India: Appraisal Of
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ReportNo. 1486a-IN India:Appraisal of the FILECOPY MaharashtraIrrigation Project June30, 1977 Public Disclosure Authorized South Asia Projects Department Agriculture Division C FOR OFFICIAL USEONLY H Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Document of the World Bank This document has a restricted distribution and may be used by recipients only in the performance of their official duties Its contents may not otherwise be disclosed without World Bankauthorization. CURRENCY EQUIVALENTS US$1.00 = Rupees (Rs) 9.00 1/ WEIGHTS AND MEASURES (METRIC SYSTEM) 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.62 miles (mi) 1 hectare (ha) 3 = 2.47 acres (ac) I million cubic meters (Mm ) = 810 acre-feet (ac-ft) 1 thousand million cubic felt (TMC) = 28.32 Mm3 1 cubic foot per second (ft s) 0.0283 M /s 1 liter per hectare (1/ha) = 14 ft -3/1,000 ac I ton = 1,000 kilograms (kg) 2,205 pounds 1/ Until September 24, 1975, the Rupee was officially valued at a fixed Pound Sterling rate. Since then it has been fixed against a 'basket' of currencies. As these currencies are floating, the US Dollar/Rupee exchange rate is subject to change. Conversions in this report have been made at US$1 to Rs 9.00, which was the short-term average rate prevailing at the time of appraisal. FOR OMCAL USE ONLY PRINCIPAL ABBREVIATIONS AND ACRONYMSUSED ARDC = Agricultural Refinance and Development Corporation CAD = Command Area Development CADA = Command Area Development Authority CB Commercial Bank CWC Central Water Commission DA = Department of Agriculture GOI = Government of India COM = Government of Maharashtra ICAR = Indian Council for Agricultural Research ICB = International Competitive Bidding ID = Irrigation Department LBC = Left Bank Canal LCB = Local Competitive Bidding MLDC = Maharashtra Land Development Corporation O&M = Operation and Maintenance PEC = Project Executive Committee PWD = Public Works Department RBC = Right Bank Canal SLA = Special Loan Account SLDB State Land Development Bank SOI Survey of India TMC = Thousand Million Cubic Feet ZP = Zilla Parishad GLOSSARY Bajra = Pearl Millet Chak = Area served by watercourse, between 25 and 40 ha Command Area De- velopment = The provision for all necessary physical works and agricultural supporting services to enable full realization of benefits from irrigation projects Jowar = Sorghum Kharif = Wet season (June to September) Mundi Market Murrum = Used locally to describe decomposed laterite or other firm gravel soils suitable for road con- struction Nulas = Gullies Rabi = Dry season (October to March) Taluka = A sub-division of a District Zilla Parishad = District council FISCAL YEAR GOI, GOM and agencies - April 1 - March 31 ARDC, Cooperatives - July 1 - June 30 Commercial Banks - January 1 - December 31 I This documenthas a restricteddistribution and may be used by recipientsonly in the performance of their officialduties. Its contents may not otherwisebe discbosd without World Dankauthorization. INDIA APPRAISAL OF THE MAHARASHTRA IRRIGATION PROJECT Table of Contents Page No. SUMMARYAND CONCLUSIONS ............................ i - iii I. INTRODUCTION......................... 1.............. II. BACKGROUND .................. 1.................... The Economy ................ ........................ 1 Agriculture and Irrigation in India .... ............ 1 Agriculture and Irrigation in M4aharashtra.......... 2 Project Formulation ................................ 3 III. THE PROJECT AREA ................................... 4 General ......,.,.,,.,. ........................ 4 Climate ........................ 4 Topography and Soils .. 4 Geology and Groundwater Resources ................. 4 Population, Land Tenure and Labor .................. 5 Existing Irrigation and Drainage .............. 5 Present Agricultural Supporting Services .......... 6 IV. THE PROJECT ........................................ 7 Detailed Description ............................... 7 Jayakwadi Scheme ........ ...........................8 Purna Scheme ......... .............................. 9 Water Supply, Demand and Quality ..... .............. 10 Roads . .............................................10 Market Centers ........ .............................11 Engineering Design ................................. 11 Construction Methods ............................... 11 Implementation Schedule .. ........... 11 Project Monitoring and Evaluation .................. 11 Preparation for Further Development in Jayakwadi/Purna ........ ..........................12 Cost Estimates . 