercial loans, including cost of engineering. y = GOI special loans, including cost of engineering. s = GOI subsidies, a percentage of land development costs including engineering. e - engineering cost (15% of cost of works).

2perating Accounts and Sources and Applications of Funds lu. RLDC would have a share capital of Rs 100 million, to be provided equally by GOI and GOR1/. The share capital would be used to provide advance payments to the CAA between the receipt of farmers' loan applications and the sanction of loans by the banks, for equipment purchases in the first and third years of the project, and to cover bad debts in its outstanding special loarns which would be repayable to GOI. The advance payments for Lrocurernentof equipmentwould be amortized over five years and amortization payments would be deducted from construction payments to the CAA. At the end of the construction period, the machines would remain the property of RLDC 2-:countswould be credited with their salvage value. Projected KLDC operatingaccounts for both this project and the Rajasthan Canal Command Area Development Project, in constant prices, are shiown in Table 2, while projected sources and application of funds are shown in Table 3. A cumulative operatingsuirplus of about Rs 55 million would be generated over the six-year period, whiichlwould either be refunded to the GOI and GOR or used for further projects.

1/ Initially GOI and GOR proposed an authorized share capital of at least Rs 40 million. Subsequently, they advised IDA that they intend to in-crease the authorized share capital to Rs 100 million. Moreover, as this is subject to Legislative approval, the lower figure of Rs 40 million was used in this report for the purpose of evaluating RLDC's financial positioni. Ai4kla 10 Table 1

INDIA

RAJASTHANCANAL COMMAND AREA DEVELOPMENTPROJECT

On-Farm Development Financing Scheme (Rs Million)

------Project Year ------Item 1 2 3 4 5 6 Total

Construction Cost of On-Farm Development

Rajasthan Canal Project 47.8 63.8 79.7 79.7 47.8 0.0 31h'- Chambal Project 5.7 11.8 16.0 19.0 20.4 22.t' 95.5

Sub-Total 53.5 75.6 95.7 98.7 68.2 22.6 414.3

Less:

GOI disadvantaged farmer subsidy 2.3 3.6 4.6 4.8 4.0 1.2 20.5

Total Credit 51.2 72.0 91.1 93.9 64.2 21.4 393.8 Financing (net ofsubs3idy)

GOI SpecialLoans

20% of Rajasthan Canal credit volume 9.6 12.8 15.9 15.9 9.6 0.0 63.8 30% of Chambal credit volume 1.7 3.5 4.8 5.7 6.1 6.8 28.oz

Total 11.3 16.3 20.7 21.6 15.7 o.8 9 2.!4 e0CK_ =_C ==N

a/ First implementation year to begin October, 1974. b/ Includ,3s engineering costs, but excludes price contingencies. ANNEX 10 Table 2 INDIA

RAJASTHANCANAL COMMANDAREA DEVELOPMENTPROJECT

Ralasthan Land Development Corporation - Operating Accounts (Rs I(i1lioa)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total

Revenues

1. Recovery from loans and grants of engineering costs payable to COR 8.0 11.3 14.4 14.8 10.2 3.4 62.1 2. Interest margin of 3.0% on GOI loans - 0.3 0.8 1.4 2.1 2.6 7.2 3. Amortization payments by CAA for equipment loaned from RLDC at a rate of use of 2,000 hours/year out of a useful life of 8,000 hours - 2.0 8.0 10.0 12.0 3.0 35.0 4. Salvage value payment for RLDC equipment sold to GOR - - - - - 8.9 8.9

Total 8.0 13.6 23.2 26.2 24.3 17.9 113.2

Expenditures

5. Preparation of loan applications1/ 0.5 0.7 1.0 1.0 0.7 0.2 4.1 6. RLDC establishmentcostz/ 0.5 0.7 1.0 1.0 0.7 0.2 4.1 7. Interim financing of project works3/ 0.6 0.5 0.5 0.5 0.4 0.3 2.8 8. Purchase of machinery for CAA - letter credit4/ 9.9 - 10.0 - - - 19.9 9. Purchase of machinery for CAA - payment5/ - 10.0 - 14.0 - - 24.0 10. Recovery of special loans, administrative costs6/ 0.3 0.4 0.5 0.5 0.4 0.2 2.3 11. Contingencies7 / 0.1 0.2 0.3 0.3 0.2 0.1 1.2

Total 11.9 12.5 13.3 17.3 2.4 1.0 58.4

Surplus - 1.1 9.9 8.9 21.9 16.9 58.7

Deficit 3.9 - - - - - 3.9

Cumulative -3.9 -2.8 7.1 16.0 37.9 54.8 54.8

Share Capital 20.0 10.0 10.0 - - - 40.0

1/ One percent of total loan volume channeled through RLDC. 2/ One percent of loan volume channeled through RLDC. 3/ Interim financing advanced to CAA for an average of 3 months at 12% interest, between the receipt of loan applications and the sanctioning of the loans by the commercial banks. 4/ Opening of letter of credit. 5/ Delivery and payment for equipment. 6/ Cost of recovery of special loans estimated at 2k7%of loan volume. 7/ Contingencies of 107 on Items 5, 6 and 10. ANNEX 10 Table 3 INDIA

RAJASTHAN CANAL COMMANDAREA DEVELOPMENTPROJECT

Rajasthan Land Development Corporation - Sources and Application of Funds (Chambal and Rajasthan Canal Projects Only) (Rs Million)

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Total

Sources of Funds

1. Share Capitall/ 2/ 20.0 10.0 10.0 - - - 40.0 2. GOI GrantW(subsidy)- 2.3 3.6 4.6 4.8 4.0 1.2 20.5 3. GOI Loans- 4/ 11.3 16.3 20.7 21.6 15.7 6.8 92.4 4. Commercial Loans- 39,9 55.7 70.4 72.3 48.5 14.6 301.4 5. Amortir7tion payments for equipment from CAA- 6/- 2.0 8.0 10.0 12.0 3.0 35.0 6. Salvage value of equipment fr9 m CAA_ - - - - 8.9 8.9 3 7. Interest of 10% on GOI Loans_ - 1.1 2.8 4.8 7.0 8.6 24.3

Total 73.5 88.7 116.5 113.5 87.2 43.1 522.5

Application of Funds

1. Preparation of loan appli ationsZ/ 0.5 0.7 1.0 1.0 0.7 0.2 4.1 2. RLDC establishment costs7Z 0.5 0.7 1.0 1.0 0.7 0.2 4.1 3. Interim financing of CAA payme ts8/ 0.6 0.5 0.5 0.5 0.4 0.3 2.8 4. Purchase of machinery for CAA9 9.9 10.0 14.0 10.0 - - 43.9 5. Construction payments to CAAtQ/ 45.5 64.3 81.3 83.9 58.0 19.2 352.2 6. Interest payment GOR/GOI - 7% - 0.7 1.9 3.3 4.9 6.1 16.9

Total 57.0 76.9 99.7 99.7 64.7 26.0 424.0

Surplus 16.5 11.8 16.8 13.8 22.5 17.1 985.0

Cumulative 16.5 28.3 45.1 58.9 81.4 98.5 -

1/ Share capital provided equally by GOI and GOR. 2/ Subsidies for small and other disadvantaged farmers. 3/ GOI special loans for farmers ineligible for commercial loans or unwilling to apply to commercial banks. The loan is given at a 7% interest rate to GOR and on loan to farmers at 10% to 13% interest. For this table, 10% was taken. 4/ Loans at 10% for ten years with 80% of the loan discounted by ARC. 5/ CAA will pay RLDC each year an amortization payment for equipment received from RLDC. In year 2 for 4,000 hours, in year 3 for 1,600 hours, in year 4 for 2,000 hours and year 5 for 2,400 hours, for a total life of 8,800 hours. 6/ At the end of the construction period the equipment would not yet be fully amortized. Salvage value for the equipment will be credited to RLDC at the end of year 5. The equipment will become the property of GOR after reducing RLDC's payables accordingly. 7/ One percent of the total loan volume channeled through RLDC for loan applications and one percent for RLDC establishment costs. 8/ RLDC will advance construction funds to CAA as soon as the loan applications for commercial loans have been received. Processing by the commercial banks is estimated to take three months. Interim financing not covered by share capital will be borrowed by RLDC from the commercial banks at 1% interest per month. 9/ The machine purchases will be effected in year 1 and 3. Letter of Credits will be opened in these years. Machines will be delivered in year 2 and 4 before the construction season. 10/ Construction funds to CAA will be net of engineering costs. Engineering costs have been advanced by GOR budgetary resources and are payables to GOR at the end of the projects.

ANNEX11 Page 1

INDIA

RAJASTHAN CANAL COMIAND AREA DEVELOPMENTPROJECT

Operation and Mlaintenance

A. Irrigation

Present OrganizatioII

1. Operation and maintenance (O & M) of the irrigationsystem is the responsibilityof the IrrigationDepartment. The Chief Engineer (North) heads an 0 & M unit comprisingIrrigation Circles for the Gang and Bhakra projects and for the completedparts of the RCP in the Stage I area. Each Circle is led by a Superintending Engineer and is divided into three or four O & M divisions. The divisions have Executive Engineers in charge and carry O & M responsibilitiesusually for an entire distributingcanal command. The Chief Engineer in charge of 0 & M and the Chief Engineer (RCP), responsible for the construction of the system, coordinate their activities, especially during the period preceding the handing over of a completed section of the system.

2. Operationand maintenancecosts are financed from GOR budgets and are fully recoveredfrom water rates collectedby the Revenue Department. Details of current rates are given in Table 1. At present revenue averages Rs 40/ha.

3. Present standardsof maintenanceare satisfactoryconsidering the difficultiesin maintainingan unlined canal system in sandy soils surrounded by shifting dunes, and an equitabledistribution of water to the farmers is achieved. The network below the branch canals is operated on an "on" or "off" system with an entire irrigationblock of 1,200 to 1,500 ha irrigated simul- taneously. The result is a rigid irrigationschedule with little attention to crop water demands. Water supply is interruptedby canal closures for emergencymaintenance needs. Most of the commanded area has water available only in kharif but the closure of the Pong Dam in 1974 will permit perennial irrigation. The work load of the O&M staff will then increase considerably.

4. At the chak level an irrigation department official, the irrigation patwari, assists the farmers in arranging the rotation from the watercourses. Tihisarrangement is popular among the farmers as it obviates water disputes. ANNEX 1 1 Page 2

Operation and Maintenance under the Project

J. In the Command Area Authority (CAM), a new post of Chief Engineer, rrigation and Land Development, would be created (Annex 9). He would be responsible for two 0 & M Circles operating in the project area. Each of the Circles would be responsible for a number of canal commands. The Chief Engineer would maintain the present close coordination with Chief Engineer (North) who would remain resporsible for the Gang and Bhakra projects and the Chief Engineer, RCP, who is responsible for construction.

6. The supply of water from the irrigation system would be coor6L-iaLcc with the Aariculture Department of the CAA and with irrigation advisory eei- mittees set up for each irrigation block. The 0 & M Circles would draw up irri-ation schedules in accordance with farm management plans prepared by the Agricultural Extension Officers. The schedules would be prepared on a block-bv-block basis at least three months before the start of each growing season. Village level workers and the irrigation patwaris would prepare chak irrigation schedules and assist farmers in implementing them. Results wotild be reviewed with the block advisory committees and modified if necessaLry.

7. Prior to the commencement of the irrigation season in May of each, year, the Chief Engineer would estimate water diversion requirements at the lhead of the canal system and negotiate them with the Interstate Water Con- trol Unit. 1/

8. The costs of operating and maintaining the system down to the c61.a;k outlet are shown in Table 7 of Annex 6. These amount to Rs 7.2 million per year in 1974 monetary values or Rs 36 per ha irrigated.

