India Upper Indravati Irrigation Project Field Survey: July 2003 1. Project Profile and Japan’s ODA Loan China New Delhi Nepal Bhutan Bangladesh Calcutta Myanmar India Bhubaneshwar Mumbai Project Site Site Map Indravati Main Canal 1.1 Background In India, expansion and improvement of irrigation facilities has been emphasized as a measure to alleviate repeatedly occurring drought damage, as a part of the country’s food self-sufficiency policy. Irrigation facilities are absolutely indispensable in low precipitation regions because the amount of rainfall in India is unpredictable and varies substantially by region, season, and year. Moreover even in heavy precipitation regions, irrigation facilities are extremely important for providing water for agricultural use during the summer season when demand for water is at its peak. The total land area under irrigation in India was scheduled to increase to approximately 57 million hectares by the conclusion of the sixth 5-year plan (March 1985) and to approximately 68 million hectares by the conclusion of the seventh plan (FY 1985- FY1989). The Orissa State Government launched the Upper Indravati Multipurpose Project in 1978 to promote the comprehensive development of the region, which tends to suffer from drought. The project was composed of three units, Unit I (dams and reservoirs), Unit II (irrigation), and Unit III (hydroelectric power). The purpose of this project was to construct a dam on the upper Indravati River, a branch of the Godavari River, discharge the water to the Mahanadi River basin, and produce 600 MW (four generators at 150 MW per generator) of hydroelectric power. In conjunction, the water used to generate the hydroelectric power would then be used for irrigation of approximately 109,000 ha. Extension of an ODA loan was requested for a portion of Unit II, and that is the project which is the subject of this report Furthermore, if small states with populations under three million are excluded, Orissa State has the highest percentage of scheduled castes and scheduled tribes (minority tribes) *1. According to 1981 figures, the percentage is 37.1%, which exceeds the national average of 22.8%. Given these conditions, the project is not only a large-scale irrigation project, but it also lays emphasis on agricultural policies that stress improvement in the lives of scheduled tribes. 1 “Scheduled caste” refers to “outcasts” who are not part of the caste system of Brahman (priests), Kshatriya (rulers, warriors, and landowners), Vaishya (merchants, agriculturists), and Shudra (artisans.) 1 1.2 Objectives This project was designed to increase agricultural production and improve productivity by constructing irrigation facilities in Orissa State, where agriculture’s reliance on rainwater results in unstable harvests and low productivity, and thereby contribute to the alleviation of poverty by raising the incomes of the scheduled castes and scheduled tribes who suffer social discrimination and extreme poverty, together with raising the state’s food self-sufficiency rate. 1.3 Output ■ Irrigation Project Overall (Unit II) The overall outline of the “Upper Indravati Multipurpose Project (Unit II)” is as follows. Using the water of the dam (hydroelectric) built on the Indravati River as the water source, the following four items are to be constructed, and the beneficiary area is 109,000 ha. (1) Construction of a dam on the Hati Barrage, the lower discharge waterway（12m high×117m long） (2) Construction of left main canal (52 km) and construction of distributary and water course field channel (3) Construction of right Main Canal (70 km) and construction of distributary and water course field channel (4) Construction of left pump-up waterway (56 km) and construction of distributary and water course field channel ■ ODA Loan Portion Of the above-described Unit II, the ODA loan portion is composed of a part of “(2) Construction of left main canal (52 km) and construction of distributary and water course field channel.” In detail, the following engineering works are entailed. The beneficiary area is 45,000 ha. (1) Left main canal: 37 km (2) Distributary for the above: 42 km (3) Supply waterways for the above: 39 km、230 locations (4) Water course field channel network for the above: 225 km、1,730 locations Of the total project cost of 7,487 million yen, the ODA loan portion is 3,744 million yen, the total of the foreign currency portion (1,009 million yen) and the local currency portion (2,735 million yen). The remaining amount is supplied by the funds of the executing agency. 2 Unit II Location Map（central hatched-line area is ODA loan area） 1.4 Borrower/Executing Agency Borrower: President of India Executing Agency: Department of Water Resources, Government of Orissa*2 1.5 Outline of Loan Agreement Loan Amount/Loan Disbursed Amount 3,744 million yen / 3,599 million yen Exchange of Notes/Loan Agreement January 1988 / December 1988 Terms and Conditions -Interest Rate 2.5 ％ Repayment Period (Grace Period) 30 years (10 years) Partially Untied Final Disbursement Date January 1999 *2 The name at the time of appraisal was “Department of Irrigation and Power.” 