India - Kadana Irrigation Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 3470 PROJECT PERFORMANCE AUDIT REPORT INDIA: KADANA IRRIGATION PROJECT (CREDIT 176-IN) May 21, 1981 Operations Evaluation Department This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. PRINCIPAL ABBREVIATIONS CAD - Command Area Development CCA - Cultivable Command Area CWC - Central Water Commission GOG - Government of Gujarat GOI - Government of India ICB - International Competitive Bidding LBC - Left Bank Canal PWD - Public Works Department RBC - Right Bank Canal SAR - Staff Appraisal Report SR - Supervision Report TCD - Trial-cum-Demonstration VLW - Village Level Worker FOR OFFICIAL USE ONLY PROJECT PERFORMANCE AUDIT REPORT INDIA: KADANA IRRIGATION PROJECT (CREDIT 176-IN) TABLE OF CONTENTS Page No. Preface .......................................................... Basic Data Sheet .................................................11... Highlights ............. ......................................... iv PROJECT PERFORMANCE AUDIT MEMORANDUM ............................. I. Summary ............. ..... ............. . 1 II. Main Issues .............................................. 3 A. General ........................................... 3 C. Local CostFinancing ....... ...................4..... 6 D. Management of Irrigation Development ............ .. 7 Annex 1: Government Comments ............ ......... 8 Attachment: PROJECT COMPLETION REPORT I. Sector Setting ......................................... 14 II. Formulation ............................................. 15 III. Project Implementation .................................. 19 IV. Agricultural Impact .................................... 26 V. Economic Impact o..................................... .... 32 VI. Conclusions ................................. . 37 Tables 1 - 25 Annexes 1 - 3 Map This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  PROJECT PERFORMANCE AUDIT REPORT INDIA: KADANA IRRIGATION PROJECT (CREDIT 176-IN) PREFACE This is a performance audit of the Kadana Irrigation Project in India for which Credit 176-IN was approved in February 1970 in the sum of US$35 million and fully disbursed in 1978. The audit report consists of an audit memorandum prepared by the Operations Evaluation Department (OED) and a Project Completion Report (PCR) dated September 19, 1980. The PCR was prepared in the South Asia Regional Office based on a country visit in October 1978. Issuance of the PCR was delayed because prolonged internal review of the draft report. The audit memorandum is based on the Appraisal Report (No. PA-27a) dated January 21, 1970, the President's Report (P-774) of January 21, 1970, the Credit and Project Agreements dated February 9, 1970 and the PCR; correspondence with the Borrower and internal Bank memoranda on project issues as contained in rele- vant Bank files have been reviewed and Bank staff associated with the project have been interviewed. An OED mission visited India in September 1979 for discussions with the Ministry of Finance, officials of the Gujarat State Government, and other agencies related to the project. A field trip to visit the project site and participating farmers was undertaken. The information obtained and observa- tions made during the mission were used to evaluate the conclusions of the PCR and permitted discussion of problems associated with dam construction and aspects of local currency financing. A copy of the draft report was sent to the Borrower on January 13, 1980. Comments received from the Government of India are reproduced at Annex 1 and have been properly footnoted in the text. The audit finds that the PCR covers adequately the salient features with respect to the project's principal achievements and shortcomings. The points discussed in the audit memorandum have been selected because of their relevance to this and other projects. OED wishes to acknowledge the valuable assistance provided by the Government, the project staff and the farmers visited, which contributed significantly to the preparation of this report.  - ii - PROJECT PERFORMANCE AUDIT REPORT BASIC DATA SHEET INDIA: KADANA IRRIGATION PROJECT (CREDIT 176-IN) KEY PROJECT DATA Appraisal Actual or Item Expectation Current Estimate Total Project Cost (US$ million) 66.7 183.5 Overrun (%) - 100 Credit Amount (US$ million) 35.0 35.0 Disbursed )- 36.55./a Cancelled ) October 31, 1980 - - Repaid to )- 0.37 Outstanding to IDA) - 36.18 Date for Completion of Physical Components 07/75 07/78 Proportion Completed by Appraisal Target Date (%) - 50 Proportion of Time Overrun (%) 60 Incremental Econoimic Rate of Return (%) 14 12 Cumulative Estimated and Actual Disbursements (US$ million) 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77 Appraisal Estimate/b 0.8 5.7 14.0 24.5 32.0 35.0 - Actual 1.6 6.9 17.5 27.9 35.0 36.4 0.1 Actual as % of Estimate 200 121 125 113 109 104 - OTHER PROJECT DATA Original Actual or Item Plan Revisions Current Estimate Government's Application - - 01/69 Negotiations 12/16/69 - 12/16/69 Board Approval 02/03/70 - 02/03/70 Credit Agreement Date 02/09/70 - 02/09/70 Effectiveness Date 05/01/70 - 07/29/70 Closing Date 09/30/76 - 06/30/78 Borrower Government of India Executing Agency Government of Gujarat Fiscal Year of Borrower April 1 - March 31 Follow-on Projects None /a Including exchange adjustment of US$1.55 million. /b Revised Extimates of December 15, 1971.  - iii - MISSION DATA Month/ No. of No. of Man- Date of Year Days Persons days Report Identification Jan/Feb 1969 45 2 90 March 1969 Preparation 1969 - - - None Pre-appraisal May 1969 20 4 80 May 8, 1969 Appraisal August 1969 10 3 30 Jan. 21, 1970 Post-Appraisal None - - - - Supervision I April 1970 4 2 8 Supervision II September 1970 7 3 21 03/01/71 Supervision III July 1971 7 and 11 2 18 09/30/71 Supervision IV December 1971 8 2 16 01/27/72 Supervision V July and 07/31/72 and August 1972 7 and 11 3 29 08/03/72 Supervision VI February 1973 10 3 30 08/06/73 Supervision VII August 1973 2 1 2 09/14/73 Supervision VIII March 1974 2 1 2 04/19/74 Supervision IX October 1974 4 3 12 12/15/74 Supervision X May 1975 7 1 7 08/18/75 Supervision XI February 1976 3 1 3 09/28/76 Supervision XII June 1977 3 1 3 09/01/77 Completion October 1978 11 4 44 June 1980 COUNTRY EXCHANGE RATES Name of Currency (Abbreviation) Rupees (Rs) Year: Appraisal Year Average 1971 Exchange Rate: US$1 = 7.444 Intervening Years Average US$1 = 8.261 Completion Year Average 1979 US$1 = 8.0  - iv - PROJECT PERFORMANCE AUDIT REPORT INDIA KADANA IRRIGATION PROJECT (CREDIT 176-IN) HIGHLIGHTS Irrigation, to supplement scanty and unreliable rainfall, has been a dominant feature of agricultural development in the Indian Sub-Continent. The traditional "run-of-the-river" schemes have been increasingly supported by single or - more usually - multi-purpose storage dams, which permit extension of the irrigation season and generation of electric power. The Bank Group started assisting these second-generation projects in 1970; the first one supported was the completion of the Kadana Dam and its appurtenant irrigation and drainage systems and the extension of irrigation into new areas on the left bank of the Mahi river. Watercourse construction, reclamation of saline lands and better development of the commanded areas were part of the project; they were mostly carried out in the area previously irrigated from a weir completed in 1958. Despite delays and sizeable cost overruns, the project's major objectives have been achieved; its economic rate of return is re- estimated at about 12% (against the appraisal expectations of 14%). The following points may be of special interest: - some delay in project implementation was due to problems of counterpart financing during the first year (PPAM paras 22, 23; PCR para 3.04); - extensive changes in dam design were due to unanticipated geological problems and underestimated peak flood levels (PPAM paras 13-19; PCR paras 3.05, 3.09-3.11); - rotational water use and the strengthening of agricultural extension services will permit full utilization of project waters (PCR para 4.07); - substantial groundwater development as a side effect of the project will contribute to increased cropping intensities and reduced waterlogging (PCR paras 3.16-3.17).  PROJECT PERFORMANCE AUDIT MEMORANDUM INDIA: KADANA IRRIGATION PROJECT (CREDIT 176-IN) I. SUMMARY!' 1. The Kadana Irrigation Project was the first of second-generation irrigation projects in India which the Bank Group supported, beginning from 1970. The project was to: (i) expand and stabilize agricultural production in rain-deficient areas; and (ii) complete irrigation facilities where past investments had brought only partial realization of the agricultural poten- tial. It was to complete an ongoing irrigation scheme that had been under construction since 1948. 2. Prior to the IDA project, the first stage, consisting of a diversion weir on the Mahi River and a canal system commanding an area of about 143,000 ha, had been largely completed by 1958. At the time of appraisal in October 1969, the project involved: (a) the completion of a storage dam on the Mahi River about 70 km upstream of the existing diversion weir; (b) the completion and improvement of branch, distributary, and minor canals to expand the area irrigated on the right bank of the river from 143,000 ha to 263,000 ha; (c) a new irrigation system diverting directly from the dam to serve an area of about 20,000 ha on the left bank of the river; (d) construction of watercourses and field channels throughout the project area; (e) completion of main project drains; (f) a field drainage system to reclaim and improve about 37,000 ha of saline land lying along the Gulf of Khambhay; (g) additional land levelling and other command area development (CAD) work throughout the project area; and (h) the upgrading and construction of new district and village roads and various measures designed to strengthen the agricultural support program in the project area. 1/ Adapted from the PCR. - 2 - 3. The project was to change the irrigation pattern from a monsoon-only to a year-round pattern and to expand the irrigation service area. It also emphasized command area development (i.e., construction of field channels, drains and landshaping and financing of these works through institutional credit). 4. Despite implementation difficulties, including a three-year delay in completion and a very substantial cost overrun (principally on the Kadana dam) which was borne by the Government, the project has produced satisfactory results. At the time of the PCR mission in 19781/, the principal components of the project were largely completed. Field results observed during the appraisal of the Gujarat Irrigation II Project (Cr. No. 1011-IN) in 1979 confirm that the Kadana area is now one of the most advanced farming areas in India. During the project period, the agricultural support services in Gujarat, including those in the project area, were greatly strengthened. 5. At the time of appraisal, the Kadana Irrigation Project was expected to serve an area of 263,000 ha in the Mahi Right Bank Canal (RBC) area and 20,000 ha (16,500 ha in some reports) in the proposed Left Bank Canal area (LBC). As revised in 1978 to reflect the more accurate field survey for CAD works, the irrigation service area was reduced to 212,700 ha in the RBC area and 11,540 ha in the LBC area. However, since water supply has turned out to be more than expected--largely because of the increased use of ground- water which in turn has been augmented by increased deep percolation from more intensive and expanded irrigation--the land which can be double cropped under irrigation in the service area has increased. The adverse effects of increased construction and on-farm operating costs, delays in construction, reductions in the irrigation service area, and lower crop yields have been partially offset by the higher farmgate prices!/ which now prevail, and by higher irrigation intens'ities. As a result, the rate of return of the project has been reduced from 14% estimated at appraisal to 12%. 6. The credit became effective on July 29, 1970 after several postpone- ments to await compliance with conditions of effectiveness. From the onset of implementation, delays were experienced in practically all administrative areas. Initial budget allocations were inadequate and the planning and coordination of project activities was deficient. Construction progress fell behind the planned schedule. A major problem was GOG's termination (March 1971) of the principal contract for the construction of the dam without prior consultation with IDA. 1/ Although the Project Completion Report was initially drafted some 18 months ago after the return of the mission from the field, issuance has been delayed due to substantial and prolonged internal review of the draft report. 2/ At constant prices. - 3 - 7. Two main design problems arose during the construction of Kadana dam which resulted in significant delays and increased costs. Several faults were discovered when the foundations were excavated. These required changes in the structural design of the dam and additional foundation treatment. Two peak flood events occurred during construction which led to a revision of the flood discharging capacity and in the provision of an auxiliary spillway. 8. The cost of the project, calculated from its inception in 1954 to completion in 1975, was estimated in the appraisal report at US$98 million. The present estimate to completion is US$183 million. The steepest increase was in the construction costs of the Kadana dam which was estimated at US$18.5 million at the time of appraisal and has actually cost in excess of US$90 million. All cost overruns were met from GOG budgets. 9. The original provision of US$2.5 million for procuring machinery and equipment, primarily for land levelling and CAD work, was revised upward (to about US$6.5 million) as a result of the increased requirements for depart- mental construction of the dam. 10. The first disbursement application was received on November 24, 1970, or four months after the actual effective date of the Credit. The disbursement schedule as presented in the appraisal report was revised on December 15, 1971 and at yearly intervals thereafter to reflect the slower construction progress. Disbursements were completed in 1976. 11. The GOG Public Works Department (PWD) was given responsibility for the design and construction of civil works and the Department of Agriculture and Cooperatives had responsibility for agricultural development, including Command Area Development (CAD) works. Project coordinators in the Kadana Project changed too often to be fully effective. The first coordinator was not appointed until 1971, a replacement took place later in 1971, and again in 1972, 1973 and 1974. There was no continuity in the project coordinator position until the present CAD Commissioner took over in 1977. II. MAIN ISSUES A. General 12. The project's economic rate of return has been recalculated at 12% or almost 13% below the appraisal estimate of 14%. The still satisfactory rate of return could be obtained due to substantial grain price increases which offset the 100% cost overrun.-Y There have been several factors leading 1/ The average opportunity cost of capital in India has been estimated at 12%. Further there is the possibility that some of the benefits of independent tubewell development in the area may have been included in the benefits attributed to the Kadana Irrigation project (See PCR para 5.08). Thus, the ERR may be below 12%. Exact data, however, to arrive at a more precise ERR are not available. to this overrun and some aspects provide interesting lessons to be learned and will be discussed in more detail. B. The Dam 13. Construction costs of the dam showed the highest overrun rising from Rs 138.8 million (US$18.5 million) estimated at appraisal to Rs 724.6 million (US$90.5 million). The cost increase due to inflation during the construction period has been calculated at about 30% indicating that several other factors had contributed substantially to the dam's 420% cost overrun. Changes in design accounted for about Rs 65 million (US$8 million) and modifications required due to "unexpected" geological problems as well as maximum flood underestimation led to further cost increases of about Rs 230 million (US$29 million)./. 14. The audit does not share the PCR's view (para. 3.05) that the encountering of a number of geological faults had to be unexpected. The dam is located at the end of a valley cutting through 100 to 200 feet high hills of more or less barren rock. Major faults, some of them 10 to 20 feet wide, can be noticed in these hills and this should have alerted the appraisal to the likely occurrence of faults also at dam site. 15. As events turned out, a major fault was found when excavation for the dam started. To prevent the rock plate from sliding, once the dam and the stored waters would increase pressure, a tunnel to permit improved anchoring of the rock had to be constructed. In addition, a seismological observatory had to be established to assess the tectonic activities of the faults. 16. Additional difficulties arose due to underestimation of peak floods. Initially 19 gates were provided for by-passing a design flood of 1.1 million cusecs. Following a peak flow of 0.8 million cusecs in 1968, plans were changed and two more gates were added bringing spillway capacity to 1.3 million cusecs. This capacity was severely taxed in 1973 when an estimated flood peak of almost 1.2 million cusecs occurred while construction was still in progress. A still higher flood discharge followed in 1976, but by that time it had already been decided to increase design capacity to 1.75 million cusecs. 17. At that stage it was impossible to accommodate the additional gates required in the main spillwayi/ and a second spillway had to be constructed. 1/ Other cost increases were caused by higher outlays for land acquisi- tion, flood protection of up-stream settlements, termination of works by originally selected contractor. It should be noted that costs of inputs also increased considerably during project implementation. 2/ Construction of facilities for the project-s power generating component had advanced too far and their removal would have been costly. -5- The construction of this spillway on the right flank of the reservoir, some two kilometers from the main dam, proved to be costly. Substantial excava- tions, cutting through the hills were required. 18. Staff argued that the problems dam construction faced in Kadana are indicative for the difficulties generally encountered in works of this kind. They point out that a large number of test holes had been drilled in the rock formation for the spillway and power dam sections prior to the start of construction and that results of test drilling did not reveal the fractured nature of the foundation blocks or the existence of faults. As regards the variation in peak flood design the appraisal considered and accepted the first flood hydrograph, prepared by Indian experts, as adequate.!Y It was only after the 1973 peak flood and further study by Indian experts and Bank consultants that a maximum flood of 2.8 million cusecs was considered a real possibility. 19. The difficulties encountered in determining the geology of the dam site as well as in assessing likely maximum floods were further aggravated by the absence of geologists/hydrologists from the appraisal team, but these problems also highlight the risks posed by projects with large dams and reservoirs. Seismic problems also escape accurate determination and are mentioned here to complete the list of major factors which need to be con- sidered in assessing design and costs of this type of undertaking. 20. The Bank has become aware of these risks especially as far as large dams and their possible failures pose a threat to human life. Operations Memorandum (OM) 3.80 was issued in 1977. It stipulates (i) a review of the concept and design by a separate panel of experts,.at an early stage of design and during final engineering and construction of dams and embankments with heights exceeding 10 meters or creating reservoirs of more than 2.5 million m3 gross storage volume, and (ii) periodic inspections of the dam after construction by suitable qualified independent experts. 