9. With the full implementation of the proposed cropping pattern and yield projections from year five onwards, these 0 & M costs would be recov-- ered easily from the farmers at current irrigation rates (Annex 15). Water rates (Table 1) will be collected by the Revenue Department on chak assess- ments prepared by the irrigation patwaris.

B. Village Water Supply System

11). Operation and maintenance of this essentially very simple system of gravity flow filtration would be the responsibility of the panchayats under the administrative supervision of the CAA. The Water Supply Departmen.- w;ould supply chemicals (bleaching powder) free of charge, provide technical

,/ This unit, stationed at Chandigarh, is responsible for supervising allocation of the Ravi and Beas River waters according to the Inter- state Water Agreement between the states of Haryana, Punjab and {ajasthan. ANNEX 1 1 Page 3 supervisionof routine maintenance and carry out major repairs and replace- ments. The cost of the watchman/operatorwould be paid by the panchayat from their own funds.

C. Roads

11. Road maintenancewould continue to be the responsibilityof the PWD. PWD staff and equipment, the latter obtained from the completed construction program, would be employed on this program, which would be funded by GOR annual budgetary allocations. Insufficientfunds are allocated at present to road maintenance. The costs of annual maintenance are estimated at Rs 3,500/km or a total of Rs 0.5 million on completionof the project roads.

ANNEX 11 Table 1

INDIA

RAJASTHAN CANAL COMMANDAREA DEVELOPMENTPROJECT

Irrigation Water Rates (in force in 1973) in RCP

Item Rs/ha

Sugarcane 75

Cotton 50

Sorghum 17

Millet 17

Pulses 30

Vegetables 35

Oil Seeds 30

Wheat 30

Fodder 10

Gram (fully irrigated) 30

Paddy 35

Gardens 85 (per year)

ANNEX12 Page 1

INDIA

RAJASThANCANAL COMMAND AREA DEVELOPMENTPROJECT

Agricultural Supporting Services

I. PRESENT STATUS

1. Several Government departments are currently dealing with agricultural development and assistance to farmers. The main agencies active in the project area are:

(a) the Extension and Research Services of the Department of Agriculture;

(b) the Irrigation Department;

(d) the Revenue Department; and

(e) commercial and land development banks.

lhe responsibilities of the various departments are not well defined. Be- cause of a lack of coordination, limited personnel and insufficient funding, the services provided to farmers are inadequate to meet the requirements of an intensive agricultural development.

Extension

2. The Director of the Department of Agriculture of Rajastlian State is responsible for all extension and research activities in the State. At the head office there are several subject matter specialists for the various crops and for related fields such as plant protection and farm machinery. Agricultural research stations are located throughout the State, and there are also a number of special schemes for different crops. The Ganganagar Region is divided into four agricultural districts, two of which are in tne project area: RCP - Area A and RCP - Area B.

3. Extension activities in the project area are supervised at present by a Joint Director of Extension at the Regional level. Responsibility for extension work in the project area is divided between two District Agricul- tural Officers, one for each of the areas A and B, who are assisted at present by 27 Agricultural Extension Officers and 75 Village Level Workers (VLW's), all of whom are employed by the Department of Agriculture. In addition, two Agricultural Extension Officers and 35 VLW's employed by the panchayats ANNEX12 Page 2~

(village committees) are also operating in the project area. The Agricul- tural Extension Officers are university graduates but most of them lack enough practical agricultural background. The VLW's are high school graduates who have taken a special agricultural course, and many of them have an adequate agricultural background. The Agricultural Extension Officers and VLW's spend most of their time in helping to provide farm inputs and in performing other administrative tasks, and devote only about 25% of their time to agricultural extension. Extension and research work has helped farmers in the project area to improve farm practices and raise yields. Nevertheless, technical help to the farmers has not been entirely effective, as the pro- fessional personnel lack training and support facilities.

4. The farmers in the area usually know their job and most of them get good results, considering the quality of land and quantities of water available to them. They are responsive to innovation and, with adequate extension help, they will certainly adopt improved farm practices.

Agricultural Research

Research facilities are presently available at the research farms of hanumangarh (adjacent to Block B) and to a more limited extent at Barore in Block A). The main research headquarters, housing the central laboratories and the soil survey organization, is located at Bikaner. These facilities were set up by GOR in 1966 under the auspices of the UNDP/FAO Project. 1/ During this project, essential work was carried out on soil surveys, analysis and mapping, hydrology, land reclamation, water management, agronomy (varietal trials, plant protection, crop fertilizer response), and farm management; the efficiency and economy of a wide range of channel lining methods has also been studied. The international contribution was concluded in 1971 and work was continued by local staff, with emphasis on applied research of direct value to the farmers.

Fertilizers

Experimental evidence and field experience hlave shown that fertilizers are essential to crop production in the project area. Farmers are fully aware of this fact although they need Extension guidance on the applications required per crop. Both types of soil--the light sandy soils and t!-e leavy ta l soils--are inherently poor in nutrients and lack organic mat- .er. Without additional nutrients in the initial years, yields are low and build-up of fertility is very slow. There is a national shortage of fertilizer in India due to the rapid increase in demand over the last five years, coupled with a slow growth in domestic production and restrictions on imports, due to India's clhronic balance of payments problem. A recent bank survey estimates that India's total supply in 1973-74 will be about

1/ UNDP/FAO project No. SF/IND 24, "Soil Survey and Soil and Water Management Research and Demonstration in the Rajasthan Canal Command Area" (The Terminal Report, Rome, 1971, available on file). ANNEX 12 Page 3

60% of demand. World market prices of all the major fertilizershave doubled in the past year, due to supply shortages and the rising cost of inputs derived from petroleum. Fertilizers are allocated by the GOI from a central pool, with irrigatee areas receiving larger allocations. Distri- bution at the retail level is through cooperatives (para 9), private dealers and Government shops. Well functioningcooperatives supply their members well with fertilizer. Other farmers must rely on commercial suppliers. In general, cultivators in the project area who wish to use optimum rates say they can get about half of what they want. Except in a very few cooperatives, the cultivatormust pay more than the price fixed by the Government to get this fertilizer.

Seeds

7. There is no large scale seed multiplicationsystem in operation in Rajasthan,and good quality seeds are generally not available. The seeds sown by the farmers are largely obtained from private suppliers and are often of a low percentage germinationand geneticallymixed. As a result, seed planting rates are higher than would be recommended for high quality seed, full stands of plants in the field are hard to get and consequently yields are low.

Farmers' Organizations

8. The major farmers' organizationsin the project area are the cooperativesand the village councils (panchayats).

9. Cooperatives in the project area are multi-purpose in nature. Thieyaccept deposits and offer short and medium-term credit, supply inputs, hire machinery, operate godowns (warehouses)and offer some marketing services. For financial purposes, cooperativesare organized in a hierarchical structure. At the state level, there is a State CooperativeBank, in each district a Central Cooperative Bank and for many of the panchayats (local Government units) there are Primary Credit Societies.

10. The multi purpose co-ops in the project area are at an early stage of development and their impact on the provision of credit, storage and marketing facilities for their members has been minor.

11. Panchayats are units of local government,each consistingof one or more villages, with a total populationof about 1,500. Wlile panchayat councils are democraticallyelected, they tend to be dominated by the older, wealthier landownersand are frequentlyneither not oriented to development nor to the needs of the rural poor. The village level workers are administra- tively responsiblc to the panchayatsand thus tend to be politically influ- enced in distributing inputs and in their other functions. However, the panchayat leaders do command respect and could be used as change agents under the project, if properly motivated. ANNEX 12 Page 4

Agricultural Credit

12. The system of agricultural credit in Rajasthan and in the project area is described in detail in Reference 4, which also contains financial statements for the various institutions. Only a brief summary is given here. A major share of agricultural credit in India is provided by private money lenders, who charge exorbitant interest rates and often keep the farmer permanently in debt. Institutional credit is provided by the cooperative system, the Land Development Banks and increasingly by the major commercial banks, which were nationalized in 1969 so that they would provide better service to rural areas.

13. Cooperative Banks extend slhort and medium-term (up to five years) loans. While some funds are provided through share capital and deposits, the major source of loan funds is the Reserve Bank of India. Outstanding loans held by the Primary Credit Societies in Ganganagar District in 1972 totalled Rs 13.8 million. About 60% of these amounts represent overdues and a collection program has been initiated.

14. Loans to farmers are given partly in cash and partly in the form of inputs, with ceilings on the various components (Reference 4). Loans are also limited by the borrowing ceilings of the Primary Credit Societies and the availability of funds from the Central Cooperative Banks. Societies which are heavily overdue are not eligible for new loans. Farm- ers pay 10% interest per annum to the Societies which are re-financed at 8%. Thie State Cooperative Bank lends to the district banks at just over 6% and bortows from the Reserve Bank of India at 5 to 6%.

15. The Central Land Development Bank of Rajasthan supports three Primary Land Development Banks in the project area. These banks make long- term loans for land improvement, buildings, machinery and so on. Loans to farmers are from five to 15 years maturity and are secured by mortgages. GOI subsidies are available to small and marginal farmers taking such loans, similar to the provisions of the project for financing on-farm works (Annex 9). Interest is 9 to 9.5% and the Primary Banks in turn borrow at 7.5 to 7.75%. The Central Land Development Bank issues debentures carrying interest at 5.75 o 6.5X. wlich are held mainly by the Reserve Bank, the State Government and AKC, In i972 outstanding Land Development loans in the Rajasthan Canal area vc< at Its 7.3 million with overdues of Rs 1.3 million.

1z. L'Aihe operations of the commercial banks have been rationalized by the designation of a "lead bank" in every district. The lead bank in Ganganagar District is the SLate Bank of Bikaner and Jaipur. The lead bank acts as a consortium leader and, after identifying growth centers and credit gaps, is obliged to involve other banks in credit development. Interest subsidies from GOI are available to certain categories of low-income borrowers. The commercial banks have established jointly the Agricultural Finance Corporation to identify projects, train personnel, consult and perform other such tasks. The Corporation does not normally lend directly but has been active in the Gang/Bliakraarea In evaluating the pilot projects in on-farm development and arranging credit finance. ANNEX 12 Page 5

17. Branches of commercialbanks in and adjacent to the project area number 37. These branches had total deposits of Rs 104 million in 1972 and advances of Rs 36 million, of which only Rs 3 million was for agricultural purposes. Mlostagricultural lending is medium and long-termwith security and interest rates varying from 8.5% to 11%. Loan collectionin the rural sector has not been satisfactoryin the past.

II. IMPROVEMENTSNEEDED FOR PROJECT IMPLEMENTATION

Extension (see Reference 3 for further details)

18. To achieve the production targets of the project, a massive extension effort will have to be made. The Project Extension Service would be responsible for extension work in the project area, and would be responsible for the training of farmers. It would be in constant contact with the bodies conducting research in the area.

19. The Project Extension Service would comprise a headquarterswith Project Extension Director, subject matters specialists,and a training and publicationsunit. The project area would be divided into three Extension Districts and will comprise in total, 3 District Extension Officers, 18 Agri- cultural Extension Officers, 12 Subject Matter Specialists,and 144 full-time Village Level Workers. In each chak of 20 to 30 farms a "progressivefarmer" would be selected for part-time paid service.