3 2. Results and Evaluation 2.1 Relevance Since the 1970s in India, development of agricultural land has been carried out to expand acreage. With the amount of remaining developable land dwindling, further expansion of acreage is becoming increasingly difficult, and so it is becoming necessary to promote more advanced ways of using the available land, such as multiple cropping and double (semiannual) cropping. Provision of irrigation facilities is essential not only in low precipitation regions but also in heavy precipitation regions to promote more advanced land usage since the amount of rainfall in India varies constantly by large amounts depending on the region, season, and year. Orissa State, the site of this project, has historically been an area often subject to drought damage. In 1987, a severe drought occurred where rainfall was only 69% of the annual average, and farm production suffered acute harm. In spite of this, the state’s irrigation rate is 27.1% (as of 1981), below the national average of 32.1%. Also, as stated above, Orissa is a state with numerous residents who live in extreme poverty, and the majority of the poor belongs to scheduled castes and scheduled tribes. At the time of appraisal, the population of scheduled castes and scheduled tribes comprised 37.1% of the total, which exceeds the national average (22.8%), and since 90% of them are employed in agriculture and forestry, the quality of agricultural production is a life-or-death issue for scheduled castes and scheduled tribes. Given such issues, the state’s seventh 5-year plan (FY1985-FY1989) had the stated objective of expanding the irrigated land area by 2.5 million ha per year, and in particular, placing priority on implementation of projects that contribute to higher incomes for farmers in regions with a high percentage of scheduled tribes and scheduled castes. Such projects have continued to be implemented as special measures for scheduled castes and scheduled tribes, and irrigation projects are still emphasized in the ninth 5-year plan (FY1997-FY2001) which states “provision of irrigation facilities is the optimal tool for alleviating poverty in agricultural districts.” Moreover, in addition to the 5-year plans that contain development plans for the state’s irrigation, there is also the “State River Control Policy” drawn up by the Department of Water Resources which also clearly states the importance of providing irrigation to cope with the increasing population in the state. Consequently, at the current time it can be said that this project is consistent with all development plans, and it maintains its relevance as a project. 2.2 Efficiency 2.2.1 Output An alteration in the output was made, from the initial cultivatable command area of 45,000 ha to 47,185 ha. This alteration was the result of detailed planning and hydrologic survey. The main waterway is 37 km as planned, but the other output (distributary, supply waterways, and water course field channel, etc.) underwent detailed design and studies were conducted for each (see table below). The alterations were appropriate in light of the changes in the cultivatable command area and the on-site conditions. 4 Alterations in Output Project Item At Time of Appraisal After Alteration Irrigated Area 45,000 ha 47,185 ha Distributary of the Left Main 42 km, 165 locations 48.3 km, 195 location Canal Supply Waterways of the 106.4 km, 434 location 39 km, 230 locations Above Water Course Field Channel of 225 km, 1,730 location 434.2 km, 2,571 locations the Above 2.2.2 Project Period This project was completed in December 1998, 5 years 9 months behind the original completion date of March 1993. The main reason for the delay was the time required for approval processes to acquire land for waterway construction and to remove trees. 2.2.3 Project Cost Due to the fact that the devaluation of local currency exceeded the rate of inflation*3, the actual project cost was 55.7% (4,173 million yen) of the amount originally planned (7,487 million yen). Furthermore, in local currency terms, the actual project cost was 1,388 million rupees, whereas the originally planned amount was 764 million rupees (an increase of 182%). The main reasons were the rise in prices (particularly labor wages) *4 while the project was extended and the increased in materials cost due to the effects of the Gulf War. Project Cost Comparison（converted to yen） （million yen） vs. Original Plan Item Original Plan Actual （%） Engineering Works 3,993 3,342 73.0 Supplies and Materials Cost 588 （incl. above） Land Acquisition Cost 745 573 76.9 Consultant Hiring Cost - 258 - Price Escalation 1,480 - - Reserve Fund 681 - - Yen 7,487 4,173 55.7% Total （in rupees） 764 1,388 181.7% Source: Material from executing agency 2.3.