World Bank Document

Report No. 698a-IN India:Appraisal of the ChambalCommand Area Development Project (MadhyaPradesh) Public Disclosure Authorized May 27, 1975 FILECOPY Irrigation and Area Development Division South Asia Projects Department Not for PublicUse Public Disclosure Authorized Public Disclosure Authorized

Document of the International Bank for Reconstruction and Development International Development Association Public Disclosure Authorized

This report was preparedfor official use only by the BankGroup. It may not be published,quoted or cited without BankGroup authorization.The BankGroup does not accept responsibility for the accuracyor completenessof the report. CURRENCY EQUIVALENTS

US$1.00 - Rupees (Rs) 8.00"- Rs 1.00 = US$0.125 US$1 million = Rs 8,000,000 Rs 1 million = US$125,000

WEIGHT AND MEASURES (METRIC SYSTEMS)

1 meter (m) = 3.28 feet 1 kilometer (km) - 0.62 miles 1 hectare (ha) 2.47 acres 1 cubic meter (m3 ) 35.3 cubic feet 1 million cubic meters (Mm3) = 810 acre-feet 1 ton 1,000 kilogram (kg) = 2,205 pounds 1 megawatt (MW) e 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 rates with the United States Dollar have varied between US$1.00 - Rs 7.60 and Rs 8.70 in recent months. PRINCIPAL ABBREVIATIONSAND ACRONYMSUSED

AEO = AgriculturalExtension Officer AIC Agro Industries Corporation APC - AgriculturalProduction Commissioner ARC AgriculturalRefinance Corporation CAA Command Area Authority CAD Command Area Development CB Commercial Banks G'NP - Gross National Product GOM Government of Madhya Pradesh HYV - High Yielding Varieties ICAR Indian Council for AgriculturalResearch LDB - Land DevelopmentBanks PWD - Public Works Department RMC Right Main Canal SCD - Soil ConservationDivision NSC - National Seeds Corporation VEW Village Extension Workers

GLOSSARY

Bajra = Millet Chak - Irrigation service unit of about 30 to 40 ha. Field Channel - Private ditch within a farm Irrigation Associations - Organization of farmers responsible for cooperative water management in the chaks Jowar = Sorghum Kharif D Wet season (June to September) Mandi Market Nullahs = Gullies Panchayats Village councils Rabi Dry season Warabandi Cultivators rotational irrigation system

FISCAL YEAR

GOI, GOM and agencies - April 1 - March 31

ARC, Cooperatives - July 1 - June 30

Commercial Banks - January 1 - December 31

INDLA

APPRAISAL OF THE

CHAMBALCOMMAND AREA DEVELOPMENTPROJECT (MADHYAPRADESH)

Table of Contents

Page No.

SUMMARY AND CONCLUSIONS ...... *......

I. INTRODUCTION ......

II. BACKGROUND ......

The Economy ...... 1 Agriculture in India ...... 2 Agriculture in Madhya Pradesh ...... 2 Project Formulation ...... 4

III. THE PROJECT AREA ...... 4

General ...... 4 Climate ...... 5 Topography, Soils and Drainage ...... 5 Geology and Groundwater Resources 6...... 6 Population, Land Tenure and Social Structure ... 6 Agricultural Production ...... 7 Marketing and Transporation ...... 8 Present Problems ...... 9

IV. THE PROJECT ...... 9

Project Works ...... 9 Other Project Components ...... 12 Water Supply, Demand and Quality ...... 12 Engineering Design ...... 13 Construction Methods ...... 13 Implementation Schedule ...... 13 Cost Estimates ...... 14 Financing ...... 15 Procurement ...... 15 Disbursements ...... 17 Accounts and Audits ...... 17 Environmental Effects of the Project ...... 17

This report is based on the findings of an appraisal mission composed of Messrs. W.G. Rodger, J.K. Lee, K.V.S.K. Nathan, C.J. Perry (IDA) and Messrs. D. Benor and R.S. Baskett (Consultants). -2-

Page No.

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

Project Implementationi ...... 18 Command Area Authority ...... 18 Implementation Procedures for On-Farm Development Full Package ...... 19 Financing Procedures Jor On-Farm Development Full Package Works ...... 19 Agricultural Supporting Services ...... 20 Operation and Maintenance ...... 22 Water Allocation ...... 22 Cost Recovery ...... 23 Monitoring Project Performance ...... 24

VI. PRODUCTION, MARKETING, PRICES AND FARM INCOMES ... 24

Production ...... 24 Market Prospects ...... 25 Processing and Storage ...... 25 Prices of Agricultural Products ...... 26 Farm Incomes and Repaynent Capacity ...... 26

VII. BENEFITS AND JUSTIFICATION ...... 27

VIII. AGREEMENTS REACHED AtD RECOMMENDATIONS ...... 28

ANNEXES

Annex 1 - Climatic Data Annex 2 - Project Works Annex 3 - Water Supply, Demand and Quality Annex 4 - Cost Estimates Annex 5 - Equipment Requirements Annex 6 - Schedule of Expenditures, Allocation of the Proceeds of the Credit and Disbursements Annex. 7 - Organization, Management and Project Financing Annex 8 - Agricultural Supporting Services Annex 9 - Operation and Maintenance Annex 10 - Agricultural Production Annex 11 - Marketing, Pricing, Processing and Storage Annex 12 - Farm Budgets Annex 13 - Economic Analysis -3-

CHARTS

Project Operational Diagram WB9695 Implementation Schedule WB9725 Organization Chart - State Level and Command Area Authority WB9697 Organization Chart - Irrigation and Land Development WB9696

MAPS

11501 - Location 11507 - Project Area 11524 - On-Farm Development - Typical Chak Layout

REFERENCES

1. Chambal Command Area Development Project (Madhya Pradesh) Report No. 35/74 IND. 20 FAO/IBRD Cooperative Program, Rome, October 1, 1974. 2. Appraisal of the Chambal Command Area Development Project (Rajasthan) in India, IBRD Report No. 430-IN, May 29, 1974.

INDIA

CHAMBALCOMMAND AREA DEVELOPMENTPROJECT (MADHYAPRADESH)

SUMMARYAND CONCLUSIONS i. Command Area Development (CAD) involves provision of such further works and services as may be required for full realizationof the benefits of existing irrigationsystems. These projects have been given a high priority in India's developmentplanning, and further CAD projects are being prepared for Bank Group consideration. ii. India's developmentprogram for the next five years places a heavy emphasis on alleviatingrural poverty, creating employment and increasing food production. CAD projects and the general expansionof irrigation services fulfill all these aims. iii. Madhya Pradesh is the largest State in India and economically dependenton agriculture. The Chambal irrigation system, situated on the Madhya Pradesh - Rajasthanborder, consists of three reservoirs,a common carrier canal and irrigationnetworks serving 229,000 ha in Rajasthan and 224,000 ha in Madhya Pradesh. I iv. About 93,000 families live in the Madhya Pradesh project area. The average farm size is 2.4 ha, but the median size is only 1.5 ha and about 37% of holdings are less than 1 ha. v. The total cropping intensity (includingboth seasons) in the project area is about 105%, and the irrigation intensity is 65%. The main kharif (summer,wet season) crops are millet, sorghum and paddy. In the rabi (winter, dry season) the most important crops are wheat, pulses and oilseeds. A limited amount of sugarcaneis also grown. vi. Agriculturalproduction in the project area has been limitedby deficienciesin water control, on-farm development,drainage, the transport system and agriculturalsupporting services. vii. The proposed project covering 224,000 ha would be the first stage of an extended program to alleviate these problems. Project works would include: lining of 11 km on the main canal where seepage is excessive; constructionof 77 control structures;increasing the carrying capacity of 400 km of canals and improving village access roads. A full package of on-farm developmentwould be implementedover 12,000 ha, including provision of 2,000 nutrient tons of fertilizerto restore soil fertility. Waterlogging problems on 20,000 ha would be relievedby provisionof chak drainage net- works and improvementof 200 km of natural drains; the 220,000 ha area and an additional 10,000 ha would be protected from further floodingby provision of 560 km of small seepage interceptordrains. The agriculturalextension and research services and the system of cooperativeswould be strengthened throughout the project area. The extension service would make use of progressive farmers as part time extensionworkers. Provision has been made in the project for technicalassistance and in-service training -- including employment of a land developmentexpert. A special group would be set up to monitor the progress of the project. viii. Project implementationwould take three years and would use labor- intensive methods wherever feasible. The use of heavy equipment, which would be supplied under the project, would mainly be confined to land shaping and excavation of large drains. ix. To ensure full cooperation and coordination among the institutions concerned, the Government of Madhya Pradesh (GOM) is setting up a Command Area Authority (CAA), headed by a Commissioner(already appointed) who would direct the Departmentsof Revenue and Cooperatives,and have coordinatingauthority over all other project activities. To ensure equitable distributionof the availablewater, GOM would draw up an allocationprogram. Such a program would be introducedby the CAA during project implementation. x. Total project costs are estimated at US$46.6 million, with a foreign exchange componentof US$9.7 million (20%). The proposed credit of US$24.0 million would finance 53% of the total cost of project items eligible for financing(US$45.1 million). The Governmentof India (GOI) would relend the proceeds of the credit, except for disbursementsagainst supplementaryfertilizer and technical assistancefor GOI's preparation of further CAD projects financedby the credit, to GOM and to the Agricul- tural Refinance Corporation (AAC) in accordance with standard procedures for such developmentprojects. xi. Equipment valued at US$5.2 million would be provided by the project, and of this, US$3.0 million would be procured through internationalcompetitive bidding. Fertilizerwould be procured in line with allocationsto the farmerswho had carried out leveling work on their farms and disbursements for this purpose would be made following distribution of the fertilizer to the farmer. Because most of the project civil works would be individually small, scattered, labor-intensiveand would be carried out only during the period of canal closures,they would not be suitable for international competitivebidding. These works would instead be carried out by local contractors@or by force account. xii. At full developmentin Year 11, the average cropping intensity (irrigationintensity) would rise from the present 105% (65%) to 125% (80%). In the on-farm developmentareas, cropping intensitieswould be 135% (95%). The production of food grains would increase from 210,000 tons to 375,000 tons. xiii. Farm incomes under the project would increase from Rs 1,100 per ha at present to Rs 2,400 at full development. This would enable farmers to pay increased irrigation and drainage charges, which would be introduced to ensure that the full costs of constructionas well as those of operation and maintenanceof the system are covered. - iii - xiv. Farmers receiving the On-Farm Development Full Package would receive a loan to cover its cost from either a Land DevelopmentBank (LDB) or a Commercial Bank (CB). The banks would receive refinance of at least 75% of the loan from the Agricultural Refinance Corporation (ARC). The cost of the loan to the farmer would not exceed 20% of the incrementalincome at full development. xv. The major crops produced in the project area are paddy, millet and pulses during the kharif season (wet) and wheat, oil seed and pulses during the rabi season (dry). Sugarcaneis also a relativelysignificant crop and it occupies the land during the kharif as well as part of the rabi season. xvi. The projectwould provide about 12,000man years of additional employment,and an increasein the gross value (economic)of productionof Rs 242 million (US$30 million) at full development. xvii. The economic rate of return is estimatedat 22% using shadow prices for farm labor such that incrementallabor requirementsare priced at about 70% of the currentwage during the peak labor-season. Analysis showed that the three project componentareas (On-FarmDevelopment Full. Package, Chak Drainage and Extensive)all have satisfactoryrates of return. xviii. Provisionhas been made for technicalassistance to GOI to help prepare furtherCAD projects throughoutIndia and to employ a land development specialist for a period of up to two years. xix. The project is suitable for an IDA credit of US$24.0 million. The Borrowerwould be India.

INDIA

APPRAISALOF THE CHAMBALCOMMAND AREA DEVELOPMENTPROJECT (MADHYAPRADESH)

I. INTRODUCTION

1.01 The Governmentof India (GOI) has requested IDA assistance to financethe Chambal Command Area DevelopmentProject in Madhya Pradesh (MP) State. The projectwould be the third CommandArea Development(CAD) project to be assistedby the Bank Group. The first two CAD projects assisted were in the neighboringState of Rajasthan(Loan 1101-INand Credit 502-IN). The CAD involves the completionof irrigationprojects such as canals, drains and roads togetherwith on-farm developmentincluding land leveling,constructionof watercourses, and farm drains and including all aspects of agriculturalsupporting services. The whole program is coordinatedby a CAD authority for each project. This would be the first IDA-assistedCAD investment in agriculture in Madhya Pradesh.

1.02. The Chambal (MP) major canal system was largely completedin 1970. At present, it provideswater to only about 65% of the potential service area. Moreover, the present operationis so independablethat farmers find it difficultto utilizewater effectively. The problems of improvingwater utilizationon the Chambal CommandArea have been studied for the last several years and in 1973 the Government of Madhya Pradesh (GOM) completed a feasibilityreport where it outlined a generalplan to improve project efficiency. Final preparationof the plan was assistedby a team from the FAO/IBRD CooperativeProgram (ReportNo. 35/74 IND. 20, October 1, 1974). The present report is based on the findingsof an appraisalmission com- prisingMessrs. W.G. Rodger, J.K. Lee, K.V. Nathan, C.J. Perry (IDA) and Messrs. D. Benor and R.S. Baskett (Consultants),who visited the project area in November 1974.

II. BACKGROUND

The Economy

2.01 India covers some 3,270 millionkm of which 43% is arable. About 21% of the arable land is under some form of irrigation. It has a population of about 600 million (1974). Rapid populationgrowth and a relatively poor natural resourcebase have imposedsharp limitationson India's economic growth. However, since the inceptionof economic developmentplanning in 1950, national income has grown at nearly 4% per year, comparedwith an average growth rate of less than 1% during the preceding50 years. In 1972, per capita GNP was about US$110.

2.02 The Government'sagricultural development program for the next five years (1975-79)has been based on a projection of a 5.5% growth rate for the -2- economy. There will be greater emphasis than in previous plans on allevi- ating poverty. This would be accomplished by promoting labor-intensive techniques and raising agricultural productivity particularly of subsistence farmers. Also included are a national program to supply the minimum needs of the poor and tax measures to curb consumption by the richer classes.

Agriculturein India

2.03 About 70% of India's population is involved in agriculture which accounts for about 45% of GNP. Agricultural products and agro-based manufacturers also provide the majority of India's exports of which the most important commodities are jute, tea, leather, cotton goods and cashews. In recent years, India has emphasized the importance of agriculture and agricultual processing, and has given priority to accelerating the spread of modern technology by: increasing the availability of high-yielding seeds and fertilizer; expanding irrigation, and developing new agricultural credit institutions. Yet despite impressive results in some areas, the overall growth rate in agricultural output in the 10-year period ending in 1972 was only 3% per annum which was little more than the population growth and slightly lower than the growth rate in agricultural production in the previous decade. However, an important structural change has occurred: growth in production is now primarily coming from yield increases, rather than from increases in cropped area as was previously the case.

2.04 The "green revolution" has mainly affected wheat, and its effects have been concentrated in thg northwestern states which are well served with irrigation facilities. Paddy production has grown slowly due mainly to inadequate water control, and, for the last two years, a shortage of fertilizer and high yielding varieties (HYV) of seeds. Production of other crops has not increased significantly.

2.05 India's agriculture is still dependent on the weather. For example in the drought of 1972/73 and again in 1974, reserve stocks were seriously reduced and large amounts of graiLn had to be imported. A major factor in reducing India's dependence on the weather will be the expansion of irrigation and the more effective use of existing irrigation potential.

Agriculture in Madhya Pradesh

2.06 yadhya Pradesh is the :Largest State in India with an area of 442,840 Km or 13.5% of the totaL size of India. It is predominately agricultural with a population of 41.6 million in 1971 of which 84% was classified as rural.

2.07 About 40% of the area in the State is cultivated (18.3 m ha) of which 8% is irrigated (1.64 m ha), the balance depending upon natural rainfall which averages about 800 mmper year with 95% occurring from June through October. Forests cover about 32Z of the land area of the State. -3 -

2.08 Agricultureand allied activities in the State account for Rs 13,307 m annually or 55% of all income. The land use pattern for the State in 1970 is shown below: Category Ha Million

Forests 14.4 Available but not yet cultivated 4.4 Unclearedor fallow 7.1 Net sown annually 18.3 Gross sown 20.3 Double cropped 2.0 Net irrigated 1.5

2.09 The major crops grown and their approximateacreages are:

Crop Ha Million % Irrigated

Paddy 4.3 43 Wheat 3.3 29 Other Cereals 6.4 Pulses 1.8 Gram and Oilseeds 3.3

2.10 As most of the land is unirrigated,average yields for crops grown in the dry winter season are low. Current averageyields in the State in kg/ha for the main crops are: paddy 820, jowar 630, bajra 630, wheat 800 and gram 600. About 12% of the paddy, wheat and bajra hectarage now utilize the HYV's which were introduced into the area in the late 1960's. Yields of gram and oilseed crops, however, have been almost constant.

2.11 The use of fertilizerin Madhya Pradesh has increased rapidly in recent years. Nitrogen has been the most important, going from 105,000 metric tons in 1968-69 to 650,000 tons in 1973-74. Phosphate fertilizers increased from 54,000 to 420,000 tons over the same period and potash from 40,000 to 200,000 tons.

2.12 Food grain yields increasedby 2.3% per annum during the Second Plan pbriod (1956-1960)but remained practicallyconstant between 1961-69. The Fourth Plan (1969-1974)aimed to increase productionby 5% per annum.

2.13 Public expendituresin the Fourth Plan placed emphasis on agricultural production,minor irrigation,and soil conservation(including ravine reclamation). Componentsof the program included seed improvement (HYV), fertilizer,agricultural machinery, tractors, tubewells,shallow wells, landshaping,ravine bunding and provisionof regulatedmarkets. Actual production increaseshave followed estimatesexcept for the drought year of 1972/73when grain production fell 650,000 tons below the previous year and again in 1974 when the kharif crop was limitedby weather. -4-

2.14 Planning for 1975-79proposes further improvementsin agriculture with emphasisbeing placed on: the developmentof both ground and surface wiater;more efficientuse of irrigationwater on existing projects through Command Area Developmentactivities; development programs for backward and drought-proneareas and soil and water conservationprograms.

Project Formulation

2.15 Concernhas been growing in India over inadequateutilization of irrigationsystems. Between 1950 and 1972, 10 million ha of new land were providedwith irrigationfacilities but only 70% of this potential is being utilized and much of that in an inefficientmanner. The reasons for the underutilizationof existing faciLities,which adverselyaffects India's ability to meet its food productionneeds, are discussedat length in the 1972 report of the Second IrrigationCommission and include deficienciesin: watercourses;drains and roads; l.nd leveling;agricultural supporting services and administrativecoordination. It has been estimatedthat recently completedirrigation projects require additionalinvestments of up to US$600 per ha before they can become fully productive. As a result, a Command Area Development (CAD) Departmenthas been set up within the GOI Ministry of Food and Agricultureand it has prepared a list of high priority activitieswhich includes 46 projects coveringover 4 millionha and distributedin nine States.

2.16 At the requestof GOI, a Bank Group IrrigationReconnaissance Mission visited India in November 1972 to review the need for CAD and its suitabilityfor Bank Group assistance. The Mission confirmedthe urgent need for CAD and identifiedseveral projects as having high priority. Accordingly,the FAO/IBRD CooperativeProgram assistedin the preparation of the RajasthanCanal, the Chambal (Rajasthan)and the Chambal (NP) CAD projects. The first two projects are now being implemented, with Bank Group assistance.

2.17 IDA has also approved two projects for MP consisting of an agricultural credit and a dairy project credit.

2.18 India's development planning for the next five years emphasizes Command Area Development. The GOI and the States have discussed the kind of administrative and financial arrangements needed to carry out such projects. The approach will be to achieve integrated development of the land, water and human resources in irrigated areas through a unified project management (see Chapter V).

III. THE PROJECT AREA

General

3.01 The Chambal IrrigationProject (Maps 11501 and 11507) is one of the larger irrigation and power projects in India. Prior to irrigation, the Chambal region in Madhya Pradesh was developed under rainfed agriculture -5-

with a few small semi-perennialirrigation areas, mainly along the Bhind Canal. The Chambal River is the major southern tributaryof the Jamuna River which dischargesinto the Ganga River and forms the boundary between the States of Rajasthan and Madhya Pradesh (MP) over much of its length. The net irrigablearea of the project is 224,000ha in MP and 229,000ha in Rajasthan. Project constructionbegan in 1953 and the canal system in Madhya Pradesh was completedin 1970 down to the turnout to the irrigationservice unit (chak) level. Water was first released from the canal system in 1963. The system is supplied from three storage and hydro-electricpower dams on the Chambal River, via the Kota DiversionBarrage in RajasthanState and the 370 km Chambal Right Main Canal (RMC)which serves 127,000ha in Rajasthan and 224,000ha in Madhya Pradesh. The availablewater is divided equally between the two State projects by an Inter-StateAgreement (see para 4.20).

3.02 The project area is located in Morena and Bhind districts and includes all the major towns of both districts. It extends 300 km along the south bank of the Chambal River. The gross project area in NP is over 320,000ha of which 224,000 ha would receive, in varying degrees, directbenefits from improvementsin the water supply, drainage and agriculturalsupporting services.

3.03 The main and distributarycanal system has been completedbut 40% of the watercoursesremain to be either constructedor extended. A watercourseserves a service area (chak) of about 40 ha with about 30-40 farmers and is communally owned. A field channel is a private ditch within a farm. As originally designed, the Chambal project did not include a drainagenetwork. In response to a growing need to relievewaterlogging on 70,000 ha, GOM commenceddrainage improvementworks on 12,000 ha in the project area in 1972/73. The drainagenetwork is classifiedas main drains (naturalstreams and gullies),collector drains, chak drains and farm drains. From the farmers' fields, runoff is discharged by privately constructed farm drains to the chak drains and from these to collectordrains each serving between 10-20 chaks. Collector drains discharge to the main drains. Climate

3.04 The climate in the project area is sub-tropicalwith three main seasons: the kharif or wet season (June to September);the rabi or dry season (Octoberto March) and the very hot and dry pre-monsoonseason (April to June). The onset of the monsoon is about one month earlier in the western part of the area (at the canal head) than in the eastern downstream part, which affects the croppingseasons. The average rainfall is about 800 mm with 94% occurring in the wet season (see Annex 1). Topography, Soils and Drainage

3.05 The project area ranges in elevation from about 150 meters to 245 meters above mean sea level and has a gradual slope from the southwest to the northeast in the directionof flow of the Chambal River. The soils range from clays and loams to lighter sandy soils. Areas of silt and kankar mixed with gravel and pebbles mark the beginningof the Gangetic plains. -6-

The topographyis flat to slightly rolling. More than 99% of the project area has slopes of less than 1%. The terrain is deeply eroded along the Charbal River and its main tributariesform deep channels. These channels and the associatednetwork of ravinesand gullies (nullahs)form the main drainagesystem of the project area.

3.06 A semi-detailedsoil survey by the Soil Science and Agricultural ChemistrySection of the AgriculturalResearch Instituteat Gwalior has classified74% of the gross command area as irrigable.Of this area, 45% has heavy soil and the remainderhas light soil. In 1972, GOM surveys indicated that 70,000 ha of land within the project area was adversely affected by a high water table aid poor drainage. These problems are most serious in areas adjacent to the main canals but also occur at considerable distances from major canals, indicating that they are not entirely related to seepage from the canals. Saline and akaline soils occupy about 7% of the gross command area and are mainly excluded from the project.

3.07 Even though there are some limited deficiencies in the project soils, on the whole they are good and if provided with an adequate supply of irrigation water, can be high:Ly productive.

Geology and Groundwater Resources

3.08 The project area has an alluvial soils mantle of sand, silt, clay and kankar mixed in some areas with gravels, pebbles and boulders. The alluvium is derived from the underlying Vindhyan series of sandstones, shales, slates and limestones. In the central Morena district, the Vindhyan series rises to the surface, or to a very shallow depth where it is tra- versed by the main canal. The series is closely jointed near the surface and is a major source of canal leakagewhere unlined.

3.09 The principal source of groundwater in the project area is the alluvium. A program for the construction of tubewells and of dugwells is in operation and has financial support from the Agricultural Refinance Corporation (ARC). Since 1970, the GOMDirectorate of Tubewells has constructed260 shallow tubewellsout of a planned 1,350 of which 164 were in service in January 1974. The wells average 75 meters in depth with a yield of up to 15 l/s and irrigate about 10 ha each. There are 16,000 dugwells.inthe area, irrigatingabout 1 ha each. With local exceptions, the groundwateris suitable for irrigationuse.

3.10 The location, quantity and quality of the groundwater would be explored in more detail during the three year project implementation period, thus paving the way for future groundwaterdevelopment during subsequent project stages.

Population,Land Tenure and Social Structure

3.11 The populationof the project area is about 700,000of which about 70% or 500,000 is classifiedas rural and the balance as urban. About 465,000 of the rural population live on the project farms and the balance of 35,000 are agricultural laborers. About 19% of the rural population is literate.

3.12 Farm sizes in the project area range from 0.5 ha or less to over 40 ha. The average is 2.4 ha. Some 37% of holdings are 1 ha or less with 18% being under 0.5 ha and 19% between 0.5 and 1 ha (see Annex 12). Prac- tically all farms are operated by their owners; owners of small farm units must rely partly on off-farm employment for their livelihood. The operators' of 55% of the farms (17% of the irrigable area) presently fall below the poverty level with an annual income of US$50 per person.

3.13 Certain farm jobs, such as the harvesting of paddy and wheat, are traditionally performed with hired labor -- even though the operator and his family have adequate time to do such jobs. Small farmers and landless laborers normally provide the labor to meet these requirements. Agricultural Production 3.14 Prior to the introduction of irrigation, crops grown in the area were either rainfed or matured on residual soil moisture followJingthe monsoon. Because of the unreliability of the water supply, the area still retains some of the characteristics of rainfed agriculture and drought- resistant crops play a major role in the cropping pattern. Millet, sorghum and pulses can be grown successfully under rainfed conditions during the monsoon but irrigation is necessary for crops such as paddy which normally does not mature until October-November. Drought-resistant crops can also be grown during the dry season on the residual soil moisture but yields are normally low. Irrigation is required during this season for the success- ful production of most crops. 1 3.15 Present cropping patterns for the project net irrigable area are discussed and the tabulation of yields, production, and value given in Annex 10. This indicates an overall cropping intensity of 105%; 25% in the monsoon season, and 80% in the dry season. The irrigated cropping intensity including both seasons is presently only 65%.

3.16 The low cropping intensity in the monsoon is due to the limited number of crops which can be grown in the short, intense wet season. Because there is no tradition of paddy cultivation, apart from the Bhind Canal area, this valuable crop is only now taking hold despite surplus water during the monsoon season and suitable soils over much of the project area. The traditional crops, millet (bajra) and sorghum (jowar), are not very remunerative and rather than plant them many farmers prefer to let their land lie fallow during the monsoon to replenish the soil moisture and to prepare the seedbed for the rabi crop. This allows wheat, the staple crop, to be grown on the residual moisture or as a lightly irrigated crop during the dry season. This cropping system also allows fallow land for mustard planting which requires a good seedbed. The canal system is normally closed for maintenance for a six weeks period some time between April 1 and June 30. WThen the water supply is turned back into the canal it may not reach the end of the network for up to two weeks. This precludes pre-irrigation for land preparation and paddy nurseries and results in a delay in the planting of crops until the onset of monsoon rains. Water supply (pars 4.20) limits the area cultivated for HYV wheat. However this crop has made large advances in -8- the last ten years causing an importantstructural change in the originally conceived cropping and water demand patterns.

3.17 The local populationis mostly vegetarian,and relies primarily upon milk products,wheat and pulses includinggram and jowar for food, using vegetable oils for cooking. They produce a surplus of pulses, sorghum and oil seeds includingoil cake which is exported in significant quantities to other areas in India. Paddy is grown as a cash crop, almost the entire productionbeing exported to other States. Sugarcaneoccupies a minor area but is an importantsource of income. Any expansionwould occur on farms in the vicinity of the sugar factory at Kailaris. These farms are largely provided with reliable year-round irrigation from the combination of canals, shallow tubewells and dugwells.

3.18 Farmers in the area rely heavily on cattle for draft power, transportation and milk. The present production of crops and the estimated gross value for the 224,000 ha irrigable area are given below:

Production Gross Value CrUop ('000 tons) (Rs Million)

Wheat 156 156 Paddy 27 25 Oilseeds and Sesamum 28 55 Bajra and Jowar 31 28 Kharif pulses 8 10 Rabi pulses 30 37 Sugarcane 77 9

Total Gross Value of Production 320

Marketing and Transportation

3.19 There are 15 Government-regulated markets (mandies) administered by local committees in the Bhind and Morena Districts. Most are within the project area and generally provide auction space, storage facilities, water, guest houses and stalls for traders. Farm crops are transported to the mandies, some of which are being rebuilt and enlarged,by bullock cart and most farms are within ten miles of a mandie. Warehouses owned by cooperatives are available in market towns. Processing facilities for paddy, and oil seeds which are mostly privatelyowned are spread throughout the project area. There is only one sugar mill but some farmers have their own facilities for producing unrefined sugar.