21. The memorandum's stipulation of requiring borrowers to employ a panel of experts, acceptable to the Bank, is not only leading to increased protection of human life, but also unintentionally, to more precise cost estimates. Despite the relatively short experience with the provisions of OM 3.80, some deficiencies of its implementation, however, have become apparent. Large countries have established their own national panels. Considering the difficulties encountered in assessing natural risk factors, which tend to elude accurate determination by applying scientifically proven formulas on the one hand and recognizing the continuous progress made in various parts of the world in narrowing down the unknowns of the past, in other words, the con- tinuous flux in the "state of the art" makes it questionable to leave final decisions on these matters to just a national panel of experts. This the more since only limited expertise on the above mentioned subjects is available 1/ Present appraisal practice tries to combat the underdesign problem by using a two flood approach: (i) accept the design flood to size the spillway, (ii) insist on maximum flood routing. - 6 - within the Bank--in the case of the Kadana appraisal none was available at all. In the audit's view a "second opinion" through a separate international panel, which could include qualified nationals would be fully justified on grounds of increased protection of human life and as a secondary benefit would possibly lead to considerable cost savings.!Y C. Local Cost Financing 22. The Bank agreed to labor intensive technology for the construction of project works. Local costs were estimated at appraisal to amount to about 96% of total project costs. Out of the US$35 million credit, a total of US$32.5 million (Category II) were allocated for civil works to be under- taken to a large extent by local firms. The Credit Agreement stipulated that IDA would finance 58% of Category II expenditures, leaving the Borrower to provide 42% of the funds through budgetary allocations. The Credit was signed on February 9, 1970 and became effective on July 12, 1970; four months after the Borrower's 1970/71 financial year had started. Subsequently, some diffi- culties developed during the first eight months in obtaining the required government counterpart funds. 23. In the case of the project, Indian budgetary procedures called for the forwarding of departmental requirements by February, to permit finaliza- tion of budget proposals for the approval by the Legislative Assembly by early March. Because of the Credit's late approval by IDA, i.e., several months after these budgetary procedures for the 1970/71 had been completed, approval for supplementary budget allocations would have been required. With limited resources available to the Government, some of the required funds were not made available until the following year, leading to some delays in project implementation./ 24. The difficulty in mobilizing local funds at project start-up are not unique to this project. OED's study.! on delays in project implementation 1/ The Government of India in its comments (See Annex 1) indicates that indigenous expertise is fully competent for dam design and foreign experts need to be used only in areas where indigenous expertise is not available. The GOI-s standing Dam Design Review Panel, set up at Bank's suggestion last year is considered sufficient to review all dam designs. The audit does not agree with this view in light of the complexity of any dam review as outlined above. There is no reservation on the capabili- ties of the national panel, but also for the sake of saving human life a "second opinion" frequently sought by other countries is desirable. 2/ The audit agrees with GOI comments that the problem of local counter- part fund allocation no longer applies to India. However, it should be noted (see para 24) above that the problem persists in other countries. The staggered financing of local expenditures and no changes in total local cost financing would occur or is suggested. 3/ OED Report No. 2946, dated April 11, 1980. - 7 - mentions "about a dozen projects suffered from the Borrower's financial constraints in the way of insufficient counterpart funding" (para. 2.27). Despite the relatively frequent occurrence of difficulties in local counter- part funding, no discernible action has been taken by the Bank to improve the situation. Borrowers are still expected to arrange for budgetary allocations well ahead of Loan/Credit effectiveness, leaving them to shoulder the risk of blocking scarce funds in case the Loans/Credits are not approved or approval is unduly delayed. 25. Establishment of revolving funds has been recommended to borrowers, but these funds appear a workable proposition only in countries which usually obtain several Loans/Credits within short periods. The revolving fund idea does not seem workable in countries where annual lending is restricted to one or two projects. In the audit's view, staggered local cost financing could be considered as an alternative. Under this system the Bank would finance, for example, 100% of local cost in year one and lower percentages in each of the following years instead, like the Kadana project, a flat rate of 58% throughout the project. D. Management of Irrigation Development 26. The point made in the PCR (para 4.07) that it is unrealistic to assume, as was done at appraisal, that once additional supplies of irrigation water became available at outlets, farmers will share it equitably and use it optimally, is strongly endorsed by the audit. For such changes from ineffi- cient current practices to take place requires a higher level of consciousness and knowledge on the part of management. Charged with carrying out water distribution, management must distribute the water equitably and instruct farmers on its optimum use.  Dr. T. K. Jayarama n, - 8f- Area Development Commissioner. kz D.O.No.MKP/D)-1 ipwogig Phone : 448291 (0) AREA DEVELOPMENT 'COMMISSIONER, 448292 (0) ( Kadana Project) Tel -'KADANACOM' Navarangpura, Ahmedabad-380 009. ANNEX I page 1 April 15, 1981. Mr. Shiv S. Kapur, Director, Operations Evaluation Department, The World Bank, 1818 H. Street, N.W. Washington D.C. 20433, U.S.A. Dear Mr. Kapur, I have sent my comments on 'Project Performance Audit Report .on India Kadana Irrigation Project (Credit 176-IN) to Additional Chief Secretary, Agriculture Forests & Cooperation Department and Secretary, Irrigation Department, Government of Gujarat. I understand these comments will be processed by the State Government and thereafter would be conveyed to you through Government of India. However, I am enclosing a copy of my comments in so far as they relate to command area programmes in the Project. Comments relating to other parth will be sent to Government by the project people in so far as they relate to construction and other activities. Yours sincerely, (T. K. Jayaraman) -9- ANNEX 1 Page 2 Comments of Command Area Development Commissioner, Mahi-Kadana Irrigation Project on Project Performance Audit Report on India Kadana Irrigation Project (Credit 176-IN) Paragraph 11 of 'ummary : There is an error relating to date. 1978 should read as 1977. The present project coordinator known as Command area Development Commissioner took charge in zeptember 1977 and is continuing till date. Para 2.10 of PCR: It is represented that Government had enacted a special legislation for construction of water courses in the command area as part of project works. This is wrong. Government is carrying out on-farm development works which include construction of field channels and- land'levelling under an old legislation known as Dombay Land Improvement Schemes Act. There was an agreement with the Gujarat State Cooperative Land Development Bank for the latter to reimburse the amounts of expenliture incurred on construction of O.'D works by Government on behalf of the farmers executed under the Bomoay Land Improvement ichemes Act. Paragraph 2.11: The work of land levelling is done by the Joint Director of Agriculture directly under the guidance of Qommand Area Development Uommissioner. The Joint Director of ricutuire heads the soil conservation brcnch of Directorate of A,riculture but the J.u.A. is directly placed under the control of CommsndY Area. Develo-rment Qommissioner and not under the JirectorLte of -4riculture. Paragra7Dh 3.24: It is stated in the paragraph that the present coordinctor was-selected in 1978 but the date should read as 1977 rather than 1978. To be exact it was ZSeptember 1977 when the present coordinator was appointed. Feurther it is stated in para 3.24 that "le h,d direct influence only on the construction of field channels and land sh-ping and his .powers to effectively coordinate the progr,:mnies of various agencies active in the project area were very limited". -10 - ANNEX 1 Page 3 Though it is true that the CAD Commissioner was directly responsible for constructi6n of fi,eld channels and land levelling, it is not correct to say that his influence is limited for effective coordination. Because of the senior. position, being of the rank of Secretary to Government, he was able to guide and control and supervise the activities of voious agencies in the project area such as exiension (though it was the responsibility of District Panchayat) and. Cooperation (Though it is the responsibility of the Registrar of Cooperative So c1eties for mobilising crop loan and other agricultural loans).,The CAD Commissioner used effectively the instrument of Project Level Coordination Committee meetings held Stery month at i-adiad by bringing about better coordination between two major department, naiely, 'Irrigation Department, and the Agriculture Department working in the project area and other departments involved in th-e area. Paragraph 4.07: It is correctly mentioned that the dam and the reservoir were completed in 197b. The Project Completion Aeport Team visited Prbject area only in October 1978. At that time the perennial irrigation possibility had not become a reality and hence it is difficult to visualise the mn.terialisation of cropping patterns incorporated in the Appraisal Report; I , is necessary to wait for at least fairly rcsPonable period once the reservoir is completed. Paragr'Ph 4.07: This also refers to the need for ch!nges in the Irrigation Act. Such c}icnges in the Irrigation Act seem to h-ve been sugested in the par,graph under the impression that in the proposed Rha' a falrmer would be allotted a specific quantity of water which he would. be free to use for irrigating whatever -rea and whatever croo he chooses. This view is wrong. in the l . introduced in :achi-iKadana Project as iart of the Gujart Irrigation II Project (IDA Credit 1011.I1iD), the objective is not to allot a specific qu-ntity of water for enfbling a f:rmer to exercise his freedom of choice, of crop for irri-Ption but the objective is to supply water to each f-rmer in the outlet are- re nrdles-s of his location, head or tail end and reoardles-, of hi. economic or social position at ANNEX 1 Page 4 periodical intervals, weekly or f ortnightly the predetermined amounts of water on a per-hectare time basis to suit the crops and the soil characteristics. The main objective is to avoid dver-irrigation and to give exact amount of pre-determined quantity in accordance with the soil-crop-characteristics in an equitable manner keeping, the total amount of water available at the reservoir in view and taking ihto account various losses on transmission in the process of delivery to the farmers' fields. 4,11. Under the 6AR, the pereinhial crops as well as two seasonal crops were considered as the crops that occupied the land only for a single season. In the PCR a different definition has been adopted, namely, that these crops are ,assumed to occiy the land for both seasons. iaturally the definition adopted in the PCR would give rise to a higher cropping*intensity. However, it is for the 3ank to decide whether two different definitions can be adopted - one at the SAR stage and another at the P CR stage. F'or future, there should be some consistency. Therefore, Bank may clarify that for the project authorities whet should be the new definition adopted. 4.21. The L.B.C. area which is in Panchmahals district is -lso covered by T & V system of extension since 1979 cC the district has been covered under T & V. 4.24. L.B.C. could not have the T.C.D. farm becuse of the non-evailability o:f land in a contiguous area for about 100 acres. Area Development Commissioner, (Lad-ana firoject).Lhmed-bad -12 - ANNEX 1 Page 5 COMENTS F GOMERNMENT OF INDIA/COVERNMENT OF GUJARAT 3N THE DRAFT PPAR FOR THE KADANA IRRI- CATION PR3ECT(CREUIT 176-IN). The draft PPAR forwarded by the Operation Evaluation Department of the World Bank ot the gedene Irrigation Project(Credit 176-IN) has been carefully considered by the Govt. of India in consultation with the State Goernment of Gujarat and we have the following commente to makes- 1. Banks main recomefndation appears to be that to avoid cost over runs due tu inadequate inuatiqat,i.n arno design, a s3cond opinion, Licuyl an internatiunal review panal shoulC. be ;btainaj in all such cases of dam ccnstruction. GMR feel that 'Whiz. is not rnecos;ay as indir.ou experti5E is fully cnistoot for dan design and foreign exports n3ed to be uaed only in arean wti-re indigunous exportise is not available. CO's standing dam design review panel, et up at Bank suggestion last year is sufficient to ruviaw sll dam tesignt. It is almr riot practicibla to enlarge scope of geological and other investigations to cover all eventualitiese. 2. The socond point mae by the Bank is that there was delay in providing adequate fundinq in initial areas. To get around this problem they have suggested staggered local cost financing with a hiqh percentage in the first year declining gradually. While this kind of problem may have occured earlier, Gal is aware of this diffinulty anJ no project is notw posed ti the herk without our satisfying ourselvce about the plan outlay and resource position of the State for the entire project period. On thw other hand, major expenditure n constructinn works do not always occur in the first year but rather in second year and beyond. Bank's suggestion would, therefore, lea.to rate of financing declining as rate of expenditure goeL up. 3. With ,efercnce tzi the comrn 't ,t Lha peak flood design did not take .nto account the maximum flood of 2.2 million cusecs which had occured in 1927, Govt. of Gujarat have stated that the floods during 1927 wore not nosryed and he record thereof iE not a,vailatble. rhe highest flood obearved w!s 1.140 million cusecs in 1973 which was based on the UG method in conSultaticn uith CWC. On the basis of this the maximum probable flood in the Mahi river at Kadena has been estimated as 1.75 million cusecs and spillway capacity of the Kadana dam has been adopted to pass this discharqs safely. The maximum flood of 2o$ million cusecs as stated in the Project Performance Audit Report has not beccrsidered by the State Government. In all 27 gates sa,ch of 15.5A5 m x 14.02(51 ft x 46 ft)have been provided over the spillway of Kadana dam. With 24 gates in operational condition leaving three gates as stand by.MWL expected is 422 ft. with MPF of 1.75 million cusecs flood discharged. In case -01, e gates are commissioned, the spillway will be able *to discharge flood of 2.1 million cusecs. With this MWL expected is 424.5 ft. against the top of the Kadana dam as at 431 ft. 4. Xhs above co.wments of the Government of India and the State Government may kindly considered while preparing the final PPAR for presentation to the Board of Executive Directors of the Uank. (S.P. *APAI) Shri Shiv S.Kapoor, UNDER SEC2ETARY(FB) Director, Operations Evaluation Deptt., World Bank, Washinnton.  - 13 - INDIA CREDIT 176-IN KADANA IRRIGATION PROJECT PROJECT COMPLETION REPORT May 5, 1981 - 14 - I. SECTOR SETTING 1.01 When the Kadana Project was appraised in 1969, India's economic situation had improved significantly following the extreme drought, recession and inflation periods of 1966 and 1967. With two good harvests, food short- ages had disappeared and the prospects for accelerated and broader-based agricultural progress looked promising. 1.02 To accelerate agricultural development, efforts were made to intro- duce new technologies, increase the availability of inputs and provide economic incentives to encourage farmers to use these inputs. The results were impressive at the beginning. The new fertilizer-responsive foodgrain varieties contributed to a record grain harvest of over 95 M tons in 1967/68. The prospects of further increases in cereal yields held promise for India to reach self-sufficiency in food during the 1970s. 1.03 As part of its strategy to give priority in the fourth five-year plan (1969/70 to 1973/74) for the completion of on-going irrigation projects, India, during 1968, presented a number of irrigation projects to IDA for con- sideration. These projects, located in central and southern India, were reviewed in January and February 1969 by a Bank team and the Kadana Irriga- tion Project was selected as the first to be appraised and presented to the Executive Directors. 1.04 Gujarat covers an area of about 19.6 M ha and has a population of about 32.0 M. It is relatively urbanized and has a large modern manufactur- ing sector. However, agriculture, which in a normal year contributes 30%-40% of State income and employs about 65% of the labor force, has a predominant influence on the State's economy. Due to low and uncertain rainfall and limited irrigation facilities, Gujarat is extremely susceptible to droughts and famines. Although yields are relatively low for most major crops, the combination of advanced farming practices and the cultivation of high value crops has resulted in a productivity per agricutural worker which is one of the fourth highest in India. Gujarat also has one of the best agricultural supporting services in India. 1.05 As a result of the rapid expansion of the cultivated area, yield increases and a shift towards high value cash crops, agricultural production in Gujarat grew faster between 1952/53 and 1964/65 than in any other State. Much of the transformation that was associated with the "green revolution" took place between 1965/66 and 1971/72. 1.06 A number of surface irrigation projects were started in the 1950s (Mahi, Kakrapar and Shetrunji). Although construction on the storage and diversion dams was relatively rapid, the construction of major and minor conveyance systems lagged far behind. The State's major irrigation works are concentrated on the Gujarat mainland (only Shetrunji is located in Saurashtra and no major project is located in Kutch); there are about 65 completed medium irrigation projects located in all parts of the State. Minor surface schemes (mainly tanks) provide supplementary irrigation during the kharif season. The areas irrigated vary substantially from year to year. - 15 - 1.07 The Bank Group's association with Gujarat in the irrigation sector has been longer than with any other State in India. The Bank Group's first loan/credit for irrigation development in India financed the construction of the Shetrunji's canal system (Credit No. 13-IN, 1961, US$4.5 M). Like other Indian irrigation projects financed by the Bank Group at that time, the Shetrunji project failed to achieve its agricultural potential due to an inadequate irrigation infrastructure below the headworks, weak agricultural supporting services and over-optimistic planning assumptions. 1.08 The Kadana Irrigation Project was the first of a second generation of Bank supported projects in India. The project was to: (a) expand and stabilize agricultural production in rain- deficient areas; and (b) complete irrigation facilities where past investments had brought only partial realization of the agricul- tural potential. It was to complete an ongoing irri- gation scheme that had been under construction since 1948. II. FORMULATION Project Concept and Objectives 2.01 The Kadana Project, financed by IDA, was the second stage of an ongoing project designed to: (i) increase the area developed for irrigation service under a Stage I project carried out in the 1950s and 1960s; and (ii) replace seasonal irrigation by assured year round irrigation through constructing a storage reservoir on the Mahi River. 2.02 Expected project benefits were defined in the Staff Appraisal Report (SAR) as follows: "Completion of the Kadana Irrigation Project would result in three prime benefits. First, there would be an expansion and stabiliza- tion of annual agricultural production in an area that presently depends on an erratic rainfall. This would bring about a substan- tial increase in farm incomes. Second, the project would enable India to realize the full benefits from past investments in irri- gation facilities in Kadana area, at present limited by the absence of an assured water supply. Finally, the project would contribute to India's efforts to attain self-sufficiency in foodstuffs and improve the balance of payments position by reducing import needs. Assuming all the increased production of cereals and long-staple cotton from the area to be import substitution, gross foreign exchange savings from the project at full development, based on projected world market prices and the current exchange rate, would be about US$30 million annually. At full agricultural development of all project lands, the annual gross value of production, at projected world market prices, is estimated to increase from the - 16 - present level of Rs 180 million to Rs 585 million. After making allowances for increases in production costs, the annual incremen- tal net value of production at full development would be approxi- mately Rs 200 million. When these benefits and all project costs, including those incurred to date, are discounted over the 40-year life of the project, the economic rate of return would be about 14%. 