20. In order to coordinateproject extension activitieswith the overall development efforts in the area, a Project Extension Council would be set up under the chairmanshipof the Director of Extension. Regular visits to farmers and group instructionwould be organized as described in Refer- ence 3, which also describes in-service training and the functional responsibilities of extension staff. Provision has been made in the project for the necessary vehicles, housing and equipment for the extension service (Annex 7, Table 5) and for operating costs during project implementation (Annex 6, Table 7). Full details of the proposed improvementsin agriculturalextension, including staffing, methods, training courses and evaluation, are given in Reference 3.

ASriculturalResearch

21. While there is presently enough research information available for initiating the project, there is need to strengthen the link between research and extension personnel and to expand research for direct application to the farmers. On-going work at the Bikaner, Hanumangarh, and Barore centers would continue under the project and would be increasinglyoriented to the practical problems faced by the farmers during land development,especially the need for reclamation,and improvementof soil fertility. Varietal trials would also continue. Detailed programs are under preparationwhich would be subject to review and confirmationas the project developmentproceeds. The new programs include: ANNEX 12 Page 6

(a) Farm management;

(b) Detailed soil survey and analysis;

(d) Determinationof soil/water/plantrelationships with the objective of maximizing crop yields with the irrigation supplies available;

(e) Insect, disease and weed control; and

(f) Collectionand maintenance of related statistical data.

The two research farms would also be responsible for continuinghydrometeorol- ogical data collectionand analysis and, at Barore Farm,.the monitoring of groundwater level and quality throughoutthe project area.

22. Additional staff and improved facilitiesare required at all three centers. Consultant services (from Technical Institutesand from Agricul- tural Universities)are required for guiding specific research programs (such as the developmentof sodic soil reclamationprocedures). The project would provide additionalbuildings (includingdormitories for visits of extension workers and progressive farmers) at the two research farms. Improved year- round road access to Barore Farm is a priority requirement and would be included in the projected road development program. Additional laboratory and field equipment would be provided on the small scale required. Additional field vehicles to assist co-ordinationof on-farm and research center work would be included.

23. The research program would be headed by the Project Research Director (under the general direction of the Joint Director of Agricul- ture, see OrganizationChart 8640) who would be a scientist of recognized ability and experiencewith the necessary administrativecompetence. He would be stationed at Bikaner. The other research staff would comprise:

Bikaner: 3 senior and 3 junior specialists.

Hanumangarh and Barora farms: 8 senior and 8 junior specialists.

Supporting Staff: 150 research and field technicians,clerks, drivers, attendants, etc.

24. It is estimated that this staff requirementwill amount to an additional 50% of the present establishmentat the thtee centers. The additional funds are included in the project cost estimates. ANNEX12 Page 7

Seeds

25. At full project development,the annual requirementsfor new seed, in the major crops, would be as follows: wheat - 7,000 ton; and cotton 920 ton. The productionof foundationseed for new varieties of the major crops is not expected to be a problem. However, there is a need for a system to increase the availability of seeds to the farmer. There is also a need for seed improvementin many of the minor crops, such as pulses, legumes and coriander,which get very little attentionat present. Potato and vegetable growers need a source of disease-freeseed.

26. An improved seed productionprocessing and distributionsystem would be needed to meet in an optimum manner the requirementsof the project area at full development. Additional seed farms would increase the volume of seed available and reduce distributionproblems. There is thereforea need for a seed multiplicationproject to benefit the area but the Rajasthan Canal project area alone would not be large enough to support a full-scale project. GOR has recognized this need and has proposed a Rajasthan state- wide seeds project for future IDA consideration. Discussionbetween GOR and IDA are continuingon the possible form and scope of such project. A seeds project would enhance the economic rate of return of the project but these improvementshave not been assumed in the present calculationof project yields and benefits.

Farmers' Organizations

27. In order to maintain and eventuallyoperate irrigationfacilities inside the chak, irrigationassociations would be formed. Initially,the emplhasiswould be put on the formationof an IrrigationAgricultural Advisory Committee in each irrigationblock (1,200 ha). Farmers in the chaks would be organized by the VLW and the progressivefarmer for the disseminationof extension information. These systematicmeetings graduallywill facilitate the formationof irrigationassociations. The Colonizationand Cooperatives Departmentof the CAA would guide and assist farmers' organizationsin their early years. The departmentwould also foster the formation of multi-purpose village cooperativeswherever a need for this type of organizationwas felt.

AgriculturalCredit

28. Arrangementsfor financingon-farm developmentworks through credit are described in Annexes 9 and 10. Productionand other credit needs would be met through the existing institutionaland private sources but cooperatives and the commercialbanks would play a greater role.

29. With the gradual strengthening of the cooperative system envisaged under the project,it would be in a position to supply about 20% of the short and medium-termcredit needs of tihe project area fanners. However, statutory ceilings on cooperativeborrowing may prevent further expansion. The role of Land DevelopmentBanks would not increase as result of the project, but they would continue to supply longer-termfunds for capital improvements. ANNEX 12 Page 8

30. A major expansion of the role of the commercial banks in short- term production credit is envisaged. About 80% of the farmers would be receiving long-term land developvientloans from the banks which would be secured by mortgages over their whole property. Such farmers would have some unutilized creditworthiness, which would be shown on an "agricard" which could be honored by the issuing banks for production credit. However, the farmer would not be obliged to use this credit source. The staff of the commercial banks would require additional training for this expansion in activity, and such training would be available from the Agricultural Finance Corporation (para 16).

31. Total production credit requirements at full project development have been estimated at Rs 120 million per year, based on an assumption that 75h of inputs would be purchased on credit.

Fertilizers

32. Assuming no shortages of supply and a dynamic extension service, fertilizer use in the project area would increase considerably over the development period of the Project. The greatest increase would be in nitro- genous fertilizers, such as urea, which is used on the major crops, wheat and cotton. A more modest increase would be for diammonium phosphate which is ideal for supplying the phosphate needs of rice, wheat, sugarcane, jowar, maize and a few other non-legumes, without including too much higher-cost nitrogen. Diammonium phosphate is also an ideal formulation for the leguminous crops, which need only a small amount of nitrogen but generous amounts of phosphate. Potash is recommended in the project area only for sugarcane and vegetables. Research in the future could pin-point the soil and crop combinations requiring potash and the economic returns to its use but tihis is not urgently needed. Present recommended levels of fertilizer application are given in Table 1.

33. Under present scarcity conditions, the excessive price the farmer usually must pay and the slowness in delivery increases his production costs, reduces the amnount used, and interferes with the timeliness of application, thus reducing returns from fertilizer use. If the prices of farm crops ixicrease in proportion to recent world-wide fertilizer cost increases and Ole eistribution system is improved under the project, cultivators in the :tent area are expected to use recommended rates, at least on their high- Lding varieties. As shortages of fertilizer could have very serious effects on the viability of the project, as the soil fertility must be re- scored after land-shaping operations and the farmer must assume a heavy debt obligation, supplemental fertilizer supplies have been included in the project. In calculating the amounts required (Table 2), it has been assumed -hit supplicSs slhould be guaranteed for three years after on-farm development and .hat allocations without the project would average 33% of requirements. Ite following supplemental tonnages (nutrient terms) would be required: N - 26,140 toin: P205 - 19,550 ton; K 0 -220 ton. The cost of these fertilizers has been estlmated5 at Rs 15i million (Table 2), based on prices discussed in Annex 14. ANNEX 12 Page 9

34. Tne full prolect supplementaryfertilizer requirements would be procured by GOI early in the project implementationperiod and added to the central pool. Annual allocationswould be made to GOR based on the amount of on-farm developmentpreviously completed. GOI agreed to allocate yearly to Rajasthan between 1975 and 1984, fertilizer in the quantity and of the types financed out of the proceeds of the Credit (see para 4.10 for further details).

35. Fertilizersallocated to GOR under this project and the Chambal CAD Project would be allotted to the Rajasthan Agro-IndustriesCorporation or the Rajasthan CooperativeMarketing Federation,which would act as GOR's agents and would be controlledby a Steering Committee. The committeewould allocate fertilizersto the project areas, fix retail prices to the farmers and determine retail outlets and tradingmargins. The Area Development Commissioner,in consultationwith the ExtensionDirector, would determine the retail outlets in the project area. These outlets would be Village CooperativeSocieties, Marketing Societies, Consumer Cooperatives,Panchayat Committees, Agro-IndustryCenters or fertilizerdealers.

36. All retail outlets would sell fertilizersto project farmers only against vouchers signed by the VLW's (para 37). All fertilizer supplies drawn by these retailers from the Agro-Industries Corporation or the Co-operative Marketing Federation would require these vouchers to indicate that the allocation had been sold to eligible project farmers in the quantities indicated on the voucher and as certified by the VLW's. For the first year's allocation,no vouchers would be available and the quantitieswould be sold in trust to the retailers until the end of the growing season.

37. Eaclhproject farmer, on signing the loan application for his on-farm development loan, would be issued with a booklet printed by the CAA entitling hlim to supplementary fertilizer for the following three years. rne booklet would contain detachable vouchers for each crop season on which the VLW would certify:

(a) Fertilizer requirements for the next crop season; and

(b) Actual fertilizer use, for the previous crop season, as determined by the VLW.

Thlis certification would be required from the second crop season onwards and would ensure that fertilizersdrawn from the retailers had indeed been used otn thle farm in the previous crop season and not resold by the farmers.

38. The vouchers duly signed and stamped by the VLW would be signed by the farmer in the presence of the dealer when the purchase is effected and would serve as documentation for the dealer that the fertilizer had been sold to eligible project area farmers. Fertilizer would be sold to the farmers for cash or credit, as is done at present.

ANNEX1 2 Table 1

INDIA

RAJASTHANCANAL COMKAND AREA DEVELOPMENTPROJECT

Recommended Levels of Fertilizer Application

Project Project Year 10 Season and Crop Year 1 and subsecuently -.- Nutrients(kha)--- N P K N P K Kharif

Sugarcane 35 15 10 150 70 ¢'0

Cotton 40 20 - 100 50

M4illet 20 10 - 80 4o

Pulses 5 20 - 15 60 -

Fodder 30 20 - 60 4.0 -

Grounlnut 40 20 - 15 60 -

Paddy 40 20 - 150 o0 -

Rabi

Wheat 40 20 - 120 D0 -

Mustard 30 20 - 80 50 -

Gram & Other Pulses 5 20 - 15 oO -

Berseem 5 20 - 15 Co- -

Potatoes 30 20 15 120 0 1i10 INDIA

flsJAS?HAN CANAL COMMAND AREA DEVELOPMENT PROJECT

Estimated Fertilizer Requirement

RecommendedLevel of Fertilizer Application Cost------* Project Year 5 Cost/ha Area Per Single Year Per Three Years ------kg/ha)------(Rs)-- (haT TRs '0-

N P2 05 K20

Sugarcane 90 40 35 533 2,000 1,066 3,198 Cotton 70 35 - 363 46,000 16,698 50,094 Millet 50 25 - 260 10,000 2,600 7,800 Pulses 15 40 - 182 30,000 5,460 16,380 Fodder (Sorghum) 45 30 - 258 10,000 2,580 7,740 Groundnut 15 40 - 182 10,000 1,820 5,460 Paddy 90 40 - 452 4,000 1,808 5,424 V.heat 80 40 - 416 69,000 28,704 86,112 Mustard 55 35 - 316 24,000 7,584 22,752 Gram 15 40 - 182 49,000 8,918 26,754 Fodder (Berseem) 15 40 - 182 3,000 546 1,638 Potatoes 75 50 40 522 1,000 522 1,566

Total 260,000 234,918

Total. N P205 X 20 ------(nutrient t-o-ns)-----'--- Estimated Three Years Fertilizer Requirements: 68,535 39,(15 tr9i,n1t 330 Estimated Availability: 22,, 16 - - - Dericit: 45,919 _ _ Esitimated Cost of Fertilizer Deficit (Rs Million): 157.4 ANNEX 13 Page 1

INDIA

RAJASTHAN CANAL CO"MANDAREA DEVELOPMENTPROJECT

Agricultural Production

Present Cropping Pattern

1. Irrigated crops grown during the kharif include cotton, pulses (mainlv Phaseolus spp.) hybrid millet, paddy, sorghum grown for fodder, and ground nuts. The rabi irrigated crops include wheat, mustard, gram, berseem (Trifolium alexandrium), potatoes and vegetables. Sugarcane is growTn on a twelve month cycle. The crops are shown on the crop calendar (Figure 1) which indicates that the late harvest of cotton tends to pre- clude more intensive double cropping. Improved crop varieties adapted to the project area are shown in Appendix I of this Annex. The two soil types (tal and sandy) in the project area, support the same range of crops, with minor exceptions (ground nuts are confined to sandy soils and paddy to tal soils).

