India - Second National Agricultural Extension Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 5254-IN STAFF APPRAISAL REPORT INDIA NATIONAL AGRICULTURAL EXTENSION PROJECT II March 7, 1985 Regional Projects Department South Asia Projects Office This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents rnay not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS US$ 1 - Rupees (Rs) 12.0 FISCAL YEAR GOI and all States, April 1 to March 31 WEIGHTS AND MEASDB Metric System ABBBEVIATIONS ADA - Additional Director of Agriculture ADAO - Assistant District Agricultural Officer AEO - Agricultural Extension Officer ASDAO - Assistant Subdivisional Agricultural Officer CAEP - Composite Agricultural Extension Project DA - Director of Agriculture DAO - District Agricultural Officer DDA - Deputy Director of Agriculture DDO - District Development Officer DEA - Department of Economic Affairs DOA - Department of Agriculture DOE - Department of Extension DOH - Director of Horticulture ERR - Economic Rate of Return GOI - Government of India GOG - Government of Gujarat GOH - Government of Haryana GOJK - Government of Jammu and Kashmir GOK - Government of Karnataka ICAR - Indian Council of Agricultural Research IDA - International Development Association JDA - Joint Director of Agriculture MOA - Ministry of Agriculture B&E - Monitoring and Evaluation NAEP - National Agricultural Extension Project NARP - National Agricultural Research Project PAO - Principal Agricultural Officer SAD - State Agricultural UniversitylUniversities SDAO - Subdivisonal Agricultural Officer SMS - Subject Matter Specialist TDO - Taluk Development Officer T&V - Training and Visit System YEW - Village Extension Worker VLW - Village Level Worker CROPPING SEASONS Kharif - June to September Rabi - October to February Summer - March to May  FOR OMCIAL USE ONLY STAFF APPRAISAL REPORT INDrk NATIONAL AGRICULTURAL EXTENSION PROJECT II Table of Contents Paze No. I* BACKGROUND ......... ........................... 1 Introduction ... Indian Agricultural Development 1 Agricultural Extension In India 3 - Composite Agricultural Extension Project ............... 5 - Gujarat State .......................................... 5 - laryana State 7 - Karnataka State .......... 8 - Directorate of Extension ..........9 Recent Developments in Other States .......10 National Agricultural Extension Project (NABP I) ........... 10 Lessons Learnedt...................... 11 II. PROJECT OBJECTIVES AND RATIONALE .......................... 12 - Administrative Consolidation and Institutional Development .......................................... 12 - Quality Improvement ................... 13 - Expanding and Deepening of Coverage .................... 13 - Strengthening Linkages between Extension and Research ...... .. ........... 13 III. TRE PROJECT ............... , 14 A. General 14 B. The Profect Areas .....14 - Earyana State 14 - Karnataka State .......... 15 - Gujarat State 15 - Jmn-u and Kashmir State ............ ............ 15 C. Detailed Features ................. 16 - Raryans State is - Karnataka State ...................................... 18 - Gujarat State ...................................... 19 - Jmmu & Kashmir State .............. 20 - Xid-Term Review .............. ........................ 21 This dounmnt has a mticted distnbuton nO may be usd by recipents only in the perfonnanoe of thir ofrial duties. Its contents may not otherwise be discosed without World Bank authorization.  Table of Contents (coutinuation) Pate No. IV. COST ESTIMATES AND FINANCES ...... .......... * . ............. . 22 A. Cost Estimates ......................................... 22 B. Proposed Financing *.................................... 23 C. Procurement ............. ....................... 24 D. Disbursement, Accounts and Audit ...................... 25 V. ORGANIZATION AND MANAGEMENT .... ....... .......... . . .e. o 26 A. General *............................................... 26 B. Project Management ..................................... 27 C. State Extension Organization ............................ 27 D. Monitoring and Evaluation .............................. 29 VI. BENEFITS AND RISKS ....................... .................. 31 A. Benefits of Improved Extension ......................... 31 B. Risks .................................................. 33 VII. AGREEKENTS AND UNDERSTANDINGS REACHED AND RECOMMENDATIONS .. 35 ANNEXES ANNEX 1 - T&V-based Agricultural Extension ANNEX 2 - Status of IDA-Financed Agricultural Development Projects ANNEX 3 - Summary Data on State Sub-projects ANNEX 4 - Training Guidelines Cost Tables: ANNEX 5 - Haryana State Table 101 - Incremental Salaries and Allowances Table 102 - Civil Works Table 103 - Equipment Table 104 - Vehicles Table 105 - Traing Table 106 - Travel Allowance Table 107 - Vehicle Operations Table 108 - Other Operating Expenditure ANNEX 6 - Karnataka State Table 109 - Incremental Salaries and Allowances Table 110 - Civil Works Table 111 - Equipment Table 112 - Vehicles Table 113 - Training Tsble 114 - Travel Allowance Table 115 - Vehicle Operations Table 116 - Other Operating Expenditure  Table of Contents (continuation) AJNFX 7 - Guiarat State Table 117 - ncremental Salaries and Allowances Table 118 - Civil Works Table 119 - Equipment Table 120 - Vehicles Table 121 - Training Table 122 - Travel Allovance Table 123 - Vehicle Operations Table 124 - Other Operating Expenditure ANNEX 8 - Jaul=u and Kashuir State Table 125 - Incremental Salaries and Allowances Table 126 - Civil Works Table 127 - Equipment Table 128 - Vehicles Table 129 - Training Table 130 - Travel Allowance Table 131 - Vehicle Operations Table 132 - Other Operating Expenditure ANNEX 9 - Project Cost Summary ANNEX 10 - Implementation Schedule ANNEX 11 - Schedule of Estimated IDA Disbursements ANNEX 12 - State Organizational Charts for the Extension Services and Research-Extension Linkages ANNEX 13 - Selected Documents and Data Available in Project File NAP 10. 185191 India  MIA NATIONAL AGRICULTURAL EXTENSION PROJECT II CREDIT AND PROJECT SUMNARY Borrower: India, acting by its President Beneficiaries: The States of Haryana, Karnataka, Gujarat and Jammu and Kashmir Amount: SDR 50.26 M (US$49.0 M equivalant) Terms: Standard On-Leudin* Terms: From GOI to the Government of India to the States Governments of Gujarat, Earyana, Jaum and Kashbir and Karnataka, as part of Central assistance to State development projects on terms and conditions appli- cable at the time. The Government of India vill bear the foreign exchange risk. Proiect Description: The project would (i) strengthen the reorganized agri- cultural extension system introduced in the States of Gujarat, Earyana, and Karnataka under Composite Agri- cultural Extension Project (Cr. 862-IN); (ii) further strengthen the linkages between extension and research in these States, and broaden the scope of the project to cover such activities as water management, farm management, horticulture, and some aspects of farm forestry; and (iii) introduce the T&V system of exten- sion in the State of Jammu and Kasbmir.  - ii- ESTIMATED COST: / US$ Million Local Foreign Total Incremental Staff 22.0 - 22.0 Civil Works 22.3 1.1 23.4 Vehicles and Equipment 5.3 1.5 6.8 Incremental Operating Costs 12.6 0.4 13.0 Training 1.4 0.1 1.5 Sub-total 63.6 3.1 66.7 Physical Contingencies 2.6 0.2 2.8 Price Contingencies 13.8 0.3 14.1 Sub-total 16.4 0.5 16.9 TOTAL 80.0 3.6 83.6 FINANCING PLAN: Proiect FinancinR (uS$ million) Sub-proiect Local Support IDA Total Haryana 4.3 6.3 10.6 Karnataka 8.6 12.3 20.9 Gujarat 13.5 18.6 32.1 Jamou and Kashmir 8.2 11.8 20.0 Total 34.6 49.0 3/ 83.6 Percentage 41.0 59.0 100.0 ESTIMATED DISBURSEMENTS: 2/ (us$ Million) FY86 FY87 FY88 FY89 FY90 FY91 Annual 3.9 6.9 10.2 9.0 9.7 9.3 Cumulative 3.9 10.8 21.0 30.0 39.7 49.0 sJ Including taxes and duties of US$0.88 M equivalent. O/ According to IDA Fiscal Year. S/ Equivalent to 59.7Z of project costs net of taxes and duties.  INDIA NATIONAL AGRICULTURAL EXTENSION PROJECT II I. BACKGROUND jj Introduction 1.01 The proposed Second National Agzicultural Extension Project (IAEP II) would be the fourteenth in a series o0 IDA-assisted projects designed to reorganize and strengthen agricultural extension in India. This chapter reviews the relevance of such assistance to the Bank's agricultural program in India, experience with some of these projects, the main problems encountered during implementation and the lessons learned. As the five-year IDA-assisted Composite Agricultural Extension Project (Cr. 862-IN) for the States of Haryana, Karnataka and Gujarat neared its completion the Goverment of India (GOI) requested IDA to provide follow-up assistance to these three states. A mission comprising Messrs. G. S. Kalkat, G. Schreiber and Ms Estoque visited India between May 13 and June 13, 1984; the mission was also assisted by Messrs. 1. Baxter, A. Rama Rao and W. Panigrabi from the Bank's Resident Mission in India. GOI subsequently requested that a nev agricultural extension project for the State of Jammu and Kasbair also be included under the proposed project. The Jammu and Kashmir subproject had already been appraised as part of the first National Agricultural Extension Project (NAEP I) in December 1983 but delayed at the request of the State Government. Indian Agricultural Development 1.02 During the past 15 years, the Bank's agricultural program in India has had the objective of assisting india achieve self-sufficiency in foodgrains and increase farm incomes in an equitable manner. The Bank is actively involved in some 60 agricultural projects representing large invest- ments in infrastructure, principally for irrigation and in expanded agricul- tural services. With the remarkable increases in foodgrain production in recent years, India has attained effective self-sufficiency, despite a population growth rate of 2.2Z per annum, although a shortage of edible oils persists. Nevertheless, furtber efforts to improve agricultural productivity are needed to meet the increase in demand which comes with growtb of popula- tion and incomes. Bven though the country may have a favorable foodgrains balance, a large part of the rural population can not buy what it needs unless employment opportunities in rural areas are increased. Furthermore, 1/ This Chapter is similar to Chapter I of SAR No. 4983-IN (NAEP).  -2- the rate of yield increase has been falling and parts of the country are not far from agricultural stagnation. The projections of demand for foodgrain in 1990, the terminal year of the Seventh Five Year Plan, call for foodgrain production of 185 MT, compared with 1983/84 production of about 150 MT. This vould require an annual growth rate of about 2.7% compared with a growth rate of 2.5% achieved during the period 1967/68 to 1981/82. A number of factors point to the increasing difficulties which India will face in order to achieve this ambitious target. 1.03 Almost 90% of the increase in foodgrain production in the post "Green Revolution" period has come from wheat and rice, which together cover only about half the total area under food crops, and mainly from the relatively better endowed, regions in the Punjab, Haryana and western Uttar Pradeoh and the delta re;>ions of Andbra Pradesh and Tamil Nadu. These are also predominautly irrigated areas. Future yield increases in both wheat and rice, the main sources of past growth, will be more difficult to achieve than in the past and are likely to give less impressive results. The past increase was mostly attributable to the adoption by farmers of high-yielding seed-fertilizer-irrigation technology and who were capable of taking the limited risks involved in the adoption of such new technology. Such areas are now beginning to experience second generation problems, notably increas- ing pest and disease problems and micro-nutrient deficiencies. Future sustained increases in yields of wheat and rice will depend largely upon farmers' adoption of even more sophisticated technology. 1.04 Irrigation systems now being developed and those most likely to be developed in the future are located primarily in southern regions, where cropping intensities under irrigated conditions have been low. This develop- ment will present more difficult technical and managerial problems than those experienced in past irrigation construction. Although the potential for increased wheat and rice production is large in the eastern region, it has generally lagged in agricultural development, and future achievement there is aLso problematic. Although there is considerable scope for increasing prcduction in irrigated areas, a large part of the future increase in food production will have to come from rainfed regions, from oileeeds and pulses, and from sorghum and millets which are the staple diet of the rural poor. These rainfed regions, however, are more ecologically diverse than those from which most of the increases in wheat and rice production have come and present greater problems both in developing the technology needed and in transferring to farmers of these regions the improved technology. Yield increases of edible oilseeds have not been significant, with recent increases in production mainly due to the extension of areas under their cultivation. 