3.20 Although the area is fairly well served by a main road network, village roads are unpaved, poorly maintained, badly traced and usually waterlogged and impassable during the wet season. Morena, the main project town, is connected by road and rail to Gwalior and Bhopal, in the south and to Agra and Delhi in the north. -9-

Present Problems

3.21 Due mainly to limited water supply and drainage deficiencies,, agricultural productionhas increasedonly very slowly. The main deficiencies are: the absence of an agreed and timely water supply plan to allocate water throughout the command area in accordance with crop requirements; poor canal management; insufficient regulating structures in the main and distributary canal network, inadequate carrying capacity in certain reaches of the network and excessive seepage losses; enforced closures (often during high water demand periods) to repair breaches and remove aquatic weeds; poor and inequitable water distribution within individual chaks due to incomplete watercourses and inadequate land levelling and delays in introducing cooperative water use among the cultivators (warabandi). The absence of an adequate drainage network, which togetherwith the accumulationof rainwaterand return flows from farmers' fields and seepage from canals have resulted in high water tables over 70,000 ha. Waterloggingis mostly seasonal,with the worst conditions occuring at the end of the monsoon season when winter planting is made extremelydifficult. There are 20,000 ha where the water table is within 2 meters of the ground level. Some 8,000 ha are permanentlywaterlogged.

3.22 Other adverse factors affecting agriculturalproduction include uncoordinatedagricultural supporting services (extensionand research), lack of timely credit for farm inputs and poor road communications.

IV. THE PROJECT

4.01 The proposed project represents the first stage of a program to improve and complete the existing irrigation facilities,construct drainage works, provide on-farm development,improve the road system and provide agriculturalsupporting services (extensionand research) throughout the project area. Works to be included in the present project were selected on the basis of need, implementationcapability and budgetary constraints of the State Government. Depending upon the level of project works proposed, the project areas are referred to as the On-Farm DevelopmentFull Package area (some 12,000 ha), the Chak Drainage area (some 20,000 ha) and the Extensive area - the balance of the commanded area (some 192,000 ha). Most of the works are directed towards the On-Farm Development Full Package and the Chak Drainage areas but improvementsin canal management and in agricultural supporting serviceswould benefit the Extensive area as well. The physical works and other inputs to be financed under the project are describedbriefly below. (See also Annex 2 and Mtap11507.)

Project Works

4.02 Right Main Canal (RMC) Bank Strengthening- Main canals are largely constructedabove ground on earth embankments. Since the RMC was brought into service in 1963, it has breached on several occasions,necessita- ting extended closure of the system while repairswere made. The most vulnerable sections of the canal would be given remedial treatmentby strengthening the embankments,and the lining of 11 km of canal bed and side slopes to reduce piping damage. - 10 -

4.03 Canal CapaciLyWorks - The original project was designed to provide water for lightly irrigated crops. The introductionof high yielding varieties, mainly wheat, has greatly increased peak water demand during the dry season. Existing canal capacity in the distribution system and in the watercourses is insufficient to meet this demand. The project would enlarge some 300 km of distributarycanals and increase the carrying capacity of some 100 km of watercourses which serve the 12,000 ha On- Farm Development Full Package area and selected other areas under IHYVwheat. Their carrying capacity would be increased from the present 0.5 1/s/ha to 0.65 1/s/ha.

4.04 Canal Control Structures- The project was originally designed as a free flowing system with only a small number of regulators in the main and branch canals. The present project would provide 44 additional canal regulatorsand 11 escape structures, 3,000 gated and enlarged pipe outlets to chaks, and 100 small tail structures. This would facilitate the supply of water during periods of reduced canal flow and distributewater efficiently during peak periods.

4.05 Aquatic Weed Control - To facilitate aquatic weed control, canal closures are at present requirecdthroughout the operating season. To reduce the time of such closures, modificationsare required to enable more rapid drainage of canals. The project would provide 22 additionaldrawoff structuresand, to reduce the source of weed infestation,would provide additional embankmentsfor two tanks in the RMC and Bhind canals.

4.06 Main Drainage - To help alleviate severe drainage problems (para 3.21), the project would clear and improve 200 km of natural drainage courses, and construct 560 km of interceptordrains parallel to distributary canals to reduce seepage contributing to waterlogging along the canals. These works would be aimed mainly at improving the On-Farm Development Full Package and Chak Drainage areas and as well as other areas served by the Bhind Canal; the total area benefited would be about 40,000 ha.

4.07 Operating Facilities- The operation of the extensivecanal network with headworks located in another State poses difficult problems. To improve canal management and distribute water more equitably among users requires an effective communication network, access to both banks of the canal for continuous maintenance and an adequate staff stationed at strategic locations along the canal system. The project would install a 300 km telemeter/telecomsystem, surface 220 km of canal roads; construct 54 access bridges and provide housing and buildings for the operating staff.

4.08 On-Farm Development - Two categories of land development,depending on the topographyand crop needs of the particulararea, would be undertaken by the project. Category (c) in undulatingtopography would provide a "full package" treatment including land leveling, constructionof watercourses, drains and access roads inside the chaks. For these areas, farm boundary realignment would be required to enable a rational layout of fields, channels and roads. In v;iewof present organizationalconstraints, the area is limited to 12,000 ha comprised of six blocks. - 11 -

4.09 Implementationof On-Farm DevelopmentFull Package in this categorywould start with the updating of cadastral records, soil classi- fication and detailed topographical surveys of the chaks. The Soil Con- servation Division of the Agricultural Department would prepare plans and cost estimates for the on-farm works and discuss these with the farmers. After receiving approval by the farmers, the works would then be carried out by the Agro Industries Corporation (AIC), a GOM agency, using both exi,ting equipment and new machinery purchased by the project. Upon completion, the farmerswould be provided completion certificatesprepared by the CAA for signing. If they did not elect to accept the job, procedures for resolution of differenceswould be availableto them. (Further details of planning and constructionare given in Annex 2.)

4.10 Category (b) land developmentwould be limited to drainage improvement works on some 20,000 ha of flat land (some 8,000 ha is completelywater- logged) in 16 subbasins spread throughoutthe project area. The works would be carried out where the water table is within two meters of the ground surface. Boundary realignment would not be required for these works. The GOM would obtain easements for the smaller chak drains and acquire land for the larger collector drains (see Annex 2). 4.11 The GOM has demonstratedthe feasibilityof both these categories of works in pilot schemes completed since 1971/72. Two such full package on-farm developmentsincluding about 300 ha have been completed and four additionalones are now underway. 4.12 Roads - About 206 km of village to-market roads would be constructed. First priority would be given to the roads serving the Chak Drainage and On- Farm Development Full Package areas. 4.13 Ravine Erosion Control - A pilot project covering about 50 km of ravine perimeterwould be undertakento identify the "least cost" techniques for ravine erosion control. The work would comprise perimeterbunding and drains with control structuresto arrest the erosive floodwater flows. 4.14 MechanicalEquipment - Mechanicalequipment would be procured by the project for the constructionof the irrigationand drainageworks, for road constructionand ravine erosion control and for the On-Farm Development Full Package program. After project completion,the remainingequipment would be used by the CM for maintenanceof the completed facilities. 4.15 Fertilizer- The movement of top soil in the On-Farm Development Full Patkage areas during land levelingwould cause a temporary loss of top soil fertility. Some 2,000 tons of fertilizerwould be provided to restore soil fertility to the original level. It is expected that this would be accomplishedin a two year period. 4.16 AgriculturalExtension and Research - The agriculturalresearch and extension capabilityof the Department of Agriculturewithin project area would be strengthened. Assuranceswere obtained from GOM that it would strengthen and make budgetary provision for the agriculturalresearch and extension program which would be acceptable to the Association as part of the budget requirementsfor the project. - 12 -

4.17 Crop Compensation- As -aresult of the On-Farm DevelopmentFull Paclkge program, it is expected that some of the lands would be out of productionfor one dry season during which time the actual land shaping would take place. To preserve the farmer's income during this transition period, he would be paid Rs 150/ha as partial compensationfor the loss of farm income.

OLher Project Components

4.18 The project would include the expansionof the rotational Irrigation system (warabandi) now in operation on some chaks. Initially, eamphasis would be given to expand:ing this in the Chak Drainage and On- Farm Development Full Package areas. Gradually it would be extended throughout the project area. Funds are provided in the cost estimates to cover the cost of project administration, operation and maintenance during the construction period, technical assistance for on-farm land development and for the agricultural research and extension program. The project would also provide funds for studies of further developmentsin the project area. The studies would cover groundwaterexploitation, increasing delivery efficiency by canal lining, reuse of return flows, reclamation of saline-alkalinesoils, improvement of district roads and further intensive on-farm development in the command areas.

4.19 The project would also provide technical assistance to GOI to help prepare a number of CAD projects throughout the various States of India in the next three years. Pilot land development projects would be extended and improved to cover all necessary technical,economic, organizational and financing features essential for comprehensive appraisal of the on-farm developmentelement of CAD projects. To assist the land development imple- mtentationan internationallyrecruited specialistwould be appointed. An assurancewas obtained from GOI that it would recruit or cause to have recruited a land developmentspecialist.

Water Supply, Demand and Quality

4.20 Water Supply - Water supply in the project area is from rainfall and the regulated flow of the Chambal River. Present groundwaterexploitation is small but would become increasinglyimportant in later stages of the project. Reservoir operation studies estimate the total annual irrigation water availabilityin 88% of the years at 3,900 Mm3, of which the Chambal (MP) project's share is one half (InterstateAgreement). During the last four years, Chambal (MP) project received supplies in excess of 1,940 Mm3 per year. Because of water releases from the main storage reservoirs for hydro-power generation, --hout one third of the water supply is available during the July - October period. Details of the storage and conveyance systems are given in Annex 2 and water supply in Annex 3.

4.21 Water Demand - The present overall irrigationefficiency is estimated at 20%, reflectingthe physical and operationalproblems discussed in paragraph 3.21. Following project implementation,it is expected that the overall efficiency would increase to about 30%, with the greatest - 13 - improvement anticipated in the On-Farm Development Full Package area. At full development, peak irrigation demand in February would be about 0.65 1/s/ha. This figure will be used to establish canal carrying capacities in the various segments of the distributionsystem. The average annual diversion requirementsat full development for the present project would be some 1,500 Mm3 compared to 1,950 Mm3 available. The excess of supply over projected demand mainly reflects the underuse of water during the monsoon. The main canal peak operating capacity would limit the area Which could be planted to HYV wheat. If the whole commanded area were z,w;-eloped to the On-Farm DevelopmentFull Package area standards,annual water requirementswould increase to 1,860 Mm3.

4.22 Water Quality - The quality of water supplied in the system is ijood. In the limited groundwaterareas, the water quality is acceptable. There is some question about the quality of the return flows from irrigation in the areas having saline and alkaline soils. A monitoring program would be started by the Director of Tubewells to determine whether return flows from these areas is reusable.

Fngi_neering Design

4.23 Detailed designs have been prepared,fora number of representative drainage areas and typical irrigationworks. In view of the fairly homo- geneous nature of the works these are sufficient to establish cost estimates to feasibilitystandards. No problems are expected in preparing designs in accordance with the proposed construction schedule. Design procedures for On-Farm Development Full Package works are described in Annex 2. Road designs would be in accordance with Indian Roads Congress standards.

Construction Methods

4.24 Labor intensive methods would be used for constructionwherever possible. Contracts would provide for mobilizationadvances to enable small contractorsto purchase tools and machines, and to increase the productivity of labor. Land leveling, the compaction of road beds and canal banks and the excavationof the larger drains in waterlogged areas, would require mechanical equipment. Drainage excavationwould be by dragline. For land leveling,which is mostly light, a four-wheeledtractor with a small scraper wouldlbe appropriate. Equipment to be procured under the project is listed in Annex 5.

ImplementationSchedule

4425 Project implementationwould take three years and would be comnpleteby 1978 (Chart 9725). As the equipment to be procured under the project would not be available at the beginning of the first construction season in October 1975, equipment on hand would be used to achieve the first year's targets. - 14 -

Cost Estimates

4.26 Project costs are estimated at US$46.6 million, with a foreign exchange component of US$9.7 million, or 21% of the total. Costs are based on price levels prevailing in December 1974, and include the recent increase in the costs of gasoline and diesel oil. Expected price increases for civil works and fertilizershave been made as follows: 25% in the first year (includinga component for price increases from December 1974 to mid 1975) tapering to 12% in the third year; for administrative and operating costs, price escalationwas taken at 19% in the first year tapering to 8% in the third year. These rates are consideredreasonable in the Indian context. Estimated price increase equals 27% of the cost of the project. Physical contingencieswere taken at between 10% and 15% depending on the nature of the work.

4.27 A breakdown of project costs is given in Annex 4 and summarized below:

Local Foreign Total Local Foreign Total (Rs Million) (US$ Million)

Irrigationand Main Drainage 76.1 19.1 95.2 9.51 2.39 11.90 Chak Drainage Area 23.1 5.7 28.8 2.89 0.72 3.61

On-Farm Development,Full Package Area 14.4 7.7 22.1 1.80 0.96 2.76

Roads 35.6 8.9 44.5 4.45 1.11 5.56

Ravine Erosion Control 2.2 1.0 3.2 0.27 0.13 0.40 SupplementaryFertilizer 0.2 4.6 4.8 0.03 0.57 0.60 Project Administration, Operating Costs during Implementation,and Stage 1. preparation 45.5 4.2 49.7 5.69 0.53 6.22 Technical Assistance to GOI for preparing CAD projects and for a land development spec'ialist 3.9 2.6 6.5 0.48 0.32 0.80

Sub-Total 201.0 53.8 254.8 25.12 6.73 31.85

Physical Contingencies 12.4 4.1 16.5 1.55 0.51 2.06

Estimated Price Increases 81.9 19.9 101.8 10.24 2.48 12.72

TOTAL Project Cost 295.3 77.8 373.1 36.91 9.72 46.63 - 15 -

Financing

4.28 During negotiations,GOI reserved procurement on equipmentcosting US$1.5 million. The proposed IDA credit of US$24.0 million would finance 53% of the total cost of the project items eligible for financing i.e. those not reserved for local procurement (i.e. 53% of US$45.13 million). The credit would finance 100% of component foreign exchange costs (US$9.72 million) plus 39% of local costs. The credit would be made to GOI for on- lending to ARC and GOM. On-Farm DevelopmentFull Package works would be financed initially from the GOM budget and, after completion of construction, would be refinanced by local banks and ARC as described in Annex 7. A condition of effectivenessof the credit would be that a SubsidiaryLoan Agree- ment, satisfactoryto the Association,had been executed between GOI and ARC. Operation and Maintenance would be financed by GOM from its regular budget.

4.29 Assurances were obtained from GOM that it would make budgetary provision in its annual developmentplans for the implementationof the project in accordancewith a detailed schedule of expenditureswhich would be acceptable to the Association (Annex 6, Table 1) and that GOMwould furnish to IDA, not later than February 1st each year, a detailed plan for implementation of the project for the following fiscal year.

4.30 Purchases of fertilizer required to restore soil fertility after leveling would be financed by the credit.

Procurement

4.31 Vehicles and Equipment. The estimated cost of vehicles and equipment for project management, force account constructionand for hire to contractors (Annex 5), is US$5.2 million. Out of this total, US$3.0 million would be subject to internationalcompetitive bidding in accordance with Bank Group Guidelines. A preference limited to 15% of the cif price of imported goods, or the prevailing customs duty if lower, would be extended to local manufacturersin the evaluation of bids. About US$0.7 million worth of equipment and vehicles, consisting of groups of contracts costing less than US$100,000 each, which for reasons of efficiencyare not suitable for internationaltendering, would be purchased through normal GOM procurement procedures,which are satisfactory. The balance of US$1,5 million, consisting of vehicles and water tankers, would be reserved for local procurement and would not be eligible for reimbursement out of the proceeds of the Credit. (See Table 2, Annex 6).

4.32 Civil Works - A review has been made of the suitabilltyof the project civil works for grouping into large contracts, with the following conclusions (the amounts shown are the basic costs, net of physical and price contingencies and administrativeand engineeringstaff costs but they include the cost of building materials):

(a) Irrigation -- (US$8.2 million), Irrigation works would be individually small and scattered and would be carried out in periods of canal closure. Under these conditions,it would not be feasible to group these works into large contracts. - 16 -

(b) Main Drainage -- (US$1.4 million) - The main drainage works would have to be grouped into one or two large multi-year contracts in order to 'beof interest to large contractors. If a large contract were used, the problems, both for the contractorand the project engineers,on administeringa large work-force scatteredthroughout the project area and working intermittentlyover three years, on a relatively small contract,would be difficultand likely to result in higher than necessarycosts. For these reasons, the drainage works are not considered suitable for a large contract.

(c) On-Farm DevelopmentFull Package -- (US$2.1million) and Chak Drainage (US$3.0million) - These works would need to be planned and executed at short notice to coincide with the short dry season. For these reasons, the works could not be grouped in,tolarge multi-year contracts.

(d) Roads - (US$4.9 million) - Because of the need for the road program to keep pace with the other project elements, particularlythe provisionof adequate drainage, the works must also be spread over three years. The reasons stated in (b) above, would apply to the road element as well.

Because of these special conditionsin the project area, none of the civil works could be efficientlygrouped into contracts large enough to be of interest to internationalcontractors. It is thereforeproposed to carry these works out by small, local contractorsor, where this is not prac- ticable,by force account. Generally, the small local contractorsdo not posses the necessary skills to maintain and operate heavy construction equipment. Road works, however, would be carried out using simple machinery procured under the project and hired out to local contractors. Other local contractworks would include those portions of the irrigation,drainage, ravine erosion control and on-farm development(irrigation channels and drains) which would not require t'heuse of specializedmachinery. All other works under these categorieswould be constructedby force account using heavy equipment. The On-Farm DevelopmentFull Package works would be carried out by GOM's Agro-IndustriesCorporation which is specialized in constructionof these works.

4.33 Fertilizer- Procurement:of the relatively small amount of fertilizerrequired would be comb:Lnedwith the regular bulk procurement of fertilizerby the India Tender Board. Because of the present extremely itightworld 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. The above procedure would be satisfactoryto the Bank, providedlat least three quotationsare invited. Fertilizerswould be ordered in line with allocationsto the farmers who had carried out levelingwork on their land. - 17 -

DTsbursements

4.34 Disbursementswould be made at the rate of 100% against the cif cost of directly imported equipmentand of fertilizer,after it had been delivered to the farmers or the ex-factoryprice for equipmentmanufactured locally, and at the rate of 707 for imported equipment procured locally. Disbursementsfor civil works .ould be on a percentage basis (68% for On- Farm DevelopmentFull Package and 60% for other civil works). Disbursements for force account work would be made against a certificateof expenditure from the Command Area Authority. The supporting documentationwould not be submitted for review to IDA but would be retained by the Authority and would be available for inspectionduring project progress review. The estimated schedule of expenditureon the project, the proposed allocation of the proceeds of the credit and a semi-annualdisbursement schedule are in Annex 6. Any savings in one credit category would be reallocatedby increasing the percentage disbursementfor other categories. It is expected that disbursementswould be completedby December 31, 1979, about one year after completion of project construction. Accounts and Audit

4.35 The Command Area Authority (CAA) would be subject to normal Government control and auditing procedures. Assurances were obtained from GOM that the accounts and financial statements of the CAA would be audited each year and that certified copies of the audit would be submitted to the Associationwithin six months of the end of each fiscal year. Agro-IndustriesCorporation would be required to produce a detailed yearly report on the use of equipment supplied by the project for On-Farm DevelopmentFull Package and other works including hours worked, breakdown of costs and charges made for work. The ARC would require participatingbanks to maintain separate project accounts (includingdetails of overdues and bad debts), copies of which audited and certifiedby ARC, would be submitted to the Associationwithin four months of the end of each fiscal year along with the audited accounts of such banks.

EnvironmentalEffects of the Project

4.36 The existing irrigation project which has been constructedwithout adequate provision for drainage has created swampy areas resulting in the contaminationof some village wells. As a result, the incidence of some forms of water-associateddiseases has increased,malaria and typhoid being the most serious. The proposed project would alleviate this problem. The drainage works would eliminatemany of the mosquito breeding grounds and would lower groundwater tables which would reduce the risk of pollution of village water supplies. The GOM is well aware of these problems. It is consideringthe introductionof a monitoring system for water-associated diseases and would take control measures. The project extension service would advise farmers on the judicious selectionof pesticides in order to minimize environmentaldamage. The project would monitor the quality of return flows from the project area for possible injuriouseffects on downstream uses, and would also be a step in the struggle to control erosion in the area (para 4.13). - 18 -

V. ORGANIZATIONAND MANAGEMENT

Project Implementation

5.01 This project is one of many Command Area Development Projects to be undertaken in India in the next few years. It has been the concern of both GOI and the State Governments to devise effective organization structures for the implementation of such projects.

Command Area Authority

5.02 Following the pattern developed by GOI and introduced in the Rajasthan projects, GOM establisheda Chambal Command Area Development Authority (CAA) in September of 1974. The CAA's responsibilityis to manage and coordinate the activitiesof the various GOM departmentsand the credit institutionsoperating in the project area. The CAA is placed within the jurisdictionof the Minister of Food and Agriculture and is headed by a Commissionerwith powers to assure coordination. The Commissioneris assisted by the Joint Director of Agriculture (PlanningOfficer), a development officer with the rank of Collector and appropriatestaff. The Commissioner is assisted in carrying out his coordinatingactivities in the project area by a Board composed of the departmentheads of the Agriculture,Irrigation, Veterinary Services,Cooperation, Industries, Buildings and Roads, and Revenue departments,as well as representativesof the two CooperativeBanks, the CommercialBanks and the project farmers. Other GOM organizationswould participate as appropriate.'

5.03 The Commissioner reports directly to the Agricultural Production Commissioner (APC) at the State level. The APC is Chairman of a Coordinating Committee which includes the Secretariesof Finance, Revenue, Agriculture, Irrigation,Public Works, and the Development Commissioner. In consultation with this Committee, the APC would approve the annual development plan of the CAA.

5.04 Funding for the project would be included in the budgets of the respective departments involved. Except for a small staff to assist in coordination,the CAA Commissionerwould rely upon the staff of the various Government agencies and departments posted to the CAA. "The Chairman,CAD, will have complete administrative control and powers over the staff of the various concerned disciplinespcsted to the area within the jurisdiction of the Authority", Section 9 of the Order of September4, 1974 establishing the CAD. Constructionwork (irrigation,drainage, land developmentand roads) would be carried out by the respectivedepartments operating in the project area.

5.05 The CAA would superviseand coordinatethe planning and implementation of all services and works required for developmentof the command area. - 19 -

5.06 Under the supervision and coordination of the CAA, the individual Government departments would assume the following responsibilities: the Irrigation Department would be charged with the improvement and operation of the irrigationand drainage works down to the outlet from the minor canal to the chak, and groundwater development;the AgriculturalDepartmei.t would be responsiblefor all agriculturalsupporting services and all On-Farm Development Full Package works within the chak, and for ravine erosion control works, and the introductionof rotational irrigation;the Department of Public Works would implementproject roads and buildings; the Revenue Department, through the Collectors at Morena and Bhind, would exercise its powers in respect to land developmentand registration,and collection of land revenue arrears and the Department of Cooperationwould be responsible for strengtheningcredit, marketing and processing societies.

ImplementationProcedures for On-Farm Development Full Package

5.07 On-Farm Development Full Package would only be undertaken when two-thirds of the farmers or holders of two thirds of the land within a chak agree to the preliminaryplan and cost estimatesdrawn up by the Soil ConservationDivision (SCD) of the AgriculturalDepartment. Chaks not meeting eligibilityrequirements would be left for later stages of the project. These plans would then be submitted to the local Land Improvement Committee, and, if approved, constructionworks would begin.

5.08 During the constructionperiod, loan applicationswould be prepared for the farmers by the SCD so that loans could be obtained as soon as the works were completed and completion certificatesissued.

5.09 Although farmers would have the option of undertakingthe work themselves, in practice it is expected that the Agro-IndustriesCorporation, under the supervisionof the AgriculturalDepartment, would normally carry out the work.

Financing Procedures for On-Farm Development Full Package Works

5.10 The cost of On-Farm Development Full Package will be borne by GOM during the constructionstage.

5.11 , On completion of the project works and when costs become known, farmers eligible for bank loans would receive loans to cover the cost of the works carried out, and GOM would be reimbursed. Ineligible farmers would remain indebted to GOM, and would pay off the loan as arrears of land revenue (regular land taxation procedures). A premium interest rate (at least 2% higher than the rate on bank loans) would be charged to encourage eligible farmers to take bank loans and in order to encourageothers to try to become eligible.

5.12 The loans to the farmers would come either from Land Development Banks (LDB) or from Commercial Banks (CB), the project area being divided between these institutions. Interest would be charged at 10-1/2%, with a 12-year repayment period, including one year's grace. - 20 -

5.13 The LDfl or CB would then apply for refinance of loans made from ARC. The ARC would refinance at least 75% of the loan at 7.5% interest. The remaining funds required would come from the sale of special debentures to the State Government in the case of LDB, and from private investors in the case of CB.

5.14 The Madhya Pradesh Land ImprovementSchemes Act of 1967 has been amended to permit the participation of Commercial Banks in financing On-Farm DevelopmentFull Package.

AgriculturalSupporting Services

5.15 To maximize the benefits of the proposed investmentsin physical facilities,complementary and closely coordinatedefforts are needed in all the agriculturalsupporting services. -The agriculturalsupporting services are described in detail in Annex 8.

5.16 Research - The existing program of applied research would be continuedand expanded. More emphasiswould be placed on irrigationmethods, fertilizationof HYV, monsoon interplantingsystems, and effects of irrigation and drainage on soil salinity and weed control methods. Research staff would work closely with the IrrigationD,partment in cairying out these studies.

5.17 A limited number of full time research and supporting staff would be appointed, laboratory equipmentand farm machinery purchased, and office space and housing provided on the enxistingresearch farms. GOM would provide liaison with the Indian Counc:U for Agricultural Research (ICAR) to ensure adoption of the latest national research results, particularlythose reilatingto the HYV of wheat, paddy and bajra, in the project area.

5.18 Extension - Starting frota1974, GOM has introduceda new type of agriculturalextension service in t:heproject area, modeled on the systems currently used in the Bank Group-assistedCAD projects in Rajasthan State. The system involves the reorganizationof existing extensionpersonnel, new methods of demonstration, strict adherence to a preset extension program and concentration on a few major crops and practices for a limited number of "contact"farmers in the villages. Close coordinationwith applied research work and regular in-service training for extension staff is emphasized.

5.19 The organizationwould be headed by a Project ExtensionDirector with two Deputy (District) Directors; the area would be divided into six exitension subdivisions, each hleadecdby a Sub-DistrictExtension Office and a number of Agricultural Extension Officers (AEO); each AEO would be responsiblefor six Village ExtensionWorkers (VEW) and each VEW would instruct 240 farmers. A subject maLtter specialist would be available for all major crops. Transportvehicles, training equipment and staff housing allowances would be provided under the project. (See Annex 8). 21 -

5,20 Fertilizers - The project farmers realize the need for fertilizer for better yields. particularlyon HYV wheat and paddy; they would increase if supplies were locally availableat reasonable cost and the irrigation water supply fully assured. However, most of the farmers have only been co-eceiving50-60% of their fertilizer reqjuirements. Over the next five-year

.etied, supplies of domesticP?1y-produced fertilizers are expected to ficvreaseand the unit cost of imports is expected to decline. Fertilizers *w. ,rketed through cooperatives, Government shops and private dealers.

5,21 Seeds - for HYV of wheat and paddy, as well as other important crops piXroduced on seed farms which are operated in conjunction with the four >.;search' stations in the project area. The seed farms in turn get the found- ation seed from the National Seeds Corporation (NSC) and the Terai Seed crowers. At present, the supply is sufficient only for about 10% of the .tmand; it is GOM's goal to increase the production so farmers could get new or replacementseed every 4 to 5 years. Additional seed farms are under preparation. During negotiations, GOM outlined an acceptable program to p.rovideimproved seeds.

5.22 Multi-purpose cooperatives are the major type of farmers' organization operating in the project area. They provide a wide variety of services including: banking; provision of short and medium term credit; hire of machinery; supply and distribution of fertilizer and insecticides and storage and marketing facilities. The management capability of the co-ops varies greatly. Under the project, the co-ops would be strengthenedand expanded. Other farmers' organizationsinclude irrigation associations(responsible for cooperativewater managementin the chaks) and village councils (panchayats) which are the basic elected unit of local government.