2. The present cropping intensity on farms already irrigated varies from about 30% per year in Block A to 70% in Block B. With the availability of Pong Dam water in 1974, it is estimated that this cropping intensity will rise to 90% in both areas and that the pattern would be as shown on Table 1. Cotton and pulses in the kharif and wheat and gram in the rabi would be the most important crops. Sugar cane would continue to be grown in both seasons.

3. Present crop yields in ton/ha are as follows: cotton, 1.2; pulses, pulses, 0.8; hybrid millet, 1.3; sugarcane, 45; paddy, 2.2; groundnuts, 1.0; wheat, 1.6; gram, 1.3; and mustard, 0.7. Fodder from sorghum or berseem yields 25 ton/ha. These comparatively low yields are a function of the present inadequate on-farm water delivery, low inputs (particularly fertilizers and unimproved seed) and poor farm practices (plant protection and time of planting). In the event that the project were not undertaken, it has been assumed for project evaluation purposes that these yields constraints would be gradually overcome as indicated by the following ratios:

Year 0 5 10 15 25

Ratio of With/Without - Project Yield 1.0 1.45 1.3 1.2 1.0

4. The farm equipment now available includes the traditional oxen- drawn plows, smoothing boards, etc. Nearly all present farm operations are carried out by draft animals. A pair of oxen for plougliing, camels for transport and milk cows (often buffalo) represent the typical stock holding, anld requires a plentiful supply of home-grown fodder for sustenance. Farm meclianizationi with 35 hp wheeled tractors, is already being introduced on a small scale, generally under custom-hire arrangements. On the estimated ANNEX 13 Page 2

34,000 ha of tal soils, the use of tractors in land preparation would gradually increase. New settlers arrive in the project area with the necessary minimum of livestock and equipment and are fully equipped, at the modest level required, within five years. Mud-brick ouildings are quickly erected by the cultivators as required fcr living and storage.

Projected Cropping Pattern

5. Projected changes in the cropping pattern would:

(a) maximize the cropped area within the constraints of a fixed water allocation per farm, by introducing a high proportion of lightly irrigated crops; and

(b) make full use of improved cultivation practices and additional inputs (fertilizer, plant protection, and improved seed).

Thie projected cropping pattern is shown on Table 1. No new crops are proposed under the project. Cropping intensities would increase to 130% over the 6 ha net area of each farm, within a year of being developed (levelled or reclaimed) and the irrigation supply connected at the lined watercourse. By the end of 6 years, the full 200,000 ha would be cropped at the 130% intensity. The estimated increases in cropped area would be from 41% to 56% in the Kharif season and from 49% to 74% in the Rabi season. The increased cropping intensity mainly reflects the substantial increases in the cropped areas of cotton (+7%), wheat (+9%), gram (10%) and with smaller but valuable increases in fodder, groundnuts, mustard, and paddy; the latter increasing from 1% to 3%, is a suitably adapted crop during sodic tal soils reclamation. Vegetables and sugarcane would continue to be grown in a small area in both seasons, and millet during the Kharif season. Cropped area projections are given in Tables 2 and 3.

6. The increase in yield which would be expected for all major crops are presented in Tables 4 and 5. By year 6 of the project these increases in ton/ha would be: cotton, 2.5; wheat, 4; gram 1.80 to 2.52 respectively on tal and sandy soils; fodder 45; and pulses 0.98 to 1.24. These increases' wqould be the result of the introduction of sustained extension efforts, which would assist the farmers to make thie best use of water, improved seeds, fertilizer, plant protection, and on-farm practices. The yield increases would commence in the year following land development and the introduction of assured year-round water supplies to the farms. Farmers in small areas on the developed parts of the RCP (at the canal heads of Block B) have shown a rapid response to additional water supplies, selectively utilizing the water for their most valuable crops (cotton, wheat, pulses, and gram). Crop yields would continue to increase rapidly to year 10 and thereafter they would be expected to level off gradually. By year 25 the with- and without-project yields would be equal. ANNEX 13 Page 3

7. Crop production would increase from year 2 of the project through year 6 as a result of the combined effect of new land development,increased cropping intensity, and crop yield increases. Thereafter, production increase would reflect increasing crop yields only. Crop production is projected to increase as follows:

Crop Present Year 16 … --- …(ton)------

Cotton 23,000 115,000 Wheat 38,000 276,000 Pulses 9,000 36,000 Fodder 125,000 585,000 Gram 22,000 117,000

The crop productions for the present, year 6, year 11, and year 16 situations are shown in Table 6.

ANNEX13 Appendix I Page 1

INDIA

RAJASTHANCANAL COMMANDAREA DEVELOPMENTPROJECT

The Varieties of Project Crops

The following improved varieties of crops are adapted to the area and give better results than any older material available to farmers:

Sugarcane

Co 312: Suited to light, well-drainedsoils; medium (4C-60 tons/ha) yield potential;best for sugar extraction.

Co 1253: Suited to medium soils; better for ratooning, higher (60-80 tons/ha) yield potential; suitable for gur and sugar.

Co_419: Suited to fine soils; high (80-120 tons/ha) yield potential;high sugar content; late maturing.

Cotton

320 F: Staple 0.9 in; ginning out-turn 33-34%; count 37; yield 1.5 tons/ha; late.

Rs 89: Staple 1.05 in; ginning out-turn 40%; count 40; yield 1.6-1.8 tons/ha; late; higher market value to 320F.

Pearl Millet

HB3: Tall (for hybrid); high tillering; medium ear length; bold, shiny grain; drought resistant; 2.5-3.0 tons/ha yield potential; 80-85 days maturity.

HB4: Taller than HB3; high tillering; shiny grain; less drought tolerant; higher (3.0-3.5 tons/ha) yield; later (85-90 days) maturity.

Pulses (Mloong: Phaseolus aureus)

Baisakhi Moon Early maturing; short; erect; first picking after 60 days; summer catch crop; yield 0.3-0.4 tons/ha.

Surgpura: Early maturing; medium height; yield 0.3-0.4 tons/ha. ANNEX13

Page 2

Groundnut

AK12-24: Erect growth; high (45%) oil content; medium maturity; yield potential 2 tons and above per ha.

Paddy

IR8: Dwarf; stiff straw; fertilizerresponsive; high tlllering;coarse grained; medium to L.ongmaturity; high (4-5 tons/ha) yield potential (PhilipinesHYV).

Jhara 349: Tall; weak straw; coarse grain; medium maturity (15-25 days earlier than IR8); yield potential 3.0 to 3.5 tons/ha (locally bred variety).

Wheat

Kalyan Sona: Dwarf; fertilizerresponsive; high tillering; amber grain; long; rust resistant;medium to late maturity; yield 3.0-4.0 tons/ha.

Lal Bahadur: Triple gene dwarf; profuse tillering; fertilizer responsive;amber grain; long; medium to late maturity; yield 3.5-4.0 tons/ ha.

Gram

RS10: Medium maturity; yield potential 2.0 tons/ha.

RS11: Medium maturity; irrigationresponsive; yield potential 2.5 tons/ha. INDIA

RAJASTHANCANAL COMMANDAREA DEVELOPMENTPROJECT

Cropping Calendar

Crop and Season January February March April May June July August September October November December

KHARIF

Sugarcane .- 1 * _

Cotton ------_------_------_ -----______-.______

Millet .-- --_ ------_-_------iF

Pulses ------_____._____.-_____-____ -_____ Fodder ------*--- ______------Groundnuts -___-____._____*_-____.------

Paddy e------#------

RABI

Wheat ------F------____ -_-.-_-__*_.

Mustard ______.. ------______

Gram4 - *

Desired Range ------POsRible Ranse *------* Range of Sowing Period ------#4 Range of Harvesting Period

ANNFE13 Table 1

INDIA

RAJASTHANCANAL COMMAND AREA DEVELOPMENTPROJECT

Present and Projected Cropping Pattern

Season and Crop Present Projectodo (With Pong Dam

Kharif

Sugarcane 1 1

Cotton 16 23

Millet 65

Pulses 12 14

Fodder (Sorghum) 3 5

Groundnuts 2 5

Paddy 1 3

Sub-Total 41 56

Rabi

Sugarcane 1 1

11heat 25 34

Mustard 8 12

Gram 14 24

Fodder (Berseem) 1 2

Vegetables and others _ 1

Sub-Total 49 74

Total 90 130 INDIA

Rk.iJ,S3THANCANAL COMMAND AREA DEVELOPMENTPROJECT

Cropped Areas Progression - Without Project

Season and Crops Present and (aIi irrigated) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 11 Year 12 - 16 ------'0 ha------_-_--_

Kharif

Sugarcane 1 1 1 1 1 1 1 1 Cotton 19 20 22 23 25 26 34 35 Millet (Bajra) 4 5 5 5 6 6 8 8 Pulses 12 13 14 15 16 17 22 23 Fodder (Sorghum) 4 4 5 5 5 5 7 7 Groundnut 4 4 4 5 5 6 7 7 Paddy 1 2 2 2 2 2 3 3

Sub-Total 45 49 53 56 60 63 82 84

Rabi

Sugarcane 1 1 1 1 1 1 1 1 hIeat 24 26 29 30 32 34 44 45 Mustard 9 9 10 11 11 12 15 16 Gram 17 19 20 22 23 25 31 32 Fodder (Perseem) 1 1 1 1 1 1 2 2 Potatoes _ - - - 1 1 1 1

Sub-Total 52 56 61 65 69 74 94 97

Total 97 105 114 1c1 129 137 176 11 INDIA

RAJASTHANCANAL COMMAND AREA LEVELOPMENTPROJECT

Cropped Area Progression - With Project

Season and Crop Present and (all irigated) Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 11 Year 16 ------'--o ha)------Kharif

Sugarcane 1 1 1 2 2 2 2 2 Cotton 19 22 29 36 41 46 46 46 Millet (Bajra) 4 5 6 7 9 10 10 10 Pulses 12 14 18 22 27 30 30 30 Fodder (Sorghum) 4 5 6 7 9 10 10 10 Groundnut 4 5 6 7 9 10 10 10 Paddy 1 2 2 3 4 4 4 4

Sub-Total 45 54 68 84 101 112 112 112

Rabi

Sugarcane 1 1 1 2 2 2 2 2 Wheat 24 33 43 52 62 69 69 69 Mustard 9 11 14 17 22 24 24 24 Gram 17 24 30 38 44 49 49 49 Fodder (Berseem) 1 1 1 2 3 3 3 3 Potatoes - 1 1 1 1 1 1 1