2.03 Kadana was one of the forerunners of command area development, a program whose main thrust was in improving the organization and cooperation among farmers below the project outlets for better water management. Project Area 2.04 The Mahi River, one of four major rivers in Gujarat, rises in the Vindhaya hills in the State of Madhya Pradesh. It flows through the State of Rajasthan, traverses the middle of Gujarat from northeast to southwest and discharges into the Gulf of Khambhay (Cambqy), some 580 km from its source. The total drainage area is about 32,090 km of which approximately 45% is within Gujarat. Kadana Dam is located in a gorge cut by the Mahi River through a low range of hills in Panchmahals District in Gujarat, just below the border with Rajasthan. 2.05 The project area is located in two non-contiguous areas of the Mahi River basin. Construction of the Right Bank Canal (RBC) as a run-of-river irrigation scheme was undertaken in 1948. Kadana Dam and Reservoir and the Left Bank Canal (LBC) were to be a second stage development. 2.06 The Mahi RBC portion of the project accounts for 95% of the command area (212,700 ha) and is located in the Kaira District extending westward from the existing Wanakbori diversion weir down to the Gulf of Khambhay. It includes the talukas of Thasra, Anand, Petlad, Borsad, Vhatur and Cambay. The soils of the project area are alluvial laid down by the Mahi and Sabarmati Rivers. They vary from light textured soils in the upper areas to heavy black clays in the nearly flat portion bordering the Gulf of Khambhay. The slope of the upper area is gentle--about 6 cm per km. The lighter soils vary and are intermixed sandy loams to clay loams. The soils are easily worked and cultivated and are versatile enough to be used for a wide range of crops. Although paddy remains the popular kharif crop, many of these soils are ideally suited for high income specialty crops. Project Description 2.07 Prior to IDA involvement, the first stage consisting of a diversion weir on the Mahi River and a canal system commanding an area of about 143,000 ha had largely been completed by 1958. The project was to complete the second stage to develop irrigated agriculture in two areas along the Mahi River. The project, when appraised in October 1969, involved: (a) completion of a 1,300 M cu m storage dam on the Mahi River about 70 km upstream of the existing diversion weir; - 17 - (b) completion and improvement of 1,200 km of branch, distri- butary, and minor canals to expand the area irrigated on the right bank of the river from 143,000 ha to 263,000 ha; (c) construction of an irrigation system diverting directly from the dam to serve an area of about 20,000 ha on the left bank of the river; (d) construction of watercourses (field channels) throughout the project area; (e) completion of main project drains; (f) construction of a field drainage system to reclaim and improve about 37,000 ha of saline land lying along the Gulf of Khambhay; (g) land levelling and other CAD work on about 42,000 ha throughout the project area; and (h) upgrading and construction of new district and village roads totalling about 3,200 km and various measures designed to strengthen the agricultural support program in the project area. The project also included: the establishment of new, and improvement of existing, trial-cum-demonstration farms; procurement of vehicles and construc- tion of farmers' training facilities for agricultural extension; investigation of the groundwater potential in the area; collection and evaluation of agricul- tural data and a study of water charges; and a trial land consolidation program. Cost and Financing Plan 2.08 The project, at the time of appraisal (Table 1, Annex 9, SAR) was estimated to be completed by mid-1975 at a cost, from its inception in 1954 to completion, of Rs 735 M (US$98 M). Up to the end of FY69 about Rs 235 M or 32% of the total cost had been spent. The IDA credit of US$35 M was to assist in financing the remaining expenditure of Rs 500 M (US$66.7 M). Since the foreign exchange component in the remaining expenditures was only US$2.5 M, all for equipment procurement, the major portion of the IDA Credit was for local expenditure. 2.09 At the time IDA became involved, permanent irrigation outlets and watercourses had been installed in existing irrigation projects long after completion of the main conveyance system, thereby unnecessarily deferring irrigation benefits. Also, outlets from the conveyance system were frequently located so that they served too large an area for efficient water distribution. To provide for better water distribution in the project area and to achieve early benefits from the project, temporary pipe outlets, serving areas no larger than 20 ha for paddy cultivation and 40 ha for other crops, were to be - 18 - constructed before each minor canal was commissioned and turned over to the operating section. The final locations of outlets were to be determined jointly by the irrigation and agricultural staff and the farmers. 2.10 Although farmers in general preferred to let the Government handle the rehabilitation of the minor system (below the outlet), they were expected to pay for this work, usually from institutional credit sources. Arrangements for obtaining credit to repay the Government were time consuming and cumbersome. An agreement was, therefore, worked out with the Gujarat State Cooperative Land Development Bank for the latter to reimburse the amounts of expenditure incurred in construction of OFD works by Government on behalf of the farmers executed under legislation known as the Bombay Land Improvement Schemes Act. 2.11 Land levelling was done, at the farmers' request, by the Joint Director of Agriculture (DA) directly under the guidance of the Command Area Development Commissioner. The Joint DA heads the soil conservation branch of the Directorate of Agriculture but the Directorate itself is under the control of the Command Area Development Commissioner. The Implementing Agencies 2.12 The project works were undertaken by the PWD, responsible for the design and construction of civil works, and the Department of Agriculture and Cooperation, responsible for agricultural development. Other participating agencies included the Department of Finance, General Administration and Land Records and the Gujarat State Land Development Bank. The GOG also established coordination committees at the State and project level with overall responsi- bility for planning and coordinating the activities of the various agencies associated with the project. Preparation, Appraisal and Agreement 2.13 The appraisal report was based on technical feasibility studies prepared by two departments of the State of Gujarat--the Irrigation Wing of the PWD and the Department of Agriculture and Cooperation (hereinafter referred to as the Department of Agriculture). The project was appraised in May 1969 by a Bank team. A separate mission visited the area in August 1969 to review the road program. 2.14 The Food and Agriculture Organization of the United Nations (FAO) assisted in the preparation of the project under the Bank/FAO Cooperative Program. 2.15 Negotiations for the credit to India for the Kadana Irrigation Project were held in Washington, D.C. December 8-17, 1969. The delegation representing India and the State of Gujarat and the delegation representing IDA, negotiated Development Credit and Project Agreements for a proposed Credit of US$35.0 M equivalent. 2.16 During negotiations, two issues arose. The first involved proce- dures to be followed in the procurement of certain items of project equipment with a total estimated cost of US$3.0 M. The GOI was prepared to accept - 19 - international competitive bidding (ICB) for these items, provided that the level of preference allowed to domestic suppliers would be 27.5% or the prevailing customs duty, whichever was lower. It was eventually decided that GOI should be allowed to reserve for domestic procurement, any item which it did not wish to put to international tender at a maximum preference of 15%. The Government agreed to procure by ICB, with a maximum preference of 15%, items with a total estimated cost of US$2.3 M where the prevailing customs duty is 15% or lower. The remaining items on this list of equipment, with an estimated cost of US$0.7 M, were to be reserved to local suppliers, but no items so procured were to be financed out of the proceeds of the Credit. Other goods, mainly survey and measuring instruments, with a total estimated cost of about US$0.2 M which were not suitable for competitive bidding, were to be procured in accordance with the normal procedures of Gujarat and financed under the Credit. 2.17 The second issue that came up in negotiations involved the Associa- tion's wish to be assured that adequate funds would be provided for the prompt execution of the project. Some earlier Bank Group projects in India had suf- fered delays partly as a result of inadequate provision of Rupee financing. Association representatives felt that in order to guarantee a certain minimum level of financing, the credit documents should provide for on-lending by the GOI to the GOG of the proceeds of the Association credit plus certain addi- tional amounts for specific and exclusive use on this project. This arrange- ment was difficult for the Indian authorities to accept because it would have required a change in the procedures for resource transfers from the Center to the State. Since the Association's concern was that annual budgetary provi- sions should be adequate for prompt execution of the project (a matter which, in the final analysis, lay in the hands of state legislators), it was agreed that a letter would be signed in conjunction with the Credit Agreement, recording the joint intention of the Governments of India and Gujarat to review annually, with the Association, the proposed schedule of construction for the project and the financial requirements to meet this schedule. In addition, the letter provided that the Association be informed annually as to the proposed allocations before these were finally settled. 2.18 Local currency financing was to constitute approximately 93% of disbursements under the credit (on the assumption that all bids put to inter- national tender would be won by foreign suppliers). The credit was also to cover about 50% of expected local project costs. In the President's Report, the justification for this was linked to the desirability of the Bank group making a major effort to assist in India's agricultural sector in view of its particular importance. This necessarily required a willingess to finance large amounts of local currency costs. III. PROJECT IMPLEMENTATION Construction History Prior to IDA Involvement 3.01 Construction in the Mahi Right Bank Canal Project commenced in 1948 and was in full swing by 1954. By November 1958 the diversion weir, head regulator, main canal and branches and a major portion of the distribution system had been completed and irrigation started in 1959. - 20 - 3.02 The second stage project, envisaging a dam and extension of the distribution network, was cleared by the Planning Commission in December 1966. The proposed dam was approved by the Government of Gujarat in October 1968 and a construction contract awarded to M/S Vishnagar, Taluka, Maydoor, Sahkari, Mandali, Ltd. on December 21, 1968. Construction began immediately. Effectiveness and Start-up 3.03 The IDA credit became effective on July 29, 1970. Since Kadana was an ongoing project, there was no interruption in the construction activity nor was there a delay in IDA participation in the construction program. Num- erous problems, however, developed which immediately and significantly delayed progress. The agreements reached during negotiations required certain infor- mation submissions and other actions from GOG as conditions of effectiveness. One of these, the appointment of a team of engineers and agricultural officers to design the contour irrigation systems in the Mahi Left Bank area (Section 6.01(b)(i)(c) of the Development Credit Agreement), caused three postponments in the effectiveness date from May 1 to June 15 to June 30 and finally to July 29, 1970. The Bank's insistence on experience in implementing and super- vising irrigation schemes with large scale bench terracing resulted in the rejection of several initial nominees for the team and brought on the claim that the Bank was holding up the effectiveness of the credit for apparently trivial reasons. Physical Implementation 3.04 From July 1970 to mid-1972, the project suffered from severe implementation problems. These included inadequate budgetary allocations, supervisory personnel shortages, management coordination constraints, engineer- ing problems and contractor's failure on Kadana dam, and procurement delays. By June 1972, the project was on the Bank Group's list of problem projects. The June 9, 1972 problem projects review memorandum reported: "From the onset of this project, and even before the date of effec- tiveness of the credit, delays were experienced in practically all administrative areas. The first supervision mission in April 1970 reported that proposals which GOG had agreed to submit to IDA fell far behind schedule, budgeting allocations were inadequate, staff reorganization and recruitment lagged seriously and there was an obvious lack of coordination in project activities. Physical pro- gress was also less than satisfactory, with engineering and field work as well as construction progress behind schedule. Procurement of equipment was also delayed and complicated by the fact that the majority of the equipment, which was to be procured by GOG, was not available locally despite assurances given during credit negotiations. "While subsequent missions reported some improvement in planning and coordination, physical progress and procurement of equipment continued to fall behind schedule and additional problems developed. The lack of communication between GOG and IDA was highlighted by the supervision mission of July 1971 which reported two serious situa- tions threatening implementation, of which IDA had not been informed until long after the fact. The first involved the principal contract - 21 - for construction of Kadana Dam, which had been terminated some four months prior to the mission's visit. After unproductive readver- tising, GOG had decided to complete the work by departmental force account which would require considerable additional imported equip- ment. The second resulted from a request by the Government of Rajasthan to reduce the agreed on elevation of the dam to avoid excessive costs. "The most recent supervision mission of December 1971 reported that the outlook for the project has improved. The construction schedule for the dam has been extended two years until June 1976. This sche- dule is dependent on the timely procurement and effective use by PWD of additional construction equipment. IDA has approved a revision to the list of goods to make an additional $3 million of the proceeds of the credit available, and procurement [of equipment] is in process. In the Rajasthan dispute, a negotiating board has been set up and the dam has been redesigned to lower the spillway, which may lessen Rajasthan's objections. Project coordination has been improved by the appointment of a senior experienced administrator as Coordinator. While a number of problems remain, it may be possible, dependent on the findings of the supervision mission now in the field, to remove Kadana from the problem projects category." Kadana Dam 3.05 Engineering problems on the dam had developed quickly. First, a number of faults were unexpectedly encountered in the foundation of the masonry section. It was necessary to revise the foundation treatments and to redesign the dam to meet this problem. Second, Kadana Dam site experienced record- setting flood peaks in 1973 and 1976 which washed out cofferdams and generally impeded construction progress. This lost valuable construction time and construction schedules were disrupted. Additional financing was required to offset steep escalations in the prices of materials and labor and for inadequacies of estimates on work qualities. 3.06 According to supervision reports, the contractor for Kadana Dam had, at the time of the termination of his contract, completed only 15% of the work in 56% of the contract period. 3.07 The difficulties with the contractor, the resulting retendering on June 22, 1971, the subsequent rejection of the two bids received and the decision to proceed departmentally with construction, contributed to a two- year delay in the expected completion date for the dam. Beginning in October 1971, PWD endeavored to pick up the construction tempo, but many problems arose. Shortages in labor recruitment and serviceable construction equipment, the desilting, extension and deepening of foundations, and the lack of work- ing space for masons contributed to a shortfall in the 1971/72 construction season for rock excavation of about one-half of the masonry target and essen- tially all of the concrete placement. 3.08 With the procurement of additional equipment and the planned increases in labor resources, it was anticipated that construction performance - 22 - could be stepped up and the date of completion held to the previously antici- pated delay of two years. This was not to be. In 1973 a number of additional faults were encountered which slowed down the masonry and concreting works and necessitated a redesign of the foundation. To pick-up concrete production it was decided to procure a large batching and concrete mixing plant. Since plants of large capacity (160 cu yds per hour) were not available in India, this needed some 12 months for tendering, transporting, and erecting the plant. In the meantime, the remedial works recommended by the expert committee established in March 1973 on the dam foundation problem, added significantly to the delays and costs of the construction program. 3.09 The unprecedented floods of the Mahi River in August and September 1973 breached the cofferdam and deposited silt and debris in the construction area. Further delays resulted from the repairs and desilting that were neces- sitated. Shortages in cement, drilling rods and explosives also contributed to the delay. At the end of 1973 it had become apparent that an extension of the closing date from September 30, 1976 to June 30, 1978 would be required in due course. Indecision on the part of the Gujarat Electricity Board on whether to add the proposed hydro-electric component was also a delaying factor. Between March and October 1974 the power component was sanctioned and work on the power house foundations undertaken. 3.10 The floods in the third week of November 1976 again washed away approach roads, working platforms and river diversions, which had to be replaced. This shortened the working season by about six weeks and resulted in some 20%-30% loss in output for that construction year. In 1977, following these floods, the GOI Central Water Commission (CWC) and GOG engineers increased the Kadana dam flood discharging capacity by an auxiliary gated spillway. 3.11 By 1978, the modified dam and spillway were largely completed and GOG now has the storage facility in full year-round operation. Canal Network 3.12 Work on the canal network proceeded smoothly during project imple- mentation and is now largely complete. Drainage 3.13 Some 245 km out of the 515 km of main drainage ways was reported complete in 1978 (Annex 2). It was not possible to obtain detailed information on the results of the drainage works in the 37,000 ha area. Current IDA opinion is that in the worst affected southwestern area, gravity drainage is inadequate to fully protect this low lying land and to develop it for diversi- fied cropping. This area is likely to be more fully developed under the planned Narmada Project. Watercourses and Land Levelling 3.14 Command area development in the project consisted of the construc- tion of watercourses from the outlets on the official irrigation network (each outlet serves a 40 ha block) to provide irrigation service to all farms in the - 23 - block and some land levelling in the Left Bank area. The works were financed under arrangements described in para 2.10. With the construction of this farmer-owned minor conveyance system, irrigation service improved greatly. Using this water, together with the supply of water from private wells, farmers are now making substantial headway in developing their land for intensive irrigation. Command Area Roads 3.15 At appraisal, the project anticipated the construction of 1,100 km of district and village roads, together with farm roads (1,700 km) and sugar- cane roads (400 km). The GOG, in agreement with GOI, later reduced the district road component to be financed from the IDA Credit to 775 km with an assurance that the deleted roads will eventually be constructed under the GOG's ongoing 20-year plan. An inspection in the field in 1973 revealed that most farm tracks were in existence and, further, that village Panchayats were constructing additional access roads at their own expense. The farm roads and sugarcane roads were, therefore, dropped from the project by mutual agreement. After 1972, the quality of construction improved considerably and progress throughout the credit period was generally satisfactory. Some 143 contracts were awarded. Except for one or two who failed, all contractors generally performed well. At one time, there was a shortage of rollers and water tanks and this condition was aggravated in 1972 by the need to assign these equip- ment items to higher priority drought relief work. There was also some disagreement with GOI over funding and some delays resulting from the heavy flooding in 1973. By 1978, the project area was reasonably well covered by a road network. Groundwater 3.16 Paragraph 4.13 of the SAR states: "Groundwater is being used intensively from privately-owned shallow wells and tubewells in the eastern half of the Right Bank area. Some local over-pumping of the aquifer is already evident. Recharge to the aquifer would increase sufficiently, once perennial supplies become available from Kadana Reservoir, to permit further limited groundwater development. This would provide additional water for enlarging the area under crop in rabi as well as valuable supplemen- tary supplies in periods of shortage if its use were carefully regulated and controlled." Some preliminary studies of the groundwater potential in the area had been carried out. Assurances were obtained during negotiations that a research team would be set up and the necessary investigations started, under terms of reference satisfactory to the Association, within 6 months after the signing of the credit agreement." 