5.23 AgriculturalCredit - Short-term (production)and intermediateterm credit is provided by cooperativesand Commercial Banks as well as private money lenders. The cooperativesare the major source of short- and medium- term institutionalcredit. These are organized on a three-tierbasis: the village level -- some 400 primary credit societies in the project area; the District level -- two Central CooperativeBanks and the State Cooperative Bank. Long-term as well as some medium-term credit is provided by the Land DevelopmentBanks. While these banks are structured as cooperativesthey are entirely separate from the cooperativebanks which provide short-andmedium term credits. Commercial Banks have recently entered into agriculturalcredit in MP and both the State and Central Banks operate in the State: the Central Bank, which has been designated as "lead bank" in the project area has established four branches. Both the State and Central Banks have indicated that they would establish more branches, once the areas have been divided between the CB and the LDB. Farmers receiving finance for On-Farm Development Full Package from the LDB will have automatic access to the primary credit societies for short and medium term-credit while those receiving financing from the CB will have similar access to such banks for their operating credit.

5.24 Technical Assistance and Training - While the existing project staff has adequate experience in most types of work involved in the project, there are some specialized areas where additional training would be necessary. - 22 -

Substantial improvementin the operation of the canal system down to the outlet to the individualwater source is proposed and to achieve this, the capabilityof the operating staff would have to be improved by in-service training. The Soil ConservaticnSubdivisions of the AgriculturalDepartment and Agro-Industries Corporation would train additional staff in planning on-farm land development and in.operating land leveling equipment.

5.25 To enable efficient irrigationat field level, all aspects of land leveling, field layout, and channel network design have to be carefully planned in accordancewith the needs of the particular chak. Present GOM designs are rather rigid. To improve planning, design and construction procedures, a land developmentspecialist would be recruited (para 4.19). To the extent such a specialist had extra time, it is anticipated that he would also assist with the Chambal (Rajasthan)and Rajasthan Canal CAD projects. The cost associatedwith the employmentand assignmentof the specialistwould be charged to the credit for the Chambal (MP) project.

Operation and Maintenance

5.26 Operation and Maintenance (O & M) of the irrigationsystem is the responsibilityof the IrrigationDepartment. Because of design and structural deficiencies,and inadequateoperating procedures described in paragraph 3.21 as well as a shortage of funds, the present 0 & M program is insufficient. The project would provide vehicles and equipment for 0 & M and would finance recurrent costs during project implementation. The 0 & M of the project works within the chak would be the responsibility of the farmers concerned, organized into irrigation asscciations for each chak. Under the "warabandi" system, a strict rotationalirrigation schedule would be enforced to allocate water according to the type of soil and size of each holding. The 0 & M deficiencies in any chak would be reported to the IrrigationDepartment Executive Engineer,who has magisterialpowers to fine or even jail offenders if the deficienciesare not rectified. Roads would continue to be maintainedby the PWD.

Water Allocation

5.27 At present, the project largely operates without a water allocation plan, with excessivewater applicationin the head reaches of the canals and only small water quantities reaching the downstream parts of the project. The projected cropping patterns have been selected to optimize the use of available supplies and canal conveyance capacities and allow equitable distribution of water over the whole area. Initially the water allocations would be based on the cropping patterns of the "minor" canal commands. After gaining some experience, the wal:er allocation plan and the operation procedures would be refined tc pernit water allocation on a chak by chak basis. This would ensure that all commanded land would receive an equitable share of the available water supplies. Assurances were received from GOM that it would introduce a suitable water allocation plan before the end of the project implementation period (t:hree years). Further details are given in Annex 9. - 23

Cost Recover

5.28 (O3ion aL,d Maintenamce (,osL - The present aniual operation and mainteiuance expenditure for the enLire system averages about 18 sSk- Presernt water charges, which are varied by kind of crop and numbe- e; irri.gations provided, average about Rs 30/ha, The excess passes in-0- UGOIrevenute aiid in a sense represents repa3yient on the ..-Onstructio . cost of existing works. rhe cost of adequate 0 & M has '2en estimated s. Rs 48/ha (US$6 ha) for the irrigation and drainage system. It Ic propn-i to collect this amount from the entire project area.

5.29 Construction Cost -On-Farm Developmont Full Package Area - The cost of construction of the On-Farm Developmrnt Full Package works would be recove-ed as described in paras. 5.10-5.14. On average, this is expected to amount to Rs 2,250 per ha. The annual charge required to return this amount in 12 years including one year^s grace at 10-1/2% interest is about Rs 355/ha.

5.30 Construction Cost - On-Far velont k - It is proposed that the cost of Chak Drainage works be returned directly by the beneficiaries over a 30-year period without interest. It is estimated that this will cost Rs 1,440/ha (Annex 4, Table t), which will require an a nual payment of Rs 48/ha.

5.31 Construction Cost - Total Proect - All irrigated lands including those in the On-Farm Development Full Package area, would contribute to the recovery of the project irrigation and main drainage construction cost of Rs 95.2 million (Annex 4, Table 1 line 1). This cost amounts to Rs 425/ha. It is proposed that this be recovered in a 30-year period, which would require annual payments of Rs 14/ha without interest.

5.32 Summary of Charges Required - On the basis of the presently estimated costs excluding interest during construction or price escalation, the following average annual cost recovery would be required: - 24 -

On-Farm Development

(Rs/ha) Full Package Area (12,000 ha)

0 & M 48 Construction- On-Farm* 355 Construction- Other** 14 Total 417

Chak Drainage Area (20,000 ha)

0 & M 48 Construction** 48 Construction- Other** 14 Total 110

Balance of Project Area

0 & M 48 Construction 14 Total 62

* Recovered in 12 years includingone year's grace with interest at 10-1/2% (Banks) or 12-1/2% (MP).

** Recovered in 30 years. 5.33 Assuranceswere obtained from GOM during negotiationsthat it would establish a system of water charges to recover the full annual cost of 0 & M and the full constructioncosts without interest over a 30-year period. MonitoringProject Performance

5.34 A small staff would be assigned to the CAA Commissioner'soffice which would monitor progress in various project activities. The staff would record: the amount of water received in the project area and its distributionin the canal system; canal conveyance efficiencies;cropping patterns, and yields on both irrigatedand non-irrigatedland.

VI. PRODUCTIO,,MAlKETING, PRICES AND FARM INCOMES

Production

6.01 Implementationof the project would lead to a more intensivecrop- ping pattern and higher yields in the On-Farm Development Full Package and the Chak Drainage areas with more modest increases in the Extensive area. In the Extensive area, increases in productionwould result from extension - 25 - activities and from improvedmanagement of the canal system. Average cropping intensitiesover the whole area would increase from the present 105% to 125% at full developmentand irrigatedcropping intensitywould increase from 65% to 85%. For the various parts of the project, cropping intensitiesand production at full developmentwould increase as follows (See Table 1, Annex 10):

Present Full Development -- Cropping (Irrigation) Intensity-- (%) On-Farm Development Full Package area 120 (80) 135 ( 95) Chak Drainage area 75 (50) 130 ( 90) Extensive area 105 (65) 125 ( 80)

Total Production (tons) (tons) (% Increase)

Wheat 155,000 240,000 55 Paddy 25,000 75,000 200 Bajra and Jowar 30,000 60,000 100 Gram and Pulses 40,0pO 60,000 50 Oilseeds 30,000 60,000 100 Sugarcane 80,000 190,000 137

Market Prospects

6.02 Local and national shortages of foodstuffswill ensure a ready market for agricultural production in the area. The entire increase in output of wheat would be needed to feed the local population, while paddy, which is not eaten by the local people, would be exported to deficit areas elsewhere in India.

6.03 Additional marketing facilitieswould be required in the project area. GOM has already begun a program to expand and improve the existing markets, and this, together with the improvement of service roads, would ensure both adequate capacity and reductions in the existing inequalityof prices between markets due to excessive transport costs.

Processing and Storage

6.04 Adequate facilities for processing the present production of sugar, rice, oilseeds and pulses exist in the project area, but in the future, additionalcapacity would be required. Except for the sugar factory, most of the existing processing capacity is privatelyowned and it is anticipated that additional facilities would be provided as required. The storage facilities in and around the project area include 7,500 tons capacity at Morena and 5,000 tons at Sheopur as well as about fifty small facilities scattered over the project area. As the production increases, these facilities would require expansion. Storage would be provided by the co-ops and by the - 26 -

GOM at the mandies. Since most farmers sell their products almost immediately after harvesting, there is little on-farm storage. That part of the crop retained by the cultivators for food and seed is stored in the houses.

Prices of Agricultural Products

6.05 The farm gate price used in the economic analysis, was reduced substantially below current prices. The prices for paddy, wheat and jowar were based on the Bank's 1985 projections with appropriate adjustments for transportationand grade. Since the Bank does not make projectionsof prices of other agricultural products included in the analysis, these were based upon local prices projected to 1985 levels on the basis of the Bank's general indices. In assessing the ability of project farmers to meet the cost of On-Farm Development Full Package!,the prices of some crops were reduced below the current high levels, but not to the extent that prices are expected to fall by 1985, since the most trying period for the farmers would be the first few years when the incrementalincome would be small.

6.06 The price of fertilizerused in the economic analysis was sub- stantiallybelow current prices and reflects the Bank's 1985 projections. The prices of all crops as well as farm inputs are in Annex 11.

Farm Incomes and Repayment Capacity

6.07 Since the On-Farm Development Full Package area is the only part of the project with significant repayment requirements, the farms selected for analysis were limited to.the sizes and types that might reasonably be expected to exist in that area. Two sizes were selected: a 1 ha farm represents the income potential on small farms, and a 2.4 ha farm represents the average size farm for the project area. The budget for the 1 ha farm was based upon a wheat - oriented cropping pattern. Two budgets were prepared for the 2.4 ha sized farm. One was based upon a composite cropping pattern and the other with wheal: as the major crop.

6.08 The analysis is based on the assumption that eight years would be required to attain full production and that the annual cost of family subsistencewould be Rs 1,600. A substantialpart of this would be farm- produced foods. However, since the method of analysis assumed that all farm prqductionwould be sold, a sufficient family living allowance was provided to enable the farm operator and his family to purchase grains and pulses for home consumption. The same applies to grains fed to bullocks during the working seasons. The detailed results of the farm budget analysis are in Annex 12. The results are summarizedbelow: - 27 -

Net Farm Farm Income In Repayment in Size Year 8La Year 8 ha Rs Rs % of Net Inccme

1.0 wheat 2,438 355 15 2.4 composite 6,305 852 14 2.4 wheat 5,710 852 15

/a Return to the operator and his family for their labor and management after deducting all costs of production except water charges (0&M, betterment levy, and repayment of cost of on-farm development.) This is the amount left over to cover family living, social expenses and savings.

6.09 The present net farm income amounts to about Rs 1,100/ha. This will nearly double in the On-Farm Development Full Package area. Although an analysis was not made, the increase in net farm income will probably be larger in the Chak Drainage part of the project area because a substantial part of the land to be drained is now waterlogged and out of production. As soon as major drainage outlets are provided, this problem will be eliminated.

6.10 The farm budget analysis indicates that the average farmer can repay the costs of On-Farm Development Full Package with interest at 10-1/2% in a ten-year period, following a one-year grace period. On the 2.4 ha wheat oriented farm, after paying all costs includingthose associatedwith water, the farmer would have an increase in income of Rs 2,000 per year. This would repay him and his family for their additional 71 days of labor. This converts to a return of Rs 28 per day for the additional work, an attractive incentive when compared to the Rs 10 per day allowed for harvest labor in the analysis or the Rs 5/day paid to labor during the regular season.

6.11 The farmer on the 1 ha size farm unit would find it more difficult to meet the prospectivewater charges and support his family. However, he would have sufficient income to pay water charges and to leave Rs 1,600 for fami'lyliving without off-farm work by Year Six. Since his farm would require only about 95 days of labor per year, he would have spare time to supplementhis farm income by off-farm employment.

VII. BENEFITS AND JUSTIFICATION

7.01 As indicated in Chapter Three, agriculturaldevelopment in the Chambal Command Area has fallen short of what was anticipatedat the time the project was planned and constructed. The project outlined here would be the first step in a continuing program to eliminateconstraints in the - 28 -

operation of the irrigationsystem and to make more effective use of the land and water at the farm level. At full development,it would produce benefits which would have the following impacts on the economy:

(a) provide the equivalentof 12,000 man years of additional employmentin agriculture;

(b) nearly double the income of 93,000 farmers including 35,000 disadvantagedfarmers who operate farm units of one ha or less in size;

(d) produce an annual incremnental net value of production (economic)of Rs 145 miLlion.

7.02 The economic rate of return is estimated at 22%. This is based on the following: a 25-year period of analysis; full realizationof benefits for any particularblock of land eight years after development;an average increase in crop yields of 45%; price projections for both farm inputs and outputs as given in Annex 11; shadow pricing of incremental farm labor requirementsat 70% of the curreni:wage rate in peak periods (Annex 13), and project costs as developed in para 4.26. The rate of return is sensitive itothe growth rate of benefits. For instance, a one year delay in the realizationof project benefits would reduce the rate to 19%. The rate :Lsalso relativelysensitive to project costs. An increase in these costs by 25% would decrease the rate of return to 18%.

7.03 Rates of return were calculated separately for each of the three sub-areas and the Chak Drainage area was was highest with a return of 36%. The Extensive area has a rate of ^18%,while the On-Farm Development Full Package area has a rate of 25%.

VIII. AGREEMENTSREACHED AND RECOMMENDATIONS

3.01 Assurances have been obtained from GOI that it would recruit or cause to have recruited a land development specialist (para 4.19).

13.02 Agreement on the follow:Lngmajor points has been reachedwith GOM:

(a) the GOMwould strengtheniand make budgetary provision for the agricultural research and extension program which would be acceptable to the Association (para 4.16);

(b) the GOMwould make budgetary provision in its annual development plans for implementation of the project in accordance with a detailed schedule of expenditures which would be acceptable to the Association, and that - 29 -

it would furnish to the Associationnot later than February 1st each year, a detailed plan for the project implementation for the next fiscal year (para 4.29);

(c) the accounts and financialstatements of the CAM would be audited each year and that certified copies of such financialstatement and audit would be submitted to the Associationwithin six months of the end of each fiscal year (para 4.35);

(d) the GOM would introduce a suitable water allocation plan before the end of the project implementationperiod (three years) (para 5.27); and

(e) the GOM would establish a system of water charges to cover the full annual 0 & M costs and to recover the constructioncosts over a 30-year period (para 5.33).

8.03 Condition of effectivenessof the credit would be that a Sub- sidiary Loan Agreement satisfactoryto the Associationhad been executed between GOI and ARC (para 4.28).

8.04 The proposed project would be suitable for an IDA credit of US$24 million under the usual IDA terms. The Borrower would be India.

May 27, 1975

ANINEX1 Page 1

INDIA

CHANBAL COMMANDAREA DEVELOPIEINT PROJECT (MAD1}YAPRADESH)

Climatic Data

1. The climate varies little throughout the project area, although there are slight differencesin the timing of the seasons from one end of the area to the other.

2. The climate is subtropicalwith three distinct seasons: the summer (kharif) or wet season (June to September),when the southwest monsoon prevails; the cool, dry winter (rabi) season (October to February) and the very hot, dry pre-monsoonseason (March to May).

3. Temperature,humidity, pan evaporation and rainfall data for the area are in Table 1.

4. The area is essentially frost-free,with an average minimum temperature in the coolest month of about 8°C.

5. Humidity is low between March and May and high in the summer. Pan evaporationis low during the cool winter season, and relatively high from March to August.

6. Unirrigated agriculturedepends on the short, unreliable rainy season. Reliable irrigationwould allow full use of the long sunshine hours in May and June. INDIA

CHAMBALCOMMAND AREA DEVELOPMENTPROJECT (MADHYAPRADESH)

Climatic Data

1/ 2/ Average Rainfall-/ Air Temperature- Mean- Monthly Pan Mean Wettest Driest Month Mean Extreme Relative Evaporation Monthly Month on Month on Maximum Minimum Highest Lowest Humidity Rate Total Record Record o 8.30 17.30 ------C ------hours ------mm ------

January 24.5 7.8 33.9 0.6 64 34 90 14 59 0 February 28.5 9.9 38.3 2.3 51 25 129 5 41 0 March 34.2 16.0 42.8 9.9 -34 18 217 6 18 0 April 38.8 21.3 45.6 14.4 24 13 326 1 4 0 May 42.4 26.8 47.8 18.9 28 16 401 5 45 0 June 40.3 28.6 47.8 21.1 47 35 396 53 228 3 July 33.8 25.9 47.2 20.4 74 65 248 243 456 55 August 31.3 24.7 41.1 18.9 81 69 184 305 554 122 September 32.5 23.5 40.6 20.0 73 58 151 150 304 25 October 32.9 18.4 41.1 13.4 53 34 155 27 128 0 November 29.4 11.0 37.2 7.8 51 29 111 3 16 0 December 26.1 8.3 33.9 3.9 61 35 88 6 77 0

Annual Mean Total or Extreme 32.9 18.5 47.8 0.6 53 36 2,496 818

1/ From data collected at stations in the Command Area.

2/ At Kota.

3/ At Agra.

H~j

FJ M ANNEX2 Page 1

INDIA

CIIAHEALCOMMAND AREA DEVELOPMENTPROJECT (MADRYAPRADESii)

Project Works

A. Past Development

General

1. The Chambal Command Area located in Bhind and i4orenaDistricts in northwest Madhya Pradesh (lIP)State comprises a 320,000 ha tract (224,000 ha net irrigable) of fertile alluvial clay-loam and sandy-loam soils. The area is flat with only 1% of land over 1% slope. Under the favorablesubtropical monsoon conditions,a wide range of valuable grain and cash crops are grown, but irrigation is required for year-roundpro- duction. The area is fully settled with small farmers (average holding 2.4 ha). Prior to the Chambal Irrigation Projects, the area was principally pasture and rainfed agriculture with small, supplementary tank-fed irrigation,principally in The Bhind District. The project is contiguous with the Chambal IrrigationProject in Rajasthan State and shares the same water source.

Chambal (MP) System

2. The Chambal (MP) system down to the 40 ha irrigation service unit (chak) turnout level was completedin 1970. Irrigation service to parts of the area commencedin 1963. The Chambal system is supplied from three storage and hydro-electricdams in cascade on the Chambal River (Ghandisagar, Rana Pratap Sagar, and Jawahar Sagar dams) via Kota diversion barrage in RajasthanState and the 370 km Right Main Canal (RMC). The first 130 km of the Pb4Cis in Rajasthan and 240 km is in Madhya Prades8. The Interstate Water Agreement provides for sharing equally the 3,900 lMm estimated as being 3 available in 88% of She years. The nominal RUC peak capacities are 190 m /s at Kota and 110 m /s at Parvati where the 1UX crosses into Iadhya Pradesh. The canal system is 3,191 km long, almost entirely unlined. The Chief Engineer Chambal (UP) has operationalcontrol responsibilityfor the main storage dam at Gnandisagar. Details of the reservoir and conveyance system are given in Table 1. The nomenclature of the canal system in descending order of size is: main, branch, distributary and minor. A minor delivers water to the watercourse which serves an irrigation service unit (cnak) area of 30-40 ha. ANNEX 2 Page 2

3. Although the entire Chambal (MP) system is operable and has received its full annual water a:Llocation between 1970-74, it serves only about 150,000 ha at present due to the following deficiencies:

(a) Lack-of an agreed water allocation plan aimed at optimum use of canal supplies.

(b) Inadequate canal management because of:

- poor canalside road and telephone communications;

- lack of simultaneous water recording devices to provide vital data for control decisions;

- insufficient head regulating structures and under-capacity in some of the distributary and minor canals, restricting timely and equitable water distribution;

- insecurity of the RMC; breaches reduce the reliability of supply;

- unsuitable operating procedures, insufficient 0 & M staff and staff housing at strategic control points;

- losses due to leakage from the attenuated canal system;

- enforced canal closures to remove aquatic weeds;

- supply interruptions due to difficulties on the Rajasthan reach of KIC (now being overcome).

- poorly construct.edand badly maintained watercourses;

- incomplete on-farm land shaping and irregular property boundaries which. inhibit field channel and drainage layout, and farm access;

- the absence of cooperative water use (warabandi) among the cultivators (only 12,000 ha is currently operating the rotational system). ANNEX 2 Page 3

(d) poor land drainage in the low soil permeabilityareas because of lack of efficient main and secondary drainage channels.

Some 70,000 ha of land is adversely affected in varying degrees, mainly during the July-Octobermonsoon season; of this area, 20,000 ha (including8,000 ha of flooded land which is virtually out of production) has water tables within 2 m of the surface at the end of the monsoon season.

(e) limited areas (about 7% of the project area) of saline and alkali soils requiringreclamation, the acknowledged first step of which would be improved drainage.

4. Agriculturalproduction has also been constrainedby:

- lack of coordinatedagriculture and irrigationplanning on a crop/season/areabasis;

- poorly trained and badly organized agriculturalextension staff;

- inadequate credit facilities,and

- shortage of inputs (fertilizer,improved seeds) at farm level.

5. There is also a continuing loss of agriculturalland due to progressive gully erosion. This is mainly along the periphery of the project area adjacent to the Chambal River and its main tributaries.

Project Formulation

6. The Government of Madhya Pradesh (GOM) has prepared a long-term program to correct the irrigation system and the on-farm land development deficienciesidentified above. The present project, which would constitute the first three years of this program,would concentrateon: priority in- frastructuralworks (irrigation,drainage and roads); coordinatedproject services (extension,research, and operation and maintenance), and two categoriesof on-farm development. The scope of the possible infrastructural works program is constrainedby GOM State Budget resources,while on-farm developmentis restrictedby the present small planning and execution capacity.

7. Irrigation and Ma_.nDrainage and Road works (describedin Parts B and D below) for which Government works agencies are already partly in place, would be constructedrapidly from the outset of the project. On- Farm DevelopmentFull Packageworks (describedin part C below) would be constructedwith GOM budget funds. On completionof each chak development, the cost would be financedby institutionalcredit (Land DevelopmentBanks, ANNEX 2 Page 4

CommercialBanks, both refinancedby AgriculturalRefinance Corporation). Thus projectedon-farm developmnentwould not be constrainedby State budget limitations. The necessary organizationto plan and execute this work would have to be built up from the present small size to a level at Year Three which would permit larger scale implementationin a second stage project. The projectwould also provide for feasibilitystudies for a second stage project, assistancein operationand maintenance(Annex 9) and agricultural supporting services (Annex 8).

B. Irrigation, Main Drainage and Erosion Control

8. The followingsystem improvement works are included in the project: (a) RMC erosion protecticn,including lining; (b) canal capacity improvement;(c) canal controlstructures; (d) aquaticweed control; (e) main drainage;(f) miscellaneousworks. These are describedbelow.

RMC Erosion Control and Lining Works

9. During its early years of operation,the RMC suffered a serifs of serious breaches culminating in the 1970 Pathak Enquiry Committeerecom.menda- tions for bank strengthening,selective lining and provisionof facilities for improved operational supervision. These remedial works are now par- tially completedand have significantlyreduced the danger of breaching. They would be completedunder the project. For complete assurance,an extended program is required. ThLs is fully justifiedbecause major breaches have caused total annual productionlosses on over 20,000 ha. The project would, therefore,include the followinghigh priorityworks: gunite cement mortar lining of 3.62 km of RMC where its bed penetrates the permeable weathered rock formation;concrete lining of 0.37 km of RMC and Lower Main Canal (LMC) where they pass through soluble alkaline soils; a total of 3.66 km of masonry lining upstream and downstreamof 19 large cross drainage structures (aqueductscarryJ:ng RMC across streams and gullies)where the existing seepage poses a serious danger to canal bank stabilityand lengthening of the barrels of two large drainage culverts passing under RMC to facilitateessential canal bank strengthening.

10. Canal lining would be mostly 20 cm thick masonry set in cement mortar. It is locally proven as efficient and is low-cost because large stockpiles of rock from previous canal excavationare availablealong the PIC. It is suitable for speedy construction,a vital factor since the maximum permissible canal closure in April-May is six weeks. 'Ihere plain 1:3:6 concretelining is utilized,it would be 15 cm thick. Both types of lining would be formed on sand filter layers and provided with uplift relief. Gunite lining on rocky bed reacheswould be machine-appliedto a final 2.5 cm thickness. Canal reaches to be lined are listed in Table 2. ANNEX 2 Page 5

11. Although these works are primarily intended to prevent canal bank erosion and breaches they would also reduce loss of valuable canal water. GOM in their request for IDA assistance had originallyenvisaged lining up to 380 km of main and secondary canals, in order to reduce water conveyance losses - at a cost of over $19 million. There is insufficientevidence to support such a large investment. The quantity and points of occurrence of canal losses have not yet been specifically identified and the cost/benefit of remedial works cannot be established at present. Also implementation of such a large program would involve lengthy canal closureswith unacceptable losses in crop production. The project would, however, include provision for systematic technical and cost-benefit studies to determine the extent of canal lining which could be justified in a second-stage project.

Canal Capacity Works

12. The main canal system was originally designed for a water duty of 0.4 litres/ha commanded. Subsequently, with the reduction of the planned irrigationservice area from 280,000 ha to 224,000 ha the duty effectively increasedto 0.5 litres/ha. This is adequate to meet the water demand for the projected, increased cropping intensity in the peak demand month (Feb- ruary). Fhe main canals have sufficient capacity to meet this demand.

13. The branch, distributary and minor canals serving the presently projected on-farm development area would be increased in capacity to 0.65 1/s/ha to meet the planned cropping pattern. In addition, those canals serving compact blocks of land already growing HYV wheat would also be increased in capacity. In all, 300 km of canals would be widened and deepened and their existing control structures correspondingly modified. carthvork would be un-ortaken tnroughout the dry (rabi) season by con- structing a new bank outside one of the existing banks to avoid supply interruption. Structural modifications would be completed during the annual canal closures.

14. Ccrtaia e.x.istian watercourses serving s-mall comimand areas are fed directly from the main canals. These would be raised to tuie standard of minor canals by bank strengthening to reduce present water loss throughi and over the banis. 'Under the present project, the ;ost urgently required 100 km af these watercourses would be modified duritng a series of acceptable 15-day closures timed to minimize conflict w£th crop demands of the particular se!rvice areas. Canal capacity improvement works are shown on .ap 11507.

Control Structures

15. Present inadequate canal water control is due to the lack of:

- cross regulatorstructures to maintain head at the canal offtakes when tne system is operating at less thani full flow capacity; X4NEX 2 Pag-e 6

spillway structures to permit the canals to run at full capacity over extended periods under varying drawoff conditions without the danger of overloading parts of the system;

gated pipe outlets and tail control cluster structures to control flow from minor canals to watercourses.

16. These inadequaciesprevent water delivery to the individualserv- ice areas on the time-schedulerequired by the cropping pattern. The in- tensified cropping pattern now projectedwould require much closer water control for effectivedelivery. The project would construct44 cross regulators, 11 overflow escape st:ructures,3,000 prefabricatedpipe outlets and 100 tail control structures;

17. Canal cross regulatorsand escapes would be of concrete and masonry with vertical steel gates and would be constructedduring the six weeks annual canal closure. Materials would be stockpiledat site during the dry season. Offtakes would be of prefabricatedconcrete pipe with wooden gates and would be installed during 15 day closures throughoutthe year.

Aquatic Weed Control

18. In certain sections of the RMC and LMC, the clearanceof aquatic weeds requires canal closures during the operating season. The work involves hand cutting and uprootingof tenaciousweeds growingbelow the canal water level. The project would provide 22 additionaldrawoff structures to facilitaterapid draining of the canal.

19. The most troublesomecanal reaches are downstreamof two existing tanks (small reservoirsoriginally constructedfor irrigation)which act as breeding grounds for the weeds. To eliminate this source of trouble, the project would provide banks to separate the canals from the tanks. The RIMCwould be canalized through the Kalarna tank and the Bhind Canal through one of the Kotwal tanks.

Main Drainage

20. As describedin paragraph 3(d) of this Annex 70,000 ha of land in the project area suffers from poor drainage. An essential first step in remedying this situation is the rehabilitationof existing natural main drainage channels togetherwith the interceptionand diversion of canal seepage water into the natural main drainage system. Pilot schemes carried out by GOM have demonstratedthe feasibilityof these remedial works.

21. Existing main drainage consists of streams and gullies traversing the project area from the higher ground in the south to the Chambal River ANNEX 2 Page 7 system in the north; these drainage channels are about 1 to 2 km apart. Due to lack of maintenance,they are overgrown. In places they follow tor- tuous courses with adverse flooding and land erosion consequencesduring the monsoon flow periods. The project would undertake the first stage of a longer program to improve the hydraulic efficiency and stabilityof these channelsby providing sections with sloping banks, masonry check drop structures to reduce the flow velocity and realignmentof tne meandering reaches. Some 200 km of channels and associatedstructures would be undertaken in the 16 subbasins listed in Table 3. Design criteria are outlined in paragrapn 43 of this Annex.