Sub-Total 52 71 90 112 134 148 148 148

Total 97 125 15B 196 235 260 260 260 INDIA

RAJASTHAN CANAL COMMANDAREA DEVELOPMENT PROJECT

Crop Yields by Land Types - Future Without Project

Pre-Pro ject Crop and Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 11 Year 16 Sandy Tal Sandy Tal Sandy Tal Sandy Tal Sandy Tal Sandy Tal Sandy Tal Sandy Tal Soils Soils Soils Soils Soils Soils Soils Soils Soils Soils Soils Soils Soils Soils Soils Soils ------~Z,: ~-~~~ ------~~~~~ ~~7 = ------t(ton/ha)-~~ ------

Kharnf Season

Sugareane ----- 45.00 ------45.00------45.50------45.50 ------46.00------46.50 ----- 59.00 ------66.50 Cotton 1.24 1.00 1.24 1.00 1.25 1.01 1.26 1.03 1.27 1.os ------1.28 ------__- 1.73 ------2.09 Millet 1.36 1.16 1.36 1.16 1.43 1.17 1.53 1.22 1.65 1.32 1.80 1.44 2.54 2.05 3.03 2.43 Pulses .83 .66 .83 .66 .86 .68 .89 .70 .91 .73 .93 .78 1.09 .85 1.22 0.98 t Fodder ----- 25.00------25.00------25.20------25.60------26.10------26.90------33.10 ------36.00 --- Groundnuts 1.00 - 1.00 - 1.06 - 1.14 - 1.24 - 1.39 - 2.06 - 2.50 Paddy _ 2.20 - 2.20 - 3.26 - 2.34 - 2.42 - 2.54 - 3.24 -

Rabi Season

Wheat - 1.60------1.67 ------1.67 ------1.77 ------1.90 ------2.07 ------2.80 ------3.33 M4ustard ------__7__-- -3723-----7270273------72------73 ------75 ------8 ------1.13 ------1.333- Gram 1.40 1.00 1.41 1.00 1.41 1.00 1.42 1.01 1.43 1.00 1.45 1,04 1.84 1.32 2.10 1.50 - Foddery 25.00------25.50------25.50------26.00 …------27.00 …------27,75… ----- 32.00 …------37.50 …---- Potatoes ----- 4.00 ------5.20 ------5.20------6.10…------6.90 ------7.70 ------10.70 ------12.50 -----

Gram (rainfed) .28 .20 .28 .20 .28 .20 .28 .20 .29 .20 .29 .21 .37 .26 .42

1/ Sorghum. 2/ Berseem. 4 INDIA

RAJASTHAN CANAL COMMANDAREA DEVELOPMENTPROJECT

Crop Yields by Land Types - Future With Project

Pre-Project Crop and Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 11 Year 16

Sandy Tal Sandy Tal Sandy Tal Sandy Tal Sandy Tal Sandy Tal Sandy Tal Sandy Tal Soils Soils Soils Soils Soils Soils Soils Soils Soils Soils Soils Soils Soils Soils Soils Soils -(ton/ha------.-----)------)------(ton/ha) ------_---_-_-----______,______

Kharif Season

Sugarcane ------45.00 ------51.50…------56.50------60.50 64.00 ------67.50…------77.00…------80.00 --- Cotton 1.24 1.00 1.31 1.09 1.42 1.21 1.54 1.35 1.70 1.49 1.80 2.30 2.50 MflIet 1.36 1.16 1.50 1.25 1.72 1.40 2.00 1.64 2.30 1.89 2.60 2.08 3.30 2.64 3.63 2.90 Pulses 0.83 0.66 1.00 0.78 1.09 0.86 1.15 0.93 1.19 0.95 1.21 0.97 1.24 0.99 1.24 0.99 Fodder------25.00------28.00…------31.00------34.00------37.00------39.00------43.00------45.00------Groundnuts 1.00 1.30 . 1.40 1.60 . 1.80 . 2.00 . 2.70 . 3.00 Paddy . 2.20 . 2.40 . 2.68 . 2.90 . 3.10 . 3.30 . 4.20 . 5.00

Rabi Season

wheat ------1.60------1.80------2.10------2.40…------2.70------3.00------3.70------4.00------Mustard ------0.70------0.80------0.90------1.00…------1.10------1.17…------1.45------1.60------Gram 2 1.40 1.00 1.58 1.13 1.75 1.25 1.88 1.34 2.00 1.43 2.09 1.49 2.39 1.71 2.52 1.80 Fodder … ------25.00…------28.75------32.00------34.50------37.75------38.50------43.00------45.00------Potatoes ------4.00------6.00------8.00------11.00------13.00…------15.00…------18.00------20.00------

1/ Sorghum. 2/ Berseem. INDIA

RAJASTHRNCANAL COMMAND AMRF DEVELOPMENTPROJECT

ARricuitural Production - Present and Future

Year 6 Year Uh Year 16 With witfiout- with Without W.1witho-Ut Present Project Project Project Project Project Project Production Production Production Production Production Production Production Crops_.______-______----- ______----______-______- - Kharif Crops~~~~

Sugarcane - - - - Cotton 22.8 82.8 33.3 105.8 58.8 115.0 73.1 Millet (Bajra) 5.3 25.1 9.6 32.0 18.4 35.0 21.8 Pulses 9.6 33.5 14.6 36.0 21.3 36.0 25.3 Fodder (sorghum) 100.0 390.0 134.5 430.0 231.7 450.0 252.0 Groundnut 4.0 20.0 8.3 27.0 14.4 30.0 17.5 Paddy 2.2 13.2 5.1 16.8 9.7 20.0 - Rabi

Sugarcane 45.o 135.0 46.5 154.0 59.0 160.0 66.5 Wheat 38.4 207.0 70.4 255.3 123.2 276.0 148.5 Mustard 6.3 26.8 9.6 34.8 16.9 38.4 21.3 Gram 22.6 98.0 31.3 111.2 48.9 117.6 57.6 Fodder (berseea) 25.0 115.5 27.5 129.0 64.0 135.0 75.0 Potatoes - 15.0 7.7 18.0 10.7 20.0 12.5

O;w f n o H oNH ANNEX 14 Page 1

INDIA

RAJASTHAN CANAL COMMAND AREA DEVELOPMIENTPROJECT

Marketing, Processing, Storage and Prices

Marketing

1. The marketable surpluses (para 6) expected by Year 6 of the project would be small in comparison with the projected increase in requirements in the States of Rajasthan and its neighiboursof Punjab, Haryana and Uttar Pradesh and very small in comparison with national requirements. The surpluses could be easily absorbed.

2. iormally, goods are sent to market (Mandi) by local transport-- a cart owned eitlherby the produzer or a fellow villager--but, where road communications are suitable, trucks may be used. For crops not under Govern- ment control, the marketable surplus is sold by an agent, for a 1% commision. The agents also act as moneylenders.

3. Farmers in project Blocks A and B now sell their marketable surplus mainly in the existing wholesale markets that serve contiguous parts of the Gang and Bhakra canal areas. These markets are siutated in small towns (populations range from 1,000 to 15,000) and each serves as a collecting point and wholesale market for a number of villages. The main commodities han(dled are wheat, cotton, gram, mustard and paddy but oilseeds, pulses and millet are also important.

4. Block B is served by three market towns: one (Rawatsar) lies within its boundaries, and there are two more (Suratgarh and Piliganga) that are less than 10 miles away. (Small farmers in Block B use the market at Hlanumangarh town and Hanumangarh junction which are farther away.) Block A is served by five market towns, none of which is within the boundaries of the area but there are four markets (Jetsar, Bijeynagar, Ramsinghpur, Anupgarh) that are all less than two miles from the area and there is a fifth (Raisinghnagar) that is ten miles away.

5. GOR recognizes that the existing market facilities are generally below desirable standards: most are congested, they have insufficient space for exhiibitingand storing farm products, auction platforms either do not exist or are too small and hygiene facilities are inadequate. Moreover, the growth of agricultural production in the project areas as well as in the rest of the RCJ',and in the existing Gang and Bhakra Canal command areas will soon yield a greater volume of output than these markets can handle. Proposed GOR investments (para 8) in market facilities are not included in the project and would be barely adequate to serve the needs of the project area. These proposals therefore require revision. ANNEX 14 Page 2

6. The anticipated increases in production of major crops after Year 6 should give rise to marketable surpluses as indicated:

Marketable Surpluses

Crop Present Future Increment (Year 6) …--(------'(000tons)------

;Wheat 22 170 148

Cotton 20 82 62

Gram 10 50 40

Mustard 6 26 20

Paddy 2 10 8

Groundnut 3 19 16

Millet 4 18 14

7. GOR's present program for improving and expanding market facilities in the RCP area involves increasing the present number of markets by 13, two of which (Gharsana and Rawala) would be located in Block A to serve areas otherwise difficult of access.

8. The investments required depend upon the class of market town that is being planned, but would include expenditures on the market yards (auction platforms, places for product shorage and display, cattle yard, go-downs, markets, offices, a post office, farmers' resthouses, etc.) and also the sites and services for the whnle market town. The services to be provided *ould include roads and footpaths, facilities for the purification and distribution of drinking water, drainage and sewerage, and electric power. Tiiese facilities would be provided on land destined for all uses (commercial, industrial, public and residential). The following program is proposed.

Present Proposed Market Towns Investments

Eventual Design Estimated Expenditure Market-Town Population No. Unit Cost Total in first five years ------(Rs Million)------

C 1{';s A 50,(00 1 41.0 41.0 14.4

B 20,0()( 7 20.(0 140.0 49.0

C lOt10VO 1 10.1 10.1 3.5

191.1 66.9 ANNEX 14 Page 3

9. The Rajasthan Agro-industriesCorporation would develop the market town and recover some of the costs by the sale of building sites for commercial and residential development. The operation and maintenance of the markets and the recovery of market fees would be supervisedby the local Market Committees.

Processing

10. The principal need in processing equipment will be for additional cotton ginning capacity. The additional production of seed-cotton is estimated at 62,000 tons by the sixth year, and 84,000 tons by the eleventh year. To process 62,000 tons/year, 15 in3tallationswould be necessary. A plant with 16 double-rollergins and one press would have the following composi- tion and cost:

Rs '000

Land 100

Site preparation and buildings 366

Plant and machinery 660

Othierfixed assets 60

Capitalizedpre-operative expenses 74

Total _1260

Total for 15 installations 18.9 million

11. Specific sites have not yet been selected, but it is expected that the ginnerieswould be located in the principal market towns which already exist in the area or are proposed. Ownership of the ginneries has not been finalized. The Cotton Corporation of India controls cotton purchases and ensures fair prices to farmers but does not operate ginneries. They and the associated oil mills may therefore be organized cooperatively.

12. No additional sugar factory capacity is at present planned in the RCP area. The additional production will be processed into gur (unrefined brown sugar) by local operators.

Storage

13. Storage capacity would be required for the incremental production in the pre-project period in Block A and for the incrementalproduction arising under the project in both blocks. By the end of year five of the project, there will be an increase of about 250,000 tons of food crops for both blocks. Wiarelhousing capacity would be needed for about 30% of the incremental production from Year 5 onwards and about 90,000 ton capacity would ANNEX 14 Page 4 eventually be required. Unit costs of large-scale storage are estimated at about Rs 250/ton. This would imply an outlay by year five of Rs 22.5 million. The large-scale storage can be constructed for the Rajasthan State Warehousing Corporation, which could also operate the facilities. Short- term storage facilities for private traders which would be provided in the proposed market mandis is estimated to cost Rs 13 million.