1.05 The above brief outline of the future pattern of agricultural development in India points to the crucial role which improved agricultural research and extension will have to play in helping the country meet the future challenges facing agriculture. Improving agr.cultural extension services remains one of the main relatively low-cost means of increasing agricultural productivity, of making more effective use of past infrastruc- ture investments and of reaching all farmers, particularly the smaller ones.  -3- rtural tension in India 1.06 Soon after independence, GOI began sponsoring a number of programs designed to meet the need for more effective, country-wide agricultural development: the Community Development Program in 1952, National Extension Service Blocks in 1953, Intensive Agricultural District Program in 1960, Intensive Agricultural Area Programs in 1963-64 and the Small and Marginal Farmers Development Program in 1969-70. Despite their proliferation, these programs covered a small prnportion of farmers, generally the larger ones. Recognizing that a different approach was required to achieve a more broadly based increase in agricultural output and in response to changing rural and administrative conditions, C-OI, with IDA assistance, introduced an extension approach tried in several countries before India and generally known as the "training and visit system" (T&V). It waS first tried in India through pilot projects in the Rajasthan Canal Command Area Development Project (Cr. 502-IN, 1974) and in the Chambal Command Area Development Project in Madhya Pradesh (Cr. 562-IN, 1975), and was subsequently adopted in various states co-mencing in 1977. The methodology, organization and components financed under this system are described in Annex 1. The T&V system aims at increasing farm productivity and farmers income by simultaneously addressing constraints impeding the transfer of new agricultural technology from research to the farmer and the feedback from farmers that must orient research and other government organizations to actual farm problems. Some of the changes intro- duced are organizational (single line of control, exclusive responsibility), others are operational (fixed, regular contact between farmers and extension vorkers, coverage, mobility, housing in the field), and still others relate to the linkage between research and extension (regular meetings and vorkshops of extension and research staff. systematic feedback of farmers' problems tnd responses to research). 1.07 Under the system of multi-purpose field workers, which the reformed extension system has replaced, extension personnel were burdened with sub- stantial administrative work and such non-extension duties as input delivery and administration of various subsidized schemes and which tended to dissipate extension efforts in many uncoordinated directions and divert attention and resources from the need to reform the main line extension agency. Staffing was usuallv insufficient to cover the farming community adequately. Field workers lacked mobility to reach farmers systematically and regularly, had practically no training in relevant technology, and saw limited prospects for advancement. Most extension personnel had low status, low pay and poor morale. In addition, there was virtually no linkage between extension and research. Without this linkage, it is difficult to justify the considerable investment being made in agricultural research. Improved tech- nology is of little benefit if it cannot be made available to farmers and, conversely, it is difficult to develop useful research unless there is sound feedback from farm to research -- both roles for extension. 1.08 The Bank's experience over the past ten years with India's con- siderable effort to improve agricultural extension and research has coufirmed what was recognized when the T&V approach was first being introduced on a larger scale: in a state, with a well-entrenched bureaucracy, institutional change takes time, especially where such large numbers of people are involved as in the Indian states. The thirteen states which have introduced improved agricultural extension witb IDA assistance, together, will eventually reach  -4- about 70% of India's farm families. In these states, there are to be some 66,000 Village Extension Workers (VEW8), 8,000 Agricultural Extension Officers (AEOs), 3,330 Subject Matter Specialists (SMSs), 900 Subdivisional Agricultural Officers (SDAO), 60 Assistant SD&Os, 400 District Agricultural Officers (DAD) and Assistant DAOs, and 60 Zonal Joint Directors and Additional Directors of Agriculture (Extension). However, the extension service represents only a small part of the total civil service in any state (e.g., in Karnataka only about 1S), but because of the close and often unique field relationship vith farmers, (which represent the vast majority of any state's population), agricultural extension is particularly vulnerable to outside pressures for purely non-technical reasons. The new system also calls for major attitudinal changes on the part of extension staff, farmers, agricultural researchers and government officials, both within and outside the Department of Agriculture. Given these circumstances, as IDA's experience with these projects confirms, firm commitment at government level and strong departmental management are central to successful agricultural extension. 1.09 Together, the above factors have given rise to a number of problems vhich have been commonly experienced in all agricultural extension projects financed by the Bank Group especially during the early years of implementa- tion: involvement of extension staff in non-extension activities; excessive reporting and statistical workload on field staff; insufficient research- generated technology, especially for rainfed and tribal aress; poor feedback from field to research; weak inter-ministerial and inter-departmental coor- dination; transportation shortages and restrictions; poor monitoring and evaluation; late submission of audited financial reports; veak technical supervision and shortages of appropriately trained subject matter specialists; slow provision of housing for field staff; and slow use of training funds. In addition, the expansion of village level non-extension activities, since the introduction of T&V extension, has been unexpected and under-estimated, leaving Panchayat (local government) staff unable to cope with the increased work load and aggravating pressures on extension workers to assist in non-extension work. Such problems have been continuously addressed during project supervision and most have diminished over time. Rowever, the continuing involvement of extension staff in non-extension activities and the problems concerning the technology being extended to farmers are two of the most intransigent; both are given special attention under the proposed project. 1.10 The Staff Appraisal Report (No. 4983-IN dated 8/8/84) of NAEP I (Cr. 1523 IN) includes a detailed review of the particular problems and achievements of all individual state projects assisted by IDA. To avoid repetition, this report only reviews the performance of the states of Raryana, Gujarat and Karnataka included under the Composite Agricultural Extension Project (Cr. 862-IN), and whose second phase development are included under the proposed project, the component under Cr. 862-IN designed to strengthen the Directorate of Extension (DOE), significant changes in progress of other individual state projects since issue of Report 4983-IN and the current situation of NAEP I. Annex 2 gives the present status of physi- cal components as measured against appraisal targets for all state projects. The location of these projects and the proposed NAEP II project are shown at Map IERD 18519R.  -5- Composite iAgricultural Extension Proiect (Cr. 862-IJ; February 16. 1979; WS$25.0 H). CogMrisina Guiarat. Harvana and Karnataka State Sub-proiects and the Directorate of Extension (NOA) 1.11 The Camposite Agricultural Extension Project (CAIP), became effective in December 1979 and is scheduled to close on June 30, 1985. US$23.8 million out of the credit amount (US$25 million) has already been disbursed and the entire amount is expected to be disbursed by the end of June 1985. Project Completion Reports for all participating states are currently under prepara- tion and will provide an in-depth review of project performance. The infor- iation given below is derived from reports of either IDA supervision missions or reports prepared by DOA. Guiarat State IUS$7.0 M) 1.12 The Gujarat component of this credit vas fully disbursed (US$7.67 M) by June 30, 1984 and was designed to reorganize and strengthen extension services throughout the entire state (excluding Kutch district). Gujarat is different from most states in India as it has a bighly developed local (Pancbayat) government system. With the institution of the Panchaysti Raj by an Act of the state government in the early sixties, agriculture became one of the subjects which comes within the responsibility of the local Panchayats. Under the Panchayat system, all district and block (Taluk) level staff of techuical line departments are administratively responsible to the appropriate head of the Panchayat Department (District Development Officer at the district level and Taluk Development Officer at the block level) whilst responsibility for technical matters lies with the line department. These administrative heads exert disciplinary authority over all staff and are responsible for the payment of salaries and allowances. Locally elected Panchayat bodies operate at three levels: the District, the Taluk (or Block) and the village. In addition to agricultural development, the Panchayats are also responsible for community development services, such as provision of link roads, drinking water, village sanitation and execution of agricultural subsidy schemes designed to assist the economically weaker sections of the community. Prior to the project, VLWs, AEOs and the DAO, besides being administratively responsible to the local government autborities at the Block and District levels, vere responsible for carrying out all agricultural related activities and also for assisting in implementation of community development schemes. Consequently, agricultural extension was largely ignored. Under CAEP a direct line of command from the DAO to the VLW was achieved whereby AEOs and VEWs previously controlled by the Taluka Develop- ment Officer would be transferred to the control of the DOA and work exclusively on agricultural extension. Pay and allowances would, however, continue to be paid by the Taluka Panchayat. While the DAO would have disciplinary authority over VEW, the DDO, on the advice of the DAO, vould have the ultimate autbority over AEO and would also continue to supervise the DAO. Thus, the Director of Agriculture continued only to exercise technical control over DAO. During project implementation, however, national policy determined that activities associated with integrated rural development should be considerably stepped up. As a result, some village level staff (VLws) were transferred to this additional rural development vork leaving the Panchayat Department short of staff to carry out work associated with those agricultural development activities designed to assist the economically weaker sections of the community. This resulted in VEWs and AEOs vho had  -6- been working full-time on agricultural extension spending tine on other development work. Thus, while exclusive responsibility for agricultural extension by the VEis and AEOs vas a condition of participating in the project, administrative circumstances prevailing had not allowed this to fully happen. Under the proposed project, however, additional staff would be recruited to compensate for this additional burden of non-extension work and allow VEW and AJO to revert to the situation vhereby they are engaged exclusively on extension activities (para 3.16). In addition and more recently, GOG has agreed that VEW and AEO field staff are to be paid directly by the DOA tbus establishing a single line of administrative and technical command from DAO to VEW. Though DAO is administratively responsible to the DDO, he is a staff member of and is paid by DOA and dependent upon that department for career develoment and future posting. The DAO under existing arrangenents is clearly responsible for the execution of DOA policies vithin the district and the DDO role is primarily one of district development coor- dination. 