3.17 Subsequently, GOG submitted the results of the groundwater investi- gation program which confirmed considerable-potential for the development of well irrigation. The GOG was then asked by IDA if it wished to pursue a groundwater development program in the Kaira District within the project area, but the Government was unable to make a decision on this proposal. However, - 24 - the 26,000 private wells reported in the project area make a substantial con- tribution to intensifying and diversifying agricultural production by produc- ing a timely and flexible supplementary water supply. Procurement 3.18 The original provision of US$2.5 M for procuring machinery and equipment was increased to US$5.5 M and eventually to US$6.5 M. The changes in equipment procurement are presented in Table 1. Innumerable delays entered into the procurement actions, some of which could conceivably be assessed to initial and repeated reviews of the tendering documents. Improvements in procurement procedures came slowly. Increased Cost of Construction 3.19 At the time of appraisal, construction work on all major items on Kadana Dam, except for the fabrication and erection of radial crest gates, had been contracted for. It was thus natural to conclude at appraisal that only nominal increases in construction cost would occur. Such was not the case, however, as the cost of the Kadana Dam has risen to Rs 702.3 M as now estimated, compared to an estimate at the time of appraisal of Rs 181 M. The cost of the canal network has also increased considerably due to increased work quantities following detailed surveys and design and to the higher than expected unit prices. The very steep increase in construction costs of the dam was the result of the contractor's financial failure (very soon after appraisal), unexpected foundation difficulties, and the need for an additional emergency spillway. The increase in the cost of the canal works resulted from the increase in oil prices in the early 1970s which caused strong inflationary pressures in the Indian economy. Project Supervision 3.20 Table 10 is a summary record of the supervision missions. A total of 12 missions aggregating 151 mandays in the field were mounted. The project implementation period overlapped with the reorganization of the Bank which took place in the fall of 1972 and resulted in changes in Divisional respon- sibilities. As a result, continuity suffered in the first three years of implementation. However, starting from early 1973, continuity in responsibil- ities for supervision was satisfactory. Project Coordination 3.21 Paragraph 5.03 of the SAR anticipated that the Special Central Coor- dinating Committee under the chairmanship of GOI's Central Water and Power Commission would maintain a continuous association with Bank projects during their implementation. A clause to this effect was included as Section 4.08 in the Development Credit Agreement and further details involving full-time staff to assist the Committee in covering project activities during implemen- tation were worked out during negotiations. Several references are found in the earlier supervision reports relative to the*workings of the GOI Committee. The January 27, 1972 report stated that: "there had been marked improvements in both GOI and GOG project coordination since the visit of the last mission. - 25 - GOG and GOI officials have been exchanging regular visits to New Delhi and Gandhinagar, respectively, to discuss project planning. 00I's committee now appears to be fully in the picture. In the future it will hold meetings in the project area from time to time." The supervision report of August 3, 1972 had this to say: "The coordination between GOI and GOG with regards to the project continues to be satisfactory. The GOI's Central Coordination Committee visited Gujarat in April 1972 and reviewed progress on the project." 3.22 Paragraph 6 of the December 17, 1969 Memorandum of Negotiations called for GOG to appoint two coordination commitees. The State Level Committee was to be chaired by the Additional Chief Secretary, GOG and would exercise overall budgetary control over the project. It would also plan and coordinate the annual plan of operation for the various aspects of the project. The day-to-day activities of the project would be the responsibility of a project coordination committee headed by a full-time senior GOG officer (Project Coordinator). 3.23 The GOG, in Resolution No. KAD-1369/1517-Q.P1. dated July 9, 1970, did constitute a Project Level Coordination Committee for coordinating the activities of various Departments, viz., Public Works Department, Agriculture and Cooperation Department, Revenue Department at the District level. 3.24 As with all coordination committees, their success or failure depends on the capabilities of the chairman, in this case the Project Coordinator. The first problem was that Project Coordinators changed too often to be effec- tive and, in many instances, they had the assignment of Project Coordinator as an added responsibility. The first Coordinator was not appointed until 1971. He was replaced that same year with subsequent changes almost at yearly intervals. It was not until September 1977, when the present Coordinator (called Command Area Development Commissioner) was selected, that any con- tinuity occurred. To begin with the work of the CAD Commissioner was hampered by the vague definition of his duties and responsibilities. He had a direct influence only on the construction of field channels and land shaping. With the change in 1977, the CAD Commissioner assumed the rank of Secretary to Government, which wielded considerably more influence in guiding, controlling and supervising the activities of the concerned agencies. The CAD Commissioner utilized monthly project level Coordination Committee meetings to bring about better coordination between the Irrigation Department and the other Government agencies involved in project development. Disbursements 3.25 Disbursements of the credit were made very nearly in line with appraisal estimates. The first disbursements were made in 1970 and by the end of FY1975--99% had been disbursed. The credit was closed in October of 1976. The actual disbursements compared to the original schedule are presented in Table 22. Compliance with Covenants 3.26 In retrospect, the covenants included in the Project Agreement were vague and ambiguous as to intent or objective. Section 2.08 of the Project - 26 - Agreement calls for establishment of a "study team" and a divisional organi- zation, and to adopt and begin an agricultural program and a program to consolidate land holdings. These actions were to be taken within 6 months from the date of the Agreement. Section 2.09 calls for the initiation and completion of a study of water charges, a discussion with the Association of the recommendations and actions proposed and a repeat of this exercise at intervals not exceeding five years. However, it is impossible to determine what results were achieved due, to some extent, the vagueness as to what the covenants were intended to accomplish. IV. AGRICULTURAL IMPACT Area Benefitted 4.01 At the time of appraisal, the Cultivable Command Area (CCA) was 283,000 ha. The CCA covered and the utilization of the irrigation potential created are shown in Table 4. As originally proposed, the Kadana Project was to serve a CCA of 263,000 ha in the Mahi RBC area extending westward from the Wanakbori diversion weir on the Mahi River down to the Gulf of Khambhay. The proposed LBC was to serve 20,000 ha. In a Review of the Command Area Development Programme, the CCA of the Kadana Project was revised downward to 212,700 ha on the right bank and 11,540 ha for the left bank. The reduction in the project area resulted primarily from new information developed as a result of topographic surveys and the layout of the distribution system. High or isolated areas as well as those used for roads, borders, farmsteads were eliminated. Also, some areas having high water tables or saline and alkali soils have been excluded from the project area. 4.02 The first water from Stage I of the Kadana Project was delivered in 1958/59. By the time Stage II of the Kadana Project was approved in 1970, major facilities were available to irrigate 143,000 ha during the kharif season. However, in that year, only 55,000 ha were actually irrigated with canal water. Since that time there has been a gradual increase in irrigation with canal water, and in 1977/78, 78,000 ha were irrigated with such water (see Table 3). 4.03 Stage II of the Kadana Project introduced a new dimension to irrigation--a regulated year-round supply of water from storage. This supply became available first in the autumn of 1978. No information is available at this time of actual areas irrigated during subsequent rabi and hot weather seasons. For projections of cropping patterns and crop yields during the rabi season (paras 4.09-4.15) which were used in the economic analyses, we have used observed data from the parts of the project area which are at present being irrigated from wells and tanks. Size of Farm 4.04 Farm sizes in the project area, average 1.6 ha and are typical of those found in this portion of India. However, there is a considerable varia- tion in size ranging from very small to over 20 ha, but for the most part, the - 27 - farms tend to be small. Over 75% of the farms (which account for only 30% of the land) are under 2 ha in size whereas on the larger sizes, 9% of farms (over 4 ha) account for 43% of the land. The distribution of farms and area by size of holding is presented in the following tabulation: % of Holdings-- % of Area-- Size Size Holding (ha) Interval Cumulative Interval Cumulative Up to 1 42.5 42.5 11.5 11.5 1-2 33.4 75.9 18.3 29.8 2-4 15.2 91.1 27.1 56.9 4-8 7.0 98.1 21.8 78.7 8-up 1.9 100.0 21.3 100.0 /a No. of holdings: 176,000 /b Size of Area: 283,000 ha Average Size: 1.6 ha Land Tenure and Farming Methods 4.05 Most farms in the project area are operated by their owners under labor intensive methods. Except for diesel pumps for lifting well water there is little mechanization in the project area. Bullocks provide the main source of draft power although occasionally some farmers, particularly those produc- ing tobacco or potatoes, hire tractors for plowing. Since the agriculture work is performed under labor intensive methods, the economies of scale do not operate in the same manner as in mechanized agriculture and there is no upward pressure on size of farm as is normally the case in areas where capital intensive methods of farming are followed. Farm Labor 4.06 All members in the family-men, women and children-assist with farm work. On smaller farms they are able to do most of the field operations, such as threshing except during peak periods. At that time, rather than exchange labor with their neighbors, they employ casual agricultural workers, mostly from the landless category. The tendency to hire workers is, of course, greater on the larger farms where it is common to find both regularly employed workers as well as daily laborers as needed. There is sufficient labor in and adjacent to the project area to meet the needs of the farms and consequently, even though labor intensive systems of farming are followed, labor supply does not constitute a constrain. Cropping Patterns, Water Management, Yields and Production 4.07 At the time of the PCR mission, the cropping patterns, crop yields and production levels that were predicted by the appraisal team for 1975 had not been attained. Undoubtedly, the main reason has been the delay in completing the project and the failure is to provide a perennial water supply - 28 - until 1978. Now that a perennial water supply is available, changes in crop- ping patterns and irrigation intensities can be expected to occur in a reason- able period of time. At appraisal it was assumed that once additional supplies of irrigation water became available at the outlets, farmers would share it equitably and use it optimally. Experience at Kadana and elsewhere in India has shown the difficulties in accomplishing these objectives. The promotion of better water management and of an equitable and organized delivery system in the Kadana command area is being tackled through the introduction of a rotational water supply (RWS) system on 30,000 ha of the command financed under the Gujarat Irrigation II Project (IDA Cr. 1011-IND for US$175 M) which became effective in June 1980. During the 1978/79 rabi season, COG introduced RWS, on a pilot operational basis in part of the Mahi Right Bank Command area. However, large scale introduction of RWS requires: (i) a build-up of consider- able know-how and organizational capabilities among the irrigation adminis- trators; (ii) some modifications of existing irrigation networks--primarily construction of cross regulators, measuring devices and group turnouts within the 40 ha chaks; and (iii) changes in the Irrigation Act. 1/ Consequently, the pace of implementation is likely to be constrained more by the need to learn from experience than by lack of funds. 4.08 Lack of proper planning and funding for drainage to prevent water- logging, salinization and sea water intrusion in the soil zones III and IV of the RBC (estimated to involve between 37,000 and 40,000 ha) will have a long- term adverse effect on both cropping patterns and crop yields in that area. A reduction in yields over time in these areas has been taken into consid- eration in the ERR calculations employed in this project completion report. 4.09 Cropping patterns, crop yields and production have been re-estimated for both Stages I and II of the RBC and for the LBC. This has been done to enable an economic evaluation of the entire project from the start of imple- mentation as well as one using the incremental income generated from the IDA- financed Stage II project only. Also, separate estimates of (irrigated) crop production have been made for lands irrigated by wells in addition to canals (see Tables 5 through 9). 1/ Under the Bombay Irrigation Act, the farmers apply for water to irrigate a specific area under a specific crop. One proposal under RWS is for the farmer to be allocated a specific quantity of water which he would be free to use on whatever area and whatever crop he chooses. This would undoubtedly necessitate a change in the Irrigation Act. However if the accepted objective of RWS is to supply water to each farmer in the outlet area regardless of his location (head or tail end), and regardless of his economic or social position, at periodic intervals (weekly or fortnightly) and in predetermined amounts of water on a per hectare time basis to suit crop and soil characteristics, then this can be done without a change in the Act. The objective in this latter definition is to avoid over- irrigation and to give an exact predetermined amount of water in accord- ance with the soil crop-characteristics in an equitable manner - keeping the available water at the reservoir in view and compensating for varying transmission losses in delivering the farmers fields, wherever located in the project area. - 29 - 4.10 If converted to a comparable basis, the overall cropping intensity envisaged at appraisal and presented in the SAR is somewhat higher than that now believed probable. Conversely, irrigation intensity is now expected to be higher than originally contemplated. The higher irrigation intensity anticipated results from a significant reduction in the Irrigable Command Area (283,000 ha to 211,000 ha), as well as from the increased use of wells which supply supplementary water to about one-third of the irrigated area. 4.11 The SAR expected the cropping pattern at full development to be as follows (% of cultivable area): Kharif Hot Weather Irrigated 67 Irrigated 7 Rabi Trans-seasonal Crops /b Irrigated 25 Irrigated Ic 14 Non-irrigated 35 /a Non-Irrigated /d 10 Total cropped area 158 of which: irrigated 113 /a Unimproved grain and fodder sorghum and pulses. /b Occupying the land for more than six months. /c Sugarcane (perennial), Virginia tobacco and long-staple cotton. /d Other tobacco and short-staple cotton. This would compare to a pre-project cropping intensity of 101% of which only 6% was irrigated in the kharif, 5% in the rabi and 3% in the hot season. Moreover, the project would enable the growing of HYV rice and wheat on a large scale, as well as growing long staple cotton and sugarcane. 4.12 For the most part, crop yields contemplated at the time of the SAR were somewhat higher than those now visualized. Only in the case of ground- nuts, potatoes and hot-weather bajra are higher yields assured than in the SAR; elsewhere lower yields are employed. The differences in the case of HYV paddy are particularly significant. These lower yields take account of experience in the project area since appraisal. 4.13 Yields for paddy, irrigated with canal water, have been projected at 2.3 tons per ha in 1985, compared to the estimates in the SAR of 4 tons per ha. At the time of appraisal, the HYVs had just been introduced and much optimism about their yields prevailed. The potential for such expected increases undoubtedly still exists, but experience has demonstrated that farmers will not invest in the necessary inputs unless they are assured that irrigation water will be available on a timely basis and it will be sometime before that is the case at Kadana (para 4.07). 4.14 Over recent years, irrigated wheat yields have averaged about 1.8 tons per ha, whereas, the SAR estimated that under conditions of full devel- opment, irrigated wheat yields could attain a level of 2.5 tons per ha. It is believed that this estimate remains valid and it has been used in the calculations made in this report. The SAR estimated that under conditions of full development, cotton would attain a yield of 2 tons per ha whereas it is assumed now that the comparable yields will be only about 1.5 tons per ha. - 30 - 4.15 The cropping pattern in the project area is more diversified than in many other parts of India. In addition to the usual crops, such as bajra, jowar, pulses, paddy and wheat, significant hectares of cotton, tobacco, groundnuts and vegetables, all important commercial crops, are also grown. The introduction of a dependable supply of storage water, which will in turn recharge the groundwater, will have a significant impact on the rabi and hot weather crops as well as on crops grown during the kharif. 4.16 Groundnuts have already surpassed appraisal-projected yield levels and are being produced on 3-1/2 times the area predicted. Due to the promotion of this crop and its adaptability to the soils of the project area, the crop area is expected to further double by 1985 with slight yield increases thus gaining prominence in the cropping pattern in the future compared to the appraisal estimates. Agriculture Supporting Services 4.17 The SAR recognized the need to make improvements in the agricultural research, extension, training and demonstration services. Financial support provided in the SAR included buildings, equipment and transportation vehicles totalling US$600,000. This has been expended. 4.18 Research. The State's central rice research station at Navagam is adjacent to the project area. It has released new HYVs in the project area and is also conducting research on the agronomic aspects of rice production. Research stations elsewhere in the State have programs in cotton, jowar and bajra. Much research information is available on all the crops grown in the project area from neighboring States or regions. Many of the findings of ICRISAT and the Indian National Research Centers are not being utilized in the project area. There is no dearth of information available from research, but rather there is a need for extension and application of knowledge and materials already in existence. Improved varieties are now being used in nearly all crops with cotton reported to be 100% of the area, tobacco 90%, bajra 80% and wheat 65%, but improvements in cultural and production methods attendant to these improved varieties are still needed. 