22. The project would also construct560 km of small interceptordrains parallel to branch and distributarycanals mainly in the Bhind, Ambah and Jora areas where canal seepage has resulted in waterlogging of adjacent farm land. These drains would be of 50-70 1/s capacity, about one meter deep with sloping sides and unlined. Small masonry fall structures would be provided at points where the drains join deeper, natural main drainage channels. See- page drain locations are shown on 'fap 11507.

LiscellaneousWorks

23. Various high priority miscellaneous works aimed at improved canal management would be constructed under the project. These include: buildings for operating staff to be located at strategic control points; improvement of tne telecommunications system and its extension to cover a total of 300 km of the RMC and LMC, including automatic water level recorders connected by wire telemetering to a central control room; all weather surfacing of 200 km of canalside roads together with 54 additional bridges to provide rapid access to both banks of the IZICand LMC.

Ravine Erosion Control

24. The Chambal area is renowned for its impressive ravines, in many cases 20-30 meters deep, connected to the Chambal River and its tributaries. Progressive gully type erosion moves upstream in these ravines annually, endangeringcanals and roads and causing loss of valuable farm land. The GOM has embarked on a pilot program of ravine reclamation. This program involves heavy earthmovingat high cost and doubtful benefit/costadvantage. However, some form of economic, protective action is necessary. In order to develop least cost methods for adoption on a large scale, the project would include pilot ravine erosion control aimed at interceptionof upstream flood waters and stabilizationof the gully floor and sides. These would comprise earth embankments around the perimeter of the ravineswith parallel drains leading to drop structures to pass upstream flood water safely to the gully floors. The project would also include afforestationand check drop structures inside the gullies. Some 50 km of works around the peri- meters would be included, the maximum extent which could be completed in three years given the present small planning and implementationcapacity. AiNEX 2 Page 8

C. On-Farm Development Works

25. The Chambal irrigation system has been constructed down to thie turnout from the distributary canals to the watercourses which serve individual irrigation service areas (chak), each about 30-40 ha in extent. Apart from watercourses serving about 130,000 ha, and drainage works for 6,000 ha, both constructed by GOM, the on-farm works necessary for full irrigation development withini the chaks have been left to the farmers. These works include both communally owned facilities and private land improvement. They comprise watercourses, drainage ditches, farm access roads, and, on uneven topography, field leveling to enable water distribution. In many cases adjustment of property boundaries is necessary to facilitate a rational channel layout. Generally these works have proved to be beyond the capacity of the farmers to plan, finance and carry out. Consequently, increases in agricultural production both from improved yields and from higher cropping intensity, which would have resulted from better water use, have not been achieved.

26. Two main categories of Dn-farm development have been identified for inclusion in the project on tniebasis of priority needs of the respeztive areas selected. These categories are: (a) chaks in which land leveling requirements exceed 300 cubic meters per ha, (b) flat but badly drained chaks with relatively impermeable underlying soils. Category (a) improvements include the full package of works necessary to utilize available water for optimal agricultural prodcuctionincreases on 12,000 ha of land; category (b) includes only the drainage improvement works which are a prerequisite for furtiherdevelopment of 20,000 ha. Tne blend of the two categories in the project was selected after co:asiderationof the following objectives:

- to improve areas where land levelling and watercourse construction is beyond the capacity of the farmers and the scale of works is sufficiently large to warrant project involvement;

- to demonstrate the beneEits of comprehensive on-farm development throughout -he project area;

- to develop additional planning criteria for a second stage project,

- given GO'f's present s;-iaLl capacity for planning and executin g the full package type of on-farr, development, to limit project involver-.ent to those chaks which csuld be fully completed in three years;

- to build up the organization necessary for completing on-farm land developmen: at the annual rate of 5 ,000- 6,000 ha in succeeding project stages; ANNEX 2 Page 9

- to provide urgently needed drainage facilitiesto the worst waterlogged land as quickly as possible, utilizing the comparativelylarge existing works organization,and

to introducemore complete and uniform drainage planning criteria from the outset.

27. The GOM has demonstratedthe feasibilityof both categoriesof land developmenton pilot schemes constructedbetween 1972-74. Full package on- farm developmenthas been completedon 300 ha. Drainage treatment totalling 6,000 ha has been carried out within four blocks of land at Baroda, Mangrol, Sabalgarh and Premsar.

Full Package (Category(a))

28. Developmentwould be planned on a chak by chak basis. For this to be effective, all farmerswithin the chak would have to participate. Prior to detailed planning, a careful selection of particular chaks would be made on the basis of a participant census. The areas in which chaks would be selected for inclusion in the project are listed in Table 3. The GOM has already selected sufficient chaks for the first year of the project.

29. The planning of each chak would be based on existing Land Revenue maps suitably updated by the Revenue Department of the Command Area Author- ity (CAA). Present experience is that the Revenue maps are in fairly good order. Topographicdetail would be superimposedfrom existing 1:15,840 scale Survey of India maps with 30 cm contour intervals. Plane table surveys would establish 10 cm contour intervals. Detailed soils survey data would be collected and incorporated.

30. Based on these maps, the Soils Conservationsubdivisions of the CAA Agricultural Department (Annex 7), strengthenedby experiencedengineers seconded from the Irrigation Departmentwould draw up a comprehensivechak development plan. This plan would cover all necessary watercourses, drains, farm roads, land shaping and property boundary realignment required. The Revenue Department of the CAA would be closely involved.

31. * In particular, boundary realignment proposals would be carefully prepared to ensure an optimal solution embodying rational channel layout, minimum earthmovingand farmer acceptance. Present GOM experience is that boundary realignmentsincluding land consolidationhave been acceptableto the farmers. This acceptance has probably been the result of judicious choice of chak and automatic compensationof land lost to channel and road easements by inclusion of wualienated State land (commonly about 5% - 8% of the area) in the chak development. As successive chaks have been completed, the benefits of on-farm development have become visible to a growing number of farmers. ANNEX 2 Page 10

_2. The detailed engineeringdesign would include irrigationwater- courses located on the micro-ridgesand drains on the interveninglower land, together with the necessary small brick-builtwater control structures. W-atercourseswould have a capacity of 0.7 litres/ha and drainage channels 1.1 litres/ha. All channels except the first 50 meters at the watercourse he-adwould be unlined. Land levelingwould be in conformitywith the gen- cral topography. Fields would be rectangular,maximum 100 m length,with access to both watercourse and drain. They would be leveled to 0.2% slope and cross leveled to form 15 m strips. In predominantlyheavy soil paddy cultivationareas, small level basins would be formed. Farmerswould have to construct any additional ditches and drains inside their own fields them- ,-elvesunder technical guidance of the project.

33. Existing GOM layout designs-arerather rigid. They involve considerable earthmoving. Equivalentor better results could be obtained at lesser cost. Earthmovingequipment (bulldozers)available to the Agricul- tural Departmentare unsuitable for farm land leveling. GOM has agreed to suitably modify their designs. A typical example of chak developmentcom- pleted by GOM is shown on Map 11524.

34. After completionof detailed planning, an estimate would be prepared, broken down to show the costs of development to each individual farmer. The costs of channels and roads would be proportionatelyshared according to the size of each farmers' land holding. The cost of land levelling to be borne by a farmer would be the cost of levelling his original holding.

35. Detailed plans and estimates for each chak would be submitted to the District Land Improvement Committee and then to the cultivators for approval. If two thirds of the latter (by number or area held) approve the plans, the works would proceed after allowing 2-3 months for settlement of objections. Although powers of compulsion are vested in the CAA, it is not anticipated that it would be necessary to invoke this authority fre- quently. If the majority of cultivators of any chak refused development, the chak would be postponed until later in the project. Present GOM experience is that the contrary is t'hecase and that cultivators,now able to view the results so far obtained on completed chaks, are pressing for early action. A recent census of 41 villages showed an 85% acceptance of the On-Farm DevelopmentFull Package concept.

36. Once agreed, the works would be constructed by the Agro-Industries Corporation (AIC), a GOM agency, under the technical supervision of the CAA Agricultural Department Soil Conservationsubdivisions. The project would procure land levelling equipment suitable for the project. Title to the equipmentwould remain with GOM. On-Farm DevelopmentFull Package work would be undertakenwith existing GOM equipment during the first year of the project. Work would be carried out during the October through May dcry period. ANNEX 2 Page 11

37. On completionof the works on the chak to the satisfactionof the CAA, a completion certificate would be prepared for each farmer who would be requested to countersign it. It would then form part of the farm development loan application document file. In due course, the farmer would receive an amended land title from the Land Revenue Department of the CAA who would also be responsible for revising the Land Revenue map showing all property boundaries.

Chak Drainage (Category (b))

38. The Chambal project area is relatively flat, generally sloping at about 0.5% from south to north. Some chaks are underlain with relatively impermeable clay soils at about 2 m depth, which restrict downward percolation of water. Disposal of surplus surface water accumulated from monsoon rainfall, irrigation return flows and canal seepage poses a problem. Apart from the topographic and soil factors, contributory causes of waterlogging are an insufficient network of drainage channels and inadequate drainage culverts and bridge openings under roads, railways and canals. Natural drainage channels such as small streamcourses and gullies are overgrown with typha grass. Perennial rivers are in fairly clear condition but are often several kilometers remote from the farmland. ,Smaller gullies have been cultivated over by farmers and are no longer operative as main drains.

39. In 1971/72, GOMbegan a pilot drainage improvement project in four areas. This has benefitted about 6,000 ha of land and has been well received by the farmers. The project would continue this process to a further 20,000 ha. In addition, the works would be planned to penetrate to farm level. The Chak Drainage works would be preceded by the main drainage works (para- graphs 20-22 of this Annex) which form part of the infrastructural improvement under the project. The Chak Drainage works would be undertaken in the worst affected areas within the sixteen subbasins listed in Table 3.

40. Chaks selected for the drainage development typically would be flat areas, requiring very little land levelling. Many of these areas are suitable primarily for paddy cultivationdue to their soils and topography. Their further developmentmust be preceded by drainage improvementas a first step. Farmers are only too aware of this and are anxious for drainage improvement. After completion of chak drainage works, the areas would be monitored for 2 to 3 years to ascertainwhether an additionalpackage of on-farm developmentsimilar to that proposed in category (a) would yield benefits consistentwith further investment--tobe undertaken in a later stage project.

41. The drainage layout would comprise chak drains to convey water from the farm boundaries (small farms under 1 ha would he grouped together) to a collector drain which would, in turn, discharge at the nearest conven- ient point, to a natural drainage course already improved under the project. Collector drains would be spaced at 0.5 km maximum intervals and would be located in the lowest land between chaks. A typical collector drain would ANNEX2 Page 12

serve up 12 chaks, i.e., about '500 ha, which would be formed into a drainage block by low embankments. The particular layout to be adopted would be planned according to the topography, soils and location of outfall into the natural drainage courses. Farm drains from the fields to the chak drains would be constructed by the farmers themselves on their own fields under the technical guidance of the project. In order to maintain water table during the paddy planting seasons, small check structures equipped with wooden sluices would be located, as determinedby topographyin the chak drains.

42. At this stage of chak development,no boundary realignmentwould have been completed. The GOM would therefore obtain the necessary channel easementsby compulsoryacquisition. It would exercise its prerogativeto grant unalienatedState land in lieu of monetary compensationto affected farmers. Because the work would be commencedin the worst affected chaks, GOMbelieves, based on its previous experience,that farmerswould be agree- able to any necessary boundary adjustments.

43. Drainage design standards have been derived from run-off studies and are as follows: channel capacity in the first instance would be sufficient for a run-off of 1.1 1/s/ha resulting from a one-day, 130 mm storm with an acceptable maximum crop submergence of 72 hours; drainage structures such as bridge openings, culverts and falls would be constructed to a capacity of 2.2 1/s/ha to allow for future increase in crop drainage requirements; large structures such as major spillways would be designed, on their individualmerits, for acceptablerisk. Channel dimensionswould be: 1 m minimum depth (2 m for collector drains), 1:1 side slopes, 0.05% to 0.10% bed gradients.

44. Constructionof collector and chak drains deeper than 1 m would be by force account using small dragline excavatorsprocured under the project. Smaller drains and all structuralwork would be undertakenby labor-intensive,small contracts. Machine excavationwould continue throughout the year whereas hand excavationwould be restrictedto the October-May dry period. The IrrigationDepartment would be responsiblefor surveys, engineeringdesign and constructionsupervision. The Land Revenue Depart- ment would be responsible for the land acquisition/boundary adjustments. These Departments' work would be closely coordinated by the CAA and the District-Land Improvement Committee would approve all plans (Annex 7).

.45. Chak drainage would be financed in the first instance from GOM State Budget. Because a chak dra:in would normally serve two chaks, this mini-block would have to be planned as a whole. ANNEX2 Page 13

D. Roads

Background

46. The command area is fairly well served by a main road network comprising part of the Agra-Bombay national highway and state highways linking most of the important towns and all the nine new markets under construction. The principal deficiency in the road system is the absence of access roads to villages. The villages have populations ranging from 500 to nearly 10,000 inhabitantswith no links to the main roads except for cart tracks which are regularly obliteratedby monsoon rains.

47. The proposed road component is aimed at reducing the isolation suffered by the villagers and contributingto the expansionof the village economy mainly by enabling the villagers to obtain higher profits from the sale of their surplus by reducing transportationcosts to the markets situated in the towns. Easy access to the main roads and towns would also attract better education and health facilities.

48. The village roads proposed under this project total 206 km (Table 4). Roads in waterlogged areas, have been given priority followedby those in other irrigated areas. Most of the roads are around the towns of Sheopur and Gohad. Roads in the sugarcane areas near the Kailaras sugar factory have also been included. a

Preparation of the Road Program

49. The road surveys, including soils and materials surveys, final engineering and documentation would be undertaken by the Public Works De- partment (PWD). The PWD is organized regionally and has responsibility for both roads and buildings. However, in order to ensure better coordination with the Command Area Authority and improve the planning and execution of the roads program, the PWD has agreed to establish a separate Circle to undertake this work.

50. The PWD also agreed that the new Circle would have a Planning Division'to determine individual road priorities to enable construction to be scheduled in that order. The Division would also be responsible for the preparation of roads for possible inclusion in a future project and, for this purpose, would undertake identification work and conduct necessary economic and technical feasibilitystudies.

51. The roads would have a single lane 3.5 m wide on a formationwidth of 6.0 m and would not be bicuminized. They would generallyhave a graded crushed stone aggregate surface with murrum shoulders (murrumis a sandy clay soil with a fair amount of gravel). There are no major bridges on the roads. The geometricstandards are generallythose adopted for the village roads by the Indian Roads Congress (Table 5) and they are satisfactory. AŽ'NEX2 Page 14

Executionof the Road Program

512. Construction. Contractorswould be employed to constructall roads with supervisioncarried out by the new PWD Circle. The work consists cf the constructionof low cost roads for which labor intensivemethods would be more suitable and is scheduledfor implementationover a period of three years.

53. The general conditions of contract currently used in road construction contracts,however, are not satisfactoryand require certain amendments to place the contractorin an equitableposition in his contrac- tual relationshipwith the State Government. For example, there are no provisionsin the conditionsof contract for third party arbitrationand escalation of prices and the PWDhas powers unilaterally to terminate a ciDntract without compensation if flnds become scarce. The PWD has agreed to amend the general conditionsin consultationwith the Association.

54. Purchase of Equipment. lhe works would be carried out in small contracts worth about Rs 2.0 million each. The local contractors usually hire equipment from the PWD. The projectwould procure some essential iltems of equipment to meet construction and supervision requirements and subsequent road maintenance. The equipment consists mostly of locally rntanufactured like trucks and road rollers.

E. Assistance to the GOI in Project Preparation for Command Area Development Projects in Other Parts of India

5'. The project includes funds (for the CommandArea Development(CAD) Departmentof the Ministry of Agricultureand Irrigationof GOI) to assist in project preparation of a number of CAD projects in other States of India. Over the next Five Year Period, a large number of irrigation projects, each with a CADelement, would be prepared for Bank Group financing under the current operational program. This provision would help extend the necessary pilot land developmentprojects to all the States participatingin the CAD program during the next three years.

56. Pilot land development projects would help identify the key economic and water use parametersgoverning the implementationof optimum on- farm development. Various levels of land developmentwould be investigated ta,determine their respectivecosts and benefits and to check out organizational, management and financingarrangements prior to the project'sap- praisal. The total cost of the CAD project preparation to be financed under this tredit, includingexpected price increases,over the next three years, would be US$900,000. ANNEX2 Page 15

57. Project provision is also made for technicalassistance to 0O0 (Ministryof Agriculture,CAD Department)for employmentof an internationally- recruitedland development specialistfor a period up to two years. ANNEX 2 Table 1 Page 1

INDIA

CHAMBALCOMMAND AREA DEVELOFKENTPROJECT (MADHYAFRADESH)

Project Works

Main Features of the Cham'Dal Irrigation Project

1. Reservoirs (Map 11501 )

(a) Ghandisagar Dam: 64 m high masonry structure; reservoir

storage 7,750 Vn3;reservoir water area at full operating

level 630 km2; power station capacity 119 14W.

(b) Rana Pratap Sagar Dani: 5b m high masonry structure;

reservoir storage 2,900 Mm3; installed power capacity 172 MW.

small storage in heaclpond of the 100 MW power installation.

(d) Kota diversion barrage: 20 m high concrete gravity structure

with steel gates.

2. Canal System (Map 11507 )

From Kota diversion barrage the Right Main Canal (RMC) passes through Rajasthan State for 130 km. It then crosses over theParbati

River into Madhya Pradesh and continues for 179 km to a point near

Sabalgarh where it divides into the Lower Main Canal and the Ambah Branch

Canal. -The Lower Main Canal in turn serves the Morena Branch Canal and, by way of the Asan drop and the Kotwal tank system, theBhind Main Canal.

The Bhind Canal also serves the Mau Branch Canal. The canal lengths and irrigable areas served are as follows: ANNEX 2 Table 1 Page 2

Net Reach Length of Canal IrrigableArea (km) (ha)

Right Main Canal (RMC) (Upper Main Canal) 179 62,400

Ambah Branch Canal (ABC) 171 43,980

Lower Main Canal (LMC) 53 21,560

Morena Branch Canal (MBC) 38 21,400

Subtotal 441 149,340

Bhind Main Canal 82 51,800

Mau Branch Canal X 22,860

Subtotal 130 74,660

Total: Main and Branch Canals 7L 224.000

The total legth of' the Chambal Canal system is (km):

Main and Branch Canals 571

Major distributarycanals 538

Lesser distributarycanals and minors 2,082

3>191 ANNEX2 Table 2

INDIA

CHAMBALCOMMAND AREA EEVELOPMENTPROJECT (MADHYAPRADESH)

Pro.ject Works

Canal Lining

1. Canal Lining of Rocky bed reaches and soluble salt soil reaches Location Canal Chainage of Reach length of Lining Type of Lining

A. Right Main Canal (RMC) (rocky bed reaches) 1,874 790 Gunite-Cement 2,286 490 Gunite-Cement 2,315 1,130 Gunite-Cement 4,895 1,210 Gunite-Cement Subtotal 3,620

B. Lower Main Canal (LMC) (soluble salt soil reaches, 461 370 Concrete

Total Lining of rocky bed reaches and soluble salt reaches 3.99 km

2. Lining upstream and downstream of Cross Drainage (CD) Structures

Name of Structure Location Length of Lining (Chainage) (m) A. RMC

1. Parbati. 39 300 2. Aheli 306 180 3. Ratdi 366 190 4. Syphon 576 30 5. Syphon 586 30 6. Syphon 820 50 7. Seep Aqueduct 1,977 210 8. Amral 2,200 120 9. Sarari Syphon 2,607 170 10. Dhatoni Aqueduct 2,799 300 11. Dohi Aqueduct 3,392 160 12. Papra Aqueduct 4,462 60 13. Birfin Aqueduct 4,486 70 14. Kemara Aqueduct 4,790 1,520 15. Jawahagarh Aquediuct 5,053 30 Subtotal 3,420

B. _IC

1. Kunwari Aqueduc1; 567 150 2. Suean Aqueduct 802 30 3. Kotsirthra Aquecduct 1,OL1 30 4. Sukhdeni 1,244 30 Subtotal 240

Total lining upstream and downstream of CD Structures 3.66 km ANNEX2 Table 3

INDIA

CHAMBALCOMMAND AREA DEVELOPMENTFROJECT (MADHYAPRADESH)

Project Works

On-Farm Development and Chak Drainage

Categoxy (a): Full Package Intensive Development Areas

Name Irrigable Area (ha)

1. Sheopur-Premsar 3,000 2. Sabalgarh-Kailaras 1,875 3. Jora 750 4. Bhind-Morena 4,875 5. Ambah 1,500

12 * 00

Category (b): Drainage Areas

Drainage Subbasin Area to be Drained (ha)

1. Rajpurna 1,800 2. Baroda 1,620 3. Hirnikhira 800 4. Premsar 1,800 5. Gohera 630 6. Mangrol 960 7. Sabalgarh 900 8. Semai 1,000 9. Jora I 1,260 10. Jora II 580 11. RethoraI 540 12. RethoraII 1,540 13. Anchaya 500 14. Kharwa 2,500 15. Chitora 500 16. Chirol 3,070

Total area to be drained: 20,000 AiNNEX2 Table 4 INDIA

CHAMBALCOMMAND AREA DEVELOPMEIWT PROJECT (MADHYAPRADESH)

List of Village Roads

Morena District Length (km)

A. WaterloggedAreas

1. Sheopur - Baroda Road to Makravad 9.0 2. Sheopur - Baroda Road to Indarpura 9.0 3. Sheopur - Baroda Road to Barodiyabindi 6.0 4. Sheopur - Baroda Road to Ba,iarlee 11.0 5. Sheopur - Baroda Road to Raclhapura 3.5 6. Sheopur - Baroda Road to Jublad 5.5 7. Sheopur - Khatoli Road to Gtiheda 7.0 8. Sheopur - Khatoli Road to Kilo 6.0 9. Sheopur - Khatoli Road to Nimoda 2.0 10. Road 4 above to Hirnikheda 7.0 11. Morena - SabalgarhRoad to Farsota 7.0 12. Kailaras - Pahargarh Road to Damajar 11.0 Subtotal 84.0

B. Other Irrigated Areas

1. Morena - Sabalgarh Road to C;hachiha 4.5 2. Morena - Sabalgarh Road to J-mdpura 7.0 3. Sheopur - Khatoli Road to Kishorpura 3.0 4. Sabalgarh - Atar Road to Raghukagaon 8f5 Subtotal 23.0 Total for Morena Distriact 107.0

Bhind District

A. Waterlogged Areas

1. Gohad - Mau Road to Itayanda 10.5 2. Gohad - Mau Road to Madroli 7.5 3. Gohad - Mau Road to Baghora 3.0 4. Gohad - Mau Road to Banipura 2.0 5. Gohad - Mau Road to Enchaya 8.0 6. Jahawal pura to Kathwa Hazi Road 3.0 7. Gohad - Mau Road to Dhamsa 12.5 8. Kharauwa to Khitoli 12.5 9. Gwalior - Biind Road to Gurikha 2.0 10. Road 1 above to Girgaon 5.0 Subtotal 66.0

B. Other Irrigated Areas

1. Ambah - Mehgaon Road to iKripexcapura 8.0 2. Barahead to Barona 7.0 3. Gwalior - Bhind Road to Endori 8.0 4. Gwalior - Bhind Road to Raikipali 10.0 Subtotal 33.0 Total for Bhind District 99.0 Total Village Roads 206.0 ANNEX2 Table 5

INDIA

CHAMBALCOMMAND AREA DEVELOPMENTPROJECT (MADHYAPRADESH)

Design Standards for Village Roads

Design speed 40 km/h Pavementwidth 3.5 m

Shoulder width 1.25 m

Formationwidth 6.00 m

Right of Way 12.00 m

Stopping sight distance 50 m

Passing sight distance 130 m

Maximum super elevation 6.7%

Minimum horizontal radius 70 m

Source: Indian Roads Congress/StatePWD/Mission ANNEX 3 Page 1

INDIA

CHAMBALCOThIAND AREA DEVELOPMENTPROJECT (MADIIYAPRADESH)

Water Supply, Demand and Quality

Water Supply

1. The main sources of water for crop production in the project area are rainfall and the regulated flow of the Chambal River, delivered through the Right Main Canal (RMC) and lower Main Canal (ULC). Groundwater from shallow wells is largely used for domestic purposes. Electric-powered shallow tubewellshave been developed only since 1970; their contribution to the water supply is, as yet, small. There are, however, prospects for deep groundwaterdevelopment in the area.

2. The Chambal project in Rajasthanand Madhya Pradesh (MP) States is the only major withdrawal use from the Chambal river. Two storage dams (Ghandisagarand Rana Pratap Sagar), a power pondage (Jawahar Sagar) and a diversionbarrage (Kota) provide a high degree of flow regulation. Details of the storage and conveyance systems are included in Annex 2. Operational studies of the Chambal system est:imatethe tstal annual surface water supply available in 88% of the years to be 3,900 Mm ; Chambal (MP) share is one half. The GOI Central Water Comm'ssion (CWC) is continuouslyupdating and refining its hydrological knowledge of the Chambal basin and plans to conduct additionalwater supply optimisationstudies. Existing knowledge is adequate to establish the feasibilityof the project.

3. From 1969 to 1974, the t:opoperating level of the major storage dlamat Ghandisagarwas restricted to 425.8m (5m below design level) to provide a flood cushion against overloadingof the spillway. This reduced t:heutilisable storage available but water supplies to the Chambal Madhya Pradesh Project, were not seriously affected. During 1970-73 the annual water quantitiesdelivered to the RMC head were 1,800Mm3, 2,070Mm3 and 1,940Mm3, respectively. An improved flood prediction system is now being installed in the Chambal River catchment area which will allow precautionary drawdown of the reservoir level ahead of advancing flood arrival. This will gradually permit restorationof the design operating level.

4. In the absence of definite plans to augment the supply of water to the system, the project cropping pattern (Annex 10) is designed to utilize the available supply with regard to constraintson delivery rates, timing and to farm-relatedfactors.

5. There are four constraintson the water supply which affect the choice of cropping pattern: ANNEX 3 Page 2

(a) the total annual supply will normally be 1,950Mm3;

(b) the miximum delivery in any month should not exceed 310Mm , which allows for 10% surcharge of the main canal design capacity and is the current operational maximum;

(c) at present, until alternativeenergy sources are developed, about 33% of the annual supply must be taken between July-Octoberdue to hydroelectricpower generation requirements,and

(d) the canal system is closed for annual maintenance (and for capital improvementworks envisagedunder the project) during a 6-weeks period in April-May.

6. Beginning in 1970, GOM planned constructionof 1,350 shallow tubewells in Morena and Bhind Districts. Some 260 wells were constructedby 1974 of which 164 were in service. Because the average area irrigatedby a well is only about 10 ha, the present groundwatercontribution to the project water supply is insignificant. GOM, on broad-based3recharge assumptions,has currently defined the aquifer's safe yield as.120Mm . This is probably a very large underestimateof the groundwaterpotential since the aquifer is re- charged by both rainfall and deep percolation from irrigation. The project would include assistance in deep groundwater investigation. This would help plan groundwater development with the twin objectives of increasing irrigation intensity in the project areas and extending service beyond the boundaries of the present 224,000 ha area.

Water Demand

7. Table 1 shows estimated present and future system efficiencies. The projected efficiencies are conservative estimates, sufficient to support the estimates of water-balancemade for the project. They would be refined by additional systematicmeasurements throughout the system as part of the feasibilitystudies, which would be undertakenby the project. The present low efficiency (21%) results partly from seepage losses along the canals and watercourses, the lack of adequate control structures in the canal system and the lack of rotational irrigationand inadequate operating procedures. In the future, higher efficienciesare expected in the On-Farm DevelopmentFull Package area die to better control of water application, higher field efficienciesafter land shaping, and the enforcementot rotational irrigationthrough cooperativewater use (warabandi). The whole project area would benefit from some lining, and better management of the main canal system and the introductionof rotational irrigation. An overall efficiencyof 31% is foreseen as a result of the project, assuming watercourses are unlined but well maintained. ANNEX 3 Page 3

8. Table 2 shows the detailed monthly water requirementsin the on-farm development area, assuming 80% field efficiency, and Table 3 shows the monthly irrigation and diversion requirementsof the whole project area. Average rainfall is taken from Annex 1, Table 1, and a factor varying between 60% and 75% has been used to estimate the effective rainfall (i.e., the moisture retained in the soil). Crop consunptive use has been estimated from the Blaney-Criddleformula with appropriate crop coeffi- cients, and is comparablewith regional parameters.