1.13 According to current recruitment rules in Gujarat, subdivisional level SHS are appointed by seniority promotion from AEOs and VE8s and who do not necessarily possess the requisite academic qualifications to allow them to effectively contribute to recommendation generation and general technical support. Action undertaken by GOG to resolve this problem, by gazetting subdivisional SMS positions in order that suitable qualification requirements can be applied in recruitment have so far been frustrated by a legal dispute. This unsatisfactory situation will continue to be addressed under the proposed project with minimum qualifications set for SMS recruitment (para 3.17). District, regional and state level SMSs, however, are suitably qualified and providing guidance and support at subdivisional level to com- pensate for the shortage of subdivisional SMS's. Despite the imperfections of the existing administrative arrangements, the extension service is operat- ing more effectively than under previous arrangements. Recent monitoring and evaluation surveys conducted in ;982183 have provided encouragixg indicators as to the establishment and operation of the Gujarat extension survice. These showed that 81% of all villagers were conversant with the -:eorganized extension system and 91% of contact farmers and 78% of non-contact farmers knew their VEis by name. Furthermore, 79% of contact farmers and 61% of non-contact farmers are paid regular visits by VEWs. 1.14 ln addition, regular in-service training for SNSs and other higher level extension staff is provided at monthly workshops organized by the extension education wing of the Gujarat Agricultural University (GAU). Close linkages between the Agricultural Department and the Agricultural University have also been established. The State, Regional and District technical cormittees are operating as originally scheduled. Research scientists now visit farmers' fields to study field problems and determine research priorities. 1.15 Physical targets for staff employment and civil works construction have in most cases almost been met; 98% of housing is complete or under construction, 90S of VEW and AEO and 46Z of SES staff are in position. The shortfall in numbers of SMS is attributable to administrative/legal difficul- ties encountered in recruitment procedures.  -7- 1.16 A monitoring and evaluation cell has been established. The reports prepared by this cell have consistently revealed improvements in the opera- tion of the extension service (para 1.13). While the direct impact of reformed extension on agricultural production is difficult to quantify, appreciable improvements in output and adoption of recommended practices have been achieved. Average total foodgrain production during the project period (1978-79 - 1982-83) increased by about 25X as compared to the five-year average of the pre-project period. During the same period, the average yield of pearl millet increased by 47%, sorghum by 25%, wheat by 22% and that of pulses by 11x. 1.17 More significant, however, are the changes in cropping patterns and cultivation practices which are clearly the consequence of extension advice given to farmers. The most important example is the introduction of summer grown groundnut into new areas. Here the total area planted increased from 19,600 ha in 1977-78 to 165,000 ha in 1982-83. Similarly the acreage under rape and mustard increased by about 63,000 ha and that of castor by about 70,000 ha during the project period. Haryana State (US$6.2M) 1.18 Generally, progress has been satisfactory although house and office construction has lagged behind schedule. Disbursenent up to June 30, 1984, totalled US$4.01 H and the balance of the credit, mainly for civil works, is expected to be fully utilized by the revised Project closing date of June 30, 1985. The project vas designed to reorganize and strengthen extension serv- ices in the entire state. Administrative and field staff previously employed under various general and crop or area-specific agricultural development schemes were consolidated into a unified agricultural extension service under the direct control of the Director of Agriculture. Performance in staff recruitment was good; as of November 30, 1984, a fill ratio of 94% was achieved with only 105 vacancies out of 1,833 posts. 1.19 To ensure a high standard of technical expertise through"-t the reorganized extension service and to facilitate high-quality in-s.-vice training for field staff, qualified Subject Matter Specialists in several disciplines were appointed at different levels of the system and regular in-service training was organized. The linkage between agricultural research and extension has been strengthened, particularly the HaryanA Agricultural University scientists' involvement in the design of adaptive trials and the analysis of trial results. Linkages were also established with the Depart- ments of Irrigation and Forestry, the Department of Cooperatives, and the input supply agencies. The improved cooperation with the Irrigation Depart- ment has widened the scope of the fortnightly training sesblo: to include issues concerning irrigation and water management. 1.20 A Monitoring and Evaluation Unit was estallished under the control of the Director of Agriculture. The many reports prepared by the unit consis- tently reveal improvements in the operation of the states extension service since its reorganization under CAEP. The 1983-84 kharif season report shovs that 84% of contact farmers and 60% of non-contact farmers knew their respec- tive VEWs by name and that 77Z of contact farmers and 50% of non contact farmers were visited at least once per month. It was also sho-an that farmer adoption rates of improved technology were related to the frequency of VEW  -8- visits with the proper utilization of veedicides, fertilizers and zinc increasing from 20 to 40% as VEW visits increased from none to two per month. While the direct impact has been difficult to quantify, significant improve- ment in agricultural production practices and in crop output have been apparent. Average foodgrain production during 1980/81-1982/83 was 25X above the average level of 1976177-1978/79. Rice production increased mainly due to increased acreage planted, but average wheat yields rose by 13X due to improved cultivation practices and input use. The production of cotton registered an increase of over 41% during the same period. Fertilizer con- sumption almost doubled from 1977/78 to 1982/83, and that of pesticides increased by 65X. Farmers have moved to more balanced use of fertilizer, and the use of phosphatic fertilizers and zinc-sulphate increased appreciably with the dissemination of relevant messages through the T&V system. Since 1981, the Bank has collaborated with Haryana Agricultural University in the conduct of a farm level study, in one district, designed to assess the impact of T&V extension on crop production. Results of the study suggest that there has been in the case of wheat, a yield increase of almost 2Z per annum over the first four years of the project and which is directly attributable to the effects of improved extension and is independent of the increased use of other production inputs. For rice the results were inconclusive. Neverthe- less the incremental wheat output alone is sufficient to generate an internal rate of return in the range of 30-40Z to the incremental investment in extension. Karnataka State (US$ll.lM) 1.21 The credit amount is likely to be fully disbursed by June 30, 1985; disbursement at June 30, 1984 was US$9.26 M. All agricultural extension staff operating under different crop-specific schemes in the state were merged to form a single extension service, and their duties were redefined to includ!e only agricultural extension activities. A large number of Village Extension Worker (SEW) vacancies due to administrative recruitment delays presents a problem, tut action is underway to fill all vacant positions. As of November 1984, 944 VEW posts remained unfilled out of a total of 5,200. Progress in civil works has also been slow and as of November 1984, 536 VEW houses were completed and 411 under construction of the total 1,100 planned. 1.22 To ensure a high standard of technical expertise, regular in-service training for SMS and other higher-level extension staff was provided at monthly workshops held, in cooperation with Karnataka Agricultural Univer- sity, at research stations in each of the 19 districts. Closer linkages between research and extension have been developed. Regular visits by SMS to research stations serving their respective agro-climatic regions are now an integral part of SMS work responsibilities. 1.23 A Monitoring and Evaluation Unit was established under the project and reports directly to the Secretary of Agriculture. The Unit has prepared 8 Monitoring and Evaluation Reports, and 4 Special Study Reports; these reports document progress in major aspects of extension operations. Karnataka has, during the past five years, successfully managed the trans- formation of its traditional multi-purpose community development extension system into the T&V system of agricultural extension under a single line of command. Although it is difficult to measure quantitatively the impact of this new approach on farm production, sufficient evidence is available to  -9- indicate its success in ensuring a steady flow of regularly updated and directly relevant information on improved crop production to large numbers of farmers throughout the state. The 1983/84 Kharif M and E study showed that 92% of contact farmers and 78Z of non-contact farmers knev their VEW by mane and furthermore that 82% of contact farms and 65Z of non-contact farmers vere visited regularly at least once a month, with 65% of contact farmer visits made to the farmers fields. A positive relation between technology adoption rate and the frequency of VEW visit was also demonstrated. The pressure exerted through regular feedback from farmers through extension staff to the agricultural input delivery agencies has led to significant improvements (measured both in terms of volume and in the timing of supplies) in the marketing activities of agencies such as the Karnataka State Seed Corporation (KSSC), the Karnataka State Agro-Industries Corporation (KSAIC) and Karnataka State Cooperative Marketing Federation (KSCHF). Training of extension staff has been significantly improved, and regular in-service training and skill- upgrading is provided. Although not directly and exclusively attributable to the introduction of the T&V extension systea itself, agricultural production has increased measurably over the past few years. In 1983184, which was a year of unusually favorable weather conditions, Karnataka reached record production levels in foodgrains (7.1 M tons), pulses (0.9 M tons), oilseeds (1.3 M tons), sugarcane (14 N tons) and cotton (1.05 M bales); as a result, the state temporarily improved its position from a traditionally deficit area in foodgrain production to one of marginal surplus. 1.24 More significant for the longer run, there have been important changes in cropping patterns and cultivation practices in the state which are clearly the consequence of extension advice given to farmers; output gains attributable to these changes are, thus, measurable results of the impact of the reformed extension service. Major examples of such changes in farming practices include: the emergence of sunflover cultivation on a large scale, with the acreage under sunflower increasing from 10,000 ha in 1977/78 to 276,000 ha 1983/84; the rapid spread of safflower cultivation from 163,000 ha in 1982/83 to 356,000 ha in 1983/84; the expansion of EYV paddy cultivation from 2.4 M ha in 1978179 to 2.85 M ha in 1983/84; the introduction of high-yielding red gram in the southern districts on 83,000 ha in 1983/84; the cultivation of gram in tank-irrigated areas which rose from nil in 1981/82 to 83,000 ha in 1983/84; and the growth in overall pulse acreage and yields which caused total production of pulses to increase from 710,000 tons in 1977/78 to almost 1.3 M tons in 1983/84. Directorate of Extension (Cr. 862-IN. February 16. 1979. US$0.7 M) 1.25 This component of the Composite Agricultural Extension Credit was designed to strengthen the Directorate of Extension (DOE) of GOI's Ministry of Agriculture (MOA) to improve its ability to assist state extension efforts. This strengthening included a new position of Joint Commissioner (as deputy to the Joint Secretary, Extension Commissioner) to assume full-time responsibility for supervision of DOE activities which guide and support state-level agricultural extension programs; the establishment of a new Field Extension Unit to provide assistance to the states in project implementation, monitoring and evaluation and in solving specialized techni- cal problems; strengthening of the Training Unit to raise the quality of training in the states; and strengthening of the Farm Information Unit to improve its capability to train state extension staff in the preparation and  -10- use of communication aids and to provide states with audio-visual training materials. The Field Extension Unit has not proved as effective as intended, in part because it has lacked sufficient technical expertise and administra- tive independence to advise state services and in part because several key posts were not staffed. Generally, the activities of the Directorate relat- ing to agricultural extension have not been separated from those relating to such other activities as exhibitions and general training, with the result that both have suffered. 