Prices

14. Farm-gate prices used for estimating farm income and for evaluating the economic benefits of the project are shown in Table 1. For the major crops, cotton, wheat and sorghum, farm-gate prices were derived from estimated world market prices for 1980, compiled by the Bank's Economic Analysis and Projections Department, with appropriate adjustments for freight, handling, processing and storage. For sorghum, the farm-gate price was reduced to allow for the quality differential between the project area production and the internationally traded product. As the prices so derived are very close to average actual farm-gate prices in the project area in recent years, the same prices were used for the project financial analysis.

15. For the other crops, which are not foodgrains, production is small and is consumed domestically. Failure to produce these crops in the project area would not result in any increase in imports and, therefore, world market prices, which in any case are only available for a few of these crops, are hardly relevant for project analysis. Therefore, for these crops, average actual farm-gate prices over the past four years, adjusted to early- 1974 values, were used, for bothA economic and financial analysis.

16. Bank projections of fertilizer prices show a decline over the next five years. For project economic and financial analysis, values above the projected 1980 levels, but generally below the peak levels experienced in early 1974 were used, so that the full impact of the expected high cost of fertilizer on the farm budgets during the critical early years of project development would be fully accounted for. ANNEX14 Table 1

fINDIA

RAJASTHANCANAL COMMAND AREA DEVEWUPMINTP10JSCi

Summary of Prices

11 Price fob/cif.Bombay Estimated Farm-gate Price 2/ Actual Projec §d Crop Seeds Produce Estimate 1974Y/ 1980 U --- (Rs/ton) - (US$Jton)- Cotton 1,300 2,100 860 2,000 860 Paddy 1,300 900 Rice& 145 300+ 130-165 Sorghum 875 700 65 125 85 Millet 7,500 800 65 140 90 Kharif pulses 1,650 1,200 Groundnut 1,950 1,400 . Sugarcane 125 100 .

Wheat 1,300 1,950 105 230 100-135 Grar 1,300 900 . , Mustard 11,750 . Potatoes 800 600 Fodder 10.,000

Fertilizer (nutri-enttons) f.o.r. Farm-gate Price Suratgarh

N 4,ooo 3,600 425 600 250 P20s 3,600 3,200 380 250 K20 2,600 2,300 275 120 110

1/ Prices used in project financial and economic analysis. T/ Equivalent of estimated farm-gate produce price. 3/ January, 1974 world market prices. I!/ World Bank projections of February, 1974 §/ Assumed 25% brokens.

ANNEX15 Page 1

INDIA

RAJASTHANCANAL COMMAND AREA DEVELOPMENTPROJECT

Farm Budgets

1. The main purposes of estimating farm budgets are:

(a) to determine the effects of the project on farm income on a typical farm for each of the major soil types; and

(b) to determine the capacity of the project beneficiaries to repay a commercial bank loan for on-farm development.

2. Two farm models were analyzed, each of 6 ha and each with a cropping pattern (Table 1) approximatingthe average for the project area (Annex 13). The first model assumes sandy soil, and thus is representative of about 80% of the project area, while the second assumes Tal soil. Pro- duction costs, labor inputs, yields and prices are summarized in Table 1 and are derived from the data presented in Annex 13 and 14. The build-up in farm income over 16 years is shown in Table 2. After land levelling and watercourse lining in year 0, there would be an immediate substantial increase in production due to the increased volume of water available and the greater degree of water control possible.

3. Total labor inputs per farm would increase from around 620 man- days per farm per year at present to about 880 man-days at full development. Wlile, for most of the year, family labor could supply this demand, there would be peak months (particularlyOctober and November) where hired labor would be required. It was estimated that 15% of all labor would be hired under present conditions,rising to 25% at full development.

4. All farmers under the project would be required to repay loans for land purchase and on-farm development. The purchase price of a 6.32 ha farm would vary from about Rs 12,000 to Rs 20,000 according to soil quality. GOR is providing loans to the settlers for the purchase of their land. These loans are free of interest and repayable over 15 years, including a year of grace. To arrive at conservativefinancial estimates, a government loan of Rs 20,000, equal to the cost of the most fertile land, has been used in the farm models. The cost of on-farm development,including watercourse lining, would vary from about Rs 6,000 to about Rs 15,000 per farm (Annex 6) according to the soil type, terrain, natural drainage conditions and other factors. Again to arrive at conservativeestimates, it was assumed in the models that the total cost of on-farm developmentwould be Rs 15,000 and that the full cost would be provided through a commercial bank loan at 10% annual interest, repayable over ten years with two years' grace (Table 2). The farm models examined assume that both the land purchase and the on-farm development would take place in year 0. ANNEX 15 Page 2

5. It is assumed that existing farmers and new settlers would provide from their own resourcesand through family labor the cost of farmyard development,including housing for the farm family, an initial set of farm implementsand at least a pair of working animals. Most existing farmers have made these contributionsalready in part or total and new settlers admitted to the project area from overcrowded farm districts elsewhere, usually arrive with the implementsand working animals needed to start cultivation. The farmer's own initial investment is estimated at about Rs 1,000/ha,or 15% of the total on-farm investment.

Results

6. The cash flow projections shown in Table 2 show that the project area farmers would be able to meet their debt obligations, if given two years' grace on the repayment of principal. This might be reduced to one year's grace on cases where the farmer has some financial reserves to fall back upon in case of adverse cropping conditionsin the first few years of project implementation. In most cases, however, two years' grace on the repayment of principalwould be needed to give a sufficient cushion against unforeseen expenses, crop failure or operating difficulties with the newly-constructed works. The family consumptionfigure of Rs 5,000 is believed reasonable in view of the comparatively large farm size the GOR has decided to allot.

7. In later years, the financial position of the settlers would be fairly comfortable. At full development,net farm income is projected to be about Rs 20,000 per year and a cash surplus of about Rs 12,000 would be available for farm improvementsand replacementof farm implements. This cash surpluswould also be necessary to finance the farmer's own land leveling expenses, for land excluded from the project because of a need for only light leveling (Annex 3). IRDIA

RAJASIItiN CANALCGIIMAND AREA DEVELOPMENTPROJECT

Financial Pars, Results Soseory of Data Used in the FPrn Models

Pro-ected Cropping Patterns ProJected Crop Yields Prejerted Nrt FPresRevenoe

Sandy Soil Tal Soil Sandy Soil Tat SetS Sondy Soil Tal Soil Estint.d Estitated Labor Ineptl/ Czt-mstcd Coot of l,pos UPee Projent Project FPrn Gate Mao- P.eaert Year I Year 16 Present D-velop-sst Present Develspsert Prenent YPer 16 end P-esc.t Year 16 end Present Yeor 16 ond Present Year 16 and Pricos seurs_/ in Man-lDoy Peceent Year 10 Coops Situation Conplted Situation Completed Situation Thereaft-r Sittio Therefte Situ.tion Thereaftor Situotion Thereafter in Rs/ho (per ha) - 6 ha fer …----- er 1 nd thereaft ------(in . of Far Are)------(in ton- per ho)…------(in Rs per 6 h f.a)------Sdy al Sdy y T Sandy Tel - (to Rs per h)…------

Socr Cane - - 2 4 - - _ - - _ - - _ Cotton 15 25 14 1. 1.24 2.52 1.00 2.52 1,074 6,Co) 1,445 4,751 ,o101 1,02- 115 108 192 133 238 207 380 850 Millet 3 5 4 1.1 3.63 1.16 2.910 1731 71 190 431 800 70t 16 .1 27 21 35 17 125 525 PMlet- F.dd~~~~~~~~~~~11 4/ 1D4c 4, O.83 i.2422 O.16o6 D.9939 6P1 1,12 424 691 1,210 535 32 23 46 37 60 43 35 315315~~; F3 5 25.10 45.o1 25.5D1 4i.oo - - - - - cr7 15 15 2D 25 33 33 235 425 3roundnut 3 5 - - 1.D5 5.50 - 188 1,099 - _ 1,400 700 1i - 26 - 34 - 355 535 Paddy _ - 7 2_ 2.23 5.00 - - 735 2,534 900 920 - 43 - 83 - 108 230 980

RA3BIPST Su sr Cone - - - - _ 4.oc 80.00 - - 440 1,n12 100 1,955 - 29 - 58 - 75 830 1,700 Whett JR 34 20 31 1.io 4.30 1.Gc, 4.00 ,011 6,o46 1,344 5,549 950 712 96 107 182 171 236 222 400 910 Mustard 7 2 7 12 0.70 1.6D 0.70 1.60 431 1,620 431 i,620 1,753 487 26 26 44 44 57 57 200 550 G-e 4/ 14 2b 15 24 1.40 2.52 1.00 1.30 94o 2,733 684 1,800 900 364 38 41 71 66 92 86 14o 370 Fodor 1 2 1 2 o5.0l 45.0o 25.5.00 5.00 - - - - - 1,195 9 9 13 18 23 23 250 483 Potatoe - , -_4.00 20.00 - - - 1 175 - - 6oo 735 - - 11 - 14 - 1,480 2,210 77 73 5,617 1 18 ,878 Total: 363 3 52 661 B5 35 Cropping Intenoioy 75 130 7 131 0 suwhch hired 3/ - - 96 99 218 222

totol re- requires-nt quirmeent

5/ Asowoed f rent goto prico,s lees cots of ferotillers, seedo, ,nd plnot proteotien. 2/ Assumed thi a 6 ho fPen could supply 3 full time -orker- on 05 days per month thrseghoot tho ypor. A mum-dry hoe Seen ossumed to co-sist of 8 orking hours. 3/ Hired ibnor ho needed to beeak peek dnssod, usiuly doriog herveot periods. A coto of Rh 5.00 per mnu-dsy of 8 hours hso ber ressumed for hired lebi. It ios ued tht fodder could be used for on-fCon corhkog -ni-1lo e d no costs hnce th-erefore bhe included Sn the projected finesancil fr renults. hi Present. dots frmn Prj-sthum Stae. SRprneents coot of fertili-ern, -sdo, -nd plunt pro-cotic-: on s . per inR s recnmen-ded rder- th pjt fr he shieveent of proje-ted rop yielde,. ANNEX15

RAJASTHIANCANAL COMFAS ASAA DrSWLCOPMCNTFRIOJLLr

nEote-dlnSton ondLI-no F-odss-d C-h Poetion

A. Warn Model onSandy Soil

Scar 7 4 5 6 7 8 9 11 1 12 10 4 15 16 17.20

SOIltiCCIOF FF01

Land 'o-ha- Loan.. 20,000 ------Farm DvlpeT _loan 1500",I' ------

lob-Tot1 31,1000------

Net lane 8nn..noe~J 5,617 9,556 10,709 12,012 13,387 14,487 CAIROB 17,248 17,685 18,015 18,438 blO10 19,568 19,093 20,338 20,687 21,110 21,116

Loon Wane Ch-ree 150 150 150 192 192 192 192 192 192 192 1 92 192 192 092 192 192 192 192 Cost of rod Labo-V - 480 520 560 6001 640 685 175 765 805 845 885 925 965 1,005 1,045 1,090 1,080 Internee- ~ ~ ~~~95 ~~~~130 ~~~~-160 190 190 190 190 190 190 190 190 190 192 190 190 190 190 7/nelenoo 130 300 300 300 300 300 201 300 300 300 300 300 300 300 288 300 380 300

Tonal Worn Onvn- 5,317, 8_5131 9,609 .0_800 12,105 13.165 14,719,, 15_84~1, 1623 16,568 16,911, 17,541 1791 1,4 8 5 890 1,4 19,542