9. The effects of residual moisture are difficult to quantify. Clearly since some crops can be grown in the winter season without irrigation, residual moisture is important. The estimates of its magnitude are based on the known soils properties in the area and on judgment in consultationwith local agronomists. For most crops, a pre-sowing irrigation has been assumed, and applicationof 300 mm of water has been allowed for paddy to account for the needs of land preparationand the nursery stage.

10. Table 3 shows the total diversion requirements,by month, for the whole project area. Projected full development demand would be 1,500Mm3. The total annual demand is 23% below the available supply, but the demand in February is above the design maximum delivery rate for the canal, though within the operational maximum. This therefore limits the potential for more intensive irrigation in the winter. Most of the excess water is available in the summer, and future increases in the irrigation intensity (until such time as irrigation efficiency is increased due to better conveyance and the spread of on-farm development throughout the project area) must be in this season, mainly by increased cultivationof paddy. If the whole area were developed to the level of the On-Fa DevelopmentFull Package area, the annual demand would be 1,860 Mm .

Water Quality

11. Studies on water quality are being undertaken under the Indian Council for AgriculturalResearch (ICAR) program. Although only a few samples have been taken, the quality of the water seems high, with total dissolved solids less than 250mg/l, and a sodium-absorptionratio of less than 3. Salinity problems in the area have been caused by the upward leaching of salts from the soil profile but less than 7% of the project area is estimated to be adversely affected. Improvementsin the drainage system and standards of water applicationwould gradually solve these problems. Only preliminarymeasurements have been made of the quality of return flows to the Chambal River, but no problems with downstream users have been identified. Under the project, continuingstudies would be made in the chemical compositionof the applied irrigationwater, return Slows and soil profile. ANNEX3 Table 1

INDIA

C?R,WBALC01IMIAND AREA DEVELOPMENTPROJECT

(MADHYAPRADESH)

Water Supply Demand and Quality

Efficiencies

Future Present On-Farm Chak Overall Develop. Drainage Extensive Overall Area Area Area

Field Efficiency 65 80 65 65 Conveyance Efficiency

-water courses 65 80 70 70

- canal / $0 75 75 65

Total (rounded) 21 48 34 30 31

1/ Canal efficiency from Kota diversion to the outlet to the watercourse

Note: On-Farn Develonment (Full Package) Area is 12,000 ha

(Chak) Drainage Area it tl it 20,000 ha

Extensive Area " " " 192,000 ha

Total Project Area 224,000 ha ANNEX 3 INDIA Table 2

21060141. 2101021720AREA4 XEV4IOD7FHET PROJECT (WIRIEaA PRtDESO) water DemandO-a' cuiW (Avera ge Yea) lint Jevuory Apr10February lure July No. Tot.,)., or~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~N. Crop it e m Pbuq _H ,--y_-l r c hI Ap August Irere ber October November December irr. 'i..oraa

A verAge ra-ifall 14 5 6 11 5 53 243 305 150 27 3 6 828 Affective r_mfoll -. - - - - 70 70 60 7D 63 (--lmdW d)- =. 37 170 183 105 27 _ 522

__------_ -- _--__------_------K H A R I F S E A S O N ------_------_-_ ------___-__-______--____-______------___-

Psddy Aro '000 hb 1.5 2.9 2.9 2.9 2.9 Cnvsuepttte Ass = 175(3/4) 180 173 150 630 Eff Rate 45 170 183 105 25 Relcoicoti 1/ 150 .2/ 75 2/ 200 gi 125 irratgiton Reqttrement Hm3 ~~~~~~~3.8 ~~~~~~~4I ~~~~~2.2 ~ ~~~~~~~5.8 ~~~~~~~~~~~~~~~~~~250 3.6 19.8

Aai- (IIYY) Area '000 hA 0.2 1.1 1.1 1.1 1.1 Eooumpci- Use 85 10143 8 45 Off. Oslo 37 170 I03 140 19 ^5 Irrlgellon Nequitoe=ee Rmt3 125 125 2 bmI 0.25 1.4 1.6

Sno--t Ar.e '000 he 0. 04 0.06 0.09 8.11 0.11 0.11 0.11 O0.11 0.11 0.11 0.11 0.06 Cnrautvptivelint mm ~~~ ~~~50 ~~~SE ~~~~120 ~~50 20 35 10 140 155 160 110 800 Eff. Raio em 37 170 183 105 19 ItrrgAfluc Oequiroemet Rmei 50 75 75 150 275 050 7S 72 125 it5 150 11 im? .Un 0.04 0.07 0.16 0.3 0,27 0.08 0.8 0.16 0.16 0.1 2.2

Sub-Tntol urea ' h.Obe 1.04 0.06 3.09 0.11 0.11 1.8 4.1 4.1 4.1 4.1 0.1 .06 oTa rtrlgotmnn Oequiceneut bSnl 0.02 0.04 0.07 0.16 0.3 4.32 4.48 2.2 7.28 3.76 0.16 0.1

------_ ------R-A---I-----A---0RNA-B------

Alicat (tYY) urea. '000 ho 4.9 4.9 4.9 08.i5 2.5 4.9 4.9 Annso'iiptaveToemm 05 ~~~ ~~~~180 ~~~~~~~~~~~~~95100(I12) 28 40 iS =ou 50, Ecaldual Neistuto 100 70 1 TnvAgatiea Oequineoeav Ret 400 100 100 75 SO 50s 100 6 575 hm3 4.9 4.9 4.9 I.9 1.25 2.5 4.9 25.25 lmeai (I.-v) uAee 00 .b 0.7 0.7 0.7j 0.4 0.4 0.7 0.7 -)nsuptine Ure Lm 70 90 05(/ 20(1/2) SO h0 10 Residual Mnolature mm 70 100 1s trlg-tli- REequircl-eu- e 100 125 501 50 50 4 3 Mmv 0.7 0.8 0.2 0.35 0.35 2.4 hatard Aea. '000 ha 1.1 1.1 6 .7 1.1 1.1 Cn--umptive UOa Rm 65 75 50(3/4) 44 52 55 30 Residual Witture t 50 50 50 50 Irrigation RequirR ent mm3 75 75 100 71 4 lU 0.82 0.82 1.1 0.82 3.56 i Amt Area '000 h 1.7 1.7 1.7 1.7 1.1 .rEonauuuptive Ose rm 45 70 85 30 30 260 Reelduol Moitscure imm 017 Irrlgatio R equlreaent = 3 100 10D. 75 3 iNi 1.7 1.7 1.3 4 7

Aurea Sub-T-l 0003 hb 8.4 8.4 7.9 2.9 3.6 8.4 8.4 T-rrigulon Requiremenit M 6.42 8.22 4.9 1.9 3.15 3.95 7.37

Total Area 00 ha 8.44 8,46 7. 99 .01 .11 1.8 4.1 4.1 4 .1 .7 8.5 8.16 rlgAtioun Requiremee. We3 6.44 8.16 4.97 2.06 .3 4.32 4.48 2.2 7.28 6.9i 4.21 7.47 58.0 orveratu>n Eequineoeut ML? 7onvth 10.0 13.8 B.3 3.4 .5 7.2 7.5 3.7 12.1 11.5 6.8 12.4 97.9 am/a 4.2 5.5 3.3 1.3 .2 2.9 2.9 .5 4.7 4.6 2.7 4.9 3.2 l(tS/ctnppad he 0.5 0.45 0.41 0.43 1.82 1.6 0.71 . 37 1.15 0.6 4.32 0.58 0.17 1/e/-neeavded hi 0.38 0.46 0.28 0.11 .02 0.24 0.24 0.12 0.4 0.38 0.23 0.41 0.27

1/ Pre-Ir-igacuor. 2/ N_isal a-voonto Eo. count fur prolonged dry p-riods.

(a) Icrigation -cq.irnncut. Inc-lAdn allua..e fur 807 fltld efficlency mod utilize soils field cepacitY to pronide -rviduo1 aoiature vs lanyc.

(b) Djucat o requlreeet=icnfgarioo ecuireoerruxncrhined ef irucy oa terroiree and cot-1 sysCem.

7c) rlguree shotr are cepeoenra-1ive cur ohs aevera 1 liltypEe a-d -nditlo- fonnd. io thc ieu blocks uf lend olecatd fur On-F57m D-ttlepront Full P.cbOCg -reot-cot in the praje-t. INDIA

CHAMBALCOMMAND AREA DEVELOPMENTPROJECT (MADHYAPRADESH)

Water Supply Demand and Quality

Summary of Water Requirements

January February March April May June July August September October November December Total. 3 /ha command.per yr ------Mm3------m

1. Water Requirements at outlet to the field 114 564 2,940 Extensive Area 14.0 120.1 90.0 33.9 9.0 36.8 25.2 11.4 35.7 46.7 27.0 8.6 85 4,240 Chak Drainage Area 0.9 11.9 8.5 4.0 0.8 11.3 8.7 4.3 12.4 7.7 5.8 7.5 59 4,900 On-Farm Development Full 6.4 8.3 5.0 2.1 0.3 4.3 4.5 2.2 7.3 6.9 4.1 Package Area 1/ 2. Diversion Requirements 250.5 1,240 6,450 Extensive Area 30.8 264 197.8 75.5 19.8 80.9 55.4 25.1 78.5 102.6 *59.3 16.4 160 8,200 Chak Drainage Area 1.7 22.7 16.2 7.6 1.5 21.5 16.6 8.2 23.6 14.7 11.0 12.4 100 8,300 On-Farm Development Full 10.7 13.8 8.3 3.4 0.5 7.2 7.5 3.7 12.2 11.5 6.8 Package Area 1,500 2/ 6,700 Total 43.2 300.5 222.3 86.5 21.8 109.6 79.5 37.0 114.3 128.8 77.1 279.3 I/ 3 flow rate (m'/sec) 16.7 116.0 85.7 33.4 8.4 42.3 31.1 14.3 44.4 49.7 29.7 107.7 Equivalent Fs >

1/ At Kota diversion: See Table 1 for efficiencies 2/ Rounded ANNEX4 Table 1 INDIA

CHAMBALCOMMAND AREA DEVELOPMENT PROJECT (MADHYAPRADESH)

Ccst Estimates

Foreign Exchange Item No. Item Local Foreign Total Local Foreign Total % Rs Million------US Million ---

1 Irrigation and Main Drainage (Table 2) 76.1 19.1 95.2 9.51 2.39 11.90 20

Chak Drainage Area 23.1 5.7 28.8 2.89 0.72 3.61 20

2 On-Farm Development Full Package Area (Table 3) 14.4 7.7 22.1 1.80 0.96 2.76 35

3 Roads (Table 4) 35.6 8.9 44.5 4.45 1.11 5.56 20

4 Ravine Erosion Control 2.2 1.0 3.2 0.27 0.13 o.40 32

5 Supplementary Fertilizer 0.2 4.6 4.8 0.03 0.57 0.60 95

Subtotal 151.6 47.0 198.6 18.95 5.88 24.83 24

PhysicalContingencies * 12.4 4.1 16.5 1.55 0.51 2.06 25

Subtotal 164.0 51.1 215.1 20.50 6.39 26.89 24

Estimated Price Increases 68.0 17.0 85.0 8.50 2.12 10.62 20

Subtotal 232.0 68.1 300.1 29.00 8.51 37.51

6 Project Administration and operatingcosts during 3 years Implementation and Stage II project pre- 15.5 4.2 49.7 5.69 0.53 6,22 9 paration (Table5) 7 TechnicalAssistance to GOI for CAD Project Preparation3.9 2.6 6.5 0.48 0.32 0.80 40

EstimatedPrice Increases 13.9 2.9 16.8 1.74 0.36 2.10 17

Subtotal 63.3 9.7 73.0 7.91 1.21 9.12

Total Project Cost 295.3 77.8 373.1 36.91 9.72 46.63 21

1/ Engineering,administration and equipmentcosts are included in Items 1, 2, 3, and 4. 2/ Indian Rupeea 8.00 = US$1.00. AI:LNEX 4 Table 2 Page 1 I'DIA

CIT~~__

CUANBA.7 C( I A- i`TA) FAREE0A\ PROJECTFT (IIDHYA IPADE:SE

Cost Estimates

Irrigation and Main Drainage

I-e.. Qua 1 tzt Unit Rate Total Cost (Rs) (Rs rillion) Coi-irxletion of rEc Erosion Protection Work 7

3 Earth .cork 300,000 m 4 1.i Roa.d surfacing 20 km 10,000 0 2 I'asonary 1ilning 120,000 m 32 3.8 Strengthening cross drainage(CD) structu,res Lo 2.0 Sub tctal 7.

Additional Z1IC Protection Works

Gumite Lininig rocky reaches 130,000 m' Concrete lining, earthl reaches 1-3,000 0.7 M4asonry lining at CD struPtiires 176,000 m2 32 5.7 Lengthening CD structures 2 LS 4.7 Subtotal

Tonal Capacitv Works

Ninors and distributaries(4(00 km) 3,650,000 a 3 h T3.6

'anal Control Wor,k.s

:,ross regulators 44 LS Escapes ll LS 3.4 Pipe outlets 3,000 LS Tail control structures 100 LS 0. 2 Subtota?

Quatic WIeed Control

3 T C Canalization at Kalarna tank 40,000 a 10 0.4 .EEC and ELC draw-off outlets 22 AS 0.9 3hind canalization of K,otwal tank 160,000 m3 10 1.6 Subtota 7 2.9

1/ Completion of the ongoing progran instituted following findings of Pathak Comnitte Page 2

IPIDIA

CIHAMABLCOPIMAND AREA DEVELOPENTPROJECT (MAD1.YAPRADESH)

It;em Quantity Unit Rate Total Cost (Rs) (Ts million) ,-,ainDrainage Works

ITmprovementof natural gullies 200 km 24I,000 4.8 Seepage interceptor drains 560 km 11,000 6.2 Subtotal 11.0 liiscellaneous'Works

Buildingsfor 0 and M staff LS 2.' Telecommunicationssystem LS 2.3 Service roads 200 EMm 4.9 Access bridges 5, LS 1.6 Subtotal 11.6 Total 75. 7

Contingencies10 7.7 EJngineeringand Administration) 15.3 Special groundwaterstudies ) - LS 3.2 Subtotal 772

Total Cost of Irrigationand Main Irap.iage 102.9

7/ Includes engineering studies estimated to cost anoroximatelyRs 3 million and soecial groundwater studies; both these studies are required for the preparation of second stage CAD project in the Chambal (MP) Command. All other preparation work would not require budgetary allocations financed under this project. ;'64-lF,X4 Tab' e

IlIDIA

CHA1r3ALCO612ANID AREA DEVELCJP1-IZTROJEC_ (MAADHIAFMDESL)

Cost Estimates On-FarmDevelopment Cost TotalCost Item------(Rs million)---

(a) Full PackageArea (12,000ha)

Irrigationsystem 230 Drainagesysterm 200 Land'shaping 975

Subtotal 1,405

Physical Contingencies- 15', 211 Engineeringand Administration- 20•J 281

Crop Compensation 150

Total 2,0h7

Total Rounded 2,050 2 (b) Chak DrainageArea (20,000 ha)

Secondaryand Tertiary Drainage 1,200

Physical Contingencies - 10% 120

Engineeringand Administration- 201"v 21X0

Total L,6 31.2

INDIA

CIAIIBAL COEIAMIDAREA DEUELOPMENTPIOJECT (MADETYAPRADESH)

COst Estimates

Roads

Item Quantity Unit Rate Total Cost / (i7) (Rs million)

1. Constructionof Village Roads

i) Iorena District

(a) Waterloggedareas 84.0 164,000 13.8 (b) Other Irrigated areas 23.0 czi 158,000 3.7 ii) Bhind District

(a) Waterlogged areas 66.0 km 167,000 11.1 (b) Other Irrigated areas ,33.0 km 162,000 5.4

Subtotal 206.0 km 34.0

2. Procurenentof Equipment 2/5.7

3. Engineeringand Administration(4W) 1.8 4. Land Acquisition LS 3.0

5. Physical Contingencies(10% of 1)

Total Cost: Roads 47*S

1/ Rounded 2/ Eor project supervisionand hire to contractors. Tiable5 il:2DrA NIA>iLCO2DAR~L!~DETEOITITh2_ROjECT(KADJI -A PIELp-)

Goat Estimates

Project Administration and Operating Costs Total Cost Ann;Y.a- ost at Ihirinr iYroAe1; I+er dIf Develo½r.:-ert In emertatio- Period 3 yrs) -- '.s illicr ------

ConlnapdArea A~thorit r 0.2

2. Tech-nical Assistance andl Training _ 1.31/2/

3. Operation an. lainte-i-ance Irrication and Drainage 10.c 26.5 Road,s 0.7 O. 3

L Extension and lesearch l/

Re search 0.6 3.1 Extersion j.r 17.7

Total: Annual Cost at Ful1 Development 17.8.

Total: Project Administration and Operating Costs 51.0 (1975-77)

1/ Includes all buildings, equipment, operating costs, staff salaries and labor wages.

2/ Includes provision to GOI of a land development specialist for a period of un to two years.

3/Iaintenance of roads constructed under the project commences only in Year Two, and reaches its full annual cost in Year Four, of the project. Does not include equipment which is included in capital cost estimates (Annex h, Table 4). ANNEX 5

INDIA

CHAMBALCOMMAND AREA D)EVELOPMENT(MADHYA PRADESH)

Equipment Requirements

Project Year Items ItemS1 2 3 Total 1! ------US$ million------

Irrigation and Drainage 1.5 0.5 - 2.0 Equipment (Table 1)

On Farm Development 0.4 0.4 - 0.8 Equipment (Table 2)

Road Equipment (Table 3) 0.5 0.2 - 0.7

Ravine Erosion 0.1 - - 0.1 Control Equipment (Table 4)

Project Administration 0.2 - - 0.2 Equipment (Table 4)

2.7 I.1 3.8 Expected Price (33) (45) Increases(%) .9 .5 1.4

Total 3.6 1.6 = US$ 5.2 million

of which, foreign exchange (57%) = US$ 3.0 million

1/ Indian Rupees 8.00 = US$1.00. Due to rounding off figures may not exactly tally with conversions from Rupee costs shown in Tables 1-4. ANi.EX < Table 1 TITLIA

2HANBALCOMMAN;D AREA DEVELOPMENT PROJECT (ADIIHYAPRADESH)

Equipment,List: Irrigation anrdDrainage i/

Item Quantity Unit Price >otal Method of - Rs '000 ----- Procurement 1. Project Management 2/

Car 1 35 3 RP StationWagon 2 50 100 RP Field vehicle 30 35 1,050 RP Motorcycles 60 6 360 LCB Subtotal

2. Construction: (a) Irrigation

Concretemixer 12 14 168 LCB Vibrator 20 3 60 LCB Gunite equipment 3 60 180 LOB Winch - 5 ton 3 5 15 LCB Pump -10 hp 10 9 90 LCB Pump- 5 hp 16 5 80 LCB Rollers/compactors 16 20 320 LCB Survey equipment LS 200 LOB Officeequipment LS 100 LCB Tow boy transporter 1 44° 4Lo ICB Mobile crane 1 220 220 IOB Compressor- 100 1/s 10 55 550 LUB Portable generator - 15 kw 10 22 220 LCB Trucks - 10 ton 20 100 2,000 RP Tractorwith trailer 20 70 1,400 LCB Bulldozer - 90 hp 3 300 900 ICB Diesel tankertrucks 2 100 200 RP Water tanker trucks 2 120 360 RP Workshopequipment LS 300 LCB Subtotal 7,803 (b) Drainage3/

Draglineexcavator 3/h m3 5 520 2,600 ICB Draglineexcavator 3/8 m3 5 320 1,600 ICB Pump - 10 hp 16 9 144 LCB Pump - 5 hp 16 5 80 LCB Subtotal h,h2h Spareparts 15% 2,066

Total Cost Irrigationand DrainageEquipment 15,838 1/ ICB - InternationalCompetitive Bidding LCB - Local CompetitiveBidding - RP. - ReservedProcurement 2/ IncludesIrrigation and Drainage0 and M vehicles. 3/ IncludesChak DrainageArea equipment. A I T9,EX5 Table 2

I.TDIA

CHAEMALCOI4MAIND AREA DEVELOPMSENTPROJECT (MADHYAPRADESH)

Equipment List: On-Farm Development Full Package

Item Quantity Unit Price Total Method of ------Rs '000 ------Procurement

(a) Project I'anagement

Field vehicle 20 35 700 RP Pickup truck 5 35 17 RP Subtotal 875

(b) Construction

Drag scraper 4 m3 with 70 hp wheel tractor 30 80 2,400 ICB Bulldozers - 50 hp 3 300 900 ICB Iotor grader 1 320 320 ICB Shieepsfootroller-vibrating 2 120 240 ICB Water tanker/lubricatortruck 2 120 240 AP Tractor trailer - 20 ton 1 160 160 lCB Land plane 4 12 48 ICB Trucks - 10 ton 5' 100 500 RP Iiiscellaneousequipment LS 100 LCB Workshop equipment * LS 120 LCB Survey equipment LS 200 LCB Office equipment LS 100 LOB Subtotal 5,328

Spare parts 15% 799

Total Cost On-Farm Development Full Package - Equipment 6,127

1/ ICB - International Competitive Bidding LCB -- Local Competitive Bidding RP - Reserved Procurement ANiEX 5 Table 3

INDIA

CHAMBALCOMMAND AREA DEVELOPMENT PROJECT (MADHYAPRADESH)

Eqipment List: Roads 1/ Unit Price Rs. Method of Item Quant. Rs. (thousand) Procurement

Road Roller 8-10 T 10 140,000 1,400 ICB

Tipper Trucks 5-7 T 10 110,000 1,100 RP

Front End Loaders l¼cuyd. 2 200,000 400 ICB

Tractors 5 55,000 275 LCB

Tanker Trailers with Spray Bar 5 15,000 75 LCB

Concrete Mixers 2 25,000 50 LCB

Concrete Vibrator 2 10,000 20 LB

Jeeps 5 3.5,000 175 RP

Station Wagons 2 50,000 100 RP

Crane 5 Tons 1 350,000 350 ICB

Graders 2 350,000 700 ICB

&ieep Foot Rollers 5 10,000 50 LCB

Service Trailers 2 50,000 100 ICB

Survey Equipment/Lab Equipment L.S. 125 LCB

Sub Total 41,920 Spares (15%) 738

Total Cost of Road Equipment 5,658

l/ ICB - InternationalCompetitive Bidding LCB - Local Competitive Bidding RP - Reserved Procurement ANINEX Table

INDIA

CHAMBAL COTTIANDAREA DEVELOPMENTPROJECT (HADHYAPRADESII)

Equipment List: (a) Project Administration,Extension and Research (b) Ravine Erosion Control

1/ Item Quantity Unit Price Total Method of -----Rs p000 ------Procurement (a) Project Administration, Extension and Research

Field Vehicles 20 35 700 RP Motor Cycles 38 6 228 LCB Tractors 4 55 220 LCB Ploughs 8 6 - 48 LCB Disc Harrow 4 5 20 LOB Paddy Disc Harrow 2 h 8 LCB Tillers 4 4 16 LCB Seeding Attachment 4 2 8 LCB Transporter 4 2 8 LCB Threshers 4 10 40 LCB MiscellaneousEquipment LS 30 LCB Laboratory Equipment LS 140 LCB Office Equipment LS 80 LOB Subtotal 1,546

Spare Parts 15% 232

Total Cost: Project Administration.Research and Extension Equipment 1,778

(b) RavineErosion Control 2/

Field Vehicles 6 35 210 RP Trucks - 10 ton 4 100 400 RP 610

Spare Parts 15% 90

Total Cost Ravine Erosion Control Equipment 700

1/ LCB - Local Competitive Bidding RP - Reserved Procurement

2/ Ravine control works would be carried with existing machinery. ANiNEX6

INDIA

CHAMBALCC4MAN) AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Schedule of Expenditures

------IDA Fiscal Year-- Total Cost 1975/76 1976/77 1977/78 ------Rs million------

1. Irrigationand Main Drainage 95.2 21.9 43.8 29.5

Chak DrainageArea 28.8 6.7 13.2 8.9

2. On-FarmDevelopment Full Package 22.1 5.5 9.3 7.3

3. Roads 44.5 11.4 19.3 13.8 4. Ravine ErosionControl 3.2 o.6 1.3 1.3 5. SupplementaryFertilizer 4.8 0.5 1.9 2.4 Subtotal 198.6 46.6 88.8 63.2

PhysicalContingencies 16.5 4.1 7.5 4.9

Subtotal 215.1 50.7 96.3 68.1

ExpectedPrice Increases: (%) (40) (25)1/ (39) (51) Rs million 85.0 12.7 37.6 34.7

Subtotal 300.1 63.4 133.9 102.8 6. ProjectAdministration and Operating Coste and Preparationof a Stage II Project 49.7 15.0 16.7 18.0

7. TechnicalAssistance to GOI for CAD ProjectPreparation and for a land developmentspecialist 6.5 2.1 2.2 2.2

ExpectedPrice Increases: (%) (29) (19) (29) (37) Rs million 16.8 3. 5.7 7.8

Subtotal 73.0 20.4 24.6 28.0

Total ProjectCost 373.1 83.8 158.5 130.8

1/ Includesexpected price increasesfrom November1974 until July 1975. ANNEX6 Table 2 Page 1 of 2 pages ;INDIA

CHAMBAL CCMMANDAREA DEVEL)PMENTPROJECT (MADHYAPRADESH)

Allocation of the Proceeds of the Credit

Proposed Alloca- Estimated Cost tion of Credit Total Foreign Amount % of Expend------US$ Million------iture

I. Civil Works Irrigation and Main Drainage 11.10 2.23 Chak Drainage 3.61 0.72 Roads 5.56 1.11 RavineErosion Control 0.40 0.13 PriceContingency 7.93 1.58 Less: - uipmentwith PriceContingency (3.90) (3.33

Sub-Total 24.70 2.44 14.4 60 I. On-FarmDevelopment Full Package 2.76 0.96 PriceContingency 1.11 0.26 Less: Equipmentwith Price Contingency (1.05) (0.93)

Sub-Total 2.82 0.29 1.9 68 III. Equip t Civil Works 2.00 1.80 On-Farm Development 0.80 0.70 Roads -0.70 0.60 Ravine Erosion Control 0.10 0.10 ProjectAdministration 0.20 0.20 Price Contingency 1.42 1.12

Sub-Total 5.22 4.52 3.5 67 IV. Fertilizer o.60 0.57

Price Contingency 0.23 0.19

Sub-Total 0.83 o.76 0.5 60 V. Unallocated

PhysicalContingencies 2.83 o.68

Sub-Total 2.83 o.68 2.5 88 ANNEX 6 Table 2 Page 2 of 2 pages

Proposed Allocation Estimated Cost of Credit Total Foreip Amount % of Expend------UEIillion ------iture

VI. Project Administration and _tage II Xr2iect reparation 7.00 0.70

Price Contingency 2.40 0.24

Less:

Equipment with Price Contingency (0.27) (0.26)

Sub-Total 9-13 o.68 0.4 4

VII Technical Assistance to GOI for CAD project preparation and for a land development specialist. 0.80 0.24

Price Contingency 0.30 0.11 73

Sub-Total 1.10 0.35 0.8

Total ' 46.63 9.72

Less:

Reserved procurement items __1.5

Grand Total 45.13 224.0 53% -ANNEX6 Table 3

INDIA CHAMBALCOMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Estimated Scheoule of Disbursements

IDA Fiscal Disbursements Year & Semester US$ million Equivalent Actual Cumulative

1976 1st

2nd

1977

lt 2.2 7.6

2nd 5.5 13.1

1978

1st 4.1 17.2 2nd 3.4 20.6

1979

1st 3.4 24.o 2rZi ANNEX7 Page 1

INDIA

CHAMBALCOMMAND AREA DEVELOPMENTPROJECT (MADHYAPRADESH)

Organization, Management and Project Financin

Background

1. Command Area Development (CAD), the modernizationof irrigation project infrastructurein phase with On-Farm DevelopmentFull Package has been accorded high priority by the Government of India (Got). The GOI has, therefore, been anxious to devise various organizational arrangements suitable for duplicationin various parts of India. State governmentsare directly concernedwith establishingan organizationcapable of rapid and uniform extension throughout their State. The GOM has decided that CAD could best be implementedin their State by existing agencies,supervised and co-ordinatedat project level by the Commissionerof the CAA.

Project Coordinationand Management

2. In September 1974, GOM officially constitutedthe Chambal CAM which is headed by a Commissioner. The CAA is placed umder the jurisdiction of the Minister of Agriculture and Food. The Commissionerreports directly to the AgriculturalProduction Commissioner(APC). The APC is also an additional Chief Secretarywith direct access to the Chief Minister. CAD activities at State level are coordinatedby a Committeewith the Agri- cultural Production Commissioner as Chairman and include the Secretaries of Finance, Agriculture,Irrigation, Public Works and Revenue. The CAA Commissionerhas chief executive authority for all activitieswithin the Command Area related to the development. Coordinationat project level is ensured by a CAA Board of Directors comprisingthe State Heads of the concerned departments or their representatives with the CAA Commissioner as Chairman. The CAD organizationstructure is depicted in Chart WB9697.