4.19 The SAR strongly emphasized the need for research in water use and soil management with the objectives of providing adequate background informa- tion and developing knowledge and skills in irrigation management which would be passed on to cultivators. A research team of experienced scientists was proposed to pursue the research. This has not been done in the pattern envisioned by the appraisal team. Some work is being done at Thasra but an organized effort in the project area has not been made to accomplish the objectives indicated in the SAR. There is some reason for delay in that the irrigation system is not complete at this time, but definite plans and proposals should have been in evidence by now. 4.20 Extension Services. Up to 1978, some change in the extension system established after appraisal was noted, but it would not have met appraisal goals. In 1978, the T&V system of extension was started in the RBC area as part of a Bank-financed project. Although the program was just gaining momentum at the time of the PCR team visit, it is expected to be in full swing shortly. The extension effort will be vital to the meeting of production goals in the project area. - 31 - 4.21 The LBC area, unlike the RBC area, was not originally designated as an agricultural development area and its extension staff was not well supported nor supplemented by specialists. However, the T and V system of extension was introduced in 1979 in Panchmahals district, which includes the LBC area. 4.22 The support for the T&V extension activities through the IDA-assisted Composite Agricultural Extension Project (Cr. No. 862-IN, US$25 M) will relieve the Kadana project of this responsibility and its success will be vital to the Kadana Irrigation Project as such. 4.23 Training. The training facilities at Thasra proposed at appraisal were established on schedule (within 2 years) and as proposed. It is associ- ated with the trial-cum-demonstration (TCD) farm there and is well staffed with competent people. Groups of 25 farmers are brought in for 5-10 day training periods. With 10 of these training periods per annum, 250 or more farmers are trained each year. Since the program started in 1971, over 2,000 farmers have been trained. The farm is irrigated by wells, so some irrigation practices can be taught at the farm. Over 30,000 farmers have participated in one day production-cum-demonstration training camps at the center. Training sessions are also given to farm women and about 1,500 have participated. Some follow- up field visits are made to trained farmers but these are necessarily limited. This center will be of special value to the T&V extension program in the future for training of VLW staff. The appraisal team anticipated the need for this facility and the TCD farms mentioned below, but the main objectives of training for irrigation efficiency and water management are yet to be realized. 4.24 Trial-Cum-Demonstration Farms. The 20-ha TCD farm at Thasra was established at the time of the appraisal, but it did not have supplemental water then. Tubewells have since been established and the farm presently demonstrates irrigation methods and timing and crop culture. If a criticism could be made of their approach to crop irrigation, it would be that they tend to pursue the philosophy of spreading the water as far as possible rather than optimizing its use in a given area. Since Thasra TCD is on a light textured soil, the appraisal team proposed a TCD farm for the heavier soil area of RBC and including, if possible, some saline areas. This farm has recently been established at Jinej. It was originally proposed that 2 farms be established in the LBC area. This was changed to a one farm proposal. It is now proposed that experiments and demonstrations be conducted on private farms which is probably a better approach than the original TCD farm proposal in view of the small area commanded by the Left Bank Canal. 4.25 Agricultural Credit. Credit is provided through the three-tier cooperative credit structure and the commercial banks which are operating in the area. In 1973-74 there were 488 service cooperatives in the RBC area and 40 in the LBC area; these had as members 59% of the farmers in the RBC and 54% in the LBC area. However, even though the majority of farmers were represented in the societies, only 43% of the members in the RBC area and 51% in the LBC area were borrowing members. (This is equivalent to 25% of all farmers in the right bank and 28% in the left bank.) The use of short-term credit in the RBC area is slowly increasing while in the LBC area it is still minimal. Even though the cooperative facilities are not utilized, the cooperative and commer- cial banks make ample credit facilities available to farmers. In spite of - 32 - the availability of credit facilities, it must be concluded that most farmers either do not use, or are ineligible for, credit or depend on friends and relatives for it. 1/ The construction of field channels and land levelling on account of farmers was financed by the Government and transferred to the Gujarat State Land Development Bank as a specific liability of the individual farmer and collected through the regular land taxation procedures. The GSLDB in turn repaid the Government for the advance. 4.26 Agricultural Inputs and Outputs. Inputs are, in general, freely available both in the private and cooperative sectors. These sectors also provide ample marketing, storage and processing facilities. 4.27 Pilot Projects for Soils and Water Management. Three pilot farms for soil and water management were established at three different locations as follows: (a) Limbasi Farm with an area of 34 ha to experiment on drainage; (b) Adas Farm near Anand with an area of 32 ha for experimenta- tion on perennial irrigation; and (c) Nadiad Farm with an area of 24 ha for experiments on two season irrigation. 4.28 Resettlement of People from Reservoir Submergence Area. Resettle- ment has been satisfactorily completed both in Gujarat and Rajasthan. V. ECONOMIC IMPACT Farm Income 5.01 General. Crop budgets to show net financial returns as well as net economic value per ha have been prepared for all crops, both irrigated and non-irrigated, and for both the RBC and LBC areas. To reflect the cost of lifting water from wells (pumping to those lands that are irrigated from wells) the analysis has been further sub-divided between those lands that are irrigated by wells and those irrigated from canals. The results are presented in Tables 12 to 16, inclusive. On the basis of these crop budgets, the project benefits were calculated directly by multiplying the crop hectarage presented in Tables 5 and 6, by the net economic value per ha for the individual crops. 5.02 Sources of Physical Input Data. The physical inputs were taken largely from the "Bench Mark" study published in 1976 and prepared by D.M. Brahmbhatt of the Agro-Economic Research Center, Sardar Patel University, 1/ It is apparent from the supervision of the ARDC projects that most farmers in Gujarat are in arrears with their debt servicing and, therefore, are no longer eligible for new credits, nor are the cooperatives eligible for refinancing from ARDC. - 33 - Vallabh Vidyanagar. In addition, some information was taken from recent Bank appraisal reports in the State of Gujarat and some was collected during field visits. 5.03 The data indicated that in many cases farmers do not use chemical fertilizer or plant protection materials. It also showed a large variation in the amount and cost of labor used for particular crops which seemed to depend, for the most part, upon the composition of the labor force, i.e., children, women or men. Agricultural Prices 5.04 Price estimates used to calculate "net economic value" in the individual crop budgets for internationally traded commodities were based upon the Bank's projections for 1985. For non-internationally traded commodities, they were based upon the relationship between financial and economic prices for the internationally traded commodities, but with some minor adjustments to reflect local situations. Prices of the internationally traded commodities which are expressed in US Dollars were converted to Rupees on the basis of a conversion ratio of Rs 7.5 per US Dollar. 5.05 Financial prices were based on the average of the farmgate prices in Gujarat for 1976 and 1977 during the season when the majority of the par- ticular crop is marketed. This price was then projected to 1985 based upon the Bank's price projections. The 1985 financial price was then arbitrarily reduced by 20% to reflect the effect of removing all interstate shipment controls in India. Since Gujarat is a major deficit State in foodgrains, the removal of such controls is expected to result in significant reduction in the farmgate price of foodgrains in that State (see Table 18). Wells as an Alternative Source of Water 5.06 The SAR recognized that wells were being utilized to provide irri- gation water, but it was also assumed that once surface water supplies became available in the canals, the farmers would cease using their wells and would depend entirely upon canal water. Since Stage II of the Kadana Project was undertaken in 1970, experience has demonstrated that this assumption was ill founded. Rather, the development conforms with the experience from many other Indian irrigation projects. 5.07 In lower rainfall areas of India, private groundwater development has in many cases reached both an ecological and economical equilibrium. The supply of surface water to such an area has two direct effects: (i) it increases the recharge to the aquifer; and (ii) it increases farm incomes and savings/investments. Thus, there is a significant improvement in both exploitable groundwater resources and financial resources which leads to a rapid expansion of groundwater development. The reasons why surface water does not replace, but rather, induces groundwater irrigation are: - 34 - (i) the labor input required for canal irrigation (applying for water, waiting for his turn, patrolling the channels, etc.) are signficiantly higher than for well irrigation. The "real" cost difference between canal and well irrigation is much less than what appears from a direct comparison of direct costs. Furthermore, once a farmer has a well, he is concerned only with the variable cost (about Rs 50 for a three-inch irrigation over one ha--see Table 20). Water charges for canal water amount to at least Rs 74/ha (Table 19). In years with ample and well distributed monsoon rainfall, only a couple of irrigations given at critical periods are required during the kharif season, therefore, the cost advantage of canal water is very small. (ii) One significant advantage with private well water is the dependability and timeliness of the supply. As a result, farmers tend to prefer groundwater over canal water for irrigation of high value crops where the potential loss due to supply interruptions is much higher than for foodgrains. (For example, it is quite common to see a farmer use canal water on a field with sorghum but well water on another with chillies or some other cash crop.) (iii) In most Indian projects the water supply is not enough to irrigate more than a part of the command area during the rabi and hot weather seasons. Hence, farmers use well water to increase the area under irrigation in these seasons. 5.08 The use of wells give three significant economic benefits: (i) it reduces the drainage problems in the command area; (ii) it reuses, at a rela- tively low cost, the water that is lost from deep percolation in the fields; and (iii) it enables the cultivation of high value crops with exacting water demands that cannot be met through canal systems designed and operated to present standards. The economic analyses conducted in this report include benefits from use of wells. Economic Analysis 5.09 A new project justification (rate of return) analysis was made to determine whether the Kadana Project continues to be justified under current criteria and procedures as well as those employed in the SAR. Major elements reflected in the revised analysis include construction period; project capital and operating costs; cropping intensity, patterns and yields; changes in the project area; economic prices; treatment of sunk costs and the continued use of approximately 25,000 wells--(19,000 on the right bank and 6,000 on the left bank). 5.10 Several problems, including the disruption of construction by floods, remedial action required at major faults at the dam site and the high rate of inflation, as well as the unsatisfactory performance of the prime contractor, all served to increase both the construction period and cost compared to - 35 - that originally estimated. Annual project expenditures through FY78, the balance required to complete the project, and a comparison of cost estimates are given in Table 21. 5.11 Changes in the Project Area. The changes that have occurred in the area served by the project are described in para 4.01 above. 5.12 Even though reductions in the project area have been serious from the point of view of economic viability of the project, it should be observed that it has eliminated water supply as a constraint in the cropping pattern and it is thus now possible to attain a higher irrigation intensity than originally envisaged at appraisal. 5.13 Cropping Intensities and Crop Yields. Since storage water was not used for irrigation prior to the field preparation of the PCR, it should be recognized that the conclusions in this report relating to the performance of the Second Stage of the project are necessarily somewhat conjectural. Never- theless, there is an operating record of the use of the Stage I facilities, and that use along with that of the operation of wells in the project area, have provided a basis for making some judgments regarding the future use of storage water that was not available at the time of appraisal. 5.14 The area irrigated by canals from 1954/55 to 1977/78, as well as that irrigated from wells from 1969/70 to 1977/78, is presented in Table 3. The maximum hectarage irrigated from canals in any one year was 85,000 in 1974/75 while the maximum area irrigated from wells was 198,000 ha which occurred the following year. It should be noted that although the canal system to serve 143,000 ha was completed in 1968/69, at no time since then has the actual area irrigated amounted to more than 43% of the potential. Since the well system comprises such an important component of the total irrigation facilities in the Kadana Project, the identity of that system has been maintained in the analysis of cropping intensities and yields. 5.15 Comparison of Economic Prices. The SAR only presented economic prices for foodgrains and cotton. Therefore, it is difficult to compare economic prices used in the SAR and PCR. However, it is possible to make a comparison of these prices for foodgrains which have increased between 110% and 270% since appraisal. 5.16 Benefit Accrual (Development) Period. The first irrigation diver- sion resulting from Stage I facilities was made in 1958. Since then there has been a rather continuous increase in the area served by canals. 5.17 By 1969 when IDA became involved in the project, distribution works to serve 143,000 ha had been completed, and in that year, 55,000 ha were actually irrigated from canals utilizing river water. The benefits from Stage I have been developed in a manner to reflect the general trends described above. For the next 15 years (1970 to 1985) the benefits have been projected on a straight-line basis, and, thereafter, at a constant level. - 36 - 5.18 The benefits for Stage II increased at a nominal rate from 1971 through 1978. Starting in 1979, the availability of storage water led to a sharp increase in the rate of benefit accrual. The rate of increase reflected in the present analysis is significantly greater than that used in the SAR. It is believed that more rapid increases will result from the experience the farmers have now had in the use of both well and canal water. Also, since the level of crop yields now expected under full development is lower than that originally anticipated, it will be easier to attain projected yields and thus the rate of increase to the so-called full development will proceed at a more rapid pace. 5.19 The benefits for the LBC have been projected on a straight-line basis over a seven-year period beginning in 1979 when storage water will become available. The benefits will undoubtedly accrue at a slower rate in the LBC area than in the RBC because the farmers there have had less experience with irrigation and also because a higher proportion of the development work, including such items as field channels and land levelling, remains to be completed. 5.20 The rates of development for the two stages on the RBC as well as the LBC are presented in Table 24. 5.21 Analytical Procedures. The economic analysis in the SAR which covered the entire project as a single entity (Stages I and II of the Right Bank Canal as well as the LBC) was based upon a 40-year period of analysis (six years for construction and 34 years after construction), four assumptions with respect to farmgate prices, and inclusion of all sunk costs in year one of the analysis for Stage II (presumably 1970) but it did not include the benefits accruing to Stage I that occurred between 1958 and 1971. 5.22 The present analysis has refined this approach in several important respects. First, it has developed a separate analysis for both Stages I and II of the RBC and for the LBC as well as the total for the RBC and the total project. The last analysis is consistent with that presented in the SAR. Second, it has streamed the sunk costs over the entire construction period beginning in 1954. Third, it has included the Stage I benefits that accrued between 1958 and 1971. To be consistent with the SAR, it has included benefits for 34 years following completion of construction. 5.23 To provide a basis for comparison with the SAR, a separate analysis has been made in which all sunk costs were included in year one of the analysis (1970) and benefits from Stage I prior to 1970 were excluded. Also, in order to determine the effect of the extended construction period a second sensitivity analysis was made in which the construction period was condensed into the six years contemplated in the SAR. 5.24 In the present analysis the residual value of construction equip- ment and machinery as well as import duties and taxes on imported equipment and machinery are deducted from the capital cost of the project. So far as can be determined, this adjustment was not made in the SAR. - 37 - 5.25 The original SAR shadow priced the cost of incremental farm family labor at zero and presumably that report used prevailing wage rates for all incremental hired farm labor. However, it should be noted that, since such wage rates normally vary between Rs 2.5 and Rs 3 per day--depending both upon the field operation and the kind of labor involved--these rates are about equal to the minimum cost of subsistence which has, over the past few years, been generally taken as the shadow wage rate in India. Thus, the SAR shadow priced the cost of incremental farm family labor at zero, whereas the present report has in effect shadow priced all farm labor at the cost of subsistence. Labor used in connection with the construction and operation of the project was not shadow priced in either analysis. 5.26 In making the present analysis, the added cost for power features at the dam were deducted and all other past costs starting in 1954 were indexed up to the 1978 level through use of the all-India Wholesale Price Index. (Studies made on the Pochampad Project indicated a high degree of correlation between actual construction cost over the past eight years and the Wholesale Index). No such indexing of past costs was made in the SAR. Moreover, all past costs were included in the first year of the analysis (1970) rather than being streamed over the entire construction period begin- ning in 1954 as they actually occurred. However, since the SAR also excluded all previous benefits, the procedure used was actually on the conservative side. The benefits and costs streams are presented in Table 25. 5.27 Rates of Return. On the basis of the foregoing, the rate of return for the total project is now calculated to be 12.2%. This compares to the 14% developed in the SAR in which the Bank's 1975 forecasted prices were employed. 