1.26 There has been, however, a significant improvement during the past year in the Directorate's contribution to implementation assistance and guidance to the states and assistance vith training programs. DOE's staff has been more involved in field visits to several states that are implement- ing IDA-assisted extension projects and has been helping states as they complete first-phase projects to prepare follow-up projects. More than before, DOE is attempting to undertake long-term planning and to provide a stronger central base for helping strengthen state activities. This has occurred, notwithstanding staff vacancies. The Directorate is to be further strengthened and reorganized under NAEP I (para 1.28) and the filling of the remaining staff vacancies under CAEP is expected to be completed by June 1985. Recent DeveloDments in Other States 1.27 New developments with other extension projects include: West Bengal Extension and Research Project (Cr. 690-IN); June 1, 1977; US$12.0M) was orginally scheduled to close on September 1984 but has recentl7 been extended to March 1985 to permit already sanctioned works to be completed by the end of the Indian financial year. The persistent lack of adequate budget provi- sion has been an important factor contributing to a poor overall project performance. Bihar Extension and Research Project (Cr. 761-IN; January 6, 1978; US$8.0M) has also been similarly extended to end March 1985 from the previous closing date of October 1984. As for West Bengal, this extension is to allow the completion of already started works during the current financial year. Despite efforts, progress has continued to be limited with inadequate budgetary support, and the failure to recruit VEW staff, being critical factors. National Agricultural Extension Project (NAEP I) (Cr. 1523-IN, October 2. 1984. US$39.1 M) 1.28 The National Agricultural Extension Project I, the first of a second phase of extension projects, is designed to provide follow-up support to three already participating states but more importantly to further strengthen the DOE in the Ministry of Agriculture, a process started with limited success under CAEP. To this end NAEP I will: (a) provide continuing assistance initiated under earlier credits to three states (Orissa, Madbya Pradesh and Rajasthan) in the improve- ment of statevide agricultural extension services; and tb) reorganize and strengthen DOE in the GOI Ministry of Agriculture to allow it to perform its coordinating and policy guidance role more effectively in the development of agricultural extension throughout  -1L1- India and enable it to assist states in preparing projects for exten- sion reform. The project has provided for core staff to the Extension Division of the Ministry of Agriculture and has further strengthened the existing Units of Farm Information, Extension Training and Field Extension of the Extension Directorate. The core administrative staff would be responsible for administrative, organizational, planning and logistic aspects, as well as for follow-up of visits and correspondence with state governments. The Farm Information Unit, in addition to organizing exhibitions, publicity and preparing pamphlets and periodicals, will provide audio-visual and agricul- tural communication support to the States. The Extension Training Unit would be responsible for all extension related training, and the Field Extension Unit would be responsible for appraisal, supervision and monitoring and evaluation of subprojects. In addition, the project would provide funds for further project preparation and for financing special subprojects prepared by MOA, states or other agencies designed specifically to strengthen support of extension activities at the central, regional or state level. NAEP I (Cr. 1523-IN) was signed on December 12, 1984 and project implementation has started in the states of Orissa and Rajastan. At the central level all new staff positions provided for DOE under the project hAve been sanctioned. The process of recruitment is underway for both NAEP I incremental staff and outstanding staff not yet appointed under CAEP (Cr. 862-IN). Orders for the appointment of four JDA's have been issued. Both the Extension Technical Advisory Committee (ETAC) and the Project Funding Committee for approval of special subprojects have been constituted and a number of proposals for both state and centrally sponsored subprojects are under review by DOE. Lessons Learned 1.29 While considerable scope remains for improving the design and effec- tiveness of the agricultural extension system once the new structure is in place, the Bank's experience in India to date has been positive overall. The new system has now stcod the test of seven years of implementation in several states; there is groving evidence of its favorable impact; and it has received wide support from the farming community and state Departments of Agriculture. Although achievements have been mixed, experience with these projects show, that there is a lead role for a technical extension service, that the system adopted for technology transfer is fundamentally sound, and that the impact on production, even in the short term, can be substantial. Many of the changes introduced are now generally recognized aS worthwhile: fixed visit schedules; regular meetings of extension field workers and super- vising officers and specialists; regular in-service training of extension staff; use of extension staff in helping to identify research priorities and in advising research on farmers needs and reactions to research recommenda- tions; and a single line of command and exclusive responsibility for exten- sion for the extension service. The lead role of a strong technical exten- sion service is now seen in several states where it has developed to the stage where it is able to identify constraints at the farm level and to place pressure for performance accountability both within its own operations and on the other support services on which agricultural development also depends. In particular, the extension service is not only becoming increasingly aware of its own need to improve the timeliness and quality of the technology it  -12- should transfer to farmers, but is also exerting considerable pressure on the research support network to reorient its research priorities. In addition, the importance of the timely supply of inputs to farmers and of close links between farmers, extension and research have come to be realized in light of experience with the extension projects. 1.30 Strong project support from IDA has also been an important factor in past achievement. Although the various problems, noted in para 1.09 and in the review of bank experience (paras 1.10 to 1.28), are being specifically addressed in the ongoing projects and the National Agricultural Extension Project, it will take time to resolve them. Past achievements must not, therefore, mask the vulnerability that persists and the undercurrent of pressure to revert to a more traditional system with multipurpose field workers. Extension reorganization is still institutionally immature, and it is essential that the technical and supervisory support of the Bank be sus- tained. The Bank will continue to support efforts both to adapt technology to the needs of Indian farmers and to improve the transfer of that technology to them by assisting state and central efforts through the NAEP I, the National Agricultural Research Project (Cr. 855-IN, December 1978) the proposed NARP II, and the proposed NAEP II project. II. PROJECT OBJECTIVES AND RATIONALE 2.01 While current extension projects will help to establish more profes- sional extension services and broaden their coverage of the farming popula- tion, further strengthening and deepening of the extension effort is required. As yet, training and visit extension is not established firmly enough in any state that it could be considered self-sustaining and in the two new states involved in the proposed project, the system is still to be introduced. In addition, more attention needs to be given at both state and central levels to monitoring and evaluating the impact of extension activities. During the first five years of an extension project little more can be achieved than the establishment of an administrative framework for extension and the provision of an information service focussed on low cost technology, and this will be done in the two states introducing T&V extension for the first time under this project. However, experience has also shown that farmers need a more completely trained and equipped extension service capable of addressing all aspect of farm improvement. In this context, the Bank's involvement is needed to help state governments provide a more sophis- ticated and complete extension system and to ensure strong linkages with agricultural research, which is being supported by the Bank under NARP I and the proposed NARP II. The project would therefore build upon the institu- tional base developed under CAEP (Cr. 862-IN) in the States of Haryana, Gujarat and Karnataka to improve the coverage, depth and quality of their respective extension services. The following specific objectives would be focussed upon: 2.02 Administrative Consolidation and Institutional Development. The project would help consolidate the administrative changes and institutional improvements brought about under the Composite Agricultural Extension Project (Cr. 862-IN). IDA's continued involvement would provide further backing and  -13- guidance to state and central government efforts in implementing and main- taining extension reform. Reorganized extension services and related train- ing, adaptive research, and monitoring and evaluation to be introduced into Jammu and Kashmir would be based on the experiences gained in previous state extension projects in India. 2.03 Quality Improvements. Although measures to improve the quality of extension must be identified and implemented by state services themselves, the central ministry responsible (GOI's Ministry of Agriculture acting through DOE) must develop the capability and to guide the states in various areas: Eo coordinate extension approaches and GOI programs, improving the roles of SMSs, AEOs and contact farmers; establishing close permanent links with research; and in implementing field trials and adaptive research on which to base relevant location and resource-specific technical recommenda- tions. Other areas which require qualitative improvement include the development of responsive and specialized training and information/ com- munications support, including improved utilization of mass media to compli- ment the T&V extension. 2.04 ExpandinR and Deepening of CoveraRe. First phase extension projects focus on developing a service for the majority of the rural population, with concentration on a few selected crops. However, the need to address the whole farming system by providing a wider range of specialist support is becoming apparent - both for crops already covered, for new crops and for such activities as soil and water management, farm management, horticulture and some aspects of farm forestry. Extension services will also deepen their coverage by dealing more directly than at present with the agricultural production activities of women, rural youth, very small farmers, tenants and sharecroppers and with tribal and hill populations. To be effective, such coverage would require more intensive field supervision of extension staff and improved research support. Finally, greater coverage will be achieved by geographic expansion into new disticts in Gujarat and into the State of Jammu & Kashmir. 2.05 Strengthening Linkages between Extension and Research. Although research is providing increasingly effective support to extension, much remains to be done. There is still considerable ambiguity about adaptive research, verification and field trials, and the division of responsibility for these between research and extension institutions. Such division of responsibility would be spelled out as part of a memorandum of understanding between each state agricultural university (SAI) and state government. The knowledge-practice gap in agricultural technology must be further reduced by refining technology to suit the farmers' resource, management and risk situa- tions. Increased awareness of actual farm conditions, responses to problems identified by farmers and extension workers, participation in the training of extension staff and regular visits to the field will help bring about a reorientation of researchers attention to farmers' chief concerns and production constraints. The SAU research programs would generate recommenda- tions at regional stations and substations while Departments of Agriculture, supported by the project would be responsible for refining these recommenda- tions by carrying out field trials (verification and modification) at different locations. This would be a joint effort by research and extension, with the SMSs at the subdivision/district having full responsibility for the trials with technical backup from the regional research station. The project  -14- would also help SAU to finance other assistance to extension services, mainly the training of SHS, not covered under NARP. At central level, the Indian Council of Agricultural Research staff would participate in the Extension Technical Advisery Committees to be established under NAEP I, and join regular field visits to review actual on farm conditions and activities. III. THE PROJECT A. General 3.01 The proposed five-year project would provide continuing assistance initiated under an earlier credit to three states (Gujarat, Haryana and Karnataka) (see paras 1.12-1.17, 1.18-1.20 and 1.21-1.24); and first time assistance to the State of Janmmu and Kashmir in the improvement and reor- ganization of agricultural extension services. 