Functions and Responsibilities of CAA

3. A GOMresolution setting up the Authority on September 4, 1974 defined CAM responsibilitiesas:

(a) "Modernization, maintenance and efficient operation of the irrigationsystem up to the outlet of 28 1/s capacity;

(b) Developmentand maintenanceof the main and intermediate drainage system; ANNEX 7 Page 2

(d) Land-levellingon an outlet command basis for the type of irrigatedcrop that is to be grown;

(e) Consolidationof holdings and redrawing of field boundarieswherever necessary for efficient soil and water management on an outlet command basis;

(f) Enforcementof a proper system of 'warabandi'and fair distributionof water to indivldualfields;

(g) Selectionand introductionof suitable cropping patterns;

(h) Developmentof groundwraterto supplement surface irrigation;

(i) Supply of all inputs zmd services includingcredit;

(j) Preparingindividual programs of action for small farmers, marginal farmtersand agriculturallaborers as part of the Master Plan;

(k) Diversificationof agricultureand developmentof activitieslike animal husbandry, farm forestry, poultry, etc.

(1) Developmentof marketing and processing facilities;

(m) Soil conservationand afforestation,where necessary;

(n) Town and Country Planning;

(o) Constructionof new roads within its jurisdictionfor opening up areas;

(p). Proper developmentof transportand communications includingpost-offices, telephone and telegraphoffices, etc., in consultationwith the appropriateauthorities;

(q) Developmentof cottage and small scale industriesin the command areas; and

(r) Promotionand developmentof cooperativemovement in the command area for providing inputs and services;setting up of processing industriesbesides arrangingall short, long and medium term credit requirementsof the area." ANNEX7 Page 3

4. The CAA prepares annual development plans and cost estimates for the approval of the Agricultural Production Commissioner who is assisted by the State level CAD CoordinatingCommittee. The CAA does not have a separate budget for the developmentprogram, which would be financed through the budgets of participatingDepartments. The CAA Commissionerhas complete administrativecontrol and power over the staff involved in project implementation. The CAM appoints its own staff subject to Government approval of the number of posts to be created. Thereafter, such staff cannot be transferredwithout the agreement of the CAA.

Role of GovernmentDepartments

5. Under the overall supervisionand coordinationof the CAA, the individual GovernmentDepartments would assume the following responsibilities: The IrrigationDepartment would be charged with the improvementand operation of project irrigation and drainage works including lining and repairs of sections of main and branch canals, distributaries and minor canals, and drainage works, down to the outlet from the minor to the chak. It would also have responsibility for the chak drainage works in collaboration with the Soil ConservationService and the Revenue Department;The Agriculture Departmentwould be responsible for all on-farm works including boundary realignment,land shaping, constructionand improvementof watercourses, drains, etc., and would have responsibilityfor the ravine erosion control works. It would utilize the Agro-IndustriesCorporation to implement that part of the On-Farm DevelopmentFull Package works requiring mechanization; Machinery and workshop'facilities of the Agro-IndustriesCorporation would be suitably strengthened;The Department of Public Works (Buildings and Roads) would implement the project road developmentand improvement,and the constructionof project buildings; The Revenue Department through the Collectors at Morena and Bhind, would, as necessary, exercise its powers in respect of land developmentand registration,and collectionof revenue arrears; The Madhya Pradesh ElectricityBoard, a statutory authority,would provide power as required for project works; The Department of Cooperation would be responsible for strengtheningcredit, marketing and processing societies.

Financing of Project Works

6. All project works comprising irrigation,main drainage, roads, ravine erosion control and, in the first instance, On-Farm DevelopmentFull Package and Cnak Drainageworks would be financed by annual allocationsfrom the GONtdevelopment budget. All project administrativeand operating costs would be met annually from the GOM budget which would also include funds to cover the costs of agric;olturalresearch and extension. Funds for the project would be made available in the annual budgets of the GOM departments of Revenue, Agriculture,Irrigation, Public Works, Cooperation and Forestry. On-farm developmentcosts would be financed by means of a GOM budget advance which would be reimbursed in large part by assumptionof farmers loans by the Land DevelopmentBank (LDB) and the CommercialBank (CB) and refinanced ANNEX7 Page 4 by Agricultural Refinance Corporation immediately following completion of each chak as described below.

7. Because the on-farm developmentmust be carried out systematically over whole chaks (Annex 2), the program would be compulsory. Legal powers to carry out such On-Farm DevelopmentFull Package and to recover costs are available in the followinglegislation:

(a) Land ImprovementLoans Act of 1883;

(b) Madhya Pradesh Irrigation (SecondAdmendment) Act 1960;

(d) Resolutionsetting up Chambal CAA: GOM Order published September 9, 1974.

The NP Land ImprovementSchemes Act has been amended to permit Commercial Banks to participate in financing On-Farm Development Full Package would bieequired.

8. To carry out effectivelya full package of on-farm development over 12,000 ha and chak drainage over 20,000 ha would requirenot only the necessarylegal instrumentsand skillful planning but also the whole- hearted cooperationof the cultivators. In order to select, judiciously, the chaks for On-Farm Development'Full Package, the approval of the cultivators would be sought. GOMwould continue their present, considerable p re-extensionprogram aimed at exp:lainingthe benefits of On-Farm Develop- ment Full Package.

9. The cost of category (a) On-Farm DevelopmentFull Package would be largely financed by the LDB and CB; they would in turn be refinanced 75% or more by the Agricultural Refinance Corporation (ARC). The On-Farm Development Full Package areas would be divided, for the purposes of banks' operations, between the LDB and CB.

1t. The GOM would finance farmers not eligible to receive bank loans and would recover these loans by collections as arrears of Land Revenue. It is presently estimated that up to 10% of the farmers (representing less than 10% of the land area) would be ineligible for a bank loan because of indebtedness, or lack of clear land[ title. GOM and LDB are currently under- taking an intensive program to collect overdues and reduce indebtedness. ill. The ARC has indicated its willingness to refinance eligible loans at:75% or more. Participationof IRC would be essential for refinancing loans made by LDB and CB. The ARC would raise funds by borrowing from GOI arLdfrom any entity approved by the GOI; from issue and sale of debentures ANNEX 7 Page 5

and bonds guaranteedby the GOI, borrowing from the Reserve Bank of India, and deposits from the GOI, State governmentsand local authorities.

12. The LDBs are organized on a two-tierbasis with the-StateLand DevelopmentBanks (SLDBs) operating in the various districts of the State. The State LDBs receive their funds from share capital and deposits of members, loans and grants from state governmentsand sale of debentures. The debentures are purchased primarily by the Reserve Bank of India and ARC. There are two Primary Land DevelopmentBanks located at Bhind and Morena. The Bhind LDB has four branches: Mehgaon, Gohad, Lahar and Bhind. The Morena Bank has seven branches: Ambah, Jora, Sabalgarh, Kaliras, Sheopur, Vijaypur and Morena. The branches are widely distributed over the project area and should be able to service the areas selected for On-Farm Development Full Package. The LDB raises funds from share capital provided by members, from the sale of debentures, and from borrowings from the SLDBs.

13. The Commercial Banks are relatively new in the field of long-term agriculturalcredit, but they ascribe high priority to on farm development and have indicated an intent to take necessary steps to organize in order to carry out their assigned responsibility. The Central and State Commer- cial Banks of India both operate in the project area. The Central Bank of India has been designated the "lead bank" in the Morena District. It has already established four branches in order that it may improve its services to agriculture. Both Commercial Banks would establish additionalbranches as necessary to service the On-Farm DevelopmentFull Package areas assigned to them. The CB obtains funds from depositors or from refinancingthrough the Reserve Bank of India. The participationof the CB, in the overall proposal, provides a means of mobilizing capital from the private sector for agriculturaldevelopment.

14. Loans for On-Farm DevelopmentFull Package would be for a 12-year period including 1 year's grace at an interest rate of 10-1/2%. It is also expected that farmers who are ineligible for loans from the banks would be financed by MP under the same terms. However, if farmers are eligible for such loans but decline to sign application for them, then it is proposed that IP charge a premium rate--at least 12-1/2% in order to encourage all eligible farmers to take bank loans. ANNEX8 Page 1

INDIA

CHAMBALCOMMAND AREA DEVELOPMENTPROJECT (MADHYAPRADESH)

Agricultural SupportingServices

1. In the past, deficiencies in the level and quantity of the supporting services have seriouslyconstrained development of the full agricultural potentialof the project area. The serviceswere not fully coordinatednor did they have an impact on many of the individualfarms except when leading progressivefarmers took the initiativethemselves. Efforts such as extension proved difficult to sustain. In order to maximize the benefits of the physical facilitiesproposed undlerthe project, considerableimprovement in the supportingservices, particularly in agriculturalextension and research,would be required. With this in mind, GOM, followinga visit by a Bank Group consultantin early 1974, introducedan improved extension service patternedon the model developed for Rajastjan State. The more importantagricultural supporting services and inputs are describedbelow.

AgriculturalResearch

2. There are four agriculturalstations of Baroda, Jora, Morena and Bhind involved in applied research in the project area. The programs which are carried out by the Depat'tmertof Agriculture,with the assistanceof the State AgriculturalUniversity, cover all the main crops of the area, wheat, millet, sorghum,paddy and oilseeds. The research includesvariety, fertilizer,plant protectionand irrigationtrials. The four stations also grow certified seed to be released to progressivegrowers for multiplication.

3. The research program would be continuedand expanded under the project with emphasis on the following:

(a) varietal trials, time of planting, spacing for yield and disease resistance;

(b) response of crops to various fertilizerlevels up to optimum level and the interactionof timing of irrigation;

(d) study of the kharif interplantingsystem with bajra and/or jowar and the pulses;

(e) monitoring of soil salinity and akalinity in the project area and pilot reclamationtrials, and

(f) weed control. ANNEX 8 Page 2

4. The research program would work in close support of the project objectives. Annual costs for research would continue to be financed from GOI and GOM budget, under the auspices of the Indian Council for Agricultu- ral Research (ICAR). Laboratory equipment, field vehicles and farm machinery would be provided together with laboratory and office buildings and a limited amount of housing. Existing research farms would be provided with improved irrigation,drainage, land leveling and additional storage facilities.

5. Full-time research staff would be appointed, but would be limited initially to an agronomist,soil chemist, soil physicist, a plant physio- logist and a statistician. Additional assistant agronomistswould be posted to each sub-station. One specializedagriculturist would be appointed to head each of the wheat and paddy programs. Subject matter specialists (SMS) would conduct simple demonstration,to assist extension workers' training. Considerableresearch is undertaken at university stations of Indore, Sehore, Jabalpur, Rewa and Raipur. Visits would continue to these important research centers. Project research personnel and SMS would be sent for refresher training to the all-India Rice Improvementprogram at Hyberabad, Andhra Pradesh, and to the national centers for wheat research in northern India.

AgriculturalExtension

6. The effectivenessof extensionhas recently been improved in Rajasthan. The new system cdncentrateson achieving yield improvementsin one or two crops by improving farm management (timelinessof operations, irrigationpractices, pest control, etc.) without increasing inputs. This system is being introduced to Mahdya Pradesh. The system involves strict adherence to schedules, and concentrationon a few crops and practices for a limited number of "contact" farmers in each chak. Each contact farmer receives a regular two-weeklyvisit from the Village Extension Worker (VEW). Experience in Rajastjan, so far, is that a large number of additional farmers quickly follow the example set by the contact farmer.

7. Because a massive extension effort would be required to achieve the production targets GOM has agreed to reorganize its Chambal extension service on the principles outlined above. The new organizationwould be headed by the Project Extension Director who would be responsiblefor all agriculturalactivities in the project area. He would be assisted by seven subject matter specialistsand two Deputy Directors, one each for the Morena and Bhind District. A unit based on a training center at Morena would be responsiblefor all in-servicetraining. The project area would be divided into six extension sub-div-sions;two in Bhind District and four in Morena. A Sub-DistrictExtension Office, headed by a Sub-DistrictExtension Officer (SDEO) would be establishedin each of the six sub-districts. Each SDEO would be assisted by AgriculturalExtension Officers (AEOs),the numbers of these would be determined by the number of farmers in a sub-division,and the number of subject matter specialists. ANNEX 8 Page 3

8. Every AEO would be responsiblefor the work of the six Village ExtensionWorkers (VEWs)maintaining weekly contact with each VEW. Each VEW would be responsiblefor provision of extension services to about 240 farmers. The VEW would visit each chak once a week on a fixed day. A progressive farmer would be selected in each chak to act as a liaison with the farmers.

9. To coordinate the project extensionactivities with the overall developmentefforts in the project area, and to obtain assistance from research and other technicalpersonnel, a Project Extension Council would be set up under the chairmanshipof the CAA Commissioner. The Council membership would include personneL from all relevant organizations.

10. A number of different crops are grown in the project area, and each has its technicalproblems. Init:ially,the efforts of the technicalpersonnel would be focused on a limited area and confined to the main crops in their area, with a view to significantlyincreasing yields in the shortest 1possibletime.

11. Vehicles would be allocated to the Director of the Extension P?roject,his two deputies, his SMSs, the Director of the Training Unit and itheSDEOs. AEOs and the SMSs in the Sub-Districtwould receive loans to buy motorcyclesand receive mileage allowances. Office space would be provided by the headquartersof each of the two Districts, and in each of tWhesix Sub-Districts. Adequate space for the training center would also be provided. Each member of the extension organizationwould receive proper h-ousingin the vicinity of his work.

12. Successfulextension act:ivitiesdepend on the training of the wiorkers. A program will be introclucedto cover both the practical aspects of farming, and efficientmethods of passing this informationon to the farms. All extension personnel would have regular courses. They would also visit good representativefields cnd research stations. The direction of the main efforts and activitieswould be decided on a weekly basis. Short courses would also be provided for progressive farmers in the area.

Training of AgriculturalDepartment Soil ConservationOfficers

13. The limited experience of soil conservation officers in Xna-Farm Development Full Package survey and design has been noted in the report (Annex 2). A training program would therefore be initiated for those of- f-icersresponsible for that aspect:of project implementation. The course would cover topographicalsurveying and plotting, design of farm irrigation and drainage works, soil survey and studies of soil characteristicsinflu- encing design. An internationallyrecruited On-Farm Development adviser would be assigned to the project. It would be feasible for a single adviser to be shared between Chambal MP and Chambal Rajasthan (CAD) Projects. ANNEX 8 Page 4

Soil Survey

14. A semi-detailedsoil survey has been completed for the whole of the command area by the Soil Science and AgriculturalChemistry Section of the AgriculturalResearch Institute at Gwalior. Additional soils informa- tion required for designingon-farm developmentworks would be collected by Soil Conservationpersonnel during the course of the topographicalsurvey. AssistantSoil ConservationEngineers would receive training in recognition and descriptionof soil types and special features influencingdesign, during their initial training.

Seed

15. To maintain a continuoussupply of high quality seed, the Madhya Pradesh Governmentmakes avialableeach year 10% of the requirementsof improved seeds of high yielding grain varieties and other important crops. The supply comes mainly from Governmentseeds farmers for multiplication. The rapidly increasingdemand for Mexican wheat has been met in this way. There is, however, an evident need for a better organized system of seed productionand distribution,with particular emphasis on quality control, seed cleaning facilitiesand adequate storage,-ifthe requirementsof the project at full developmentare to be satisfactorilymet.

16. The Seeds Act has been enforced in the State and an independent organizationfor seed certificationis envisaged. Additional seed farms are being established in the Command Area and steps are being taken to bring progressive farmers together into seed growing cooperatives. A full-scale seed multiplication project, although desirable, would need to be organized on a State-widebasis, and is not, therefore,proposed as a component of the project. The GOM would, however, give considerationto the overall needs of the State with a view to preparing a future seeds project.

Fertilizers

17. Farmers in the project area are aware of the benefits of using fertilizersparticularly for HYV wheat and paddy. However, they have been using only 50%-60% of the amounts recommendedfor maximum yield, due to poor distributionand high prices. Over the five year (1975-79)period, both domesticallyproduced and internationalfertilizer supplies should increase and unit costs decline. Fertilizer is to be procured internationally under the annual All-India tender procedure acceptable to the Association. GOI is expected to make sufficient fertilizeravailable to the State, and the State, in turn, to the p-oject.

18. Because of the land shaping operationon the 12,000 ha On-Farm DevelopmentFull Package area, the soil fertilityon approximatelyhalf of the area (6,000 ha) would be reduced as a result of the removal of the top soil. It is estimated that 50 kg of N and 30 kg of P would be required for ANNEX 8 Page 5 each of two years to restore the fertility. This would require about 2,000 tons and it is estimated that it would cost Rs 4.8 million.

Farmers Organizations

19. The major farmers organizationsin the project area are the cooperatives,the irrigation associationsand the village councils (Panchayats). These are discussed below.

20. Cooperatives: In Madhya Pradesh State as a whole 40% of the farmers are members of cooperative societies. There are 199 Primary Credit Societies (PCS) in Bhind District and 238 in Morena District. Their main functions are the receipt of the deposits and provision of short- and medium-term credit, supply of agricultural production inputs and marketing of produce to their members. Medium-termloans were mainly given for well construction,installation of pump sets and purchase of bullocks. The PCS vary widely in the strength of their managementand the services they provide.

21. At State level there is a State CooperativeBank. In each of the two districts there is a Central CooperativeBank (CCB). Overdues are high both at the CCB and PCS levels.

22. Irrigation association;sare relativelynew in the project area. There is no detailed evidence of their individualperformance. However, as the area irrigatedunder the project has steadily increased in the last seven years to a total of 15b,000ha, it must be assumed that these, largely informalwater users groups have had some success. Further improvement would be a major goal of the project (Annex 9).

23. Panchayats (village councils) are the basic units of elective local government. They cover one or more villages with a total population of 1,500. Previously, the village agricultural extension workers were responsibleto the panchayatswii:h mixed results. This is now being changed under the transformed extension service (para. 7). The close cooperation of the panchayat leaders would be sought, however, to assist project development.

AgriculturalCredit

24. The agricultural credit: aspects of the project are described in detail in Reference 1 (See Table of Contents), which also contains financial statements for the various institutions. A substantialshare of farmers credit requirementsin India is providedby private money lende-cs. Ins- titutionalagricultural credit is providedby the cooperativemovement, the Land DevelopmentBank, and, increasingly,the major CommercialBanks.

25. Cooperative credit institutions and Commercial Banks would be involved in the financing of the On-Farm Development Full Package works. About two thirds of the project area would be served by the Cooperatives, ANNEX 8 Page 6 and the remainder by the Commercial Banks. Farmers involved in On-Farm DevelopmentFull Package would get seasonal credit from the same source as their development loan, but the much more intensive coverage of the area by the CooperativeBanks will probably mean that other farmers will use this source of credit. The terms and interest rates are shown in Table 1.

26. There are two types of cooperative credit institutionsin the project area: (a) CooperativeBanks, which extend short- and medium-term loans (up to 5 years), and (b) Land DevelopmentBanks which extend long-term loans (up to 15 years).

27. The CooperativeBanks have a three tier structure: at the State level there is the State CooperativeBank (SCB), at the district level the Central CooperativeBanks (CCB) Bhind and Morena, and at the village level there are Primary Credit Societies (PCS).

28. The Cooperativemovement is very widespread- there are nearly 10,000 PCS in Madhya Pradesh, and 437 in the project area. About 40% of the State's farmers are members. Although a considerablevolume of deposits from members has been generated by the PCS, the major source of funds is refinancingfrom the Reserve Bank of India, at 2% below bank rate, via the State Cooperative Bank. In mid-1973, total outstandingshort-term advances to farmers in the project area were Rs 50 million, largely for crop inputs, while medium-term loans (largely for well constructionand installationof pump sets) were Rs 9.5 million. Overdues are high in the project area. A campaign is underway to improve the situation,utilizing for the first time, the statutorypowers of the State Collectors.

29. The Land DevelopmentBanks (LDB) have a two tier structure. The State LDB is located at Bhopal, and has eight branches, one of which is at Gwalior. The LDB provides finance and supervisionfor the activities of the 43 Primary Land Development Banks (PLDB) and their 181 branches at district level, including eight branches in the project area. At the close of 1972-73, the SLDB had loans of almost Rs 350 million outstanding to Primary LDBs. This was financed by sales of debentures to the Reserve Bank of India, State Government, commercial banks, etc. (about 70%), and sales of debentures to the AgriculturalRefinance Corporation (ARC, 20%), the remainder coming from reserves, deposits, share capital and profits. Advances for FY 1973 totaled Rs 119.6 million, of which 32% was for ARC scheme loans. Overdues made a technical recovery as a result of a special share capital investment by the State Government at the PLDB level, enabling them to increase their repayments to the SLDB. The extent to which this may be done to meet ARC recovery requirementsis now limited by ARC refinancing rules, and thus the overdues situationmust be carefullywatched. The percentage of overdues to demand for the project area LDB in 1972/73was just under 20%. Most of the credit extended by the PLDB's in the project area has been for minor irrigationworks, tubewells, tractors and other farm equipment. The sanctioningauthority of the PLDB is Rs 10,000,which is more than the expected average loan requirementfor the project. ANNEX 8 Page 7

30. Commercial Banks - Since nationalization,the Commercial Banks (CB) have been encouraged to expand their agriculturallending. An expansionhas taken place, but this has generallybeen confined to loans to the bigger farmers. The relatively high risk (althoughthe Credit Guarantee Corporation guarantees most categories of loans), low rate of return and larger ad- ministrativecost per loan to small farmers undoubtedly is a disincentive to CB involvement. CB would, however, participate in financing of project On-Farm DevelopmentFull Package works; they agreed to modify their loan requirementsfor On-Farm DevelopmentFull Package works so as to make conditions uniform throughout the project area.

31. The Central Bank of India is the designated "lead" bank for the project area. The lead bank in any area is responsible for surveying the agriculturalneed for credit in the area and ensuring provision of adequate facilities to meet this need. Branch expansion has been one of the most significantachievements since nationalization.

32. There are five CB in total in the project area. When the geographicaldivision of areas between CB and LDB has been agreed, more branches will be opened.

33. AgriculturalRefinance Corporation (ARC) - ARC has been described in previous Credit agreements. Its main function in the project would be the refinancingof -atleast 75% of the amounts of loans made by CB and LDB to eligible farmers. Funds for this would be provided by GOI. INDIA

C{AXBAL C0IATSNDAREA DEVELOPMENT(MADHYA PRADESH)

Agricultural Credit-Terms of Lending

Loan Type Lender Deposit or Interest Term Security Rate Seasonal Primary Cooperative 1 0 /o/ 110/0 Season crop lien

Conmercial Bank Two Guarantors crop lien 10.50/ Season

Medium Tern Primary Cooperative 10°/o.-/ 11-1/2O/o 3 - 5 yrs. Land or Asset Purchased

Land Development Bank 5-7 /o 2 9-1/2°/o 3 - 5 yrs. Land and Assets

Commercial Bank 10-25°o/l 10-1/20/o 3 - 5 yrs. Two Guarantors Crop and Assets

Long Term"-/ Land Development Bank 5°/o 10-1/20/o 10 - 15 yrs. Commercial Bank Land One year 8race

1/ In the form of shares in the society. j Also ensures access to production credits. 3/ Proposed unified terms for On Farm Development Loans.

CT3

HCn ANNEX 9 Page 1

INDIA

CHAMBALCOMMAND AREA DEVELOPMENTPROJECT (MADHYAPRADESH)

Operation and Maintenance

Existing Situation

1. The Operation and Maintenance (O & M) of the irrigation system is the responsibilityof the Irrigation Department. The present level of 0 & M is unsatisfactorybecause of the deficiencieslisted in Annex 2 paragraph 3. The major management difficultiesare the lack of a water allocation plan (para. 5) and a shortage of staff. Also, maintenanceof the drainage system has been limited. These problems are aggravatedby financial constraints. Whereas the current irrigation assessements average Rs 30 per irrigated ha only Rs 18/per ha are allocated for 0 & M. Madhya Pradesh also contributes50% of the cost of 0 & M of the Kota Barrage and 75% of that for the common carrier (RMC) in Rajasthan.

2. The maintenanceof national and State highways,major and other district public works is the responsibilityof the Madhya Pradesh Public Works Department. Standards of road maintenance are discussed in paragraph 10. 0

Irrigationand Drainage System

3. The 0 & M of the irrigation system down to the chak outlet and the main drainage systems would continue to be the responsibilityof the IrrigationDepartment staff within the frameworkof the CAA. The staff would be increased in number and provided with housing located at strategic control points throughout the canal system. The proposed organizational arrangementsare discussed in Annex 7. Vehicles and equipment to be procured under the project (Annex 51 would be adequate to meet the needs of both constructionand 0 & M. Constructionequipment would be used for 0 & M after project completion.

4. The costs of 0 & M of t:heirrigation and drainage system have been estimatedat Rs 48 (US$6) per ha per annum.

Water Allocation

5. The projected cropping patterns have been selected to make optimum use of the water supply. The canal system was completed between 1960-70 from the head of the RMC downstream,except for the existing Bhind canal. As each successiveminor canal was completed, its commandedarea was provided with irrigation service. Until the whole canal system was ANNEX 9 Page 2 completed in 1970 (largely completed in 1967/68), there was a water supply surplus. Upstream areas were supplied with excessive amounts of water, and this contributed to the waterlogging of the area.

6. IWiththe completion of the system, the downstream areas received too little water at peak periods, although supplies in the upstream areas were still excessive. This situation could be remedied by a combination of physical and canal management improvements. The GOMhas agreed to introduce an equitable water allocation plan during the project.

7. The disposition of soils and the topography generally determines the particular cropping pattern selected. On the flat, heavy soil areas the predominant pattern would be monsoon HYV paddy followed by dry season pulses. On the gently undulating, light soil areas monsoon pulses would be followed by dry season HYV wheat.

8. For canal operation purposes, the project area would be divided into 400-800 ha irrigation blocks, each served by a minor canal, according to topography and soils. At the beginning of each water year in June, the Irrigation and Agricultural Departments would, in close consultation with the irrigation associations of the chaks (Annex 8), prepare water delivery scheules. All chaks in the command of a particular minor canal would receive water according to either of the two cropping patterns. During the project, refinements of this water allocation plan would be made as soon as better canal management was achieved. Within five years it should be possible to provide irrigation service on a chak by chak basis.

On-Farm Works

9. The communally owned watercourses, drains and roads within the typical 30-40 ha chak would be operated and maintained by associations of farmers. The main function of these associations would be to plan and carry out rotational irrigation (warabandi) to ensure an equitable share of water for each farmer. They would be assisted by the Irrigation Depart- ment. Present practice is to subdivide the chak, which generally has 30-40 farmers into about 5-6 units (Thoks) each headed by an elected watermaster (Thokdar) responsible for supervising the irrigation of the unit. This has provedlsuccessful on the present limited scale (only about 5% of the project area has rotational irrigation). A group of chaks forming the minor canal command area are supervised by the irrigation patwari (village- level irrigation official). The Irrigation Department engineers have regulating powers to ensure compliance with the approved water delivery schedule. Rotational irrigation would be implemented throughout the project area within five years of project commencement.

Roads

10. Road maintenance would continue to be the responsibility of the PUD. Maintenance would be ensured for those roads constructed under the ANNEX 9 Page 3 project. Also, equipment procuredlunder the project would facilitatemore regular maintenanceof all roads Ln the project area. The cost of maintenance of roads constructedunder the project would be about Rs 3,500 per km. ANNEX10 Page 1

INDIA

CHAMBALCOMMAND AREA DEVELOPMENTPROJECT (MADHYAPRADESH)

Agricultural Production

1. This Annex outlines the more important factors which affect higher agriculturalproduction anticipatedunder the project. Cropping patterns, yields and production for the present, future-with,and future-without project conditions are presented in Tables 1-4. The cropping calendar for the project area is shown on Figure 1..

2. Prior to the Chambal IrrigationProject, the crops were mainly rainfed and brought to maturity on residual moisture. The subsistence type agriculturewas reflected in various systems of interplantingcrops and in the drought resistant, low yielding nature of the crops grown. The major summer monsoon (kharif)crops included jowar (sorghum),bajra (pennisetum millet), and pulses (mainly pigeon pea and green and black gram) followed in winter (rabi) by duram wheaes, gram, oilseeds (mustard and linseed),lentils and sesamum.

Present Cropping Patterns

3. These crops continued even after the introductionof irrigation. There was a significantchange from rainfed to irrigatedagriculture only in those upstream parts of the project area which had a dependablewater supply. Paddy, which was previously grown only in the old Bhind Canal area, has spread to Sheopur, Pramsar, Baroda and Jora areas while HYV wheat has largely replaced the local duram varieties. Sugarcaneis grown on a small scale, largely around the Kailaras sugar factory. Both the light and heavy soils in the project area support the same range of crops with a few exceptions. Paddy is grown only on the heavy soils, jowar is largely grown on the heavy and medium textured soils, and bajra on the lighter soils.