5.28 The present analysis indicates that all stages or units of the project are justified. Stage I of the RBC indicates a return of 10.9%. The Second Stage, in which IDA has been involved, indicates a return of 14.2% and the combined Right Bank Canal (Stage I and II) has a rate of return of 12.3%. As anticipated, the rate of return for the Left Bank turns out to be lower, and amounts to 10.5%. VI. CONCLUSIONS 6.01 The Bank Group's first loan for irrigation development in India was made in 1961 (Shetrunji Canal System, Credit No. 12-IN, US$4.5 M). This project, in common with other irrigation projects financed by the Bank Group in India in the early 1960s, employed the concept that if a basic and publicly owned main irrigation network was installed, farmers with the assistance of existing agricultural supporting services, would be prepared and able to organize the construction of communal works such as watercourses, systems of equitable water distribution, and the on-farm development needed to make efficient use of the irrigation service provided by the project. This proved incorrect and the projects failed to achieve their production objectives. This led to a reassessment of Bank irrigation lending in India and to a revised approach in a second generation of projects. The Kadana Irrigation - 38 - Project was the first of these second generation projects. It included an improved canal conveyance system, addressed the problem of drainage (a feature missing from the earlier projects), and introduced new procedures for ensuring the construction of watercourses and on-farm land shaping and levelling and provided for the construction of farm to market roads and the improvement of supporting services such as extension. Two years after the start of the Kadana Project, GOI introduced the so-called CAD concept for the irrigation sector; this institutionalized on-farm development through the establishment of separate organizations, the Command Area Development Authorities, charged with coordinating irrigation and agricultural development activities in the command areas of the projects to speed up the construction of the minor conveyance system and land development. The project benefitted substantially from this institutional development. 6.02 Careful account has been taken of the lessons learned at Kadana in the design of a third generation of Bank irrigation projects in India; the first of these, the Karnataka Irrigation Project (Cr. 788-IN) was financed in 1978. These projects emphasize better operational practices for the irrigation system and better water conveyance to the farmgate for the provision of a timely and reliable water supply. They use the "Kadana system" of financing the minor conveyance systems, i.e., construction of the minor system at the same time as the major canals from budgetary funds and not subsequent to the completion of the major system and from institutional credit funds as promoted initially under the CAD concept. 1/ The latter concept has proved largely unworkable since it is based on the assumption that farmers are willing and able to obtain institutional credit for these purposes. Experience has shown that many farmers are unwilling to make these investments before seeing the benefits of doing so while others cannot meet the eligibility criteria set by the credit banks. The "Kadana system" effectively overcomes these problems. 6.03 The Kadana project has been a success although, as discussed earlier, project generated production levels will be different from those envisaged at appraisal. Of special note is that agricultural production in the project area rose sharply even before the perennial water supply from the Kadana dam became available. This was induced by good agricultural supporting services, the better road network, and by the more secure water supply in the kharif season from the canal system and from groundwater during the rabi season. The con- junctive use of surface water and shallow groundwater which has developed spontaneously in the right bank command area is indicative of the average farmer's motivation to improve his income when a potential exists for the production of high value cash crops and where the right physical conditions exist for private groundwater development. 1/ The Kadana financing arrangements predated the pure credit arrangements promoted under CAD and were retained under the project. Table I INDIA KADANA IRRIGATION PROJECT Machinery and Equipuent Procurement Appraisal Estimate e iPurchased as of_April 1975 Jan 1970 Report Dec 1971 RevIsion Item No Cost 1/ No Cost 1/ No Make & Model Cost A. Machinery ProcuremellL Under Clobal Tenders (1) PWD Equipment Tractor, crawler with attachments - 380 lip 2 215,000 4 394,000 4 Komatat D355 433,500 Tractor, crawler with attachments - 250 Hp 5 269,000 14 708,400 14 Komatsu 0150 918,200 Tractor, crawler with dozer - 150 Hp 15 429,600 15 Hitachi T-20 572,300 Crane, truck mounted - 30 ton 1 50,000 1 Hitachi 110,300 Roller, pneumatic-tired - 150 ton 1 43,700 1 Southwest 43,700 Loader, Front-end, crawler - 2kI cu. yd. 2 107,000 2 Traxcavator 977 95,700 Loader, Front-end, crawler - 4 cu. yd. 2 160,000 2 Traxcavator 983 2/ 141,000 Truck, rear-dump - 11-12 ton 25 666,700 19 738,500 Trailer with tractor, low bed - 60 ton 1 53,000 1 Hyster,FWD 32,400 Pump concrete placer - 3/4 cu. yd. hopper 2 40,000 2 Bursill T60/50E 78,600 Crane, tower 10 666,700 5 917,700 Wagon drill - 4 inch 6 16,000 6 18,200 Vibrator compactor - 30 ton 2 43,700 2 38,100 Grout pump - 40 US gal/min 2 16,000 2 20,700 SUBTOTAL PWD 4,158,900 (2) Agriculture Department Equipment Tractor, crawler with dozer - 150 Hp 10 236,500 475,300 Tractor, crawler with dozer - 90 tip 50 850,000 50 850,000 904,000 Tractor, wheeled - 50 lip 3 6,000 Tractor, crawler with dozer & towed scrapers of - 12-16 cu. yd. 10 550,000 SUBTOTAL A 1,890,000 5,538,200 B. Specialized Tools and Equipment Scientific & drawing equipment L.S. 10,000 1..S' 10,000 10,000 Photographic & sound equipment L.S. 5,000 L.S. 5,000 5,000 Geohydrological & Petrological Lab equipment L.S. 50,000 L.S. 50,000 50,000 Soil survey Lab equipment L.S. 50,000 L.S. 50,000 50,000 Instrumentation for Dam L.S. 45,000 L.S. 45,000 17,500 Workshop equipment L.S. 128.70 125,300 SUBTOTAL B 160,000 288,700 257,800 SUBTOTAL A+B 2,050,000 4,820,000 5,796,000 Contingencies 450,000 680,000 200,000 C. Equipment to be Procured Locally 25-ton capacity ten-wheeler trailer truck 1 27,000 Wagon Drill 4"-size drifter with feed motor portable 3-wheel trolley and accessories 2 13,000 Grout pump pneumatically operated 15 U.S.G.P.M. at pressure up to 200 P.S.I.G. 2 5,000 Crane truck mounted mobile 10 tons capacity, 30 ft. boom, diesel engine driven with accessories 1 33,000 Wheel-type loader 2 cy. yde. capacity, front and side loading, with accessories 3 140,000 Pneumatic-type roller, 100 tons capacity 1 47,000 Vibrating roller, towed type with independent diesel engine, 30 tons effective capacity 2 20,000 Wheel type tractor, 80 Hp for towing vibrating rollers 2 20,000 Mobile truck-mounted crane, 30 tons capacity, 50 ft. boom length, diesel engine driven with accessories 1 80,000 Mobile workshops and equipment 2 70,000 Visual aid vans 6 45,000 General Purpose vehicles 30 100.000 SUBTOTAL 600,000 Contingencies 100.000 TOTAL C 700,000 D. Specific Authorizations Batching and mixing plant with spares and accessories 3/ TOTAL A + B + C + D 6,434,000 1/ C.I.F. price including 15% for spare parts. 2/ 5 cu. yd. capacity. 3/ Approved by cable dated 7/9/73. fr f f C . - 0 *3 *3 *3 3 3 3 l Ol 0 0 Ol 0 C Cl 3 0 3 2 fr f fr O fl f r t. 0 C 2 f r . f, l f, f . - . fl f . f l c -. .. 3 3 f *3 L. *3 0 r 3Mm s o M Q - (3 3 - f r f r * - l - f l f - 3 f l *e* l OfO O O 3 * l C 3 . fl fl 0 fl O O OM flM-4 fN)O3O-O<O-O O r,. .4 fr-- 0 - - l 0- f * 6• * ,e ,es .3 f s O Or - -r fl . .4 • fl - l fr 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 l .3 IM M - 0 - 0 0 fl = m e e e • en e- a• .•4 fl 0 0 0 0 0 0 0 0 0 0 0 - 0 0 0 0 0 0 0 0 0 0 0 - 0- O O - 0 UI *3 r f 0 0 0 0 0 0 0 0 0 0 O 0 0 0 0 0 0 0 0 - e e . e e . • . e . e e . e - e e e e e e • • • = • • • e 0 as fu IU fl--O0-*3 - em 4 & O O OlO 0 O O-O f em -.-Þ- 0 . . . . . . . . . . . . . . . . . . . . . . . ..... .4 fr . * 4 4 4 .4 f f f r l 4 C3 * l OfO l fr O O O 0 0 0 - fr 0 0 0 0 0 0 0 0 0 0 0 0 0 fr 0 0 • •4 0 4 .4 fr * fr f • 0• 4 fr fl fl *3 * Ct - 0- -- 0 - - 0 - - es 0e p flO fl O fO l OfOO l fl flO fr Od fl fl f Or 0 O O f•• e , 0 403 454 .4 0 fl f. fr *3 fl.*3,fl fl fl fl 0 .4 *3 0 O3O*3 0 fl' 0 O fr•• O4 f O4 Ol *3 O l Oi O3 r 4 - .0 O -4 * fl g -0 0 0- *3 0 0 0 0 0 0U 0 0 M 40 0 0 •4 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . • • e s' • • • • • e e e. . s .- e. • e- -- o -Cd• * 0 0 0 m- 4• O O '. *3 0 O 0" to 0 O 4 0• fr' *3" fl f •• 0 0 0 0 0 0 l 0 fl 0 0 0 h e e a e e a e e e e e e = = e e • • • • • • • • • • • • • fl 3 A f . .4 .4 Al •• f f r r f-l e4 '4 fl flf l -•f f . d f l - l * 3 f l . .4 fl *3 fr * fr f fl fl fr 0 fr'' *3" 0 .4 '3 f 3 * 4 0 U f l l 3 t O3 0 0 t3 AS f Al g0 fl O fra 3 fl A *3 - fl fl r fl fl f A l O) O4 fl O 0 O O 4 4? l O tt - 41 - Table 3 INDIA KADANA IRRIGATION PROJECT Irrigation Development in RBC Area Source of Water Canals Portion Year ending Utilization Irrigated in March Potential Irrigated of Potential Wells Total by Wells ('000 ha) ('000 ha) (%) ('000 ha) ('000 ha) (%) 1958-59 8 1 11 - - - 1959-60 - 4 - 1960-61 - 10 1961-62 59 6 11 - - - 1962-63 - 16 1963-64 - 13 - 1964-65 94 19 20 - - - 1965-66 - 21 - 1966-67 - 29 - 1967-68 135 40 30 - - - 1968-69 143 55 39 - - - 1969-70 158 53 41 92 145 63 1970-71 165 62 38 114 176 65 1971-72 171 62 36 100 162 62 1972-73 175 43 25 160 203 79 1973-74 186 67 36 186 253 74 1974-75 198 85 43 142 227 63 1975-76 223 75 33 198 273 73 1976-77 263 1/ 70 27 106 176 60 1977-78 263 1/ 78 30 102 180 57 1978-79 263 1/ - - - - - Source: Superintending Engineer, Baroda Irrigation Circle, Baroda, as reported in Research Study No. 45 by Agro-Economic Research Center, Sardar Patel University, 1976. 1/ Table was originally prepared when it was assumed that the RBC command area would include 263,000 ha. Table 4 - 42 - INDIA KADANA IRRIGATION PROJECT Irrigation by Cropping Seasons (in hectares) Ratio of Actual Hot Utilization Year Weather Kharif Rabi Total to Potential 1971-72 1,130 47,107 13,939 61,776 33.21 1972-73 1,844 38,417 2,850 43,111 23.17 1973-74 1,305 45,808 19,555 66.666 35.78 1974-75 4,149 65,839 14,551 84,537 45.45 1975-76 564 49,503 24,483 74,550 40.08 1976-77 755 48,211 20,819 69,785 37.57 1977-78 - 53,276 22,688 75,964 40.84 Source: Table in GOG June 1978 Review of Command Area Development - 431 -T.i5 Table 5 INDIA KADANA IRRIGATION PROJECT Cropping Petterns, Yields and Production Right Bank Canal (200,000 he) -----Future Without Project (1985)---- ---------------------------Future With Protect (1985)--- ---- Stage I Sta&e i Crops and Season Cropped Area _±lds Production CroPped Area Yield. Production Cropped Area Yields Production ('000 ha) (tonstha) ('000 tos) ('000 ha) itons/a) ('000 tons) ('000 he) (ton/ha) ('000 tons) KHARIF Irrigated Wells Paddy - HYV 32 2.0 64.0 16 2.2 35.2 14 2.5 35 0 Paddy - Local 10 1.7 17.0 10 1.8 18.0 8 2.0 16.0 Bajra 16 1.1 17.6 14 1.2 16.8 14 1.5 21.0 Groundnuts 14 1.0 14.0 8 1.2 9.6 10 1.5 15.0 Cotton 18 1.0 18.0 8 1.1 8.8 10 1.5 15 0 Tobacco 14 1.5 21.0 4 1.6 6.4 4 1.8 7.2 Sub-total 102 60 60 Canals Paddy- HYV 0 - - 22 2.0 44.0 40 2.3 92 0 Paddy-Lal 0 - - 2 1.7 3,4 0 - - Groundnut. 0 - - 12 1.2 14.4 16 1.5 24.0 Cotton 0 - - 18 1.0 18.0 24 1.5 36.0 Tobacco 0 - - 8 1.5 12.0 8 1.8 14.4 Jowes (fodder) 0 - - 12 3.0 36.0 12 3.0 36 0 Sub-toel 0 80 100 TOTAL IRRIGATED IN KARIF 102 140 160 Non-Irrigated Paddy - Local 4 0.7 2.8 0 - - 0 - - Bajra 10 0.5 5.0 10 0.5 5.0 10 0.6 6.0 Groundnuts 2 0.6 1.2 0 - - 0 - - Cotton 6 0.5 3.0 4 0.6 2.4 0 - - Tobacco 2 0.8 1.6 2 0.8 1.6 0 - - Jowar 2 0.6 1.2 0 - - 0 - - Pulse. 4 0.5 2.0 14 0.5 7.0 10 0.6 6.0 MIxed Crops 4 0.6 2.4 0 - - 0 - - Sub-total 34 30 20 TOTAL KHARIF 136 170 180 Irrigated Wells Wheat 0 - - 0 - - 4 2.5 10 0 Vegetables (Potatoes) 0 - - 4 15.0 60.0 2 17.0 34.0 Baja 0 - 4 1.8 7.2 10 2.2 22.0 Cotton 1/ (18) - - (8) - - (10) - Tobacco 1/ - - A - - (4) - Sub-total 32 20 30 Canale Whe:t 0 - - 8 2.2 17.6 34 2.5 85 o Pule. 0 - - 4 1.0 4.0 0 - Cotton 1/ (0) - - (18) - (24) - Tobacco 1/ - - M - - _(8 -- Sub-total 0 38 66 TOTAL IRRIGATED IN RABI 32 S8 96 Non-Irrigated Wheat 8 1.0 8.0 2 1.0 2.0 0 - Jower (fodder) 18 1.8 32.4 6 1.8 10.8 4 1.8 7 2 Pulses 42 0,6 25.2 6 0.6 3.6 6 0.7 4 2 Cotton1/ (6) - - (4) - (0) - Tobacco 1/ I2. - - 1L - i . - Sub-total 76 20 10 TOTAL RABI 108 78 106 HOT WEATHER Irrigated Hells laa 2 1.8 3.6 4 2.0 8.0 8 2 5 20.0 Jower (fodder) 0 - - 2 3.0 6.0 2 3.5 7 0 Sub-total 2 6 10 Canale Baj.a 0 - - 0 - - 28 2.5 70.0 Jover (fodder) 0 - - 0 - - 2 4.0 0.0 Sub-total 0 0 30 TOTAL HOT WEATHER IRRIGATED 2 6 4O PERENNIAL Sugarcanes (irrigated from Canals) 2/ 0 - - 2 55.0 110 0 4 60.0 240.0 Total Cropped Area 246 258 334 Total Irrigated Area 136 208 304 From Wall. 136 86 100 From Canaln 0 122 204 Cropping Intensity (%) 123 129 167 Irrigation Intensity (7) 68 104 152 Wells (.) 60 43 50 Caals (7.) 0 61 102 1/ Two season crop. Production Included in kharif. 2/ 12 month crop doubled to reflect irrigation and cropping Intensity. - 44 - IND1A Table 6 KADANA IRRIGATION PROJECT Cropping Patterns, Yields and Production Left Bank Canal (11,000 ha) ----Future Without Project (1985) ---- -Future With Project (1985)------- Crops and Seasons Cropped Area Yields Production CroppEd Area Yields Product ion ('00 hs) (on/ha) ( '000 tons) (00 ha) (tons/he) ('000 tons) KHARIF Irrigated Wells Paddy -HYV 0 - 0.0 2 2.3 4.6 Paddy - Local 3 1.7 5.1 0 - - Bajra 1 1.1 1.1 0 - - Maize 5 1.0 5.0 4 1.5 6.0 Groundnuts 4 1.0 4.0 3 1.5 4.5 Cotton 1/ 3 1.0 3.0 2 1.5 3.0 Sub-total 16 11 Canals Paddy - HYV 0 - - 8 2.2 17.6 Paddy - Local 0 - - 6 1.9 11.4 Maize 0 - - 19 2.0 38.0 Bajra 0 - - 20 1.5 30.0 Sorghum 0 - - 12 1.4 16.8 Cotton 1/ 0 - - 12 1.5 18.0 Sub-total 0 77 TOTAL IRRIGATED IN KHARIF 16 88 Non-irrigated Paddy 13 0.8 10.4 1 0.9 0.9 Bajra 18 0.6 10.8 4 0.7 2.8 Maize 22 0.8 17.6 3 0.9 2.7 Groundnuts 11 0.6 6.6 2 0.8 1.6 Pulses 3 0.5 1.5 1 0.6 0.6 Mixed Crops 2 0.6 1.2 0 - - Cotton 1/ 3 0.5 1.5 0 - Sub-total 72 11 TOTAL CROPPED IN KHARIP 88 99 RABI Irrigated Wells Bajra 1 1.6 1.6 1 1.7 1.7* Wheat 7 2.0 14.0 2 2.3 4.6 Cotton 1/ 3 - - (2) - - Sub-total 11 5 Canals Wheat 0 - - 44 2.4 10.6 Cotton 1/ 0 - - 2 - - Sub-total 0 56 TOTAL IRRIGATED IN RABI 11 61 Non-Irrigated Wheat 11 0.8 8.8 4 0.9 3.6 Pulses 4 0.5 2.0 1 0.6 0.6 Cotton 1/ (3. - - i Sub-total 18 5 TOTAL CROPPED IN RABI 29 66 HOT WEATHER Irrigated Wells Bajra 3 1.8 5.4 3 2.1 6.3 Jover (fodder) 1 2.5 2.5 1 2.8 2.8 Groundnut, 1 1.2 1.2 1 1.4 1.4 Sub-total 5 5 Canals Bajra 0 - - 5 2.0 10.0 jover (fodder) 0 - - 1 3.5 3.5 Sub-total 0 6 TOTAL HOT WEATHER CROPPED 5 11 Total Cropped Area 122 175 Total Irrigated Area 32 160 From Wells 32 21 From Canals 0 139 Cropping Intensity 111 160 Irrigation Intensity 30 145 Wells 30 19 Canals 0 126 I/ Two season crop. Production included in kharif. INDIA KADANA IRRIGATION PROJECT Crop Yields Completion Stage I Report Can- Season and Crop Unit 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77 1977/78 als, Stage II RBC Kharif Irrigated Paddy-fine (HYV) tons/ha - - 1.0 1.0 1.1 2.0 1.8 2.0 2.3 Paddy-coarse 1.5 1.4 1.0 0.9 1.0 1.5 1.6 1.7 - Bajra " 0.5 1.2 1.3 0.7 0.4 0.9 1.0 1.1 - Maize " 1.4 1.4 1.4 1.0 0.6 1.5 1.5 1.4 - Pulses - 0.5 0.6 0.3 0.3 0.5 0.5 0.5 - Mixed crops " 1.1 0.7 0.8 0.8 0.7 1.0 1.0 1.0 - Jowar-grain " 0.4 0.8 0.9 0.3 0.6 1.3 1.4 1.5 - Jowar-fodder '000 bundles/ha - 2.0 2.4 1.6 1.0 2.0 2.0 2.0 3.0 Groundnuts tons/ha 0.6 0.6 0.8 - - - - 1.5 Tobacco " 1.3 1.4 1.8 1.2 0.8 1.5 1.5 1.5 1.8 Cotton " 0.9 1.0 2.0 0.8 0.2 1.0 1.0 1.0 1.5 r. Non-irrigated Tobacco " 0.7 0.8 1.2 0.6 0.6 1.0 0.9 009 Cotton " - 0.5 1.2 0.4 0.1 0.5 0.5 0.5 Rabi Irrigated Wheat " 1.5 1.7 2.0 1.9 1.7 1.8 1.7 1.8 2.5 Bajra " 1.8 1.8 1.7 1.7 1.5 1.6 1.8 1.8 2.5 Potatoes " - 20.0 20.0 23.6 20.0 15.0 15.5 17.0 - Groundnuts " - - - - - - - 1.0 - Jowar-fodder '000 bundles/ha - - 2.4 - - 2.5 2.5 2.5 - Non-irrigated Wheat tons/ha - - 0.4 0.7 0.8 0.8 0.8 0.8 - Jowar-fodder r000 bundles/ha - - 2.4 - 1.5 1.5 1.8 1.8 4.0 m- -j INDIA KADANA LRRICATION PROJECT Cropping Patterns (RBC) Season and Crop 1970/71 1971172 1972/73 1973/74 197475 1975/76 1976177 1977/ 78 -------.....--.-.....-...---------------------------% ------------------------------------------------***** Kharif Irrigated Paddy - H.Y.V. 21.3 23.9 4.8 3.8 4.0 7.8 10.6 9.9 20.6 Paddy - Local 0.0 0.0 15.1 14.7 11.6 10.3 13.3 13.' ) Jowar - Hybrid Nil Nil Nil Nil1 0.1 0.1 0.1 0.1 Maize - Hybrid Nil 0.1 0.2 0.4 Nil 0.1 0.1 0.1 Vegetables 0.0 0.0 0.0 0.5 1.5 1.5 1.9 1.3 Bajra 30.5 40.5 33.0 40.3 21.2 25.6 23.2 19.0 Jowar - Fodder 0.0 2.6 1.1 1.7 1.4 1.5 3.4 2.8 Pulses 0.0 3.7 4.1 2.0 1.2 2.8 2.5 4.4 Groundnuts 0.0 0.1 0.1 Nil 0.0 0.0 0.0 0.0 Mixed Crops 0.3 8.9 6.0 2.5 3.8 5.7 3.8 3.0 Tobacco 6.2 12.1 11.7 10-4 6.0 8.4 10.8 11.0 Cotton 15.0 2.6 7.4 9.2 12.4 6.9 4.6 4.8 Total Irrigated (73.3) (94.4) (85.5) (83.5) (63.2) (70.7) (74.3) (70.3) (76.9) 1 Tobacco 4.8 7.3 2.3 2.6 0.7 0.7 0.8 6.3 Cotton 0.0 5.9 5.9 5.1 4.7 2.7 8.7 1.4 Total Non-Irrigated (4.8) (13.2) (8.2) (7.7) (5.4) (3.4) (9.5) (7.7) (7.5) Total Kharif (78.1) (107.6) (91.7) (93.2) (68.6) (74.1) (83.8) (78.0) (84.4) Rabt het 10.6 8.6 8.6 11.7 13.3 9.0 11.0 14.4 potetoes 0.0 0.4 6.5 1.1 1.2 1.1 1.3 1.5 Vegetables 0.0 0.4 0.6 0.6 1.0 1.0 1.1 0.8 Bajra 8.5 17.4 9.6 21.6 13.9 5.5 8.6 11.4 Jovar - Fodder 0.0 0.0 1.1 0.0 Nil 15.2 0.8 0.8 Groundnuts 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Nil Total Irrigated (19.1) (26.8) (20.4) (35.0) (29.4) (31.8) (22.f) (28.9) (26.8) Non-Irrigated Jower - Fodder 0.0 0.0 0.6 0.0 0.9 4.0 1.5 1.5 Wheat 0.0 0.0 0.2 10.3 2.9 8.1 9.5 10.0 Total -Non-Irrigated (0.0) (0.0) (0.8) (10.3) (3.8) (12.1) (11.0) (11.5) (6.2) Total Rabi (19.1) (26.8) (21.2) (45.3) (33.2) (43.9) (33.8) (40.4) (33.0) Total Cropped 97.2 134.4 112.9 139.5 101.8 118.0 147.6 118.4 117.4 T Total Irrigated 92.4 121.2 103.9 120.5 92.6 102.5 97.1 99.2 103.7 on INDIA KADANA IRRIGATION PROJECT Comparison of Cropping Intensities and Crop Yields Appraisal Report Completion Report R BC Weighted Average Items Stage I Stage II L I C (Stage II 6 LBC Cropping Intensity (%) 158 - 129 - 167 - - 160 166 (183)/l Irrigation Intensity (3) Wells - - 43 - 50 - 19 Canals - - 61 - 102 - 126 Totals 113 - 104 - 152 - 145 152 (128)LI Well Canals Non-Irrix 'Wells' Canals Non-Irris Wells Canals Nor-irria Crop Yields (tone/le) K0harif (Irrig.) Paddy - NYV 4.0 2.2 2.0 - 2.5 7.3 - 2.3 2.2 - Paddy- Local 3.0 1.8 1.7 - 2.2 - - - 1.9 - Bajra 2.0 1.2 - 1.5 - - - - - Maize 2.4 - - - - - - 1.5 2.0 - Groundnuts 1.3 1.2 1.2 - 1.5 1.5 - 1.5 - - Pulses 0.8 - - - - - - 1.4 . Jowar - grain 2.0 - - - - - - - - . Jowar - fodder 3.5 - 3.0 - - 3.0 - - - - Mixed crops 1.8 - - - - - . . - . Kharif (Non-Irrig.) Paddy - Local - - - - - - - - - 0.9I 11 Bajra - - - 0.5 - - 0.6 - - 0.7 Maize - * - * - * - - - 0.9 Groundnuts - - - - - - - - - 0.8 Pulses - - - 0.5 - - 0.5 - - 0.6 Rabi (Irrig.) Uheat 2.5 - 2.2 - 2.5 2.5 - 2.3 2.4 - Bajra - 1.8 - - 2.2 - - 1.7 - - Pulses - - 1.0 - - - - - - . Potatoes 12.0 15.0 - - 17.0 - - - - . Vegetables 10.0 - - - - - - . . - Rabi (Non-Irria.) Wheat - - - 110 * - - * - 0.9 Pulses - - - 0.6 - 0.7 - * 0.6 Jwat - 1ath 0 *. edder 2.5 - - 1.8 - * 1.8 - - . Eight-Month (Irrig.) Tobacco 1.5 1.6 1.5 - 1.8 1.8 - - - - Cotton 2.0 1.1 1.0 - 1.5 1.5 - 1.5 1.5 Eight-Month (Non-Irrig.) Tobacco 1.1 - - 0.8 - - - - - Cotton 1.0 - - 0.6 - - - - - - Hot Weathr (Irrig.) Bajra 2.1 X.0 - - 2.5 2.5 - 2.1 2.0 - Jowar-fodder 4.1 3.0 - * 3.5 4.0 - 2.8 3.5 - Groundnuts Perennial Sugarcane 90 55.0 - - 60.0 - -- - - Lt If Two Season Crops and Perennials are counted twice as done in Completion Report, Cropping Intensity becomes 183% and Irrigation Intensity 128%. Table 10 - 48 - INDIA KADANA IRRIGATION PROJECT Supervision Record Dates of Date of Mission Report Visit Report Members Directed to April 15-25, 1970 May 1970 C. M. Bolt D. W. M. Haynes E. M. Sicely September 16-30, 1970 March 1, 1971 C. M. Bolt D. W. M. Haynes E. M. Sicely July 5-15, 1971 September 30, 1971 E. M. Sicely D. W. M. Haynes K. E. Snelson December 2-9, 1971 December 29, 1971 E. M. Sicely D. W. M. Haynes January 27, 1972 J. Tennent July 1-8, 1972 July 31, 1972 M. W. Dickerson G. Mahoney June 6-16, 1972 August 3, 1972 C. M. Bolt D. W. M. Haynes B. de Ponteves February 4-13, 1973 March 6, 1973 G. J. Tibor A. Golan E. G. Giglioli M. W. Dickerson August 16-17, 1973 September 14, 1973 G. J. Tibor A. Golan March 22-23, 1974 April 19, 1974 G. J. Tibor A. Golan October 14-18, 1974 December 15, 1974 M. W. Dickerson K. Pranich October 24-27, 1974 G. J. Tibor A. Seager May 3-5, 1975 August 18, 1975 U. Hpu K. Pranich February 3-5, 1976 September 28, 1976 K. Pranich K. Pranich June 25-27, 1977 September 1, 1977 G. J. Tibor R. Rowe - 49 - Table 11 INDIA KADANA IRRIGATION PROJECT Targets and Achievements of Different Types of Road Construction under Kadana Agricultural Support Program (Length in km.) Year-wise Achievements Work remaining Total to be done done through after Type of Road Target 71-72 72-73 73-74 06/30/74 July 1974 In Physical Terms: District Roads 740 180 55 120 430 310 Village Roads 196 14 51 29 104 92 Farm Roads 1,700 - - - - 1,700 Sugarcane extrac- tion roads 406 - - - - 406 In Financial Terms: (Rs in lakhs) District Roads 565.00 213.54 120.16 61.83 412.42 152.58 Village Roads 126.00 16.46 33.74 17.14 70.34 55.66 Farm Roads 68.04 - - - - 68.04 Sugarcane extrac- tion roads 33.64 - - - - 33.64 Source: Mahi Kadana Irrigation Project, Gujarat State, Superintending Engineer, Kadana Project Circle, Diwada Colony, "Progress Report for the quarter ending June 1974", as reported in Research Study No. 45, Agro-Economic Research Center, Saddar Patel University, 1976. IhJIA KADANA IRRIGATION PROJECT Irrigated Crop Budgets by Source of Water QBC) paddy (MI W Paddy (Local) (Kj Sairs, (M SaAe (WA) -PW0- -----W ------ N2------ -WO- -----W u------ -----NF2 ------1-- ---- 2 . .