Fo-a Fondo 0.1 0.5311 _.619 IPa&& 12,103 03,065 14.719 1_ 841___ 1_ 238___ 1___ 68__ 191 1750 796 1836 8_1 _960 19.342 19.342

TSE OW FUNDSI Porb f Land 20,000 Wo." le-Ip--oo loEn..... 2/ 05,000 ------Debt Se-olo: Lend N-rh-a Loa- - - 500 800 1,000 1,008 1,000 1,600 1,600 1,600 1,600 1,600 1,800 1,600 1,600 2,900-- Warn 0n-elp-In L_ooŽ Si 1,500 1,500 2,825 2,605 2,625 2,625 2,825 7,625 0,625 2,825 ------FamilyAll -ene5000D! ..L.22. 5_&00 5.000 5,000 3.000 5_000 6.000 8,008 6,,Q0,0Q 6,,,,2i, 6_00fl,, 6,000,Q9 6.000 6.000 6iS.2,00 j,000Q,, 6,,,000QQfl,, 9 6 2 Tntel 40_000 6_500 7_000 0_600 7.600 7,800 8.900 8,2 8_2 8_2 , 5 10,2%25 10,225 j_25dk,Qa1L,22 , 7J,600 6,,0001 22 6_000

nELSnalIIO 317 2,031 7,609 2 ,305 3,490 4,540 6,096 3,616 6,013 8,343 6,696 9,940 10.361 00,746 11,051 10,060 12,342 13,342 C.notll- - 2,348 4,957 70,332 00,812 05,352 21,446 27,062 33,075 59,418 46,104 56,D44 66,405 77,151 88,202 99,262 111,'604 0. Fern Model noe Sole

LOURCESOF HINDS LI 20~~~2 .Lad La2000 3oebs o . ------War Denlpon Loa- 1580 ------

lob-Intel ~~~~~~35,0800------eN. Fer R-nenots 5,693 8,725 9,599 10,799 11,934 12,979 14,092 14,961 15,403 15,028 16,249 16,932 17,367 07,768 18,198 18,504 18,878 18,878 L-es Water Cberg 5/ 150 1950 050 240 240 240 240 240 240 240 240 240 240 240 248 240 240 240 Coot of *0-d Labor- - 495 535 575 605 660 705 750 790 830 870 910 959 990 1,000 1,070 1,110 1,110 lo--et- - 95 030 168 190 199 190 190 1908 180 190 190 190 190 190 198 190 090 Ola-ll1no--J 150 300 300 300 300 308 300 380 300 300 300 300 300 300 3008 300 300 300

Total Fe-rn O..en. 5 393 7.685 8.474 9,24 10_9_____1_67 3,8 1388 14,268 14,649 15,292 15,679 16,848 16 430 16 748 17,038 17___038_

Tetel Ponds 40_393 7,8 8,7 9.524 10,589 1a1_58, 12,657 13.481 ,3,&&3 14.268 14,649 ,,15,,,292 ,15,679 1604 06,430 16,740 17,038i, 12_038

TSE OF FUNDS0

Poetbeso of Land 20,000 ------War eep,n-- fEp-nee / 15,080 ------Debt On-i-e Land P-nn1s Ler- - 500 900 0,000 0,000 1,8000 1,600 1,600 8,600 1,600 1,600 1,600 1,600 1,608 2,900-- Fern no 1eeomn,500 1,500 2,625 2,623 2,825 2,625 2,625 2,625 2 ,62 5 2,605 2,625 ------PFnily Alirna.co .. & 2 ,000 5,000 5,000 5,000 5,800 5.000 1 ,222,,_J 6.000 6,000 6,0009 ,,000~.22, 6.000 6,000fl,, 6.000 6,000Q96,000 6.000 Tntel 40,080 6_500 7,0008 8 845625, 82 8,625 10_225 10_225 10,JLZŽ,5 1,225Z1, 1J ,225 7.600 3,600 7.600 8,900 6.000 6.008

CASH-POSITION

A-noa 393 1,189 1,474 1,099 1,964 2,062 4,032 3,256 3,658 4,043 4,424 5,067 8,079 8,448 8,830 7,840 11,038 110308 Ceosatelo - 1,578 3,052 4,151 6,115 9,078 03,110 16,366 20,024 24,067 28,491 55,598 41,633 50,895 58,912 66,705 77,7 93 -

B-atd on snep-ted.. rpping pattern, yIeld peasntion an...d teho dat s-soised In Tablo 1. 00 ..Ioa TI An Inere nootsta-dtngernon fer flan n 10 y-ar, in-lodin 8 2 p--era 4/ .rasfarm -e-no t- tot of: i) Ce-tilie-r; lit) e-del sod (iii) plsse prote-ie.. hitb inn--on from Os 7,137 in Fears. 0 and I to Os 4,946 ia y-a 10 -iatyo don to proje-d increas On f-etiltieeeaa kg plant Norne)00 4.001 Ko361ad120Re112,70. boand on Fern pei- e -7o11- (in Os pee = P2 0 5 5/ Fiftee p-roet of -ai-d annel labor i.pot it yea 1, inor-ielg to 25, Co pea 16 ad Dtap-- o toot thor-fWo at -- eeliatod rote of Rn 5.00 pee na-day of 6 -krbg hoot esole 6/ An.o.. Initoree of IO, on pr-do-tto- crdles for peiods of 6 nootb i-co-ing fro Os 1,800 in Fea 0 to no 3,600 in Yoar 4 and kop - -ontattbho-o t-r /In-lodes -onigency for anfoe- -o -h -npe-en sno on n-t-.e.set sonoe, edd~tti-nb-tt fan tr contro of plan poe opido-io and onhe-o 8/ enensGnes anelen on t e: 71 fert0ioro~(ii) -onda; and (iii) plant p-ote nin nhonh i-ctea.on f-n On 1,986 In Foot 0 and I en Ro 5,000 in yea 12 mtoly doe to pr-jr-d toceseo oeieeras - 1baedonfern prices as fol11- (in Rs pee 6g plane -otri-nt: NoR 4.00; P20 5 On 5.601 and 910= t2,0 9/ E lset.t oboot 750625, ANNEX 16 Page 1

INDIA

RAJASTHAN CANAL COMMANDAREA DEVELOPMENTPROJECT

Economic.Analysis

Prices

1. All inputs and outputs were evaluatedat projected 1980 market prices expressed in 1974 constant prices. For the major internationally traded commodities,these prices correspondto the Bank's world market price projections. Details are given in Annex 14.

Farm Labor

2. There are at present about 40,000 farm families in the project area, including about 5,000 families of landless laborers. Assuming that each family supplies an average of 2.5 full-time farm workers for 20 days per month or 240 days per year per worker, the total farm labor supply at present is about 24 million man-days per year or 2 million man-days per month. With 2% annual growth of farm population, the available labor supply at project full developmentin year 21 would be 36 million man-days per year or 3 million man-days per month.

3. Estimates of annual labor requirementsper ha for various crops at present and in future with and without the project are given in Table 1. Total labor requirementsby month are shown in Table 2. These figures show that there are considerableseasonal fluctuations. Since most of the labor would be unpaid family labor, labor mobility is restrictedand the market wage for unskilled labor is sometimes fixed by custom rather than market forces, the market wage does not fully reflect the opportunity cost of farm labor to the economy. The opportunitycost of shadow wage was therefore estimatedon a monthly basis using available informationon labor supply and demand.

4. It is postulated that the marginal opportunitycost of farm labor in the project area can be approximatedby an S-shaped curve (Figure 1). The marginal opportunitycost is positive at all levels of labor demand and increasesas more labor is employed in farm work. The increase is slow initially,reflecting the scarcity of alternativeproductive employment but increasesmore rapidly as the labor supply becomes fully used. At the employmentlevel correspondingto full employmentin the project area, the marginal opportunitycost is assumed equal to the present market wage rate of Rs 5 per man-day. In the future with the project abou4 2.5 million man- days of labor per month would have to be imported into the project area for cotton picking in October and November (say 100,000 laborers at 25 days per month). Because of the need to import so much seasonal labor,.itwas ANNEX 16 Page 2 assumed that the opportunity cost (and market wage) might be as high as Rs 8 per man-day, indicating that at that wage sufficient seasonal labor would be attracted for the project area to pick cotton.

5. It is reasonable to approximate the S-shaped curve by three straight line segments. Three points based on information from the project area determine its position. Point A indicates the minimum opportunity cost of farm labor which is estimated to be Rs 2 per man-day, equal to Rs 1 as the economic value of alternativeemployment (house repairs, odd jobs, etc.) plus Rs 1 to supply the additional nutritional requirementsof more strenuous farm work with the project. Point B indicates that at full employment of 3 million man-days per month in the project area (para 2), the opportunity cost would equal the market wage of Rs 5 per man-day. The horizontal segment to the right of point C indicates that at a wage of Rs 8 per man-day, large numbers of farm laborers would be attracted to the project area from outside for cotton picking in October and November.

6. The monthly marginal opportunity cost may be read directly from the curve at the appropriatelevel of labor demand. The total economic cost of labor is then the area under the curve up to that level of employment. Comiputedthis way, the economic cost of labor would be Rs 104.4 million with the project at full developmentand Rs 63.4 million without the project, or an incrementalcost of Rs 41 million. This would be equivalent to pricing the incrementalemployment of 7.4 million man-days per year at a shadow wage of Rs 5.5 per man-day, or 10% above the full employmentmarket wage for hired labor in the project area. Most of the incrementaleconomic cost of labor is due to cotton picking in the peak months of October and November and the incremental economic wage higher than the full employment market wage indicates that moving the large required amounts of seasonal labor to the project area would have a high economic as well as financial cost.

Projec Cost

7. Capital costs amounting to Rs 750.4 million are included in the economic analysis to represent the cost of irrigation,land development, roads, village water supply, and afforestationworks (Annex 4), together witlhphvsical but not price contingencies. Sunk costs were not included. Project facilities are assumed to have a salvage value of 33% of their original cost (at constant 1974 prices) at the end of the 25-year evaluation period. Operation and maintenance costs include these for irrigation,drainage, project roads and extension services (Annex 4, Table 5). Farm labor costs are as computed in para 6. The cost of fertilizer to be supplied under the project has been included as part of farm production costs.