4. The various cropping patterns are illustratedon the cropping calendar in Figure 1. Paddy generally cannot be followedby HYV wheat, except on the few mechanized farms, due to the field preparation time required between these crops. Jowar and bajra must be harvested early in October to permit the full range of winter crops to follow. Mustard, an importantwinter oil crop must usually be planted on land left fallow during the precedingmonsoon period.

5. The present land use and irrigation intensity remain low, due to inadequatewater supply, and lack of on-farm development. The present overall cropping intensity is 105% and only about 65% of the land is cropped under irrigationmost years. Most crops are grown during the ANNEX 10 Page 2

winter season when the overall and irrigated cropping intensities reach 80% and 60% respectively. Low irrigated cropping during the monsoon reflects the traditional dearth of paddy despite abundant kharif season water and suitable soils. Farmers in the project area have preferred to leave their lands fallow during the monsoon and plant winter wheat and oilseeds. The reasons for this choice are not entirely clear but probably indicate the dietary preference for wheat as a staple. However, paddy is now of growing importance as a valuable cash cro01.

6. Present conditions are also demonstrated by the low crop yields obtained which are as follows (in tons/ha): HYV wheat, 1.9; bajra, 0.8; jowar, 0.9; oilseeds, 0.5; pulses, 0.7; paddy, 2.2; sugarcane 35. These low yields are also a result of limited fertilizer use. Farmers presently use only about one half of recomnended dosage.

7. 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 plowing and transport, and milk buffalos form the typical stock holding. This, therefore, requires substantial home-grown fodder whichiin turn influences the farmers' choice of crops. Less than 400 farm tractors are reported in the project area but mechanization, including custom hire of tractors, is slowly spreading and would be stimulated by the project.

Projected Cropping Patterns

8. In the absence of project development or other special programs aimed at making better use of existing land and water resources a slow improvement in cropping intensity and crop yields can be anticipated over the next decade. The irrigated cropping intensity is expected to increase by about 10% and yields of paddy and wheat would rise by about 12%.

9. Under the project, both cropping intensities and crop yields would be anticipated to rise steadily as a result of better water supply, improved cultivation practices and additional inputs (fertilizer,improved seed and pesticides). For the purpose of project analysis, an 11-year period from commencement of project implementation to full development has been assumed. No new crops are proposed under the project.

10. The overall cropping intensity would increase to about 125% and irrigation intensity would rise to nearly 85%, including 72% during the rabi season. The irrigated cropping pattern during the kharif period would remain relatively low but strenuous efforts would be made by the Extension service to increase the area planted to paddy. This would also be stimulated by a water allocation schedule aimed at timely supplies to ensure early season field preparati3n and paddy nurseries. ANNEX 10 Page 3

11. Crop production increase would be most rapid in the 20,000 ha Chak Drainage area which would respond immediately to surface water removal. Rapid increaseswould also be anticipatedon the 12,000 ha On-Farm Develop- ment Full Package area as a result of the complete package of land development; improved field water supply and drainage, and the emphasis on better cultivationpractices and farm inputs. The 192,000 ha Extensive area production would grow slowly compared to the other two areas. Crop production is projected to increase as follows:

ggpq _rPresent Year 11 -- '000 tons

wheat 155 240 Paddy 26 75 Bajra 22 43 Jowar 9 15 Pulses 38 62 Oilseeds 28 59 Sugarcane 77 187 ANNEX 10 Table I INDIA

CRABAMLCOMMAND AREA DEVELOPMENTPROJECT (MADHYAPRADESII)

Agricultural Production - Total Area (224,000 ha)

Present Future - Without Project Future - With Proiect Value of Value of Value of Area Production Production Area Production Production Area Production Production CROP '000 ha '000 Ton Rs '000 '000 ha '000 Ton Rs '000 '000 ha '000 Ton Rs '000

KqIIRIF - Irrigated

Paddy 12.0 26.5 24,380 16.4 40.6 37,360 24.0 74.3 68',350 Hybrid Bajra,/ ------3.1 6.3 5,800 Sugarcane - 2.2 76.6 9,190 3.2 127.0 15,240 3.7 186.6 22,390

KHARIF - Non-Irrigated

Bajra 27.7 22.0 20,240 29.9 29.8 27,410 32.6 37.2 34,220 Jowar 2/ 9.8 8.5 7,820 10.2 10.1 9,290 12.5 15.0 13,790 Pulsesa (16.0) 8.0 9,990 (18.6) 11.4 14,240 (23.7) 17.5 21,870 Sesamum 1.2 0.4 1,210 1.2 0.5 1,520 2.4 1.4 4,240

Sub-Total 52.9 60.9 7.,, Wharif uropping Intensity % 24 27 35 BI - Irrigated Wheat (HYV) 75.6 142.8 142,800 81.7 171.1 171,100 88.7 222.9 222,900 Wheat (Local) 13.9 12.5 12,500 15.9 17.2 17,200 13.4 16.0 16,000 Pulses 17.9 13.1 16,370 19.9 18.4 23,000 20.6 27.3 29,750 oilseeds 21.1 17.1 32,840 23.1 23.2 44,540 29.8 39.2 64,890 Sugarcane 1' 2.2 3.2 3.7 RABI - Non-Irrigated Pulses 32.9 16.4 20,490 31.4 18.9 23,620 24.1 17.0 21,250 Oilseeds 21.2 10.7 20,550 27.1 16.3 31,300 26.1 18.5 35,520

Sub-Total 184.8 202.3 206.4

Rabi Cropping Intensity h 82 90 92

TOTAL.S 237.7 318,380 263.2 415.820 284.7 560.970

Cropping Intensity % 106 117 127

Irrigated Cropping Intensity % 65 73 83

cr x 1/ Sugarcane occupies land for 9-10 months and is included as irrigated in both Rharif and Rabi. - x 2/ Interplanted with Bajra or Jowar. ANNEX 10 Table 2 INDIA

CHAIABALCOMKAND AREA PROJECTJEVNLOPE8T (MADHYA PRADESH)

Agricultural Production - On-Farm De_upaent FulL Package Area (12,000 ha)

Present Future - Without Prolect Future - With Project Value of Value of Value of Area Yield Production Production Area Yield Production Production Area Yield Production Production CROP '000 ha Ton/ha '000 Ton Rs '000 '000 ha Ton/ha '000 Ton Rs '000 '000 ha Ton/ha '000 Ton Rs '000 EHARIF - Irrigated

Paddy 1.7 2.4 4.1 3,770 1.9 2.6 4.9 4,510 2.9 3.6 10.4 9,570 Hybrid BaJra 1/ ------0.6 2.2 1.3 1,200 Sugarcane - 0.1 34.7 3.5 420 0.1 39.8 4.0 480 0.1 57.1 5.7 680 KHARIF - Non-Irrigated

Bajra 1.1 0.8 * 0.9 830 1.3 0.9 1.2 1,100 1.2 1.6 1.9 1,750 Jowar 2 1.8 0.8 1.4 1,290 1.9 1.0 1.9 1,750 2.0 1.6 3.2 2,940 Pulses- (1.8) 0.5 0.9 1,120 (2.2) 0.7 1.5 1,870 (2.4) 0.9 2.2 2,750 Sesamum 0.2 0.3 0.1 300 0.2 0.4 0.1 300 0.3 0.7 0.2 600

Sub-Total 4.9 5.4 7.1

Kharif Cropping Intensity % 41 45 59

RABI - Irrigated

Wheat (HYV) 4.2 1.8 7.6 7,600 4.5 2.1 9.4 9,400 4.9 3.6 17.6 17,600 Wheat (Local) 1.2 0.9 1.1 1,100 1.2 1.1 1.3 1,300 0.7 1.8 1.3 1,300 Pulses 1.5 1.0 1.5 1,870 1.6 1.1 1.8 2,250 1.7 1.5 2.6 3,250 O0lseeds 0.8 1.0 0.8 1,540 1.0 1.L 1.1 2,110 1.1 1.5 1.7 3,260 Sugarcane if 0.1 0.1 0.1

RABI - Non-lrrigated

Pulses 1.0 0.5 0.5 620 0.9 0.7 0.6 750 0.8 0.9 0.7 870 Oilseeds 0.5 0.6 0.3 580 0.6 0.7 0.4 770 0.5 0.9 0.5 960

Sub-Total 9.3 9.9 .. 8

Rabi Cropping Intensity /. 77 82 82

TOTALS 14.5 21.040 15.3 268590 16.9 46,730 g|

Cropping Intensity % 118 127 141 lo

Irrigated Cropping Intensity % 80 87 101

I/ Sugarcane occupies land for 9-10 months and is included as irrigated in both Kharif and Rabi. 2/ Interplanted with Bajra or Jowar. ANNEX 10 Table 3 INDIA

CRAMBALCO%NAND AREA !)EVELOPM.ENTPROJECT (JAONYA PRADO.11)

Agricultural ProducLion - Chak Drainage Area (20,000 ha)

Present Future - Without Prolect Future - With Project Value of Value of Value of Area Yield Production Production Area Y'eld Production Production Area Yield Production Production CROP '000 ha Ton/ha '000 Ton Rs '000 '000 ha To./ha '000 Ton Rs '000 '000 ha Ton/ha '000 Ton Rs '000

KnALIF - irrigated

Paddy 2.6 2.1 5.5 5,060 3.0 2.3 6.9 6,350 5.7 3.1 17.7 16,280 Hybrid BajraI ------0.6 2.0 1.2 1,100 Sugarcane Al 0.2 33.0 6.6 790 0.2 35.0 7.0 840 0.3 53.0 15.9 1,910 KhARIF - Non-Irrigated

Bajra 1.6 .0.7 1.1 1,010 1.7 1.0 1.7 1,560 2.6 1.4 3.6 3,310 Jowar 2/ 0.3 0.7 0.2 180 0.6 0.9 0.5 460 0.9 1.3 Pulses- 1.2 1,100 (0.8) 0.5 0.4 500 (1.0) 0.7 0.7 870 (2.1) 0.9 1.9 2,370 Sesamuma ------0.2 0.6 0.1 OuG

Sub-Total 4.7 5. 10.3 Ktlarif Cropping Intensity % 24 27 52 REAI - Irrigated

Wheat (hYV) 4.2 1.8 7.6 7,600 4.3 2.0 8.6 8,b00 7.0 3.0 21.0 21,000 Wlheat(Local) 1.2 0.8 1.0 1,000 1.3 0.9 1.2 1,200 1.2 1.5 1.8 1,800 Pulses 1.0 0.8 0.8 1,000 1.0 1.0 1.0 1,250 1.6 1.4 2.2 2,750 Oilseeds 1.1 0.8 0.9 1,730 1.0 1.0 1.0 1,920 1.8 1.4 2.5 4,800 Sugarcane-' 0.2 0.2 0.3 RABI - Non-Irrigated

Pulses 1.2 0.5 0.6 750 1.7 0.6 1.0 1,250 2.2 0.7 1.5 Oilseeds 1,880 1.5 0.5 0.8 1,540 1.5 0.6 0.9 1,730 1.8 0.7 1,3 2,500

Sub-Total 10.4 11.0 15.9 Rabi Cropping Intensity % 52 21,160 55 26,030 80 61,100 TOTALS 15.1 16.5 26.2

Cropping Intensity % 76 82 131 Irrigated Cropping Intensity % 52 55 93

1/ Sugarcane occupies land fo, 9-10 msonths and is included as irrigated in both Kharif and Rabi. 2/ Interplanted with Bajra or Jowar. ANNEX 10 Table 4

CHAMBAL COMMND ARFIA DEVELCPMNTC PROJECT (MAOWYA PRADDSH)

Agricultural Production - ExtensiveArea (192.000 ha)

Present Foture - Without Project Future - With Project Value of Value of Value of Area Yield Production Production Area Yield Production Production Area Yield Production Production CROP '000 ha Ton/ha '000 Ton Rs '000 '000 ha Ton/ha '000 Ton Rs '000 '000 ha Ton/ha '000 Ton Rs '000

KHARIF - Irrigated

Paddy 7.7 2.2 16.9 15,550 11.5 2.5 28.8 26,500 15.4 3.0 46.2 42,500 Hybrid Bajra 1/ ------1.9 2.0 3.8 3,500 Sugarcane - 1.9 35.0 66.5 7,980 2.9 40.0- 116.0 13,920 3.3 50.0 165.0 19,800

KILARIF - Non-Irrigated

Baj.a 25.0 0.8 20.0 18,400 26.9 1.0 26.9 24,750 26.8 1.1 31,7 29,160 Jowar 2/ 7.7 0.9 6.9 6,350 7.7 1.0 7.7 7,080 9.6 1.1 10.6 9,750 Pulses- (13.4) 0.5 6.7 8,370 (15.4) 0.6 9.2 11,500 (19.2) 0.7 13.4 16,750 Sesamumo 1.0 0.3 0.3 910 1.0 0.4 0.4 1,220 1.9 0.6 1.1 3,340

Sub-Total 43.3 50.0 60.9

Kharif Cropping Intcusity % 23 26 ' 32

RABT - Irrigated

Wheat (HYV) 67.2 1.9 127.6 127,600 72.9 2.1 153.1 153,100 76.8 2.4 184.3 184,300 Wheat (Local) 11.5 0.9 10.4 10,400 13.4 1.1 14.7 14,700 11.5 1.4 12.9 12,900 Pulses 15.4 0.7 10.8 13,500 17.3 0.9 15.6 19,500 17.3 1.1 19.0 23,750 Oilseeds 19.2 0.8 15.4 29,570 21.1 1.0 21.1 40,510 26,9 1.1 29.6 56,830 Sugarcane i / 1.9 2.9 3.3

RABI - Non-Irrigated

Pulses 30.7 0.5 15.3 19,120 28.8 0.6 17.3 21,620 21.1 0.7 14.8 18,500 Oilseeds 19.2 0.5 9.6 18,430 25.0 0.6 15.0 28,800 23.8 0.7 16.7 32,060

Sob-Total 165.1 181.4 180.7

Rabi Cropping Intensity % 86 94 94

TOTALS 208.4 276.180 231.4 363.200 241.6 453.140 1:

Cropping Intensity 7. 109 120 126

Irrigated Cropping Intensity % 65 74 81

1l Sugarcane occupies land for 9-10 months and is included as irrigated in both Rharif and Rabi. 2/ Interplanted with Baira or Jowar. INDIA

CHAMBAL CONMANDAREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Cropping Calendar

Crop and Season May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. March April

KHARIF

Paddy

Hybrid Bajra xxx xxxx......

Bajra, local xxxxxxxx ......

Jowar xxxxxxx)......

Pulses x ...... ---

Sesamum ...... I RABI Wheat (HYV) xxxxxxx ......

Wheat (Local) xxxx ......

Gram _ xxx ......

Mustard xxXXXXXmc ......

Lentil 30 xxxx...0 ......

Linseed XXxxxxv =)xxx: ...... = BOTH SEASONS ...... Sugarcane ...... =====xy

Legend: Land Preparation 1H1H+-H- Nursery xxxxxxxx Sowing ...... Vegetative Stage Harvest n-

c1Wq ANNEX11 Page 1

INDIA

CHAMBALCOMMAND AREA DEVELOP1MENTPROJECT (MADHYAPRADESH)

Marketing, Pricing, Processing and Storage

Marketing

1. Farmers sell their produce either at local markets on directly to processors. Deliveries to markets on collectionpoints are usually made by bullock cart. Trucks are used for transportinggoods from the markets, and from collectionpoints to processing facilities.

2. Fifteen local markets (Mandies)established under the Agriculture Product Act of 1973 provide offices, banking facilities,godowns, shops, auction space, traders' stalls, water supplies and sanitation facilities. They are operated by a local marketing committee of 8 to 20 members of which at least two thirds are agriculturalists. Eaah market has an approved staff financed by a levy upon the trader (buyer)of not more than 0.5% of the value of the purchases. GOM has a program underway to enlarge and relocate several of the existing markets, and to constructnew markets. The markets are highly successfuland assure the grower of a fair price for his produce. The market provides storage for three days without cost. Longer term storage is provided for a fee. The markets are situated over the project area so that farmers can make the round trip to and from the market within a day.

3. Throughout the year there is considerableprice variation between markets, due to the cost of transport, lack of market price informationand local shortages. The road improvementprogram planned under the project would assist in equalizingthe prices among markets. The existing radio market-newsprogram would be improved.

Prices

4. Current and prospectivefood shortages indicate that there will be a demand within India for the entire increase in production from the project. The largest increases in production are expected in wheat and this can be entirely absorbedwithin Madhya Pradesh. Other food grains, particularlypaddy, will exceed the needs of the state and the surplus will be available for shipment to other parts of India. The general food situation in India and Madhya Pradesh is summarized in Tables 1 and 2. ANNEX 11 Page 2

5. In the present serious inflationary situation in India food prices, particularly cereals, pulses and sugar have outpaced all other commodity groups. In October 1974, the overall wholesale price index for food articles reached 375.7 (1961/62=100) compared to food grains at 426.2. These indices were higher than for any other commodity group. 1/ (Table 3)

6. The prices used in the economic analysis for wheat, rice, and sorghum were based upon the Bank's projections for 1985 (constant values) with adjustments for transportation and grade. Those for other commodities were based upon local prices projected to 1985 conditions on the basis of the Bank's general indices. The primary purposes of the financial analysis is to determine the ability of the beneficiaries to repay the project costs within reasonable periods of time and at appropriate interest rates. Since the critical time in the repayment period is normally the first few years of development, the prices used in the financial analysis for wheat, paddy, bajra and jowar were not discounted as much from current levels as those used in the economic analysis.

7. The prices of fertilizer used in the economic analysis were based upon suggestions made by the Banak's Fertilizer Unit, while current prices were used in the financial analysis and in the determination of the cost of fertilizer required to restore fertility to those areas that would bs involved in the On-Farm Development Full Package program. The prices used in both the economic and financial analyses are in Table 4. Processing

8. There are presently 17 lentil mills, two oil mills and one sugar mill of significant size in the project area. In addition, there are many small oil, flour and unrefined sugar mills. The present capacity is adequate to process the current production but as the project develops it is anticipated that additional capacity would be required for lentils, oil, flour and possibly paddy. The existing sugar factory has sufficient capacity (1,250 tons of sugarcane per day) to process the anticipated cane output of the project. Because of transportation cost and convenience, however, it is anticipated that the small privately owned sugar plants will continue to operate. The private sector has demonstrated a willingness to invest in processing facilit.ies and, as the project develops, no problem is anticipated in the arailability of processing facilities. One rice mifl operator visited during the appraisal was in process of enlarging his mill in anticipation of an increase in paddy production.

Storage

9. The farmers normally market their produce immediately after harvest and therefore, except for seed and home consumption the need for

1/ Reserve Bank of India Bulletin, October 1974, page 1905. ANNEX 11 Page 3 on-farm storage is minimal. Food grains and seeds are normally stored in the farmer's house. Limited storage capacity is provided in the traders' stalls at the markets and special storage facilitiesare being constructed at such places. In addition many of the multi-purposecooperatives provide some storage for members, but this is generallyutilized for the storage of fertilizersin anticipationof needs by the farmer. The Food Corporation of India and the Central WarehousingCorporation which stores food collected under the levy program has storage of 7,500 ton capacity and 5,000 ton capacity, respectively,at Morena and Sheopur. ANNEX 1 1 Table 1

INDIA

CHAMBALCOMMAND AREA DEVELOPMENTPROJECT (Madhya Pradesh)

Estimated Food Requirements, Production and Supply in India Per Capita P Cons4mtion Lemand_y Production Suppl,yGap Crp 1975_197619 975 76 1980-1981 1975-1976 1975-1976 1980-1981

kg/yr ------Million tons------

Rice 75.h7 51.2 56.4 41.9 9.3 14.5

Wheat, 37.h6 26.5 30.7 20.8 5.7 9.9

All Cereals 15i.62 108.5 120.1 95.6 12.9 2h.5

Pulses 30.66 17.7 20.8 10.8 6.9 10.0

All Food Grains 17h.88 126.2 140.9 106.4 19.8 34.5

Edible oils 5.97 6.0 6.6 5.0 .6 1.2

/ Includes provision for livestock feed and seed.

Source: National Council of Applied Economic Research. ANNEX11 Table 2

INDIA

CHAMBALCOMMAND AREA DEVELOPMENT PROJECT (Madhya Pradesh)

Export and ImPort of Major Agricultural Commodities from and to Madhya Pradesh

Exports Imports ComEodities 1960-61 1965-66 1969-70 1970-71 1960-61 1965-66 1962-70 1270-71

--- thousand tons------

Rice . 455.1 101.4 353.3 282.3 26.6 9.8 2.6 2.6 Paddy 29.5 0.1 2.4 1.7 - - - _

Wheat 121.9 2.5 45.8 25.6 114.0 183.8 90.7 184.2

Pulses (other than Gram) 168.6 225.5 263.2 297.6 15.1 16.1 15.2 20.7

Gram and its products 157.7 58.2 116.7 113.2 13.1 4.2 3.4 6.9

Bajra 13.4 0.4 7.3 1.8 - - -

Jowar 114.7 17.9 110.1 82.4 - - -

Oil Seeds 105.2 78.5 76.8 70.9 - - - - Vegetable Oils 17.2 19.7 20.2 15.8 20.5 20.4 19.6 19.2

Source: 1973 AgriculturalStatistics, Madhya Pradesh. ANNEX11 Table 3

INDIA

CHAMBALCOMMAND AREA DEVELOPMENTPROJECT (Madbya Pradesh)

Index Numbers of Whclesale Prices for India!"

(1961 - 1962 = 100)

Sept. Sept. Sept. Sept. Sept. Sept. 1969 1 1971 1972 19974

All Commodities 175 185 190 210 250 300

Food Articles 205 210 215 245 300 385

Manufacturers 145 15O 165 175 190 250

Industrial raw materials 185 195 205 190 305 3h5

Machinery and transport equipment 135 145 155 170 180 260

i/ Numbers taken from graph, Page 1956, Reserve Bank of India Bulletin, October, 1974. ANNEX1 1 Table 4

INDIA

CHAMBALCOMMAND AREA DEVELOPMENTPROJECT (Madhya Pradesh)

Prices of Agricultural Productsi/

Economic Analysis FinancialAnalysis Seed Rs/Ton $/ton Rs/ton $/ton Rs/ton

Wheat 1000 125 1320 165 1350

Paddy 920 115 1000 125 1200

Bajra 920 115 1000 125 1150

Jowar 920 115 1000 125 1150

Gram 1250 155 1250 155 1400

Mustard 1920 240 1920 240 2000

Sesame 304C 380 3o40 380 3200

Sugarcane 120 15 120 15 1500

FertilizerZ Rs/kg

N 2 5

P 2 6

K 1 2

2/ Measured at farm gate. / Plant Autrient basis. ANNEX 12 Page 1

INDIA

CHAMBALCOMMAND AREA DEVELOPMENTPROJECT (MADHYAPRADESH)

Farm Budgets

Obiectives

1. Farm budgets were prepared for two reasons:

(a) to determine the ability of the water users to repay the cost of On-Farm Development Full Package; and

(b) to determinewhether the prospective increasesin farm income would be sufficient to compensate the farmer and his family for the additional labor they would have to perform and for other farm production costs they would have to incur.

Procedure

2. Farm budgets were prepared for the On-Farm DevelopmentFull Package area. To provide a basis for the preparationof the complete farm budgets, crop enterprisesbudgets were prepared for each of the major crops produced in the On-Farm Development Full Package area. These budgets which include physical inputs, costs and both gross and net income were prepared for the present and future - with-projectsituations. The crop budgets are presented in Tables 1 and 2. The cropping patterns used in the budgets are presented in Table 6.

3. The largest farms in the project area are over 30 ha, but the distributionof sizes is very skewed, 37% of holdings being 1 ha or less. Complete farm budgets were prepared for two farm sizes, one of 2.4 ha (the average size) and the other of 1 ha. Budgets for larger farms were not prepared, since their repayment capacity is greater than that of a 2.4 ha farm. Distributionof farm sizes is as follows: A.ZNEX12 Page 2

per,c

Under - 0.5 16,461 16,161 4,090 i ,09 17.7 17.7 0.5 - 1.0 17,$77 34w,Q038 13,100 17, 19:o) 18.9 36.6 1.1 - 2.0 20,646 54,68 30Q780 D7,970 2/?.$58.8 2.1 - 3.0 12,927 67,611 3? 130 80,ll 72.- 3.1 - 4.0 8,277 71,.68 , E!rn loi 8.9 81.6 4.1 - 5.o 5,301 81,159 23,710 132,610 5.7 87.3 5.1 - 10.0 9,300 90,489 69,330 201,90 110 97.3 10.1 - 20.0 2,139 92,625 31,790 233,830 2 .3 59.6 20.1 - 30.0 279 92,907 t,930 240,75A 0.3 p99 30.1 - plus 93 93,000 .200 244,0ow 0.1 100.0

Total 93.000 2Utm LO0.0

4. A wheat farm was analyzed for both the 1 and 2.4 ha size units. In addition, a second analysis was prepared for the 2.4 ha farm with a composite cropping pattern representative of' the On-Farm Development Full Package Area.

5. It was assumed in the farm budget analysis that all crops would be sold. Therefore provision was made in the farm cost for the purchase of seed and of grain to feed the bullock team during the heavy working season. It was also assumed that the grain and lentils used for family consumption would be purchased with funds from the family living allowance.

6. Most farms - particularly those over about 1 ha in size-- have a bullock team for draft purposes as well as 1 or 2 water buffalo for milking. Provisionwas made in the farm costs to replace the bullock team every eight years. The buffalo were considered as a household item and replacements would be purchased from the family living allowance.

7. On most farms, the farm-producedfodder and straw would be sufficient to feed the livestock at the rate of three tons per year per mature animal. The average weight ratios of grain to fodder for the various crops are: local, wheat 1:2; HYV, wheat 1:1, HYV, paddy 1:1; bajra 1:3; jowar 1:4; gram 1:1 and mDst of the pulses about 1:1.

8. Two farm budgets were prepared for each of the three situations analyzed. The first representedthe present condition and the second the condition after full develc?mentis achieved (Year Eight for the individual block). In the first year or so after development,it is anticipated that the increase in production would be relatively small, but it would increase rapidly thereafter. ANNEX 12 Page 3

9. The detailed results of the farm budgets as well as the cash flow analyses are presented in Tables 3, 4, and 5. These indicate a present net farm income of about 1,100 Rs/ha. With full development this will nearly double in the On-Farm Development Full Package area. Although an analysis was not made, the increase in net farm income would probably be largest on the Chak Drainage Area. This is because a substantial part of this area is now out of productionbecause of perennial waterlogging. As soon as major drainage outlets are provided, this problem would be eliminated and there would be an immediate response in production.

10. The farm budget analysis indicates that the average size farms can return the costs of On-Farm Development Full Package with interest art10-1/2% in a 12-year period, including a one year's grace. Also, at the same time, a sufficient surplus would be left to the farmers to provide an inducement to them to undertake the development program. For ecample, on the 2.4 ha wheat oriented farm (in Year eight), after paying all costs the farmer would have an increase in income of 2,000 Rs per year to repay him and his family for the additional 71 days of labor they would perform. This is a return of 28 Rs per day for the additional work which is very attractive when compared to the 10 Rs per day allowed for harvest labor in the analysis or the 5 Rs/day paid to labor during the regular season.