------1 2---------- --- Items Wella Wells Canals Wells Canals Wells Walls Canals Wells Canals Wells Wells Walls Wells Canals Wells Canals Quantities per ha Human Labor (davs) 175 175 175 180 180 145 145 145 150 150 108 108 108 108 108 120 120 Bullock Labor (team days) 19 19 19 19 19 19 19 19 19 19 14 14 14 14 14 14 14 Seeds (kg) 61 61 61 61 61 60 60 60 60 60 3 3 3 3 3 3 3 Fertilizer: Manure (cart load) 20 20 20 20 20 16 16 16 17 17 0 0 0 0 0 0 0 Oil Cake (kg) 10 10 10 10 10 10 10 10 11 11 0 0 0 0 0 0 0 N (kg) 35 35 35 50 50 25 25 25 40 40 25 25 25 40 40 45 45 P (kg) 20 20 20 25 25 14 14 14 22 22 15 15 15 23 23 25 25 K (kg) 10 10 10 10 10 8 8 8 10 10 7 7 7 10 i, 12 12 Yield (tons/ha) 2.0 2.2 2,0 2.5 2.3 1.7 1.8 1.7 2.0 1.9 1.1 1.2 1.5 1.8 1.6 2.2 2.2 rinancial Crop Budgets (")g Labor 438 438 438 450 450 365 365 365 377 377 270 270 300 270 270 270 270 L" Bullocks 190- 190 190 190 190 190 190 190 190 190 140 140 140 140 140 140 140 0 Seeds 120 125 125 130 130 110 110 110 110 110 6 6 6 6 6 6 6 Fertilizers 658 658 658 754 754 519 519 519 672 672 201 201 201 316 316 357 357 Plant Protectian 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Lifting water 238 238 - 238 - 160 160 160 - 81 81 81 81 - $1 - Machinery 6 Equipment 75 75 75 80 80 75 75 75 75 75 55 55 65 55 55 55 55 Land Revenue 20 20 20 20 20 20 20 20 20 20 15 15 15 15 15 15 15 Production Credit 52 52 45 56 49 45 45 45 50 50 23 23 23 32 30 32 30 Total Financial Cost 1,791 1,796 1,551 1,918 1,673 1,484 1,484 1,324 1,654 1,494 791 791 821 915 832 956 873 Price of Product/ton 1,160 1,160 1,160 1,160 1,160 1,160 1,160 1,160 1,160 1,160 950 950 950 950 950 950 950 Gross Return 2,320 2,552 2,320 2,900 2,668 1,972 2,088 1.972 2,320 2,204 1,045 1,140 1,425 1,710 1,710 2,090 2,090 Net Financial Return 529 756 79 982 995 48 604 6468 666 710 254 349 604 793 678 1.134 1.217 Eon=omir Crop AahktA LW* Labor 438 438 438 450 450 365 365 365 377 377 270 270 300 270 270 270 270 Bullocks 190 190 190 190 190 190 190 190 190 190 140 140 140 140 140 140 140 Seeds 120 125 125 130 130 110 110 110 110 110 6 6 6 6 6 6 6 Fertilizers 595 595 595 650 650 470 470 470 542 542 151 15L 151 131 237 264 264 Plant Protection 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 .0 0 Lifting Water 238 238 - 238 - 160 160 - 160 - 81 81 81 81 - a1 - Machinery & Equipment 75 75 75 80 80 75 75 75 75 75 55 55 55 55 55 55 55 Total Economic Cost 1,656 1,661 1,423 1,738 1,500 1,370 1,370 1,210 1,454 1,294 703 703 733 789 703 816 735 Price of Product/ton 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,800 1,450 1.450 1,450 1,450 1,450 1,450 1,450 Gross Value 3,600 3,960 3,600 4,500 4,140 3,060 3,240 3,060 3,600 3,420 1,595 1,740 2,175 2,610 2,610 3,190 3,190 Net Economic Value 1,944 2,299 2.177 2,762 2,640 1,690 1,870 1,850 2,146 2,126 892 1,037 1,442 1,821 1,902 2;374 2,455 Abbreviations: REC * Right Bank Canal; HYV H High Yielding Variety; FWO = Future Without; W1 * Future with Stage 1; FW2 . Future with Stage 11; 1 - xharif; I - Rabi; and HW - Not Weather Cotton and Tobacco are 8 month crops and Sugareane is a 12 month crop. INDIA KADANA IRRIGATION PROJECT Irrigated Crop Budgets by Source of Water (RBC) Baira (HW) Groundnuts (K) Cotton (K & R) Tobacco (K & R) Items -*O- -F1 - ----- W2------ -FWO- -------l ------ ----- -2------ -FWO- ----- 2------ ----- --------- O- ------ -----FW2 . .. Quantities per ha Wells Wells Wells Canals Wells Wells Canals Wells Canals Wells Wells Canals Wells Canals Wells Wells Canals Wells Canals Human Labor (days) 108 108 120 120 72 72 72 72 72 139 139 139 139 139 260 260 260 260 260 Bullock Labor (team days) 14 14 14 14 9 9 9 9 9 18 18 18 18 18 20 20 20 20 20 Seeds (kg) 3 3 3 3 109 109 109 109 109 14 14 14 14 14 - - - - - Fertilizer: Manure (cart load) 0 0 0 0 2 2 2 2 2 30 30 30 30 30 30 35 35 40 40 Oil Cake (kg) 0 0 0 0 0 0 0 0 0 30 30 30 30 30 12 15 15 20 20 N (kg) 40 45 50 50 7 12 12 18 18 80 100 100 110 110 85 85 85 85 85 P (kg) 20 25 30 30 20. 30 30 45 45 20 30 30 30 30 40 45 45 60 60 K (kg) 10 12 15 15 0 5 5 23 23 10 10 10 10 10 45 55 55 70 70 Yield (tons/ha) 1.8 2.0 2.5 2.5 1.0 1.2 1.2 1.5 1.5 1.0 1.1 1.0 1.5 1.5 1.5 1.6 1.5 1.8 1.8 Financial Crop Budget (Re) Labor 270 270 270 270 212 212 212 212 212 411 411 411 411 411 650 650 650 650 650 Bullocks 140 140 140 140 90 90 90 90 90 198 198 198 198 198 220 220 220 220 220 1 Seeds 6 6 6 6 327 327 327 327 327 252 252 252 252 252 40 40 40 40 40 Fertilizer 293 353 405 405 151 228 228 353 353 1.193 1,336 1,336 1,386 1,386 1,229 1,361 1,361 1,762 1.762 Ln Plant Protection 0 0 0 0 0 0 0 0 0 70 70 70 70 70 60 60 60 60 60 Lifting Water 160 160 160 - 160 160 - 160 - 160 160 - 160 - 238 238 - 238 - Machinery and Equipment 55 55 55 55 30 30 30 30 30 80 80 80 80 80 50 50 50 50 50 Land Revenue 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 15 . 15 Production Credit 28 30 31 30 29 32 31 35 35 67 76 70 78 72 75 78 71 91 84 Total Financial Cost 967 1,029 1,082 921 1,014 1,094 933 1,222 1,062 2,446 2,598 2,432 2,650 2,484 2.577 2,712 2,267 3,126 2,591 Price of Product/ton 950 950 950 950 1,300 1,300 1,300 1,300 1,300 3,900 3,900 3,900 3,900 3,900 3,875 3,875 3,875 3,875 3.875 Gross Return 1,710 1,900 2,375 2,375 1,300 1,560 1,560 1,950 1,950 3,900 4,290 3,900 5,850 5,850 5,812 6,200 5,812 6,975 6.975 Net Financial Return 743 871 1,293 1,452 286 460 621 728 888 1,454 1,692 1,468 3,200 3,366 3,235 3,488 3,545 3.849 4,094 Economic Crop Budgets (Ra) Labor 270 270 270 270 212 212 212 212 212 411 411 411 411 41t bo0 65 bo0 650 60 5,1locks 160 140 140 140 90 90 90 90 90 198 198 198 198 198 220 220 220 220 220 lv 6 6 327 327 327 327 327 252 252 252 252 252 40 40 40 40 40 Fertlizer 227 264 300 300 120 178 178 267 267 877 1,063 1,063 1,100 1,100 1,056 1,158 1,158 1,552 1,552 Plant Protection 0 0 0 0 0 0 0 0 0 70 70 70 70 70 60 60 60 60 60 Lifting Water 160 160 160 - 160 160 - 160 - 160 160 - 160 - 238 2N, - 238 - Machinery and Equipment 55 55 55 55 30 30 30 30 30 80 80 80 80 80 50 50 50 50 50 Total Economic Cost 858 895 931 771 939 997 837 1,086 926 2,048 2,234 2,074 2,271 2,111 2,314 2,416 2,178 2.810 2,572 Price of Product/ton 1,450 1,450 1,450 1,450 2,800 2,800 2,800 2,800 2,800 3,575 3,575 3,575 3,575 3,575 5,000 5,000 5,000 5,000 5,000 Gross value 2,610 2,900 3,625 3,625 2,800 3,360 3,360 4,200 4,200 3,575 3.932 3,575 5,362 5,362 6,500 8,000 7,500 9,000 9.000 Net Economic Value 1,752 2,005 2,694 2,854 1,861 2,363 2,523 3,114 3,274 1,527 1,698 1,501 3,091 3,251 5,186 5,584 5,322 6,190 6,428 Abbreviations: RBC 0 Right Bank Canal; HYV - High Yielding Variety; WO - Future Without; FN W Future with Stage I; PW 2 Future with Stage II; K - Kharif; R * Rabi; and W * Not Weather Cotton and Tobacco are 8 month crops and Sugarcane is a 12 month crop. ..- INDIA KADANA IRRIGATION PROJECT Irrigated Crop Budgets by Source of Water (RBC) *- -- --- - ... ,Sugarcane Wheat (R) Pulses (R) Potatoes (R) Jowar (fodder) (K) Jowar (fodder)(M) _ (Perennial) W1 F2 p1 FW2 FW1 FW2 F1 F2 FW1 W2 N1 pU2 Itin Wells Canals Wells Canals Canals Canals WeC ells anals Canals Wells Walls i s Cana Canals Quantities per ha Human Labor (days) 110 110 110 110 40 40 140 145 62 62 62 62 62 180 200 Bullock Labor (team days) 15 15 15 15 10 10 20 20 10 10 10 10 10 32 35 Seeds (kg) 100 100 100 100 3 3 1,200 1,200 9 9 9 9 9 70 70 Fertilizer: Manure (cart load) 0 0 0 0 0 0 15 15 0 0 0 0 0 0 0 Oil Cake (kg) 0 0 0 0 0 0 10 10 0 0 0 0 0 0 0 N (kg) 75 75 75 75 0 0 100 100 20 20 20 25 25 70 75 P (kg) 20 20 20 20 0 0 30 30 0 0 0 0 0 30 35 K (kg) 5 5 5 5 0 0 40 40 0 0 0 0 0 0 0 Yield (tons/hs) 2.5 2.2 2.5 2.5 1.0 1.0 15.0 17.0 3.0 3.0 3.0 3.5 4.0 35.0 60.0 Financial Crop Budgets (Rs) Labor 275 275 275 275 100 100 364 377 190 190 190 190 190 540 600 Bullocks 150 150 150 150 100 100 200 200 100 100 100 100 100 352 352 Seeds 200 200 200 200 18 18 720 720 18 18 18 18 18 1,000 1,000 Fertilizer 469 469 469 469 0 0 1,002 1,002 100 100 100 125 125 479 525 Plant Protection 0 0 0 0 0 0 30 30 0 0 0 0 0 50 50 Lifting Water 320 - 320 - - 398 398 - - 81 81 - 40 40 Machinery and Equipment 40 40 40 40 15 15 50 50 30 30 30 30 30 100 100 Land Revenue 15 15 15 15 15 15 20 20 15 15 15 15 15 30 30 Production Credit 44 37 44 37 10 10 86 86 14 14 16 17 15 127 132 Total Financial Cost 1,513 1,186 1,513 1,186 253 253 2,870 2,485 467 467 550 576 493 2,718 2,829 Price of Produce/ton 1,040 1,040 1,040 1,040 1,200 1,200 400 400 200 200 200 200 200 130 130 Gross Return 2,600 2,288 2,600 2,600 1,200 1,200 6,000 6,800 600 600 600 700 800 7,150 7,200 Net Financial Return '1,087 1,102 1,087 1,414 942 942 3,130 .4,313 133 133 50 124 307 4,432 4,971 Econoamcicnf M .l Labor 275 275 275 275 100 100 364 364 190 190 190 190 190 540 600 Bullocks 150 150 150 150 100 100 200 200 100 100 100 100 100 352 352 Seeds 200 200 200 200 18 18 720 720 18 18 18 18 18 1,000 1,000 Ferrtiizer 355 355 355 355 0 0 825 825 74 74 76 93 93 362 397 Plant Protection 0 0 0 0 80 80 30 30 0 0 0 0 0 50 50 Lifting Unter 320 - 320 - - - 398 398 - - 81 81 - 40 40 Machinery and Equipment 40 40 40 40 15 15 50 50 30 30 30 30 30 100 100 Total Economic Cost 1,340 1,020 1,340 1,020 313 313 2,587 2,587 412 412 495 512 431 2,444 2,539 Price of Product/tons 1,675 1,675 1,675 1,675 1,740 1,740 400 400 200 200 200 200 200 200 200 Gross Value 4,187 3,685 4,187 4,187 1,740 1,740 6,000 6,800 600 600 600 700 800 11,000 12,000 Net Econonic Value 2,847 2,665 2,847 3,167 1,427 1,427 3,413 4,213 188 188 105 188 366 8,556 9,461 Abbreviations; RBC = Right Bank Canal; HYV - High Yielding variety; FWO - Future Without; FW1 Future with Stage I; Fw2 - Future with Stage II; K K Kharif; R - Rabi; and HW - Hot Weather Cotton and Tobacco are 8 month crops and Sugarcane is a 12 month crop. Z INDIA KADANA IRRIGATION PROJECT Non-Irrigated Crop Budgets (RBC) Paddy (local) (K) Baira (K) Groundnute (K) Cotton (K) Tobacco (K) JWr K Pulses (K) Pulses (R) Mixed Cropa (K) Jower (Fodder) (R) Items WO NO PW1 2 FNO PWO N1 WO Pwi NW PO NI FW2 WO W1 VW2 WO FWo W N2 Quantities per he Human Labor (days) 86 50 50 50 57 112 120 200 200 62 40 40 40 40 40 40 50 62 62 62 Bullock Labor (team days) 15 10 10 10 11 16 16 20 20 10 7 7 7 7 7 7 9 10 10 10 Seeds (kg) 63 3 3 3 102 14 14 - * 9 3 3 3 3 3 3 5 9 9 9 Fertiliser: Manure (cart load) 5 0 0 0 2 2 2 5 5 0 2 2 2 2 2 2 3 0 0 0 Oil Cake (kg) 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 N (kg) 0 0 0 0 0 30 30 0 0 20 0 0 0 0 0 0 0 0 0 0 P(kg) 0 0 0 0 0 5 5 0 0 5 0 0 0 0 0 0 0 0 0 0 K(kg) 0 0 0 0 0 5 5 0 0 5 0 0 0 0 0 0 0 0 0 0 Yield (tons/ha) 0.7 0.5 0.5 0.6 0.6 0.8 0.8 0.8 0.8 0.6 0.5 0.5 0.6 0.6 0.6 0.7 0.7 1.8 1.8 1.8 Financial Crop Budgets (Re) Labor 215 125 125 125 165 269 288 500 500 189 96 96 96 96 96 96 96 186 186 186 Bullocks 240 100 100 100 117 176 176 200 200 100 70 70 70 70 70 70 90 100 100 100 Seeds 101 5 5 5 306 252 252 30 30 14 18 18 18 18 18 18 30 0 0 0 Pertiliser 0 0 0 0 30 209 209 75 75 0 30 30 30 30 30 30 30 0 0 0 Plant Protection 0 0 0 0 0 55 55 30 30 20 0 0 0 0 0 0 0 0 0 0 Machinery and Equipment 45 16 16 16 18 60 60 35 35 30 15 15 15 15 15 15 20 30 30 30 Land Revenue 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 t0 10 10 Production Credit 18 8 8 8 20 31 31 26 26 11 7 7 7 7 7 7 19 10 10 10 Total Financial Cost 629 264 264 264 646 1,062 1,081 906 906 374 246 246 246 246 246 246 295 336 336 336 Price of Product/ton 1,160 950 950 950 1,300 3,100 3,100 3,875 3,875 1,120 950 950 950 950 950 950 950 200 200 200 Gross Return 812 475 475 570 780 2,480 2,480 3,100 3,100 672 425 425 570 570 570 665 665 360 360 360 Net Financial Return 183 211 211 306 134 1,418 1,329 2,194 2,194 298 179 179 324 324 324 419 370 24 24 24 Economic Crop Budget (Rn) Labor 215 125 125 125 165 269 288 500 500 189 96 96 96 96 96 96 96 186 186 186 Bullocks 240 100 100 100 117 176 176 200 200 100 70 70 70 70 70 70 70 100 100 100 Seeds 101 5 5 5 306 252 252 30 30 14 18 18 18 18 18 18 18 18 18 18 Pertili..r 0 0 0 0 30 163 163 68 68 0 30 30 30 30 30 30 30 0 0 0 Plant Protection 0 0 0 0 I 55 55 30 30 20 0 0 0 0 0 0 0 0 0 0 *. Machinery and Equipment 45 16 16 16 18 60 60 35 35 30 15 15 15 13 15 15 20 15 15 15 Total Economic Coat 601 246 246 246 636 975 994 863 863 353 229 229 229 229 229 229 234 319 319 319 .1 Price of Product/ton 1,800 1,450 1,450 1,450 2,800 3,575 3,575 5,000 5,000 1,525 1,740 1,740 1,740 1,740 1,740 1.740 1,740 200 200 200 - Gross Value 1,260 725 725 870 1,680 2,860 2,860 4,000 4,000 915 870 870 1,044 1,044 1,044 1,218 1,218 360 360 360 Net Economic Value 659 479 479 624 1,044 1,885 1,866 3,137 3,137 562 641 641 815 815 815 989 984 41 41 41 Abbreviations: PW0 - Future without; FW1 Future with Stage I; W2 - Future with Stage II; K = Kharif; R= Rabi INDIA KADANA IRRIGATION PROJECT Irrigated Crop Budgets by source of Water (LBC) Paddy-HYV (R) Paddy-Local (K) Bajra (K) Maize (1) Groundnuts (K) Cotton (1) Jowar (K) F2 NO Fw2 FwO 7w2 NwO PV2 FWO _w2 wO FW2 N2 Items Wells Canals Wells Canals Wells Canals Wells Wells Canals Wells Wells Wells Wells Canals Canals Quantities/ha Yield (tons/ha) 2.3 2.2 1.7 1.9 1.1 1.5 1.0 1.5 2.0 1.0 1.5 1.0 1.5 1.5 1.4 Financial Crop Budgets (Re) Total Financial Cost 1,791 1,673 1,484 1,494 791 708 713 790 782 1,014 1,222 2,446 2,650 2,484 643 Price of Product/ton 1,160 1,160 1,160 1,160 950 950 950 950 950 1,300 1,300 3,900 3,900 3,900 1,020 Gross Return 2,668 2,552 1,972 2,204 1,045 1,425 950 1,425 1,900 1,300 1,950 3.900 5,850 5,850 1,428 Net Financial Return 877 879 488 710 254 717 237 635 1,118 286 728 1,454 3,200 3,366 785 Economic Crop Budgets (Rs) Total Economic Cost 1,738 1,500 1,370 1,294 703 602 655 721 704 939 1,086 2,048 2,271 2,111 661 Price of Product/ton 1,800 1,800 1,800 1,800 1,450 1,450 1,400 1,400 1,400 2,800 2,800 3,575 3,575 3,575 1,525 Gross Value 4,140 3,960 3,060 3,420 1,595 2,175 1,400 2,100 2,800 2,800 4,200 3,575 5,362 5,362 2,135 Net Economic Value 2,402 2,460 1,690 2,126 892 1,573 745 1,379 2,096 1,61 3,114 1,527 3,091 3,251 1,474- Baira (R) Wheat (R) Bafra (IB) Jovar Fodder (w) Groundnuts (Iu) NWO FW2 NO FW2 NWO NW2 FWO v 10 I_2 Wells Canals Wells Wells Wells Canals Wells Wells Canals Wells Wells Canals Wells Wells Quatities/ba YTield (tonstha) 1.6 0 1.7 2.0 2.3 2.4 1.8 2.1 2.0 2.5 2.8 3.5 1.2 1.4 Financial Crop Sudgets (ts) Total Fin4ncial Cost 920 0 956 1,487 1,513 1,186 967 1,082 921 518 576 493 1,151 1,049 Price of product/ton 950 0 950 1,040 1,040 1,040 950 950 950 200 200 1,300 1,300 Gross Return 1,520 0 1,615 2.080 2,392 2.496 1,710 1.995 1,900 500 560 700 1,560 1,820 Net Financial Return 600 0 659 593 1,079 1,310 743 913 1,079 -18 -16 207 409 771 Economic Crop Budgets (Re) Total Economic Cost 745 0 816 1,315 1,340 1,020 858 931 771 464 512 431 1,002 1,003 Price of Product/ton 1,450 0 1,450 1,675 1,675 1,675 1,450 1,450 1,450 200 200 200 2,800 2.800 Gross Value 2,320 0 2,465 3,350 3,852 4,020 2,610 3,045 2,900 500 560 700 3,360 3,920 Net Economic Value 1,575 0 1,649 2,035 2,512 3,000 1,752 2,114 2,129 36 48 269 2,358 2,917 INDIA KADANA IRRIGATION PROJECT Irrigated Crop Budgets by Source of Water 1/ (LB) Bra Maize (K) Jowe K Bair& (R) Wheat (R) Jovar fodder (HW) Groundnuts (HW) FWFWO P2FNWO FWO FWO FW0 FWO Items Canals Wells Wells Canals Canals Wells Wells Wells Wells Wells Quantities per ha Human Labor (days) 108 80 85 90 80 105 100 62 70 75 Bullock Labor (team days) 14 15 15 15 10 14 15 10 9 9 Seeds 3 15 15 15 9 3 100 9 109 1C9 Fertilizer: Manure (cart load) 0 4 S I 0 0 0 2 2 Oil Cake (kg) 0 0 0 0 0 0 0 0 0 N (kg) 25 14 20 25 30 40 75 20 15 17 P (kg) 15 10 15 20 10 23 20 0 35 42 K (kg) 7 0 0 0 10 10 5 0 20 23 Yield (tons/ha) 1.5 1.0 1.5 2.0 1.4 1.6 2.0 2.5 1.2 1.4 Financial Crop Budgets (Ra) Labor 270 200 212 225 240 262 250 160 206 221 Eullocks 140 150 150 150 100 140 150 100 90 90 Seeds 6 30 30 30 14 6 200 18 327 327 Fertilizer 201 167 230 289 210 316 469 100 289 335 1 Plant Protection 0 0 0 0 20 0 0 0 0 0 Lifting Water 0 80 80 - - 100 320 80 160 160 Machinery and Equipment 55 50 50 50 30 55 40 30 30 30 Land Revenue 15 15 15 15 10 15 15 15 15 15 I Production Credit 21 21 23 23 19 26 43 15 34 35 Total Fin.-,cial Cost 708 713 790 782 643 920 1,487 518 1,151 1,213 Price of Product/ton 950 950 950 950 1,020 950 1,040 200 1,300 1,300 Gross Return 1,425 950 1,425 1,900 1,428 1,520 2,080 500 1,560 1,820 Net Financial Return 717 237 635 1,118 785 600 593 -18 409 607 Economic Crop Budgets Labor 270 200 212 225 240 262 250 160 206 221 Bullocks 140 150 150 150 100 140 150 100 90 90 Seeds 6 30 30 30 14 6 200 18 327 327 Fertilizer 151 145 199 249 157 237 355 76 289 335 Plant Protection 0 0 0 0 20 0 0 0 0 0 Lifting Water 0 80 80 - - 100 320 80 160 160 Machinery and Equipment 35 50 50 50 30 55 40 30 30 34 Total Economic Cost 602 655 721 704 661 745 1,315 464 1,102 1,167 Price of Product/ton 1,450 1,400 1,400 1,400 1,525 1,450 1,675 200 2,800 2,800 Gross Value 2,175 1,400 2,100 2,800 2,135 2,320 3,350 500 3,360 3,920 0* Net Economic Value 1,573 745 1,379 2,096 1,474 1,575 2,035 36 2,258 2,753 a 1/ These Crop Budgets apply only to LBC. INDIA KADANA IRRIGATION PROJECT Non-Irrigated Crop Budgets (LBC) Paddy-Local (K) Baira (K) Maize (K) Groundnuts (K) Items FWO FW2 FWO FW2 FWO FW2 FWO FW2 Quantities/ha Yield (tons/ha) 0.8 0.9 0.6 0.7 0.8 0.9 0.6 0.8 Financial Crop Budgets (Rs) Total Financial Cost 629 680 264 264 537 537 646 668 Price of Product/ton 1,160 1,160 950 950 950 950 1,300 1,300 Gross Return 928 1,044 570 665 760 855 780 1,040 Net Financial Return 299 364 306 401 223 318 134 372 vi Economic Crop Budgets (Rs) Total Economic Cost 601 638 246 246 502 502 636 639 Price of Product/ton 1,675 1,675 1,450 1,450 1,450 1,450 2,800 2,800 Gross Value 1,340 1,172 870 1,015 1,160 1,305 1,680 2,240 Net Economic Value 739 534 624 769 658 803 1,044 1,601 OQ M NJ0 INDIA KADANA IRRIGATION PROJECT Non-Irrigated Crop Budgets (LBC) Mixed Pulses (K) Crops (K) Cotton (K) Wheat (R) Pulses (R) Items FWO FW2 WO W2 FWO FW2 W FW 2 Quantities/ha Yield (tons/ha) 0.5 0.6 0.6 0.5 0.8 0.9 0.5 0.6 Financial Crop Budgets (Rs) Total Financial Cost 246 246 295 1,062 525 551 246 246 1 Price of Product/ton 950 950 950 3,900 1,040 1,040 950 950 Gross Return 475 570 570 1,950 832 936 475 570 Net Financial Return 229 324 275 888 307 385 229 324 Economic Crop Budgets (Rs) Total Economic Cost 229 229 234 975 495 520 229 229 Price of Product/ton 1,740 1,740 1,740 3,575 3,350 3,350 1,740 1,740 Gross Value 870 1,044 1,044 1,787 2,680 3,015 870 1,044 Net Economic Value 641 815 810 812 2,185 2,495 641 815 t**h - 58 - Table 16 INDIA KADANA IRRIGATION PIRDJECT Non-Irrigated Crop Budgets (LBC) Paddy Local (K) Maize (K) Groundnut (K) Wheat (R) FW2 FWO N2 FWO FW2 Quantities per ha Human Labor (days) 100 75 75 58 75 80 Bullock Labor (team days) 13 12 12 11 12 12 Seeds (kg) 63 14 14 102 80 80 Fertilizer: Manure (cart load) 5 3 3 2 0 0 Oil Cake (kg) 0 0 0 0 0 0 N (kg) 10 12 12 0 0 0 P (kg) 0 8 8 0 0 0 K (kg) 0 0 0 0 0 0 Yield (tons/ha) 0.9 0.8 0.9 0.8 0.8 0.9 Financial Crop Budgets (Rs) Labor 250 185 185 165 195 220 Bullocks 130 120 120 119 120 120 Seeds 100 30 30 300 150 150 Fertilizer 125 126 126 30 0 0 Plant Protection 0 0 0 0 0 0 Machinery and Equipment 45 50 50 25 30 30 Land Revenue 10 10 10 10 15 t5 Production Credit 20 16 16 19 15 16 Total Financial Cost 680 537 537 668 525 551 Price of Product/ton 1,160 950 950 1,300 1,040 1,040 Gross Return 1,044 760 855 1,040 832 936 Net Financial Return 364 223 318 372 307 385 Economic Crop Budgets (Rs) Labor 250 185 185 165 195 220 Bullocks 130 120 120 119 120 120 Seeds 100 30 30 300 150 150 Fertilizer 113 117 117 30 0 0 Plant Protection 0 0 0 0 0 0 Machinery and Equipment 45 50 50 25 30 30 Total Economic Cost 638 502 502 639 495 520 Price of Product/ton 1,800 1,400 1,400 2.800 1,675 1,675 Gross Value 1,620 1,120 1,260 2,240 1,340 1,508 Net Economic Value 982 618 757 1,601 845 988 - 59 - Table 17 INDIA KADANA IRRICATION PROJECT Monthly Rainfa31 for Selected Stations in Gujarat ----------------------------------Monthly Rinfall in mn--------------------------------- Average of Year Station Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total Three Stations 1970 Nadiad - - - - - 292 382 305 406 - - - 1,385 Thasra - 1 1 - - 304 268 288 336 - - - 1,198 1,332 Petlad - - - - - 283 494 489 147 - - - 1,413 1971 Nadiad - - - - - 226 108 198 51 - - - 583 Thasra - - - - 32 169 185 206 128 - - - 720 699 Petlad. - - - - - 299 265 152 77 - - - 793 1972 Nadiad - - - - - 78 72 118 7 - - - 275 Thasra - 6 - - - 45 159 261 45 - - - 516 383 Petlad - 8 - - - 33 190 160 5 - - - 356 1973 Nadiad - - - - - 69 133 362 570 - - - 1,134 Thaara - 4 - - - 143 160 407 395 - - - 1,109 1,093 Petlad - - - - - 51 215 258 511 - - - 1,035 1974 Nadiad - - - - 42 4 92 20 84 2 - - 245 Thasra, - - - 101 42 54 71 138 21 - - 427 297. ;e,lad - - - - 19 42 50 4 105 - - - 220 1975 Nadiad - - - - - 171 73 438 187 - - - 869 Thasra - - - - - 184 133 448 190 - - - 955 963 Petlad - - - - - 123 157 370 362 54 - - 1,066 1976 Nadiad - - - - - 337 408 501 92 - 80 - 1,418 Thasra - - - - - 329 604 457 71 - 88 - 1,549 1,645 Petlad - - - - - 373 451 809 187 - 147 - 1,967 1977 Nadiad - - - - - 357 484 173 155 - - - 1,169 Thasra - - - - 42 401 459 303 65 - - - 1,270 1,213 Petlad - - - - 13 256 646 170 115 - - - 1,200 1978 Nadiad - - - - - 63 168 406 - - - - 537 Thasra - - - - - 99 186 520 - - - - 805 815 Petlad - - - - - 139 221 744 - - - - 1,104 1/ AVERAGE OF NINE YEARS 938 1/ Up to 8/31/78 - 60 - Table 18 INDIA KADANA IRRIGATION PROJECT Price Projections (1985) Crops Economic Financial -----------(Rs/ton)------------- Paddy 1,800 1,160 Sorghum 1,525 1,025 Maize 1,400 950 Wheat 1,675 1,050 Millet 1,450 975 Groundnuts (unshelled) 2,800 1,300 Tobacco 5,000 3,875 Cotton (seed) 3,575 2,800 Sugarcane 200 130 Fertilizer: Manure (cart load) 12-18 12-18 Oil Cake 8-12 8-12 N 3,800 5,000 P 3,200 4,300 K 1,100 1,700 Labor (Rs/day) 2.5-3.0 2.5-3.0 Bullock Team (Rs/day) 10.0-12.0 10.0-12.0 - 61 - Table 19 INDIA KADANA IRRIGATION PROJECT Charges for Canal Water ---------------Period---------------- Season and 4/25/68 6/15/71 6/16/76 Crops 6/15/71 6/16/76 6/15/78 ---------------(Rs/ha)--------------- Kharif Paddy H.Y.V. 45 59 74 Local 62 82 104 Bajra 17 22 27 Maize 17 22 27 Vegetable 27 37 47 Groundnuts 37 49 74 Rabi Wheat H.Y.V. 44 59 74 Local 62 81 104 Vegetables 44 59 74 Other Hot Weather Bajra 44 59 74 Jowar 44 59 74 Groundnuts 74 99 124 Two Season Cotton 69 91 124 Tobacco Bidi 49 67 101 Other 86 116 173 Perennial Sugarcane 346 469 385 Plantations - 543 679 Other 245 274 410 - 62 - Table 20 INDIA KADANA IRRIGATION PROJECT Cost of Well Water Annual Total Construction Cost of Water or Village in Gujarat Cost fuel Pumped Average ('000 Rs) (Rs) (ac ft) (Rs) Bankarpur 15.0 615 3.11 - Devlaki 14.0 1,000 11.96 - Chotila 10.5 400 3.61 - Hansupur 10.7 1,151 9.48 - Devedali 9.4 945 12.81 - Kalepur 9.5 1,132 11.91 - Kunkol 15.0 360 6.43 - Molie 7.6 1,300 10.62 - Moli Moralie 14.5 650 9.81 - Sandha 14.0 1,060 11.86 - Siurajgadh 7.1 900 9.32 - Total 127.3 9,513 100.92 - Average 11.6 - 9.17 - Cost of fuel/ac ft - - 94.3 Cost of fuel/ac in - - 7.0 Cost of fuel/ha in - - 17.0 Annual Depreciation - - 773.0 Annual Depcreciation cost/ac ftl/ - - 84.0 Annual Depreciation cost/ac in 2/ - 7.0 Annual Depreciation cost/ha in - - 17.0 Total annual cost/ha in 34.0 1/ Source: Original records assembled by Government of India in State of Gujarat. 