3.02 While the basic approach to the strengthening of agricultural exten- sion services is common to participating states, several modifications have been made to take account of differin- levels of agricultural development; administrative arrangements, particularly at the district level and below; agro-ecological conditions; population densities; communications; and progress made under earlier projects. Summary data on the state subprojects, including the staffing of the agricultural extension services before and with the proposed project, are given in Annex 3. Detailed proposals, outlining the particular features of each state component, are given in Annexes 5-8 and overall project costs in Annex 9. B. The Project Area Haryana State 3.03 Haryana, located in north-central India, has a population of about 14 M (1984). Over 752 live in rural areas and depend upon agriculture as their main source of livelihood. The state has a geographical area of 44,200 km 13Z of the national total, divided into 12 districts and 35 administrative subdivisions. The population density of 292 persons per km2 is above the national average of 208. Haryana's rural population reside in some 6,700 vill&Zes and operate 1.25 M farm holdings with an average size of about 2.9 ha. Deenite the relatively economically advanced status of Haryana, literacy levels are only 36%, equal to the national average. 3.7 H ha are cultivated annually, bith 5.5 M ha of crops sown, thus giving a cropping intensity of 1512. It is estimated that about 2.2 M ha or 60% of the cultivated area is presently irrigable. The main crops are wheat, rice, pearl millet and pulses; also important are oilseeds, cotton and sugar cane. The State can be divided into two broad climatic zones. A hot arid to semi-arid zone in the southwest covering 40% of the state where rainfall is erratic and averages 300-400 m per annum, with millet and gram being the main rainfed crops, and wheat and cotton the main irrigated crops. The second, a sub-humid zone covering the remaining 60% of the state, enjoys a higher and more reliable rainfall of 750-900 mm annually and wheat, rice and sugarcane are the main crops cultivated.  -15- Karnataka State 3.04 Karnataka, located in the southwestern part of the Deccan peninsula, has a population of 39 M of which about 70Z are engaged in agricultuEe, cultivating 10.4 M ha of the state's geographical area of 190,498 km . The gross irrigated area is some 2 M ha. The scope for expanding the irrigated area is limited and future agricultural grovth will require significant progress in rainfed farming. The state comprises four major agro-climatic zones: a narrov coastal belt with 2,500 mm annual rainfall (important crops-- rice and coconut), the Western Ghats wi-h 2,500-3,000 mm annual rainfall (important crops-- rice, coffee, coconut; areca nut and spices); the northern Plateau covering 65Z of the state"s total area with less than 600 am annual rainfall (important crops -- sorghum, millet, groundnut, cotton and irrigated rice); and the southern plateau covering 28% of the state, with 500-750 mm annual but uncertain rainfall (important crops-millets, sorghum, pulses, oilseeds). Guiarat State 3.05 Gujarat, located on the northwestern coast of India, has a population of about 36 N (1983), with about 72% living in rural villages. The net cropped area is 9.8 M ha out of a total of 19.6 M ha. About 20% of the net sown area in under irrigation- more than 75% through wells. Gujarat has a tropical monsoon climate with average annual rainfall varying between 500 and 800 mm but with wide variability. Agricultural production depends largely on weather conditions, and since much of the state is subject to low and highly variable rainfall, further agricultural growth depends particularly upon expansion of irrigation and on farmer adoption of improved rainfed technol- ogy. The state produces about one quarter of India's cotton and groundnuts and one-third of its tobacco. Pearl millet and sorghum are important cereal crops. Gujarat is a net importer of foodgrains. Jammu and Kashmir State 3.06 The State of Jaumu and Kashmir (J&K) is situated on the northwestern extremity of India. It comprise two administrative divisions, Jaumu and Kashmir which are subdivided into 14 districts. Agricultural land, incl ding fallows, covers 911,000 ha, only 40% of a total state area of 222,000 km 40% of cultivated land is irrigated. Apart from the narrov southern plain and the Kashmir valley, the terrain is generally mountainous, with altitudes ranging from 300 m to 8000 m. Three main agro-clinatic zones are distin- guishable ranging from sub-tropical in the lover valleys to alpine in the high dry temperate zone. In the Southern foothill region of Jammu, con- tiguous to the Punjab and plains to the South, cultivation is practiced on lower valley slopes and bottoms where an average annual rainfall of 850 ums is mainly distributed between thae months of June and September. .n Kashmir most cultivation takes place in the valley itself at an elevation of 1,600 X vith rainfall varying between 550 and 950 us per annum, and mainly dis- tributed from January to June. The third zone, the 'Ladakh' region, is a vast dry, temperate to arctic desert, covers two-thirds of the State and has very little snummer rainfall with most precipitation falling as winter snow. 80% of the state's population of six million live in rural areas on an estimated 1.04 M farm holdings, with an average holding size of 1.1 ha. The  -16- overall population density is only 27 per km2, but actual densities in the limited areas suitable for cultivation are considerably higher. Farm hold- ings are widely dispersed making the provision of extension services difficult. Rice, wheat, saize and horticultural crops (mainly apples and vegetables) are important. Rice is the staple food in the Kashmir division, while in Jammu, wheat, maize and rice form the main ingredients of the diet. Agricultural research is carried out by the .her-E-Kashmir University with 18 research sub-stations. Farm inputs are supplied through a network of 2,700 selling points run by cooperative societies or the Department of Agriculture. Private sector intervention is as yet minimal. Credit supply is assured by three central cooperative banks working through 1,470 primary agricultural credit societies. The Divisions of Jammu and Kashmir, each have their own Directors of Agriculture, one Director of Horticulture serves the whole state. Most existing government-employed village level staff are employees of the Community Development Department and who give very little attention to agricultural extension. C. Detailed Features 3.07 The project would support a variety of training activities, depending on the requirements of each state. Programs currently being followed in Haryana, Karnataka and Gujarat would be continued and extended to a new district in Gujarat (Kutch District); new training programs would be developed in Jammu and Kashmir. All would include the key training programs for VEWs of monthly workshops, fortnightly training sessions, additional seasonal training programs and special short courses. For more senior staff, in-state training programs would be organized by DOA and SAU. Given the increased specialization and sophistication required of these extension qervices, the training of extension staff would be given high importance. In addition to the further development of existing training activities, specialized training would be given in such subjects as horticulture, vatershed management, plant protection, soil conservation and farm forestry. Moreover, training in monitoring and evaluation and in extension management, especially for staff at the middle and upper administrative levels, would help to improve extension implementation and its supervision. Training would not only include short-term courses, but would also support staff development through courses tailored to the needs and qualifications of staff, including where appropriate, promotional training to obtain undergraduate or post- graduate degrees. Such opportunity for staff upgrading are deemed to be one of the most effective incentives available to extension staff. SAU training support to extension would also be strengthened by providing seminar halls and facilities for trainees and additional extension training coordinators in Gujarat and Karnataka. Training provisions are detailed for each state in Annexes 5-8 (Table 105, 113, 121 and 129) and individual course details and costs are at Annex 4. 3.08 Additional staff would be required in Haryana, Gujarat and Karnataka states to meet the needs of increased specialization and broader coverage. SMS would be reqzired in disciplines other than those needed for basic agricultural production. Lower ratios of farm families per VEW are justified in some areas, e.g., hilly, tribal and newly irrigated areas, which in turn would require more staff for supervision (AEO and SDAO). incremental staff  -17- would also be required for expansion into new districts (Gujarat), to staff the crestion of new administrative subdivisions (Raryana) and to allow reen- forcement of the Panchayat Department (Gujarat, para 3.16). In Jammu and Kashmir additional staff would be provided at all levels at intensities appropriate to the particular economic and topographic conditions of that state. 3.09 During negotiations, assurances were obtained from each state that all incremental staff positions would be filled with staff having qualifica- tions and experience satisfactory to IDA and according to, agreed schedules (Annexes 5-8, Tables 101, 109, 117, 125). Further, all states agreed that all extension positions assigned to DOA under this project would be used exclusively for agricultural extension work under the project and would remain under the administrative control of DOA. Furthermore, assurances were obtained that project extension staff would not be adversely affected in respect of their entitlement to emoluments, benefits and promotional prospects by reason of assignment. 3.10 As provision of appropriate housing in areas of operation is neces- sary for effective field extension, particularly in areas where accommodation for rent is not available, the project would provide some housing for exten- sion workers. However, all states would continue to encourage the use of rented accommodation wherever possible. Details are given in Annex 5-8, Tables 102, 110, 118 and 126. 3.11 Both increased technical specialization, through provision of addi- tional Subject Matter Specialists, and more numerous field staff would require additional vehicles, including bicycles, mopeds and motorcycles (on a loan-purchase basis). Credit terms and maintenance allowances, travel and mileage allowances were reviewed at negotiations and assurances were obtained from each state that they would be improved, if necessary, and subsequently maintained to ensure sufficient incentive for the purchase and use of vehicles by field staff. Vehicle requirements are detailed for each state at Annex 5-8 Tables 104, 112, 120 and 128. The project would also provide audiovisual aids to support extension operations, as well as office furni- ture and equipment needed for expanded extension activities for training and for effective monitoring and evaluation. Provisions for each state are detailed in Annexes 5-8, Tables 103, 111, 119 and 127. 3.12 The project would provide incremental operating expenses for printing tecbnical diaries, field notebooks, charts, instructional materials for training sessions, seeds and other -nputs for field trials, materials for preparing simple visual aids, operation and maintenance costs of vehicles and for staff travel and allowances. It has been observed under first phase projects that inadequate funding of travel and vehicle operations seriously impedes field visits and proper supervision of field staff. The project, therefore, would provide funds for this purpose, of which a declining propor- tion over the project years would be reimbursed against certified statements of expenditures. The participating states have provided assurances that staff travel norms for extension staff would be in the range of 10-30 travel days per month according to staff category. In the case of Jamiu and Kashmir the need for issuing a special order on travel norms did not arise as there are no restrictions on the number of days per month that extension staff may travel. In all the participating states it was confirmed at negotiations  -18- that AEO's and VEW's are eligible to travel for a minimum of 16 days per montb. 