12 This report is based on the findings of an Appraisal Mission comprised of Messrs. W.G. Rodger, B. Kanchanalak, A. Seager (p/t), C.J.R. Bridge, K. Unhanand, and C. Brinck (Bank); J.K. Lee and J.A. Ward (Consultants). A contribution to this report was also made by Mr. P. Ljung (Bank). -2- Page No. Financing ..................................................14 Procurement ............ * ...................................* * 14 Disbursements ........................................... 16 Accounts and Audits .... ..... ................. 16 Environmental Effects of the Project ........... ...... 17 V. ORGANIZATION AND MANAGEMENT...... ................... 17 A. Project Management ............................. 17 B. On-Farm Development . ........................... 18 C. Farm Support Services ..........................19 D. Operation and Maintenance and Water Allocation ..... .................... 20 E. Cost Recovery *............ ............ 21 VI. PRODUCTION, MARKETING, PRICES AND FARM INCOMES ..... 21 Agricultural Production ........................... 21 Marketing and Prices ........ .......................22 Storage and Processing .......................... 22 Farm Incomes and Repayment Capacity . ............ 22 VII. BENEFITS AND JUSTIFICATION ......................... 23 Impact on the Economy ...... ........................ 23 Rate of Return .....................................23 Risk and Uncertainty ...... ........................ 24 VIII. AGREEMENTS REACHED AND RECOMMENDATIONS .... ......... 25 -3- ANNEXES 1. Climatic Data 2. Project Works: A. Project Scope B. Jayakwadi Irrigation and Drainage Works C. Jayakwadi CAD Component D. Purna Project E. Road Program 3. Water Supply, Demand and Quality 4. Cost Estimates, Equipment 5. Schedule of Expenditures, Proposed Allocation of the Credit and Estimated Schedule of Disbursements 6. Organization & Management, Project Financing 7. Agricultural Supporting Services I. Agricultural Research and Education II. Agricultural Extension III. Input Supply Services IV. Agricultural Credit 8. Agricultural Production, Marketing and Prices 9. Crop Inputs, Farm Budgets and Payment Capacity 10. Economic Analysis CHARTS 1. Implementation Schedule (17034) 2. CAD Organization at State and Regional Level (17037) 3. CAD Organization at Project level (17038) MAPS 1. Project Area (12594R) REFERENCES 1. Jayakwadi/Purna CAD Project (Maharashtra), Report No. 18/76 IND 28, FAO/World Bank Cooperative Programme Rome, June 30, 1976. 2. Purna Irrigation Project, State of Maharashtra India, IBRD Report No. TO-326b, July 10, 1962. INDIA APPRAISAL OF THE MAHARASHTRA IRRIGATION PROJECT SUMMARY AND CONCLUSIONS i. The World Bank Group endorses India's program of increased agricul- tural production through completion of irrigation projects under construction, accelerated command area development (CAD) in irrigated areas, and provision of new organizational structures to achieve these objectives. Under the composite project approach adopted, irrigation and CAD sub-projects are dealt with simultaneously on several command areas under improved organizational arrangements common to the whole State. The techniques developed would be replicable for similar irrigation projects. ii. The proposed Maharashtra Irrigation Project would be the first Bank Group involvement in major irrigation development in the drought-prone central Deccan plateau where the transformation from extensive rainfed agriculture and the efficient utilization of limited water supplies are essential for full de- velopment of the region. The project would, therefore, feature an all-lined canal system, water allocation planning and specialized extension assistance to the farmer beneficiaries to cultivate their crops under year-round irriga- tion. The project would serve as a model for major irrigation development of drought-prone areas. iii. The project would complete the next four-year slice of infrastruc- tural investment in Maharashtra's largest irrigation scheme, the Jayakwadi project, and initiate modernization of the adjacent Purna irrigation project. The project would be the first step in a CAD program ultimately covering over one million hectares in the State. It would provide: a village link road system for about 95,000 ha in Jayakwadi and 30,000 ha in Purna; irrigation and drainage network extension and remodeling for these command areas; and undertake 45,000 ha of land development in two command areas of the Jayakwadi project. Improved agricultural supporting services, particularly extension, would be financed under the project. iv. In subsequent stages of the project, spread over the next 10 to 15 years, GOM plans an ultimate development of up to 277,000 ha; this would depend on improved water use through a combination of CAD and canal lining as proposed in the IDA-assisted project. The data base for optimum planning of this ultimate development would be generated by a monitoring and evalua- tion system set up under the project. v.