Projec~ctBenefits

8. Project benefits equal the incrementalnet value of production without accounting for the operationand maintenanceof project facilities or for labor costs (Annex 13, Table 1, 2 and 3). The phasing of project benefits is made in accordancewith Annex 13. ANNEX 16 Page 3

Lconomic Ratc of Return

9. Using the foregoing assumptions, the economic rate of return for the project is about 25%, (Table 3).

Sensitivity Analysis

10. Several of the basic assumptions made in the economic analysis have been varied in order to examine their impact on the rates of return. The effects of the various assumptions on the rates of return are as follows:

Assumption Rate of Return

(a) Operating and maintenance cost overrun of 25% 24

(b) Benefits decreased by 25% 18

ANNEX16 Figure 1

INDIA

RAJASTHANCANAL COMMAND AREA DEVELOPMENTPROJECT

Estimated Opportunity Cost Curve for Farm Labor

7~ ~ ~ ~ 7i

6~~~~~~~~~

6 ______/

Ca 5~~~~~~~~

$4.

s-4

C) -.4

Farm Labor Demand (Million Man-Days/Month)

ANNEX16 Tabl=*

INDIA

RAJASTHANCANAL COXHAND AREA IEVEIIDPENTPROJECT

EBtimated Labor Requir_ants (man-dayu/ha)I/ "With" Project Present "Without" Full Seasonand Crop Situation2/ Project3/ DevelopIentl4/

KHARIF Sugarcane5/ 242 278 311 Cotton 128 160 192 Millet 88 101 114 Pul.es 48 55 62 Fodder(Jowar) 83 95 108 Groimdnut 88 101 114 Paddy 115 132 150 RA.BI Sugaroanes,/ - Wheat 90 103 117 Mustard 60 69 78 Gram 46 53 60 Fodder(Bersemn) 150 172 195 Potatoes 92 106 120

1/ A man-dayof 8 workinghours has been assumed. 7/ Basedon presentdata obtainedduring appraisal 0 3/ It has been assumedthat these laborrequirements would be neededafter about 12 years,since some on-farmdevelopment (mainly land shaping)and increased use of currentinputs would take place even "without"the proposed project, resulting in increased cropping intensity and output which in turn would need increased labor input. 4/ Figures reflect estimated labor requirements in year 16 after the year of completion of proposed project construction and on-farmdevelopment. 5/ It has been assumed that sugarcane would have an average growing period of 12 months. About 15% of the total labor requirement would be needed in kharif and 85% in rabi when cane is harvested. INDIA

RAJASTHANCANAL COMMANDAREA DEVELOPMENTPROJECT

Economic Cost of Farm Labor at Full Project Development

January February March April May June July August September October November December Total

Labor Requirement (Million man-days) Future With Project 0.9 1.2 3.5 3.5 3.5 2.3 0.6 0.9 1.5 5.3 5.5 0.6 29.2 Future Without Project 0.7 0.9 2.6 2.6 2.6 1.7 0.4 0.7 1.1 3.9 4.1 0.4 21.8

Marginal Opportunity Cost (Rs/man-days) Future With Project 2.5 2.6 6.0 4.2 6.0 3.6 2.3 2.5 2.8 8.0 8.0 2.3 Future Without Project 2.4 2.5 4.2 4.2 4.2 3.9 2.2 2.4 2.6 6.8 7.2 2.2

Economic Cost of Labor (Rs Million) Future With Project 2.0 2.8 11.8 11.8 11.8 6.0 1.3 2.0 3.6 25.2 26,.8 1.3 104.4 Future Without Project 1.5 2.0 7.2 7.2 7.2 4.2 0.8 1.5 2.5 14.3 15.7 0.8 63.4

Incremental Economic Cost of Labor (Rs Million) Future With Project minus Future Without Project 0.5 0.8 4.6 4.6 4.6 1.8 0.5 0.5 1.1 10.9 11.1 0.5 41.0

- m SM o - ANNEX16 Table 3

RAJ.AST9',IANCANIAL UMMAND AREA UEVELOP14EN1ROJBCT

Econcmiio Costs and Benefits (Rs Millions)

Farmi Year Capital 0 & M Labor Total Benefita/

1 h2.3 10.4 0 92.7 0

2 !15.6 8.9 2.9 127.4 2553

3 t 6061 11.0 7.0 184.1 59.9

4 t.D* i 12.0 i -' 190.3 106e3 5 134.1 13.2 17so 164.9 151.8

6 83 14.2 2' 2 123.1 194.0

7 2 39.6 216,3

8 27.,i 41.7 236.0

9 29.1 43.3 249.3

W1 29.9 4411 255,4

11 2955 43.7 253.7 12 1 29.1 43.3 247.6 13 30,8 45.0 262.9 14l 32.8 47.0 278.8

1n 34.4 48.6 295.0

1o36f,5 50.7 310.0

17 37'7 51.9 323.4

1 19 } 39.4 53.6 334¢3

19 LW.2 54.4 34t2.6

2 10 ho.6 54.8 347.9

2 1 -25' II4 41.0 55.2 350.o Economic Rate oiS Return 25%

1, TIncemcft:i. net value of production, without accounting for labor cost,.

INDIA RAJASTHAN CANAL COMMAND AREA DEVELOPMENT PROJECT Implementation Schedule

ITEM ~~~~~~~PFRE- 2TOTA L ITEM PROJECT 1974 1975 1976 1977 1978 1979

1. Land Development ('000 ha) 6 19 19 22 21 _ 87 Surceys & Planning

Land Shaping by 6 8 8 5 Project Authority 32

Land Shaping by 6 6 5 5 4 Farmers 26

Recamation by 2 3 4 4 4 17 Project AuthoritY

Recameatio by 2 3 4 4 4 17

Watercourse Lining 30 40 50 50 30 200 On-Farm Field Channets Improve- 30 40 50 50 30 200 ment

2, Lining of Branch, D,stributary

& Minor CanPlsn(km) 200 150 150 150 150 150 950

Execution 74 109 183 183 183 183 915

3. Forestrvy & Pasture Develop- ment ('000 ha) Plantatio,,s1 2 2 2 1 8

Pastute Development 5 7 5 35

4. Roads (km) Major Market &I 9 36 33 34 34 34 180 District Roads

Village Roads _ 62 63 63 63 251

5. Village Water SupPlies

V9lages Supphed 8 12 20 20 20 20 100

Area Irrigated at 130% Cropping 30 70 120 170 200 Intensity Com-ulativn '000 ha ...

Percentage of Agricultural 50% 75% 100% 100% 100% 100% Support Services Operative 50%_75%_100%_100%_100% _100%

Percentage of Operation & 15% 35% 60% 85% 100k 100% Maintenance Services Operatioe

World Bank - 8638(R)

INDIA RAJASTHAN CANAL COMMAND AREA DEVELOPMENT PROJECT Organization Chart - State Level

MINISTER OF AGRICULTURE

Functions: ~~~~~~~~~~~Water ~ ~ ~~~~~~~~~~~~GroundAddB;onsl Agrkultural AgricultureDairyDeyelopment Production D Secretary Cooperstimalusby SpecialSchemes for Command Areas Animal Husbandry Drought ProneArea PanSheepytWoo Projects Command Areas

Special Secretary, Special Secretary. DeputY Secretary, Agric.lture,Animal Pacaas&Dpt ertr. Deputy Secretary., Deputy SecretaryDeuySertryMrughtlPlroneay Husbandry.Sheep & En-Officio Director SpecialShemesy Development CAD Ground Water Area Projects Wool, Cooperatives of Panchayats

D eputySecretary. Area Development Area Development Chief Engineer, Cooperatives, Deputy Secretary, Director, Commissioner, Commissioner, Ground Water Aeimal Husbandry, Atriculture -cr-ary~~~~~~~~~~~~~~~~~~~~~~~~Rjata Dairy DeveloPment RastnCnla Cnl l IChmChambal ;|I DevelopmentDelo et Sheep& Wool SeeChart 8640

Director Director Atriculture| Dlrector lt lf ~~AninnaHusbandryI WoolSheep & CooperativesRegistrarof Department l l Department Department

CAD & WU: Command Area Development and WaterUtilization

World Bank - 8599(R)

INDIA RAJASTHAN CANAL COMMAND AREA DEVELOPMENT PROJECT Organization Chart - Command Area Authority

Other Ministries |Itrinisterial adDprents - -… - - --- Minister of Agriculture Government of India

SeeChart 8599

Ariculture Cmmand Area Development RIntadr-State ArieuitureI artment at & Water Utilisation Dept. Dv Cp Board Indus Water C (aR Ste LevelSreare CAD & WU o

o j Dayer. Commission r ,ml , . so (0 ______Co~~~~~~0mmandArea Authiority CAA)

i I_I_I_I i I Corcial Banks ------1

I I~~~~~~~~~~~~~~~~~~~~

Joint Director n Registrar R nue Departmentgl E -1- Chief Enginer I I ~~~~~~~ofAgriculture oCopet & Colonisatlo1 ReeuLeprmn nd Land DvlpetRCP construction

i {I | § , l See Chart 8639 .f I t. Roads Project Research Project Extension Assistant Chief Engineer Forestry Director DirectorD Town Planning Water Supply Education See Reference 3 Health Panchayats _ - | Operation & Maintenanne Animal Husbandry Circles Social Welfare Groundwater Development PowerI

Command ~~~~~~~~~~~~~~~~~~ThreeCanal Lining - - - CoordinationLorLnDelCics

- - - Flow of Funds |

L~~W

World Bank~ 8640 j2R)

INDIA RAJASTHANCANAL COMMAND AREA DEVELOPMENTPROJECT ORGANIZATION CHART: IRRIGATION AND LAND DEVELOPMENTCIRCLES FORESTRYAND PASTUREDEVELOPMENT CIRCLE

Executive Engineer Chief Engineer Chet Engineer Coordinating Unit I rrigation) _E_g_n_e_ Ch* ISupervising standards of and Larid Devlpmt. RCP Construction Design andi Construction)

2 Operationi & Assistant

Assistant K.,~~~~~~Minteniance Chief Engineer s - } ~~~~~~~~~~~~~~Engineer ~~Chief-i cle sitr in L Land Development (LD | Canal Linin)g (C

a;;| - Land Land Larnd Canal Lining Canal Lining Canal Lning Development Development Dvelopment Development Circle CirCe Circle Circle Crd C>e Circle _ Circle_ _

On Four Land Four Land Four Land Four Land Four Canal Four Canal Four Canal One Mchnil Development Development Development Development L i ng Lining | Liig Mechanical visi ~~Divisions Divisions Divisions Divisions Divisons Divisions Divisions'.

[e 1~~~~~M

FORESTRYAND PASTUREDEVELOPMENT CIRCLES

|Commnand Area |Authority

Coordination

| FORESTRY CIRCLE | Conservator of

7 urser es ~Cana[side Village Firewood Roadside I a l4 DeputyConservators Plantation Plantations Plantations 14 Forest Ranqers NPUYiy1FoeSt Rangers s L ~ 54 Foresters~~~~~~~~~~~~~~~~~~~~~14

Wand Bank - 8639 (2Ri

INDIA RAJASTHAN CANAL COMMAND AREA DEVELOPMENT PROJECT Project Activity Diagram

ROAD DEPARTMENT DESIGN AND CONSTRUCTION OF ROAD NETVVORK

D < FORESTRY DEPARTMENT AFFORESTATION AND DUNE STABILISATION Gz

D PUBLIC HEALTH ENGINEERING DEPT. |DESIGN AND CONSTRUCT(ON OF VILLAGE WATER SUPPLIES| 00~

'Z8 | LINING OF IRRIGATION CANALS IRRIGATION SUPPLY <' IRRIGATION DEPARTMENT f RRIGATION CIRCLES IPLANNING IRRIGATION SUPPLY, REGULAR OPERATION 2 r 1 &MAINTENANCEOF IRRIGATION SYSTEM

…-I

IRRIGATION DEPARTMENT PLANNING OF LAND SHAPING, C HNIO LRRIGANDDVELOPAMENTDIVIS N WATERCOURSES, RECLAMA- z LAND DEVELOPMENT O/VISIONS j--0l -I TION AND FIELD DRAINS

0 - X REVENUE DEPARTMENT | E 2 ~~~~~~~~~~FRES REEVEo < Z COLONISATION DEPARTMENT COPIES FARM REPRION DOF

F 0 RAJASTHAN LAND zCASFIG|LOAN _|CNTR LCINCMTO DEVELOPMENT CORPORATION IRLDCI | PROCESSING ADVANCES CERTIFICATES

COMMERCIAL BANKS

L0: CREDITS r

E AGRICULTURE REFINANCE CORPORATION I RIN

GOI l L ADVANTAGEDSUSIDIES FORFARMERS DIS

COOPERATIVES|E.

FARM INPUT SUPPLIERS I-u~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~IFAj INU Ci. INTON--- -

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AGRICULTURE RESEARCH AGRILTURE RESARC

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