11. The farmer on the 1 ha size farm unit would find it more difficult tcomeet the prospectivewater charges and support his family. However, starting in the sixth year, he would have sufficient income to pay water charges and to leave 1,600 Rs for family living. However, since his farm would only require about 95 days of labor per year, he would have ample time to supplement his farm income by off-farm employment. In Year Two, the first year he would be required to pay water charges, if he were to work off the farm for 68 days during the harvest season at 10 Rs per day. his income would be increased sufficientlyto cover the minimum cost of living. The development of the project would substantiallyincrease the opportunitiesfor such non-farm employment. After paying all water charges starting in Year Three his residual farm income available for family living would be higher than it is under present conditions. INDIA INDIA ~~~~~~~~~~~~~~~AN1MEXTabole 121

CHAMBALCOMMAND AREA DEVELOPMENT(MADEYA PRADESH)

Crop Enterprise Budgets (Present) On-Farm Dayelopment rull Package Area (Per Hectare) O U T I N P U T S C O S T S U T P Net Fertilizer Plant Cross Yield Value Value Labor N P K Seed Protection Labor Fertilizer Seed Rs Ton Rs Rs Mn _Days ha kg kg Rs Rs Rs

IKHARIF - Irrigated 360 330 42 2.4 2,400 1,635 Paddy 1.10 50 30 - 35 35

KHARIF - Non-Irrigated 14 0.8 800 660 39 15 8 - 12 2 - 123 Bajra 43 17 0.8 800 735 Jowar 39 5 3 - 15 6 - 9 - - 22 0.5 660 630 Pulses (Interplanted) 12 - - _ 15 - 38 0.3 912 870 Sesamum 42 - - _ 10 3 -

RABI - Irrigated 25 280 320 162 1.8 2,400 1,615 Wheat (HYV) 62 40 20 - 120 220 192 120 1.0 1,300 750 Wheat (Local) 50 24 12 - 100 17 200 105 0.7 950 620 Gram 43 10 25 . - 75 23 - 54 - 205 14 1.0 1,900 1,625 Mustard 40 25 13 - 7 320 520 1,200 35.0 5,250 3,125 Sugarcane 77 60 30 20 8,000 86

RABI - Non-Irrigated - - 105 0.4 544 430 Gram 41 - - - 75 10 96 14 0.6 790 660 Mustard 37 12 6 - 7 21 -

ax ANNEX 12 Table 2

INDIA

CHAMBAL COMMAN) AREA DEVELOPMENT (MADHYA PRADESI)

Croi Enterprise Budgets (Future - With Project) On-Farm Development Full Package Area (Per Hectare)

I N P U T S C OS T S O U T P1U T Fertiliser Plant Hired Gross Net Labor N P K Seed Protection Labor Fertilizer Seed Yield Value Value Man Deys kg kg kg Rs Rs Rs Rs Tmn 1.o

KHARIF - Irrigated

Paddy 130 100 60 - 35 76 550 860 42 3.6 3,600 2,070 Hybrid Bajra 63 75 40 - 5 25 - 620 18 2.2 2,200 1,540

KIIARIF - Non-Irrigated

Bajra 56 30 20 - 12 11 - 270 14 1.4 1,400 1,105 Jowar 50 30 18 - 15 25 - 260 17 1.6 1,600 1,300 Pulses (Interplanted) 15 10 30 - 15 14 - 230 22 0.8 1,100 835 Sesamum 50 20 20 - 10 , 14 - 220 38 0.6 1,820 1,550

RABI - Irrigated

Wheat (HYV) 87 100 60 - 120 73 550 860 162 3.4 4,480 2,835 Wheat (Local) 62 55 30 - 100 41 400 455 120 1.8 2,380 1,365 Gram 63 25 50 - 75 52 - 425 105 1.4 1,900 1,320 Mustard 55 45 30 - 7 85 - 405 14 1.8 3,460 2,955 Sugarcane 123 100 45 30 8,000 148 450 830 1,200 57.1 8,570 5,940

RABI - Non-Irrigated

Gram 47 10 30 - 75 29 - 230 105 0.7 920 555 Mustard 45 25 12 - 7 38 - 200 14 1.1 2,110 1,860

February 10, 1975 r ANNEX 12 Table 3

INDIA

CHAM4BALCCMMAND AREADEVELOPMENT PROJECT (MADHrA PRADESH)

Farm Budget for Average Size Farm (2.h ha Wheat Farm, On-Farm Development Full Package Area) (in Rs)

Y E A R S Items 0 T 2 3 4 5 6 7 8-12 GrossValue Production 4,240 4,845 5,450 6,055 6,660 7,265 7,870 8,475 9,090 I/ Cost bf Inputs 2/ 1,050 1,250 1,450 1,650 1,850 2,050 2,250 2,450 2,650 Interest on Production Credit 3/ 50 60 70 80 90 100 110 120 130 Maintenance of Farm Eouipment and Bullocks 500 515 530 545 560 575 590 595 600

Ne1tFarm Income 2,640 3,020 3,400 3,780 4,160 4,540 4,920 5,310 5,710

Water Charges

0 & M 4/ 72 72 116 116 116 '116 116 116 116 Betterment Levy 5/ - - 34 34 34 34 34 34 34 Repayment of Development Loan - - 852 852 852 852 852 852 852

Total Water Charges 72 72 1,002 1,002 1,002 1,002 1,002 1,002 1,002 6/ 7/ Residual for Fwdly Living and Savings 2,568 2,948 2,398 2,778 3,158 3,538 3,918 4,308 4,708

1/ Fertilizer,hired labor, plant protection and seeds. (Required 128 man-days labor in Year Zero and hired 28. Needed 226 with full development and hirdd 55.) 2/ Assumesfarmer borrows money to finance all inputs and pays 10% for i year. 3/ Depreciation of Bullock Team 400 Rs/year. Team cost 3,200 Rs and works about 8 years. Ii/ Assumed 14 Rs/ha/yr. to recover construction costs over a 30-year period. (bi 3/ Assumed loan of 2,250/ha repaid in 12 years including one year's grace at 104 interest. , . '/ Family living estimated at 1,600 Rs/yr. t/ Income will probably be substantially less than this in Year One when on-farm development occurs. ANNEX12

INDIA

CHAMBALCCMMAND AREA DEVELOPMENT PROJECT (MADHYAPRADESH)

Farm Budget for amall Farm (1 ha Wheat Farm, On-Farm Development Full Package Area) (in Rs)

Y EA R S Items 0 1 2 3 4 5 6 7 8-12

GrossValue Production 1,765 2,020 2,270 2,525 2,775 3,025 3,280 3,530 3,790 1/ Cost of Inputs / 315 380 445 510 575 640 705 770 830 Intereston ProductionCredit 3/ 15 19 22 25 29 32 35 38 42 Maintenanceof Farm Equip.and Bullocks 4401 445 450 455 460 465 470 475 480 Not'Farm Income 995 1,176 1,353 1,535 1,711 1,888 2,070 2,247 2,438 Water Charges

0 & M 4/ 30 30 48 48 48 48 48 48 48 Betterment Levy 5/ - - 14 14 114 14 14 14 14 Repaymentof DevelopmentLoan - - 355 355 355 355 355 355 355

Total Water Charges 30 30 417 417 417 417 417 417 417 ______-- 6/ 7/ Residualfor FamilyLiving and Savings 965 L,1146 936 1,118 1,294 1,471 1,653 ,830 2,021

1/ Fertilizer,hired labor, plant protection and seeds. (Required 54 msn-days labor in year Zero and 95 when fully developed. Did not hire any.) 2/ Assumes farmer borrows money to pay for all inputs and pays 10% interest for i year. 3/ Depreciation of bullock team estimated at 400 Rs/yr. Teams cost 3,200 Rs and work about 8 years. IV Assumed 14 RsAWa/yr.to recover construction costs over a 30-year period. x §/ Assumed cost of 2,250 Rs/ha. and repayment in 12 years including one year's grace with interest at 10C. 3/ Family living cost estimated at 1,600 Rs/yr. 7/ Income will probably be substantially less than this in Year One when on-farm development occurs. ANNEX 12 Table 5-

INDIA

CHAMBAL CCMMAND AREADEVI_UFENT PROJECT (MADHYAPRADESH)

Farm Budget for Average Size Farm (2.4 ha Composite ropping Pattern, On- arm Development Full Package Area) kin RS) Y E AR S It ms 0 1 2 3 _ _7

Gross Value Production 4,865 5,580 6,295 7,010 7,725 8,440 9,155 9,870 10,570 1/ Cost of Inputs 2/ 1,355 1,622 1,889 2,156 2,423 2,690 2,957 3,224 3,490 Interest on Production Credit 3/ 68 81 94 107 120 133 146 159 175 Maintenance of Farm Equipment and Bullocks 500 513 526 539 552 565 578 591 600

Net Farm Income 2,942 3,364 3,786 4,208 4,630 5,o52 5,474 5,896 6,305

Water Charges

0 & M 4/ 72 72 116 116 116 116 116 116 116 Betterment Levy 5/- - 34 34 34 34 34 34 34 Repayment of Development Loan - - 852 852 852 852 852 852 852

Total Water Charges 72 72 1,002 1,002 1,002 1,002 1,002 1,002 1,002

Residual for Family Living and Savings 2,870 3,292 2,784 3,206 3,628 4,050 4,472 4,894 5,303

1/ Fertilizer,hired labor, plant protection and seeds. (Required 180 man-days labor in Year Zero and hired 46. Needed 287 with full development and hired 94.) 2/ Assumes farmer borrowedmoney to finance all inputs and pays 10% interest for 6 months. 3/ Depreciation of bullock team 400 Rs/yr, Team costs 3,200 Rs and works about 8 years. m X 17/ Assumed 14 Rs/ha/yr. to recover construction costs over a 30-year period. 3/ Assumed loan of 2,250 Rs/ha will be repaid in 12 years including one year's grace at 1014 interest. 6/ Cost of family living estimated at 1,600 Rs per year. 7/ Income will probably be substantially less than this in Year One when on-farm development occurs. ANNEX12 Table 6

INDIA

CHAMBAL COzL44ADAREA DMVELOPMENTPROJECT (MtADIHYAPRADESH)

Cropping Patterns for Farm Budgets - On-Farm Development Full Package Area

2.4 ha Farm 1 ha Farm _Composite Wheat 'Wheat Present Year 81- Present Yearl Present Year 8 ------ha ------

Kharif - Irrigated Paddy 0.35 o.58 _ _ _ _ Bajra (HYV) - (.11 - - - - Sugarcane 0.02 0.01 - - _ - - Nonirrigated Bajra 0.22 C.24 0.20 o.4o 0.08 0.16 Jowar 0.37 0.39 - - - - Pulses (0.37) (O.48) o.4o 0.50 0.16 0.21 Sesamum 0.o4 o.o6 - - -

Sub-Total Hectares 1.00 1.39 o.60 0.90 0.24 0.37 Intensity 42 58 25 38 24 37

Rabi - Irrigated Wheat (HYV) 0.83 1.00 1.00 1.20 o.41 0.5o Wheat (local) 0.24 0.14 - - _ _ Pulses 0.30 0.33 -- - - Oilseed 0.17 0.22 o.60 0.70 0.25 0.29 - Nonirrigated Pulses 0.20 0.:16 o.4o 0.20 o.16 0.08 Oilseeds 0.19 0..0 - - - -

Sub-Total Hectares 1.93 1.55 2.00 2.10 0.81 0.87 Intensity 80 81 83 88 82 87

TOTAL Hectares 2.93 3.3,4 2.60 3.00 l.05 1.24 Intensity 122 139 108 125 105 124

/ Year of full de-velopment. ANNEX13 Page 1

INDIA

CHAMBALCOMMAND AREA DEVELOPMENTPROJECT (MADHYAPRADESH)

Economic Anlsis

Prices

1. Prices for internationally traded farm production inputs and crops grown on the project are based on Bank projections for 1985, with adjustmentsfor transportcosts ad variationsin quality. Prices of locally traded inputs and crops for 1985 have been estimated from local market prices, projected to 1985 assuming constant price levels. The prices used are in Annex 11.

Farm Labor

2. The populationof the project area is presently about 700,000 of which about 70% is classifiedas rural (500,000)and the balance as urban. There are also about 93,000 farms in the project area and the average size farm family is about 5 persons thus indicatinga farm populationof 465,000 people. The balance of the rural population (35,000) is composed of the families of landless laborers. In all, there are at least 100,000 rural families. Assuming that the rural people work five days per week for 52 weeks in the year, an individualwould work 260 days per year. Further assuming only one worker per family, the rural populationcould perform 26 million man days of labor per year. With the project, under conditions Of On-Farm DevelopmentFull Package, it is anticipatedthat the labor requirementwould amount to only 17.4 million man days per year. Thus within the project area there is adequate labor to perform all of the farm operationsat full development. Although there is ample labor on most farms to meet all needs, most farm operators traditionallyhire labor for the harvestingand threshingof paddy and wheat and for the harvesting of sugarcane. Such hired labor is available from the families of landless laborers or from the families and operators of small farm units.

3. Estimatesof the per hectare labor requirementsfor the various crops grown in the three developmentareas of the project are presented in Table 1. Total labor requirementsby month are shown in Table 2. There is considerableflucturtion in labor demand throughoutthe year. Two peak seasons occur each year during the respective times of harvest for the karif and the rabi crops. The opportunitycost for labor was estimated on a monthly basis using available informationon labor supply and demand. ANNEX 13 Page 2

4. Labor has been shadow priced at marginal rates of between 2 and 10 rupees per day. The shadow pricing is based on the following assumptions and observations:

(a) at very low levels of employment, it is doubtful whether the opportunity cost of labor in terms of foregone product is much above zero: however, there seems to be an effective minimum wage of Rs 3-4/day, and the payment of this wage is an economic cost in terms of foregone investment. Much of the labor utilized at the lowest levels of employment may in fact be family labor, where the payment is only the extra food necessary for work rather than leisure. As a compromise,the minimum wage assumed is Rs 2/day;

(b) at the present peak level of employment, the marginal cost of labor is assumed tc,be Rs 8/day, which is the market wage rate, and is assumed to reflect the opportunity cost of labor;

(c) at the future maximum levels of labor requirements,the wage rate is assumed to be Rs 10/day which should be adequate to attract labor from surroundingsurplus areas. An instance was observed of a large farmer employing a migrant gang of workers, and the total pay they received was Rs 10/day. &

5. Theoretically,it is assumed that the relationshipbetween the quantity and opportunity cost of labor employed can be approximated by an S-shaped curve (Figure 1), joining the points listed above. The initial increase in slope is slow, reflecting the lack of alternative employment, with the rate of increase growing as labor becomes more fully utilized, and finally leveling off when migrant labor would be attracted from a wide area by the wage rate.

6. While the shape of the curve can be viewed with some confidence at the upper levels on the basis of observation,the intercept at the minimum employmentlevel is open to debate. Fortunately, since the lowest levels df employmentoccur in both with and without project situations, the incrementalcost of labor is not sensitive to the assumptionmade about the minimum economic wage.

7. For the purposes of anaLysis, the S-curve is formed by three straight-linesegments. The economic cost of labor is found by calculating the area beneath the curve up.to the employment rate.

8. Computed in this way, the average incrementalcost of labor is Rs 5.6/day - 70% of the current maximum. ANNEX 13 Page 3

Project Costs

9. The Capital costs as developed in Annex 4 and amounting to Rs 215 million were used in the economic analysis. The cost used includes physical but not price contingencies. The sunk costs in existing facilitieswere not included. It was assumed that after the three-year implementation period, the constructionequipment On-Farm DevelopmentFull Package would have a salvage value of Rs 4.2 million and this was reflected in the analysis in Year Four. Total 0 & M costs were included for the three-year construction period after which only the incremental 0 & M costs (costs in excess of those which would occur in the absence of the project) were included for the balance of the 25-year period analysis.

Project Benefits

10. The project benefits are based upon the incrementalnet value of farm production after subtracting the incrementalcosts including farm labor, fertilizer,pesticides and seeds. It was assumed in the analysis that the benefits would reach the full level of developmentin Year 11 of the project. The build-up to that level reflects both (1) the rate of constructionand (2) the rate at which the physical productivityof the project lands increase. The anticipatedbuild-up is graphicallyillustrated in Figure 2. It is anticipatedthat the most rapid increase in farm income will occur in the Chak Drainage area where a large responsewill occur immediately after the surfacp waters are removed and protection from future flooding is provided.

Economic Rate of Return

11. The economic rate of return for the project is 22%. Separate rates of return for each of the three sub-areas are to be 25% for the On-Farm DevelopmentFull Package area, 36% for the Chak Drainage area and 18% for the Extensive Area. These results show that the investments for each sub-area are justified, and also that investment in Chak Drainage gives a higher return than complete On-Farm DevelopmentFull Package (Table 3).

Sensiti,lity Analysis

12. Several of the basic inputs into the economic analysis have been varied to determine their impact on the project economics: ANNEX 13 Page 4

Variations Rate of Return

(a) rate of project developmentdelayed by-one year 19

(b) project costs increasedby 25% 18

13. The above analysis indicates that there is moderate sensitivity to all changes. However, it is highly unlikely that any changes would occur which would render the project unacceptable. INDIA

CHAIBALCOMMAND AREA DEVETDPMENTPROJECT (MADHYAPRADESH)

Iabor Requirements (man-days/ha)

On-Farm Development Area Chak-Drainage Area Extensive Area Crops and Season Present Future Present Future Present Future With- With With- With With- With out out out Kharif Irrigation A Paddy 110 114 130 105 111 122 108 111 124 Bajra (Hybrid) Sugarcane 77 80 123 75 77 89 77 80 86

Kharif Non-Irrigation Bajra 39 41 56 37 43 51 39 43 45 Jowar 39 41 50 31 39 45 40 41 43 Pulses (Interplanted) 12 13 15 12 13 15 12 13 15 Gram 35 36 38 35 36 38 35 36 38

Rabi Irrigation Wheat (HYV) 62 70 87 62 65 87 64 67 72 Wheat (Local) 50 52 62 47 49 57 49 52 56 Pulses 35 36 38 35 36 38 35 36 38 Oilseeds 42 43 50 39 42 48 38 42 43

Rabi Non-Irrigation Pulses 35 36 38 35 36 38 35 36 38 Oilseeds 37 38 45 34 37 43 33 37 38 ANNEX iS Table 2 INDTA

CUAMBALCOMMAID AREA DEVELOPMENTPROJECT (MADNYAPRADESH)

Economic Cost of Farm Labor (Year 8)

Jan. Feb. Mar. Apr M June July Aug. Sept. Oct. Nov. Dec. Total

Labor Requirement (Million man-days)

Fulture With Project 0.4 1.1 1.0 3.2 1.8 0.9 0.9 1.5 0.8 1.1 2.6 2.1 17,4 Future Without Project 0.3 0.8 1.0 2.3 1.3 0.8 0.9 1.2 0.7 1.1 2.3 1.6 14.3

Margioal Opportunity Cost (Rs/man-day)

Future With Project 2.3 3.2 2.5 9.5 7.3 2.4 2.4 5.4 2.4 3.2 5.8 8.1 Future Without Project 2.2 2.5 2.5 8.4 4.6 2.4 2.4 3.R 2. 3.2 0.4 6.0

Fcor.r...i C_at - Labor (Rl Million)

Future With Project 0.8 2.5 2.3 15.8 6.2 1.9 2.0 4.6 1.7 2.6 12.7 8.4 61.5 Future Without Project 0.7 1.9 2.3 10.0 3.3 1.7 2.0 2.8 1.6 2.6 10.0 5.2 44.1

Incremental Economic Cost of Labor (Re Million)

Future With Project minus Future Without Project 0.1 0.6 0.0 5.8 2.9 0.2 0.0 1.8 0.1 0.0 2.7 3.2 17.4

Febru,ary 24. 1975 1

m ANNEX13 Table 3

INDIA

CHAMBAICOMMAND AREA DEVELWOMENT PROJECT (MADHYAPRADESH)

Economic Costs and Benefits (Rs million)

Entire ProJect On-Fars Development Area (12.000 ha) Costs Benefits Costs Benefits Year Capital 0 & M Total 0 & M Total

1 50.4 10.4 60.8 0.0 - 8.7 0.5 9.2 0.0 2 96.1 11.4 107.5 3.1 15.8 o.6 16.4 0.3 3 68.5 12.4 80.9 16.2 13.1 0.6 13.7 2.1 4 - 11.8 11.8 42.1 1/ - 0.6 o.6 9.9 1/ 5 - 12.3 12.3 55.7 - 0.7 0.7 9.1 6 - 12.2 12.2 68.4 - o.6 0.6 11.4 7 - 12.2 12.2 78.3 - o.6 o.6 12.5 8 - 12.2 12.2 86.9 - 0.6 0.6 13.6 9 _ 12.2 12.2 95.1 - o.6 0.6 14.5 10 _ 12.2 12.2 103.1 - 0.6 0.6 15.3 11-25 - 12.2 12.2 lo.64 - 0.6 0 15.8

Rate of Return 22.45 Rate of Return 25.15

Chak-Drainage Area (20.000 ha) Extensive Area (192,000 ha) Costs Benefits Costs Benefits Year Capital 0 & M Total Capital 0 & M Total

1 10.0 1.0 11.0 0.0 31.7 8.9 40.6 0.0 2 19.5 1.0 20.5 1.5 60.8 9.8 70.6 1.3 3 13.4 1.1 1I.5 6.9 42.0 10.7 52.7 7.2 4 - 1.1 1.1 15.3 - 10.1 10.1 16.9 5 - 1.1 1.1 19.9 - 10.5 10.5 26.7 6 - 1.1 1.1 21.2 - 10.5 10.5 35.8 7 - 1.1 1.1 22.2 - 10.5 10.5 43.6 8 - 1.1 1.1 23.2 - 10.5 10.5 50.1 9 - 1.1 1.1 24.0 - 10.5 10.5 56.6 10 - 1.1 1.1 24.7 - 10.5 10.5 63.1 11-25 - 1.1 1.1 25.5 - 10.5 10.5 65.1

Rate of Return 35.95 Rate of Return 18.25

1/ Includes Rs 4.2 million residual value of equipment.

ANNEX13 Figure 1

INDIA CHAMBAL COMMAND AREA DEVELOPMENT (MADHYA PRADESH) Labor Cost VersusDemand

66 a

y 4 E

0II I I I i 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

LaborRequirement (million mandays/month

World Bank-9659

ANNX 13 Figure 2

INDIA CHAMBALCOMMAND AREA DEVELOPMENTPROJECT IMP) Rateaf Build-up in BSn.fits 100--w* -

0 DDevelopnent Area

C 60-

EensiveArea

40 Ae

20 L S

1 2 3 4 6 6 7 8 9 10 11 Years

WorldBank-9639

INDIA CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH) Project Operational Diagram

Pubic Wor ks Departmnt D

lrrlOatinrr DcPartrrrrnr Irrigeriso and

DrrnU Cirle

' O| nrettin Canal Caasirinoe a

Agro-lndastries Corporation

Agarciult- DepWrrhenr Fr-

Soil v Conservation Division/\\

D~ ~ ~ ~ ~ wi tF | ~~~~~~~~~~~~~~~~~~~~~TopographySurveY /\\

tt | ~~~~~~~~~~~~~~~~~~~PtelWittryLayouts Rncisiot of Layouts|\ u,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~C~ EIn \ F( I

Comman -ArenAuthotity

Lend Development Beeks Loan Processng C plet en Agritultura1 9~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Ct, n Cl. Commercial Banks CesfcstPooto

|Crc dies |

Governnent of Indir

Coopers tines

Agro-Service Cottons Coordination of lrputs Supp* o

= Extension Srrmice iAgricalluoral Enteosiun _--

Reseat-i Stations- |Agricultural Research | _ _ _ _

INDIA CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH) Implementation Schedule

Calendar Year and Quarters 1975 1976 1977 1978 Total Unit Item 4thQ 1stQ 2ndQ 4thQ 1stQ 2ndQ 4thQ 1stQ 2ndQ

Irrigation and Drainage

Man Canai Erosion Protection 1 1 1 40 I 4 0

Canal Capacity Works 400 km Canal Con-trol Structure 3177 no 9 1 9 13

Aquatic Weed Control 115 300 345 Main Drainage Works 760 km 1 1 15 40 4 MiscellaneousWorks

On-Farm Development 400 400 401400 1400 140 20 20_20

a)Area12,000 Full Pakage ha1000 1000 1002600 2700 2700 3000 3000 3000 b) Chak Drainage Area 20,000 ha t

Roads 206 km

Ravine Erosion Control 50 km i

World Bank-9725

INDIA CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH) Organization Chart: State Level and Command Area Authority

r-~~------*---* ~ ------

r * - * * .L ankd_ DevaloPnrenf * *~ -. * Ref9 + ~ ~~~~~~~~~~~tARCCoprto

Ccnoerttnc Art AgrIcutrre __ _ AdtvtIOOat ChIef -- i - ~ Cccndicai,cOProduction Scry. Prd

CpLadi d Aretoi ,~~~~~~~~~h r"Y iCAAi

!-1 =----~~~~~------'

nmenttSCDl Research

Cn d NOTE Bnard of D-r-ctor of CAA Inc udet alt h,aid of den -rtmertrnoA,r-c.Itre Irr,tatn omm1a-n R-e-en Pobhrc Works Co-tetr-on, Ildutrret, Ve-eri-r, Forf-rvy. SCO S tIe So6t World Eank-9697 Co0te-vtIOn Diota-on of the Agn-cltnt-l De,a-r-ert. _ Flow af Investment-fnds

INDIA CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESHJ Organization Chart: Irrigation and Land Development

C|o od Ar A

* ------mm m - - 3~~~~~~- -Am- -w- --

|D,-tric, | | DistrictC b ro 0~~~~~~~~~~~~~~JitDrctr0 aae

Ch Lobe Agninultoa. Chamb AgAo..baus Driesn Irrigatlon 1 Agriculture Dep rtment Corpg ati,o

Dep~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~Ui Design Uni D_eootn ntU Flonnirng R-sac Wokhp Sorney e~~ ~~nd WorIc aed Worhs seadS1.,ts ProIec- I Ui *

Pciall milg j Partes l -| le~~~~ttrastruc- | Cocntract chdlm -|iato SProluemen Field ~~~~~~~~~~~ ~~~~~~~~~~~~~~~~Snidhndrn-nd

- 4 3 2 XC _ + ~~~~~~~~~~~l | ~ ~~~~~~~~~Realign- l~ ~~~Maccing ofrksFerm Improorment of |oit> On-Farm Mai|ntenance mant WonIct~~~~~~~~~~F.. .,,

DiojerOt iii 0 Leoeling Wok |o Renaci "- f Machines

I I _ I I r~~~~~~~~~ ~~~~~~~~~~~~~~~ PonEttemmon~~~~~~~~Estimating

| DramageCunal l l t l Mechameal l J ~~~~~~~~~~~~~~~~~~~~~~~Specitinatont

o|f Loane | AgeinultureDepartment Chamluat

Irrigation OperArtment Chainball

Total comber of sp-Ch bTisiontConstructionb-t4 Tota number of aobduitinoa 0 & M-2A World 6ank-9656(RC Each C-ircl heeded by SAperitr-dnga Engineer lSE) Techn_ ains inn966 Wc Etch planingi cr1 an,ddMoi-iu heaiIdebn art Encutica Enoi-er EElIe Fonet ton Farm Eac,hso.bdi-i-io headedby aniAssit-n E,,gi-e (AE) DthsadFr

INDIA Ae lur~7 O

-2- Chambol CommonMdrurea DevelopmentProject 2' (MadhyaProdesh)

< ,Pmjeot areaH A R Y A N A JOF ~~~~~~~~~~~~~~~~~~~NEWDE*Pbi ChatmbolCommand Area Deo. ProjeCt(Rajnstha)- Otherirrigated areas - Major canals B lt s<11:1Reservoirs and darns Si

-Main raads RailwaysSahatr ®National capntalPS H tWStotecapita)Wo oDistrictheadquarters o TnwnsFae District boundariesR AH A N Bhrtu State boundaries r%-a r 27-

0 2p~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~C ~O75 10715'~

wallor -

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Chittou 04.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ hhtro

(VIAGAki,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Cra IA

no~ ~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~(n

SAMAID~~~~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~? ML(

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24-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

5ADAONAD7~ ~~2A Sen R A~~~~~~~~~~~~~~D s~~~~~~~~M~7C

d, 'I) I Rll~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ LA r~~~~~~~~~~~uIC45' -P'Y~~ ~~ ~ ~ ~ ~ ~~~~~~~~~~~~~~~~ ~ ~~ ~

IBRD 11507 ~~~~~~~~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~APRILINDIA 1975 Chambal CommandArea DevelopmentProject

(MadhyaPradesh) Numbers cand namesof P RO J EC T AREARE on-fabrmdevelopmentf reas: 5 Areas for on-farm development c : ==1 Reservoirs, tanks, with dams ( S heopur-Kremsiar Areas for drainage Rivers Jora- A R o0 lOt j F 20 3o 4o 5o Seepagedrains to be constructed 0 Towns JorBhind-Mau U i SLOMETER Existing major canals Roads Ambah BANGLADE$ KILOMETERS ~ ~~~~~Exnstingminor canals -.----- Railways oP RA D ESH i0 10 20 30 -_ Ccinals to be increased in copoicity Staite boundaries ¢ .--. I^erlo ol MILES T r b.udre R A J A S T H A N ,'A /'

-"N~ ~

PorbotiAqoedunt a~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~l iheo~ ur ~ ~ ~ ~ ~ ~ '

KO8 o hiprlmOAMu K TIGHRA ha~~~~ -

ToSipur, aou

IBRD 11524 APRIL 1975

06 6

BRA~~~~~~~~~~~~~~~~~~~0 wr.., ~mir0o 5i0R

f~~~~~~~~~~~~~~~~~~k$C0w00&

0 50 150100 200 250 300 -- ¢ -Dr:ins______C Cntrol sructures - \ arI E5P

METrERS -. sY__Roads - Naturall gullies \-orQ

O 100 200 300 400 500 000 700 bO0 9000 1000 \ nuecdurba --- SttuF flbaarda FEEr Note Fel .h-nl n l r,shhnPOet onolsntzon0~ Oh' f s . m