2/ Based upon an average 15 year life. INDIA KADANA IRRIGATION PROJECT Project Expenditures and Costs (Unit: Rs. million) Fiscal Year - April through March Current Cost at Cost as Percentage Costs Thru--------Fiscal Year -- April Through March------------------------------- Balance to Cost Time of Revised Change Mar. 1969 1969/70 1970/71 1971/72 1972/73 1973/74 1974/75 1975/76 1976/77 1977/78 Complete Estimate Apraisal in 1972 13/15 1. Kadana Dam 37.0 16.31 10.07 48.54 101.26 58.41 73.77 161.55 124.69 34.49 36.20 702.29 181.0 249.522 281 Equipment (19.08) (56.86) (9.15) (6.94) (4.92) (12.99) (11.50) Construction (35.0) (5.32) (6.81) (28.02) (43,02) (47.44) (61.50) (82.50) (55.04) (4.20) (30.00) Land Acquisition (2.0) (10.99) (3.26) (1.44) (1.38) (1.82) (5.33) (74.13) (56.66) (18,79) (6.20) 2. water Distribution Svatem 173.0 3.18 8.77 14.28 21.13 18.41 12.49 18.44 25.93 4.02 152.82 452.47 298 2/ (38.88) 21.163 183 Wanakbori, Diversion Dam (23.0) Right Bank Canal. (144.0) (2.01) (4.49) (7.90) (18.79) (13.26) (7.35) (9.35) (16.40) (2.69) (104.10) Left Bank Canals - (0.40) (2.03) (3.10) (2.40) (2.31) (3.00) (5.53) (6.52) (0.98) (16.50) Water Courses Right Bank C.A. (6.0) (0.77) (2.25) (3.28) (1.94) (2.84) (2.14) (2.68) (2.51) (0,27) (30.39) Left Bank C.A. (0.88) (0.50) (0.08) (1.83) 3. Drainage System 0.3 0.11 0.23 0.04 1.27 2.48 .2.16 1.37 5.95 2.67 5.62 22.20 30.3 4. Road Improvements 9.07 10.80 12.91 11.10 6.07 4.46 2.91 2.90 8.34 68.56 55.0 District Roads (9,07) (9.47) (10.08) (8.69) (5.24) (3.81) (2.62) (2.67) (7.17) Village Roads (1.33) (2.83) (2.41) (0.83) (0.65) (0.29) (0.23) (1.17) 5. Land Levelling 2.1 6.25 3.83 5.19 3.68 8.13 11.25 5.30 9.78 55.51 50.1 6. Agriculture Supporting Services 0.6 0.23 0.18 0.20 0.25 0.25 0.32 0.44 0.37 0.16 1.36 4.36 5.2 Demonstration and Training (0.5) (0.23) (0.18) (0.20 (0.19) (0.24) (0.31) (0.42) (0.34) (0.14) (1.27 Extension Service Vehicles (0.1) (0.06) (0.01) (0.01) (0.02) (0.03) (0.02) (0.09) 7. Investigations Groundwater inv. 0.20 0.51 0.23 0.29 1.23 2.1 Agriculture Studies 8. Administration & Engineering 20.0 3.46 7.02 9.75 10.29 11.56 11.16 17.05 15.10 4.92 49.22 159.53 54.0 Kadana Dam and Canal (1.77) (2.29) (3.03) (2.99) (3.49) (4.25) (6.08) (4.58) (1.41) (13.50) MIabi R. B. Canal (0.57) (2.27) (2.87) (3.30) (3.46) (1.91) (2.04 ~ 2.40 (0.52 (7.67) Agriculture Support (1.12) (2.46) (3.12) (3.14) (3.78) (4.25) (8.42) (7.79) (2.74) (27.42) Roads (0.73) (0.86) (0.83 (0.75) (0.51) (0.33) (0.25) (0.63 9. Contingencies 2.0 2.0 59.3 TOTAL 235.0 23.29 35.34 90.06 151.45 107.63 109.94 211.44 186.20 54.46 263.34 1,468.15 735.0 270.625 1/ Project without vider foundation and without other essential civil works and costing Rs. 163.807 M was cleared by Central water Commission in December, 1966. The estimate s. revised to Re. 270.625 M in 1972 to take into account the increased cost of materials and labor and increased scope of project. This revised estimate was approved by Gujarat State Government vide letter No. HDN/6172/1438-K.3 dated January 29, 1974. 2/ Authorized cost of Stage I project was not determined. 64 - Table 22 INDIA KADANA IRRIGATION PROJECT Disbursement Performance ----------Appraisal Report---------- ----------Completion Report----- --------- %------------ -------- %------------- FY US$ M Annual Cumulative US$ M Annual Cumulative 1970/71 0.8 2.3 2.3 1.6 4.4 4.4 1971/72 4.9 14.0 16.3 5.3 14.5 18.9 1972/73 8.3 23.7 40.0 10.6 29.0 47.9 1973/74 10.5 30.0 70.0 10.4 28.5 76.4 1974/75 7.5 21.4 91.4 7.1 19.5 95.9 1975/76 3.0 8.6 100.0 1.4 3.8 99.7 1976/77 0.0 0.0 - 0.1 0.3 100.0 1/ Total 35.0 100.0 100.0 36.5 100.0 100.0 1/ Difference due to devaluation of Rupee in 1972. - 65 - Table 23 INDIA KADANA IRRIGATION PROJECT Economic Prices of Foodgrains Percentage Increase of Appraisal Completion Completion Report Prices Crops Report Report Compared to Appraisal Report (1975) (1985) (%) -----(Rs/ton) ---- Paddy 860 1,800 109 Sorghum 410 1,525 271 Maize 450 1,400 211 Wheat 490 1,675 241 Millet 450 1,450 222 - 66 - Table 24 INDIA KADANA IRRIGATION PROJECT Benefit Accrual Period (Rate of Development) Appraisal Report Completion Report Stage - RBC Se LBC Total Project Calendar Benefit 1/ Z Basefit 1/ Z Benefit 1/ R Benefit 1/ Z Benefit 1/ Year Year Development Year Development Year Development Year Development Year Development 1954 1955 1956 1957 1958 1 1 0 1 0 1959 1 3 1 2 1 1960 3 8 1 3 1 1961 4 11 2 4 2 1962 5 14 3 5 3 1963 6 17 3 6 3 1964 7 22 4 7 4 1965 a 26 5 8 5 1966 9 31 6 9 6 1967 3D 39 7 10 7 1968 11 45 9 11 8 1969 22 48 9 12 9 1970 3 57 11 13 10 1971 14 60 1 11 14 11 1972 is 62 2 12 15 11 1973 16 66 3 13 16 12 1974 17 69 4 14 17 13 1975 1 20 18 71 5 14 18 14 1976 1 40 19 74 6 15 19 14 1977 3 60 20 77 7 16 20 15 1978 4 70 21 80 8 17 21 16 1979 5 80 22 83 9 59 2/ 1 16 22 57 1980 6 90 23 86 10 73 2 32 23 71 1981 7 100 24 88 11 85 3 44 24 83 1982 8 100 25 91 12 94 4 56 25 92 1983 9 100 26 95 13 97 5 72 26 96 1984 10 100 27 97 14 99 6 88 27 98 1985 11 100 28 100 15 100 7 100 28 100 1/ As used here Year 1 is year in vWb first benefits from project unit are realized. 2/ Rate of development after storage water becomes available is 50%, 68%, 872, 942, 97%. 99% and 100%. This compares to the period from 1975 to 1981 in the Appraisal Report. INDIA KADANA IRRICATION PROJECT Benefits and Costs Streams LBC- Totil Proiaet Calendar Project Stage I Stage II Total RBC Year Year Jenefits Costa Benefits Costs Benefits Costs Benefits Costs Benefits Costs - - ------------------------(M Ra)---- --------------------------- 1954 1 16.6 16.6 16.6 1955 2 26.0 26.0 26.0 1956 3 50.2 50.2 50.2 1957 4 45.3 45.3 45.3 1958 5 1 50.9 1 50.9 1 50.9 1959 6 3 56.5 3 56.5 3 56.5 1960 7 7 39.5 7 39.5 7 39.5 1961 8 10 0.0 10 0.0 10 0.0 1962 9 13 0.0 13 0.0 13 0.0 1963 10 16 0.0 16 0.0 16 0.0 1964 11 20 0.0 20 0.0 20 0.0 1965 12 24 0.0 24 0.0 24 0.0 4 1966 13 29 1.0 29 1.0 29 1.0 1967 14 36 2.7 36 2.7 36 2.7 1968 15 42 11.9 1.0 42 12.9 42 12.9 1969 16 45 13.2 10.0 45 23.2 45 23.2 1970 17 53 15.0 30.0 53 45.0 53 45.0 1971 18 56 3.0 56.2 56 59.2 6.2 56 65.4 1972 19 58 3.0 1 137.7 59 140.7 15.3 59 156.0 1973 20 61 3.0 2 200.2 63 203.2 22.3 63 225.5 1974 21 64 3.0 3 106.4 67 109.4 11.8 67 121.2 1975 22 66 3.0 4 92.7 70 95.7 10.3 70 106.0 1976 23 69 3.0 5 180.3 74 183.3 20.0 74 203.3 1977 24 72 3.0 6 151.6 78 154.6 16.8 78 171.4 1978 25 74 3.0 7 36.4 81 39.4 4.0 81 43.4 1979 26 77 3.0 213 32.9 290 35.9 4 3.7 294 39.6 1980 27 80 3.0 280 39.0 360 42.0 8 4.3 368 46.3 1981 28 82 3.0 335 34.1 417 37.1 11 * 3.8 428 40.9 1982 29 85 3.0 375 12.7 460 15.7 14 1.7 474 17.4 1983 30 88 3.0 386 12.7 474 15.7 18 1.7 492 17.4 1984 31 90 3.0 394 12.7 484 15.7 22 1.7 506 17.4 1985 32 93 3.0 397 12.7 490 15.7 25 1.7 515 17.4 I 2019 66  - 68 - ANNEX 1 Page 1 INDIA KADANA IRRIGATION PROJECT Description of Project Works 1/ 1. Kadana Dam Purpose: To firm up and increase irrigation supplies to Mahi River area. Dimensions: Length Earth-fill section 762 m Saddle Dam 168 m Masonry Transition section 70 m Power section (future plant installation) 106 m Spillway section 39 m Right abutment section 1,551 m Maximum height from deepest foundation to road level Earth-fill section 33 m Masonry section 66 m Sluices: 3 Low level, 2 number, 1.5 m x 2.7 m 148 m 3/sec High level, 4 number, 1.5 m x 2.7 m 78 m3/sec Total sluice discharge capacity 608 m /sec The sluice discharge capacity would be sufficient to meet the maximum irrigation requirements. Spillway: Crest length (clear) 420 m Radial gates, 27 number, 15.5 m wide x 14 3m wide Design capacity 67,000 m /sec Design flood head over crest 14 m 1/ From Annex 6, January 21, 1970 Appraisal Report with revised figures where available. - 69 - ANNEX 1 Page 2 Quantities in dam: Excavation 1,686,683 m3 @ Rs 14 per m Earth-fill 1,210,501 m3 @ Rs 5.4 per Masonry 804,792 @ Rs 68 per m Concrete 277,949 m @ Rs 107 per m Steel in crest gates 3,000 tons Additional Spillway: (Excavation 1,734,691) (Masonry 22,770) (Concrete 39,385) Work force: 10,000-12,000 laborers Construction period: 1969-72 (PWD estimate in 1970) 1969-74 (IDA estimate in 1970) 1969-79 "Actual") Reservoir: Stora e capacity 3 Gross 1,543.47 Mm3 Live 1,203.62 Mm Full reservoir level 128 m above sea level Draw down (maximum) 13.4 m Area of submergence 17,298 ha Population to be resettled: 1/ (Population affected 2/) Gujarat 8,900 Rajasthan 36,339 Agricultural land affected: Gujarat 4,900 ha Rajasthan 5,600 ha Special features: Supply of 125,000 tons of cement by bulk handling process to silos on site. 1/ Some of the families from the reservoir area in Gujarat would be settled in the Left Bank area. 2/ From Research Study No. 45 by Agro-Economic Research Center, Sardar Patel University (1976). - 70 - ANNEX 1 Page 3 Substitution of 20% of cement requirements by posolana from kiln near site. Provision for future power plant installation at the dam, with capacity of 24,500 kw. Pressure-grouted seepage cutoff curtain injected into the rock below the dam foundations to a depth of 40 m. 2. Left Bank Area Gross commanded area at full development 21,000 ha Culturable Command Area: 11,540 ha Net irrigable area at full development 20,000 ha Canal systems: 3 Main canal capacity 10 m /sec full supply level at head 116 m above sea level 3. Right Bank Area Gross commanded area at full development 316,000 ha Net irrigable area at full development 263,000 ha Net irrigable area provided with canals to date 143,000 ha (Culturable Command Area) (212,700 ha) Wanakbori weir (completed): Cost Rs 22.8 M Length of overflow section 674 m Length of remainder 122 m Total length 790 m Canal system: Cost to date Rs 180.7 M Main canal (completed) Length 74 km (lined) Capacity 247 m 3/sec Branch canals Completed 210 km (88%) Incomplete 27 km Total length 237 km (partly lined) Distributary and minor canals Completed 1,680 km Incompleted 1,280 km Total length 2,960 km (unlined) - 71 - ANNEX 1 Page 4 Area covered by canals (and wells) 143,000 ha Area remaining to be developed 120,000 ha 263,000 ha as now revised: (212,700) ha Area served by storage tanks 1/ 90,000 ha Capacity of tanks (full development) 63 Mm 4. Drainage Over 300 km of main surface drains require remodeling in about 100,000 ha of the central part of the Right Bank area, to increase the capacity of the drainage system and to prevent soil salinization following the introduction of perennial irrigation. Open-channel field drainage would be installed in the southwestern part of the Right Bank for the reclamation or improvement of the following areas of salinized soils: Class IVb soils to be reclaimed 16,000 ha Class IVa soils to be improved 13,000 ha Class III soils to be improved 8,000 ha 37,000 ha 2/ Depth of open drains: 0.60 m to 0.70 m Spacing: 60 m to 150 m to be determined experimentally 5. Roads The following program of road construction and improvement would be included in the project: Major district roads 740 km Other district roads 196 km Village roads Sub-total 936 km Farm roads 1,700 km Sugarcane extraction roads 0 km Sub-total 1,700 km 2,636 km Total 1/ Tanks are minor reservoirs constructed adjacent to canals in the irri- gated area for storage of excess flows during the monsoon season. Supplies are released later when required. 2/ Area includes about 1,600 ha of lowlying lands in which covered tile drainage would be provided. - 72 - ANNEX 1 Page 5 The choice of the district roads segments within the program was based mainly on the likely increase in village-to-market traffic resulting from the increase in marketed produce. The construction of the farm roads completes a 1.6 km grid of roads of all categories within the project area. The choice of the grid size is based on the estimated agricultural production within the area in field--and farm-to-village transport conditions.  - 73 - ANNEX 2 Page 1 INDIA KADANA IRRIGATION PROJECT Review of the Command Area Development Program Mahi-Kadana Project (From Government of Gujarat, Oct. 1978) 1. The CCA of the Mahi-Kadana Project has been recently revised to 2.12 lac ha (6,781 outlets) in the right bank and 11,541 ha (547 outlets) for the left bank. 2. The right bank field channels for 3,020 outlets covering 65,107 ha have been constructed and handed over to cultivators after observing due formalities of completion report. Presently, works are in progress for 1,322 outlets covering 34,959 ha of land. If we add up the total of actually con- structed field channels and the works in progress, the total area touched would be 100,066 ha covering 4,342 outlets. The work remaining to be done is 112,628 ha covering 2,449 outlets. 3. As regards left bank works are in progress in 239 blocks covering 4,618 ha. As the canal system on the left bank is still at the testing stage, no field channels have been formally declared completed and handed over to the cultivators. 4. It is hoped to hand over all the 239 outlets covering 4,618 ha of land to the cultivators by October this year and the remaining 308 outlets covering 6,923 ha could be brought to the testing stage up to June 1979 in the left bank. Thus, the entire field channel work in the left bank would be completed by June 1979. 5. As for the right bank command, the target for the current year is 25,000 ha. Working season for the right bank command is rather short since there are standing crops up to the middle of March. Therefore, the working season is restricted to about only two to three months prior to the kharif season. It is hoped to complete all the existing blocks 1,322 outlets cover- ing 34,959 ha after due completion of the formalities and hand them over to cultivators in addition to starting new works on 25,000 ha. Land Levelling 6. As for land levelling, according to the revised figures, land levelling was required to be done in 24,972 ha (17,803 ha) in RBC and 7,169 ha in LBC). As against this, land levelling has already been done in 22,086 ha, 16,119 ha in right bank command and 5,967 ha in left bank command. Thus, - 74 - ANNEX 2 Page 2 only 2,886 ha remain to be attended to, 1,684 ha in right bank command and 1,202 in left bank command. It has been planned to complete land levelling work by 1979/80. Drainage 7. Construction of main drainage is in progress. The length of the main drain is 515 km of which 245 km has already been executed. However, the work on lateral drains of 425 km and sublateral drains of 687 km is still in progress. 8. A large number of private wells and private tubewells which are exploiting groundwater are already operating in the area. However, the program of construction of shallow tubewells is being contemplated as part of the conjunctive use of program by the State Government. 9. On-farm development works are going on without any consolidation of holdings. This is because the incidence of fragmentation of holdings is almost negligible and smallness of size of holdings dominates the entire land ownership. Therefore, there is no question of exchange of lands and consoli- dation. However, for the realignment of the boundaries in a given area in an outlet for the purpose of avoiding field channels, there is no provision in the law to enforce such realignment of holdings. Further, it may be submitted here that the subject of consolidation of holdings among various stages is before Land Commission appointed by State Government. INDIA KADANA IRRIGATION PROJECT Statement Showing the Progress of Field Channels (Area in Hectare) Total No. of Progress up to Progress Achieved in Last 3 Years (Completed Progress up to Blocks for end of 31-3-75 Blocks) 31-3-78 (Comp- Culturable PC Work to (completed Blocks - 1975-76 1976-77 1977-78 leted Blocks) Command Area be done No. of No. of No. of No. of No. of No. Area Blocks Area Blocks Area Blocks Area Blocks Area Blocks Area 223,896 7,328 223,896 1,014 20,609 266 6,496 544 12,631 1,019 11,014 2,843 50,750 Progress During 1978-79 to End of June i-n Targets for 1978-79 Completed Works out Works in Progress Works in Progress of Works were in F.C. Work being on 1-4-7C to be Completed New Works Progress New Works Undertaken No. of No. of No. of No. of No. of No. of Blocks Area Blocks Area Blocks Area Blocks Area Blocks Area Blocks Area 1,738 53,934 1,738 53,934 1,000 25,000 177 14,357 - 1,862 1,747 94,212 A Statement Shoving the Progress of Land Levelling in Mahi-Kadana and Shetrunji Project (in Hectare) Remaining Area for Total Area for Work for L.L. Work Remain- Target for 1978-79 L.L. Works to be Which L.L. to Which L.L. ing to be Under- Works in New Undertaken in be Completed Completed taken Progress Works Future Mahi-Kadana Project 24,972 22,086 2,886 - 1,897 989 Shetrunji Project 9,606 1,996 5,122 2,488 410 4,612  - 76 - ANNEX 3 INDIA KADANA IRRIGATION PROJECT Kadana Spillway Designs 1. The flood hydrograph first used in the design of the Kadana spillway was developed by GOI Central Water Commission in consultation with the Indian Meteorological Department, using maximum recorded storm values. Eighteen gates were required to route a design flood of 1.097 M cusecs. An additional gate was provided as a standby in the event any one gate malfunctioned. This standby allowance is normal Indian practice. The most severe storm on record (July 26, 1913), the most severe distribution of rainfall during a storm (Bhopal, August 1955) and a maximization factor of 10% was used to calculate the original design flood. When a flood of over 1.1 M cusecs actually occurred on September 8, 1973 a revised design flood giving a maximum probable flood of 1.75 M cusecs was quickly derived by the Central Water Commission and plans were made for adding 6 spillway gates. As the main spillway location did not offer a suitable opportunity for expanding to 27 gates, 1/ it was decided to construct an additional spillway in a rock cut section some 2 km from the right abutment of the dam. 2. The inadequacies in the original design flood computation have contributed to three factors: (i) not maximizing to a greater extent the recorded storms; (ii) approximations in the translation of rainfall values to runoff; and (iii) approximations in the application of the unit hydrograph method. 4. Concerning the spillway requirements at Kadana, a maximum flood value in excess of the values decided upon would not be impossible in the view of some experts. 2/ The decision, however, has been made by GOI to stay with the 1.75 M cusec design, which, based on a pure frequency analysis, could have a return frequency of once in 360 years (an unacceptable risk in developed countries). GOG has installed a network of wireless stream discharge and rainfall stations in the upper basin to forewarn on flood occurrences. Banswara dam in Rajasthan, when completed, is expected to reduce the flood peaks and thus further lower the risk factor. The contribution of these two modifying influences was not furnished to the Bank for review. 1/ Sometime prior to this time the design flood had been increased to 1.30 M cusecs and 2 more spillway gates had been added making a total of 21. 2/ Admittedly, no completely reliable methods exist for calculating maximum flood values and, further, a design based on this maximum derivation may not be an acceptable expenditure economically. Judgment values are, therefore, applied on deciding on the risk factor to be accepted.  INDIA KADANA IRRIGATION PROJECT LOCATION > o Agr4 ToBhopa/ , LBGBND Ratlam State boundaries i N D I A District boundaries Area Main Toads Railways Banswark. - Project irrigation o areas ¯ A D H Y A GolickoDF KADANA- RESERVOIR \. Kadona Dom Site P A N C H AH A L S MAHI LEFT BANK AREA - DISTR C T unewadu Godhro WanakIbori U1 T K A I R M.IAH( RIGHT 'Debhoi BANK AREA BRD DS T S T Nodi HMEDABAD, Anand Kaira ý ý ý0o0Broac GULF OF- CAMAY C E 6 M8R -y OCTO!'ER 1962 IBRD 2640fR