3.13 Descriptions of each state subproject, limited to features of importance, are given below. Project casts and phasing of expenditure are detailed in Annexes 5-8. Haryana State 3.14 The extension organization, incorporating a single line of command from DOA to VEW established under CAEP (Cr. 862-IN), has worked satisfac- torily and will be maintained and improved under the proposed project. The project would provide: (a) Incremental Staff. Additional staff would be appointed in areas of present shortcomings, e.g., agricultural mechanization, horticul- ture, and would involve the recruitment of 33 SMSs and 70 AEOs. Five SDAOs would be appointed for the five new administrative sub- divisions created recently; Cb) Monitoring and Evaluation. The Monitoring and Evaluation Unit already established under CAEP would be further strengthened with additional survey staff, vehicle and incremental operational costs to improve both the quality and speed of survey and analytical work; Cc) Civil Works. CAEP provided housing to about 11% of VEWs and AEOs. The project would construct a further 400 houses for VEWs and AEOs (so housing 35% of their total strength), and 20 houses for SMSs and SDAOs. Essential office buildings at three district headquarters and six subdivisional offices would also be constructed; Cd) Training. To improve training facilities at two regional research stations, the project would construct two training halls, two hos- tels for trainees, and 26 staff houses at the Agricultural Training Institute, Jind. Overseas training at the doctorate level would be provided for a total of 25 selected SMS staff; and (e) Transport. The project would provide for replacement of 48 old 4-wheel drive vehicles, six cars and 14 vans and for 11 new vehicles including 3 vans and 3 minibuses for the Haryana Agricultural University's (HAU) extension training wing. Loans to field staff for the purchase of 500 motorcyles would also be provided. Karnataka State 3.15 The extension organization incorporating a single line of command from DOA to VEW established under CAEP (Cr. 862-IN) has worked satisfactorily and would be maintained and improved under the proposed project. (a) Incremental Staff. Additional staff would be appointed to take care of the specialized needs of soil and water management and input monitoring and coordination. This would involve 40 SMS in soil and water management and farm management at the district level; 60 SMSs  -19- (input monitoring and coordination) at the central taluk level; and 8 SMS in farm mechanization and two JDAs at headquarters (one to oversee input monitoring and coordination, and the other for soil and water management); (b) Monitoring and Evaluation. Field operations of the Monitoring and Evaluation Unit established under CAEP would be further strengthened by providing 10 additional field investigators. AdditLonal equip- ment, one agricultural economist and two research assistants would be provided to improve the unit's capacity for analyzing field data and to permit more expeditious data compilation, analysis and report preparation; (c) Civil Works. The project would provide funds for the construction of 400 VEW and 200 AEO houses, and 41 additional offices for ADA and SMS. All buildings would be constructed to standard designs; (d) Training. To improve staff training by the university, 8 training balls and 8 hostels for trainees would be constructed at regional researcb centers. In addition, 8 extension training coordinators would be appointed; and Ce) TransRort. To improve staff mobility, 10 cars, 28 vans, 176 4-wheel drive vehicles and two audio-visual vans would be procured for DOA and SAD. Loans to field staff for the purchase of 300 motorcyles vould also be provided. Guiarat State 3.16 Assurance was obtained at negotiations that the single line of administrative command from DAO to VEW was fully established. To ensure that there are sufficient staff to undertake non-extension agricultural functions, 552 existing VEW and 184 AEO (1 AEO and 3 VEI per Taluka) would be deputed for this work, and 552 VEWs and 184 AEO would be recruited to replace them exclusively for agricultural extension. Understanding was reached at nego- tiations that the provision of the above additional staff and the assurances given that DOA extension staff would work exclusively on agricutural exten- sion would effectively ensure that no undue pressures would be placed upon extension staff to carry out non-extension work. 3.17 In the case of Gujarat where under CAEP the promotion of some unqualified AEO and VEW to subdivisional SHS occurred, it was agreed at negotiations that all future SMS appointees should meet basic qualification requirements including a university degree and be under the direct administrative control of the State DOA. However, until time such as the ongoing legal dispute effecting subdivisional SMS recruitment is resolved, District SMS staff would continue to assist in the execution of subdivisional SMS functions. Understanding was reached at negotiations that the situation with regard to Subdivisional SMS recruitment would be reviewed within one year of the signing date of the proposed credit and that existing SMS uot having appropriate qualifications would receive training to upgrade their skills.  -20- (a) Incremental Staff. Additional staff for Kutch district (not covered under CARP), to meet specialized needs of tribal areas and newly irrigated areas and to re-staff the Panchayat Department would be provided under the project. The phasing plan for recruitment of sme 800 VEWs and 116 AEOs for special hilly and irrigated areas would be reviewed and adjusted as required in the course of implementation. In all, the incremental staff would include 1,352 VEWs, 300 AEOs, 56 SMSs, 3 ASDAOs, 8 SDAOs, 8 DDAs, 2 JDAs and 2 DAOs; (b) Monitorina and Evaluation. The monitoring and evaluation unit established under CAEP would be further strengthened by providing two DDAs (Economist and Statistician), 31 agricultural supervisors and three technical officers to improve the unit's capability to analyze field data. Additional equipment would be provided, includ- ing a micro-computer, to permit expeditious data compilation and analysis and report publication; Cc) Civil Works. The project would construct 1,000 VEW quarters, 200 AEO houses, 89 SMS and senior staff houses, and 11 offices; 37 offices would be renovated. All buildings would be constructed to standard designs; Cd) Training. Under CAEP, the Gujarat University provided montbly training to SMS and other senior district staff at four regional research stations. This was found inadequate and the project would provide funds to extend training to another six regional/main research centers. Six training halls and six small hostels would be constructed at these centers and 12 extension training coordinators appointed. In addition, at subdivisional level, 40 low-cost train- ing halls for organizing fortnightly training workshops, and three hostels at the regional (farmer) training centers for accommodating long-term training of VEWs, would be constructed; and (e) Transport. To improve mobility of staff, 20 cars and 40 four-wheel drive vehicles would be provided. In addition, 250 loans for motor- cycles and 1,500 for bicycles would be provided for field staff. Jammt and Kashmir State 3.18 An Additional Secretary for Agricultural (ASA) (responsible to the Agricultural Production Commissioner) at the state level has been appointed by GOJM to coordinate project actions required of the Directorate of Agricul- ture located in each of the two administrative divisions and the Directorate of Horticulture at state level. ASA would also be responsible for general project planuing and monitoring and evaluation. A Joint Director of Agricul- ture (JDA) in each division would be responsible for the day to day coordina- tion and implementation of all divisional project activities, under the overall guidance of the office of the Director of Agriculture and in close liaison with the office of the Director of Horticulture. Incremental and existing district, block and village level extension staff of the Department of Agriculture would be responsible through a single line of command to the Director of Agriculture. The project would provide:  -21- (a) Incremental Staff. Most existing village level staff are employees of the Community Develoniuent Department and give very little atten- tion to agricultural extension. To increase agricultural production the Government of Jammu and Kashmir would strengthen and reorganize extension services, introducing T&V extension methodology statewide. Existing village level workers vould be retained by the Community Development Department to continue their non-extension and other development and administrative duties, but 435 VEW presently working on special crop programs under the DOA would be redeployed to the new extension service. The project would provide additional trained staff at all levels of the extension service to supplement existing manpover resources, introducing a mew cadre of SMS staff who would provide specialist guidance and support to the service as a whole. Incremental staff to be funded include VEW 1365, AEO 57, SDAO 56, SMS (Subdivision) 142, SMS (District) 30, Regional JDA 2, and SMS (Headquarters) 8. VEW and SMS recruitment and training would be phased over four years, all JDA, SDAO and AEO recruitment would take place in project year one. At least 300 unemployed agricultural graduates are available for selection and posting as VEW in project year one; (b) Monitoring and Evaluation. A monitoring and evaluation wing would be established. One JDA, two Deputy Directors of Agriculture, two Statistical Officers and 34 other support staff would be appointed. Necessary training of M&E staff would be organized, and early unit establishment encouraged through the provision of retroactive financing. The head of the M&E unit would report to the Additional Secretary for Agriculture; (d) Civil Works. The project would construct: 139 AEO houses and 200 VEW houses, representing 40Z and 10% of total needs respectively and 24 subdi-visional level offices cum living quarters. All buildings would be constructed to existing standard designs. To ensure that the building program is executed without delays, GOJK would arrange for the serondment of a works division from the Public Works Depart- ment to the DOA for supervision of the projects- building program. These staff costs would be financed from the element of departmental charges included in building unit costs. (d) Transport. To improve staff mobility 77 four wheel drive vehicles would be procured for headquarter and field staff and loans to field staff for purchase of 275 motorcycles and 850 bicycles provided. Two mini buses and two audio-visual vans would also be provided for extension support and training services; and (e) Adaptive Research. Research is being strengthened under NARP (Cr. 855-IN) but some additional funds for on-farm trials and sup- port to SKAIJ would be provided. Mid-Term Review 3.19 A mid-term review of overall project performance would be carried out by each state jointly with the GOI and the findings discussed with IDA by  -22- September 30, 1987. The review would in particular review tLc adequacy of extension staff (especially SHS of different disciplines) for satisfactory implementation of the project and would recommend any necessary adjustments in number and/or discipline of staff. If the findings of such review reveal that the number of staff or other facilities deployed under the Project are not sufficient for the efficient implementation thereof, states governments shall increase the number of staff and other facilities so deployed taking into account the Association's recommendations. IV. COST ESTIMATES AND FINANCING A. Cost Estimates 4.01 Detailed cost estimates, inclusive of taxes and duties and based on incremental costs of carrying out the project over a five-year period, are given in Annexes 5-9. They are summarized in the table below. Table 4.1: SUMMARY OF PROJECT COSTS BY SUB-PROJECTS /a Local Foreign Total Local Foreign Total ---RB - --RUS$ M- State Subprojects Haryana 95.5 7.3 102.8 8.0 0.6 8.6 Karnataka 188.3 14.2 202.5 15.7 1.2 16.9 Gujarat 296.2 9.8 306.0 24.7 0.8 25.5 Jamnu and Kashmir 182.4 6.2 188.6 15.2 0.5 15.7 Total Base Costs 762.4 37.5 799.9 63.6 3.1 66.7 Physical Contingencies 32.0 2.1 34.1 2.6 0.2 2.8 Price Contingencies 164.8 4.1 168.9 13.8 0.3 14.1 TOTAL PROJECT COSTS 959.2 43.7 1002.9 80.0 3.6 83.6 la Any differences in addition are due to rounding off.  -23- Table 4.2: SUMMARY OF PROJECT COSTS BY MEPENDITURES Jammu X of Harvana Karnataka Guiarat Kashmir Total Total _ ------ Rs '000----- Incremental Staff 15,196.0 22,720.0 123,730.0 102,544.0 264,190.0 27 Civil Works 44,110.0 89,500.0 105,157.0 42,090.0 280.857.0 28 Equipment 3,045.0 3,540.0 6,714.9 5,653.5 18,953.4 2 Vehicles 13,150.0 28,260.0 9,400.0 11,860.0 62,670.0 6 Training 3,202.5 6,287.5 6,055.6 2,422.9 17,968.5 2 Operating Costs - Vehicle Operation 5,350.0 22.300.0 12,895.0 7,300.0 47,845.0 5 - Travel Allowances 14,285.3 27,035.0 36,365.5 11,159.0 88,844.8 9 - Other 4.410.0 2.845.0 5.713.2 5.543.5 18,511.7 2 Total before Contingencies 102.748.8 202,487.5 306,031.2 188,572.9 799.840.4 81 Physical Contingencies 4,805.3 10,927.9 13,636.4 4,787.6 34,156.9 3 Price Contingencies 19,361.1 37,558.8 65,651.3 46,369.2 168,940.8 16 Subtotal 24,166.4 48,486.7 79,287.7 51,156.8 203,097.6 - TOTAL PROJECT COSTS Re 126,915.2 250,974.2 385,318.9 239,729.7 1,002,938.0 100 uS$ x 10.6 20.9 32.1 20.0 83.6 - The above costs based on findinrgs during appraisal include about US$0.88 M in duties and taxes. Physical contingencies of 5% have been applied to civil works, vehicles, equipment, travel expenditures and other operating costs, 10X have been applied to training and vehicle operating costs. Price contin- gencies have been applied for local costs in accordance with current Bank estimates of expected inflation rates in India (local prices, 1984/85 through 89/90 at 8.5%, and for foreign costs, 84/85 at 3.5%, 85/86 at 8% and 86/87 onwards at 9%) and compounded accordingly. B. Proposed Financing 4.02 The proposed IDA credit of US$49.0 M would be on standard terms to GOI and would finance 60% of project costs for agreed project activities, net of taxes and duties. The proceeds of the IDA credit would be channeled to participating states in accordance with arrangements applicable at the time for central assistance to states for development projects. The balance of project financing would come from state government sources and GOI. Assurance was obtained that participating states had made adequate financial provisions for the operation of the first project year in their 1985-86 plans and confirmed that adequate financial provision would be made in future plans to cover the estimated cost of their projects during the entire project period. Assurances were also obtained at negotiations that -e later than July 15, 1986 and annually thereafter project budgets would be submitted to IDA for review. In the case of the second phase states, the extent of com- pliance with each covenant under phase I investments (CAEP Cr. 862-IN) particularly those on staffing and financial reporting were assessed during  -24- negotiations, it was found that no major default remained, and that satisfac- tory arrangements had been made for the preparation of project completion reports. Table 4.3: PROJECT FINANCING (USs M) State Local Support IDA Total Component Source Amount Haryana GOH/GOI 4.3 6.3 10.6 Karnataka GOK/GOI 8.6 12.3 20.9 Gujarat GOG/GOI 13.5 18.6 32.1 Jamnmu and Kashmir GOJK/GOI 8.2 11.8 20.0 TOTAL 34.6 49.0 La 83.6 Percentage 41.0 59.0 100.0 /a Equivalent to 59.7% of project costs net of taxes and duties which amount to 0.88 M. C. Procurement 4.03 Civil works contracts (US$28.5 M), mostly for houses and training facilities, would be small and dispersed, both geographically and over time; therefore, they would not be conducive to international competitive bidding. Contracts would be awarded on the basis of competitive bidding following local advertisement, and in accordance with established state procedures satisfactory to IDA. In most cases there are numerous qualified local con- tractors to carry out such work. Where contractors are not forthcoming to execute the works, civil works estimated to cost US$25,000 or les smay be carried out through force account. 4.04 Vehicles of various types (US$6.1 M) and equipment (US$1.8 M) required under the project would be purchased in small quantities over several years and would be widely dispersed throughout rural areas. As adequate maintenance and availability of spares would be of paramount impor- tance, locally made vehicles of types already used by government departments would be purchased. Thus, vehicles and equipment would also be procured locally by the participating state governments according to existing govern- ment procedures satisfactory to IDA. In the case of motorcycles and bicycles, loans would be made to field staff for individual purchase. 4.05 All contracts for civil works, vehicles, equipment and furniture estimated to cost US$100,000 or more would be reviewed by IDA botb before bids are invited and before contracts are awarded. Orders for purchase of minor equipment, furniture and supplies would be bulked wherever possible and purchased according to established local bidding procedures, except where  -25- valued at less than US$50,000, when they would be purchased by prudent shop- ping through normal trade channels. Assurances on procurement procedures mentioned in paras 4.03-4.05 were obtained during negotiations. 4.06 The balance of project costs (US$47.2 M) for the four state sub- projects would consist of training (US$2.0 M), incremental salaries (US$28.1 M), and incremental operating expenditures for offices vehicle and traveling allowances (US$17.1 M) which would not involve procurement. All costs are inclusive of contingencies which amount to US$16.9 M. D. Disbursement, Accounts and Audit 4.07 As NAEP II is a mix of new and second phase state subprojects a six year disbursement period is proposed. Disbursements would be made against: Category Percentage of Expenditures Civil Works 55 Vehicles, Equipment, Furniture and Materials 100 (foreign expenditures) 70 (local expenditures) Training and Research 100 Incremental Salaries /a 66 Incremental Operating Expenditure Lb 55 L,a Actual disbursements against this category would be made against a portion of total eligible staff costs (6% for Haryana, 3.0% for Karnataka, and 18% for Gujarat and 53% for Jammu Kashmir which is equivalent to 66% of incremental salaries. Extension staff eligible for partial disbursement would be incremental VEW, AEO, SMS, SDAO, ASD&O, DAO, ADAO, DDA, JDA, Additional Director and staff of the extension monitoring and evaluation unit and staff of DOL farm information units. Lb Includes other operating costs, vehicle operating costs and staff travel allowances; the latter two categories including incremental costs for both new and existing staff. Actual disbursement against these categories would be made against a portion of total incremental costs on a declining basis, equivalent to 55% of total incremental operating costs as follows: at 100% - US$2.5 M; 80% - US$2.4 M; at 60% - US$2.1 M; at 40% - US$1.5 M; and at 20% - US$0.8 M. 4.08 All applications prepared by the states for reimbursement would be channeled through the Department of Economic Affairs as at present, but with copies provided to DOE. Expenditures on civil works and equipment and  -26- vehicles individually exceeding Rs 25,000 would be listed item by item in summary sheets. Where expenditures for training or payments for locally procured vehicles and equipment exceed Rs 150,000 or payments under civil works contracts exceed Rs 300,000, supporting documents would be submitted to IDA for review. Disbursements for expenditures below these amounts in the above cases, or for staff costs and operating expenses, would be against certified statements of expenditures, the documentation for which would not be submitted to IDA for review, but would be retained by state governments. These documents would be available for inspection by IDA or DOE/MOA during the course of project review missions. Certificates of expenditures would be audited at least once every year and a report submitted to IDA within nine months after the end of each fiscal year. Schedules of implementation for the state subprojects are presented in Annex 10. The estimated disbursement schedule is in Annex 11 and is compared with the disbursement profile for the three IDA agricultural extension credits in India which have been closed and the regional profile for IDA agricultural projects in India. While substan- tially following the same pattern as the two comparator profiles, RA2P II would lead them by about a year. There are two reasons for assuming this lead: over 80X of the credit would finance extension in states where the system has already been established and where no start-up delays should be experienced; in the new state J&K, learning from experience, considerable advance preparation for implementation has taken place, and there are already trained staff available for recruitment (para 3.18). 4.09 Retroactive financing up to US$2.0 M is recommended for expenditures in the four participating states incurred after September 30, 1984 for essen- tial start-up activities, particularly for training and the establishment of the monitoring and evaluation unit in J&K. 4.10 Assurances were obtained that separate accounts would be kept of subproject expenditures made under the project. All project accounts would be audited annually for each fiscal year, in accordance with sound auditing principles, consistently applied, and the audit reports, together with cer- tified copies of project accounts would be submitted to IDA vithin nine months after the end of the fiscal year. Such reports and audits would show, inter alia, that the funds withdrawn had been used for the purpose intended, that goods had been received or work performed, and that payments had been made. All reports would be submitted by the subproject implementing agencies through DOE to the Department of Economic Affairs (DEA) GOI for onward trans- mission to IDA. V. ORGANIZATION AND MAKAGEMENT A. General 5.01 Under NAEP I it has been agreed that the responsibilities for preparation and supervision (including implementation assistance) of IDA-supported state extension projects would be delegated increasingly to GOI, hovever, IDA would continue to be responsible for the supervision of NAEP II as a whole and would have the right to supervise state subprojects. The Ministry of Agriculture's core staff and DOE's field extension unit,  -27- which are being strengthened under 1AEP I (Cr. 1523-IN), would coordinate and guide, monitor and evaluate state subprojects under NAEP-II, as they are doing with KAEP I subprojects. B. Project Management 5.02 State governments would have overall responsibility for the implemen- tation of the project. 5.03 Each state would be responsible for preparing semi-annual progress reports in a format approved by IDA at negotiations. It would forward its reports to MOA/DOE and DEA. MOA/DOE, with IDA participation as required, vould undertake comprehensive semi-annual field reviews of each state sub- project. Assurances were obtained during negotiations that MOA/DOE would submit to IDA semi-annual state progress reports each June and December, giving for each subproject a summary of activities undertaken during the prior six months (October-March, April-September), details of staffing, physical and financial targets achieved and implementation problems encountered, together with an evaluation of the state reports. Each state would also undertake to prepare a subproject completiou report for its sub- project. Both MOA/DOE and IDA would review subproject progress reports and completion reports. 5.04 Financial management would follow the general pattern prevailing under ongoing IDA credits for state extension projects. Each state would have responsibility for ensuring that the financial requirements of its subproject was met. MOA/DOE, DEA and IDA vould be responsible for monitoring compliance vith financial reporting requirements undertaken by the implement- ing agency (para 4.08) as well as for monitoring procurement. DEA and IDA would make selective reviews of accounting procedures and withdrawal claims. C. State Extension Organization 5.05 In the states, the Secretary of Agriculture and the Director of Agriculture have overall responsibility for implementing statewide extension programs. Within each state an Additional Director of Agriculture (ADA), Extension is responsible to the Director of Agriculture for day-to-day management of the extension service, both technically and administratively, supported by the administrative machinery of the department. In the case of Jammu and Kashmir, an Additional Secretary of Agriculture (ASA) would coor- dinate implementation of the project with a JDA responsible for day-to-day management in the two divisions of the state. The ADAIASA make arrangements for recruitment and training of extension personnel, budgeting, procurement, disbursement of funds and preparation of periodic progress reports, and is supported, inter alia. by a small staff of SHSs responsible for improving the technical quality of extension services in their special fields (for the main crops grown throughout the state, plant protection, adaptive research, train- ing, water and soil management, etc.).  -28- 5.06 Coordination at state level among extension, research and allied agencies (inp-:t supply, finance, credit, and state agricultural university, etc.) would be obtained through several committees at state, zonal and district levels (established under Cr. 862-IN in the case of second phase subprojects) as well as through informal contacts, exchange of staff, workshops, training courses and collaboration in field testing programs. Under the recommended system of extension, SMS employed by DOA are expected to spend one-third of their time in liaison with research staff. SAD research staff at zonal stations also allocate part of their time to DOA extension work. SAU arrange workshops at zonal stations and other locations for staff working on a particular crop or in a particular discipline. Although under NARP (Cr. 855-IN, December 7, 1978), some zonal stations have been partially equipped to cater for the training of DOA extension personnel, some additional support would be provided under the proposed project at locations not previously or adequately covered. Memoranda of understanding between the state governments and SAUs defining their respective respon- sibilities and linkages were signed prior to negotiations. The model memorandum used was developed for other states where it had been tested and found workable. 5.07 The State Technical or Research Advisory Committee provides a formal means for review of university research and field trials and for review of proposed research programs and extension recommendations from Zonal Research Advisory Committees. The State Technical Committee is chaired by the Director of Agriculture and consists of senior officers of the university, concerned government departments and other agencies. It meets twice a year to review research results and extension recommendations and formulate a work program for the next year. 5.08 Each state has (Haryana, Gujarat, Karnataka) or would (Jammu & Kashmir) establish a Project Coordinating Committee to coordinate implementa- tion of its extension project, chaired by the Agricultural Production Commis- sioner or Secretary for Agriculture and with the Additional Director of Agriculture or Additional Secretary of Agriculture (Extension) acting as secretary. Its members would include the Vice Chancellor of the SAU, Direc- tors of Agriculture and Horticulture, and representatives of other concerned government departments and agencies. The Comittees would meet at least twice a year to review progress in project implementation and to resolve any problems that arose. Assurances were obtained at negotiation that the state of Jaumu and Kashmir would establish such a committee no later than August 31, 1985. 5.09 Formerly, District Technical Committees were set up to review and formulate recommended agricultural practices, including identification of research priorities and adaptive research and field demonstration programs for reference to the State Technical Committees. To avoid duplication and to ensure better research/extension coordination, the District Technical Commit- tees are being replaced by the Zonal Research Advisory Committee (ZRAC) established under NARP. They meet twice a year. 5.10 The key link between the SAU and the department of agriculture is the monthly extension and research workshop. These are used to train SMS, to review recommendations and, on the basie of observations and experience, to  -29- adapt them for field extension staff and to suggest modifications to the farm trial programs for the pre-season zonal workshop's consideration. 5.11 Pre-season zonal workshops, chaired by the Zonal Joint Director of Agriculture or Associate Director of Research (SAU), meet before the kharif and rabi cropping season, at a research station. The participants include scientists of the zonal research stations, divisional JDA , District Agricul- tural Officers, SMSs in the zone and headquarters, SAU scientists and unit head of the monitoring and evaluation unit. The worksbops typically include representatives from credit, marketing, irrigation, agro-industries and other concerned agencies. The participants review and evaluate the farm trials, the monitoring and evaluation unit results and the adoption experience of pre- vious years to formulate the program for the next season, including the program for applied research and location of trials. The workshop also screens the research and farm trial results for modification of the extension recommendations for the zone. Adoption experience of reco endations from previous seasons, and reports of the monitoring and evaluation unit would be a major consideration of such discussions. The participants discuss implica- tions of extension recommendations, seek cooperation among various input supply agencies, and give attention to problems of credit, marketing and input supply. The outcome from these vorkshops forms the basis of recommen- dations placed before Zonal Research Advisory Committees (para 5.09). Combining the zonal workshops with the Zonal Research Advisory Committee meetings is being considered since both meet for the same jurisdiction and have similar membership. 5.12 Zonal recommendations are revieved at a state level workshop held before eacb cropping season. It is presided over by the Vice Chancellor of the SAU and attended by appropriate directors and heads of disciplines of the university, associate directors of the regional research stations, the Director of Agriculture, Additional Director of Agriculture, Zonal Joint Directors of Agriculture and such other officers of the Department of Agriculture as may be designated by the Director of Agriculture. The workshop reviews the program of research and extension cooperation and coor- dination, determines research priorities and applied and adaptive research programs on the basis of the recomcendations of the zonal workshops, and screens the zonal extension recommendations. As at the zonal level, combin- ing the state level workshop and State Technical Committee is also under consideration. Thus, the formal structure would be simplified to consist of zonal and state committees/workshops which would meet twice a year. D. Monitoring and Evaluation 5.13 Continuous monitoring and evaluation (M&E) is an integral part of all ongoing IDA-assisted extension projects. Hovever, some participating states were slow to establish monitoring and evaluation units and to begin collec- tion of appropriate data. In recognition of the shortcomings, in 1981-83 IDA  -30- sponsored a serie6 of workshops and developed an operational manual I/ to strengthen this aspect of work. In Jammu and Kashmir special effort would be made to ensure early M&E unit establishment to allow surveys to start in the first year and retroactive financing for this purpose is recommended. 5.14 Within a state M&E is usually the responsibility of a Joint Director of Agriculture located at headquarters, reporting to the Agricultural Produc- tion Comnissioner or Secretary of Agriculture. He is assisted at head- quarters by a small group of staff, including a Statistician and an Economist. The methodology used should conform to the basic M&E manual designed for T&V extension. To be effective, the cell should be located close to the senior officers in a state extension system, i.e. the Secretary for Agriculture, the Agricultural Production Commissioner, the Director of Agriculture and the Additional Directors, who must initiate actions to modify and improve extension operations on the basis of the available evidence. The cell should be directly responsible to an officer senior to the Additional Director responsible for extension. While this arrangement is well under- stood in India, in many states, the H&E cell, for all intents and purposes, reports initially to the Additional Director (Extension) which impairs objec- tivity. M&E cells may also be diverted from their primary duty to others such as preparing departmental work plans and budgets or other urgent administrative tasks. 2/ Under CAEP (Cr. 862-IN), these cells reported directly to the Secretary of Agriculture or Director of Agriculture. Assurances were obtained at negotiations that the arrangement would continue during NAEP II and that states would continue to undertake monitoring and evaluation of their respective projects in the form already agreed upon and that st-mary results would be forwarded through HOA/DOE to IDA at least once a year. Similar assurances were also obtained from the first phase sub- project state of J&K where the H&E cell would be attached to the office of the Additional Secretary. 5.15 The Field Extension Unit of DOE would be responsible for technical guidance to state M&E cells and for collecting and coordinating the monitor- ing and evaluation reports from all subproject states and forwarding them to IDA at agreed intervals. 1/ R. H. Slade and G. Feder, "The Monitoring and Evaluation of Training and Visit Extension in India: A Manual of Instruction", World Bank, October 1981. (Being revised for issuance as a Staff Working Paper in 1984.) ]/ G. Feder and R. E. Slade, "Experiences with the Monitoring and Evaluation of Training and Visit Extension in India," World Bank Staff Working Paper Number 595, May 1983.  -31- VI. BENEFITS ADD RISKS jj A. Benefits of ImRroved Extension 6.01 Agricultural extension organized on the basis of regular training and frequent field visits aims at increasing productivity on farms and the income of farmers. While it is difficult to isolate yield increases resulting from extension from other determinants, both officials and farmers exposed to the new system agree that it is a definite improvement over earlier systems, and is, at least, partially responsible for bringing changes in the attitude of the farmers toward adopting improved farming metbods and increasing the rate of that adoption. For example, the successful introduction of new crops of soybeans in Madhya Psadesh, and summer groundtuts in Gujarat, pulses and a new variety of groundnuts in Karnataka and improved seeds of sorghum and cotton in Maharashtra, are attributed to the new system. 6.02 The benefits of improving the extension service are difficult to quantify. For example, neither favorable farmer response to regular contact witb extension staff, nor the increased ability and self-esteem of extension workers now permitted to perform chiefly agricultural functions, are easily measured, although both are readily apparent. Furthermore, monitoring and evaluation of agricultural extension activities is relatively new, and the quality and consistency of data for estimating yield increases, particularly of data on crop cutting (for wbich M&E staff are not responsible), is poor. Even if survey accuracy could be guaranteed (which it cannot), the amount of variation within vbich production change must be identified is extremely high: crop survey programs target for a maximum of 5% standard error in district level estimates which for most of the major crops vould still be equivalent, in absolute terms, to aboat twice the yield increment needed for a 50% internal rate of return on project investments. (In fact, the standard errors of official yield statistics at the district Level are sometimes in excess of 5%.) Hovever, there has been considerable progress in some states, and some data on the effects of improved extension services are now becoming available. Examples from the states which are completing five year IDA-supported projects and would be supported under NAEP I and II are given in SAR No 4983-IN (NAEP I) and in paras 1.12-1.17 (Gujarat), 1.18-1.20 (laryana) and 1.21-1.24 (Karnataka). The Project Completion Reports for Orissa, Nadbya Pradesh and Rajasthan generally indicate that efforts to improve agricultural extension have been wortbhvile. This is confirmed in the conclusions of the project performance audit report for Rajastan (Cr 737-IN). 6.03 Some indicators of the impact of the first phase project in Gujarat, Karnataka and Haryana have already been mentioned (paras 1.12-1.24). The favorable impact is also supported by overall production fiaures, despite the difficulty of obtaining accurate production statistics. In Madhya Pradesh (SAR 4983-IN, NAEP I para 6.03 and Table 6.01) official yield statistics for five major crops, Bhow a steady rise in both yield and production, as well as 1/ This is similar to Chapter IV of SAR No. 4983-IN (NXEP I).  -32- the substantial decline that occurred in 1979/80 due to adverse climatic conditions. To spread the inter-year variations attributable to climatic anomalies, four-year rolling averages l/ of yield and production have been calculated and indexed to 100 for the period ending 1979180. These indicated yield increases during the four year period 79/80 to 82/83 in the range from 3-25%. For example 25Z for wheat, 3% for paddy, 20% for maize and 12% for gram. Despite the strong belief within DOA that official statistics under- estimate actual progress, the results show very favorable increases in production and productivity althougb the indices for paddy are disappointing. (Of all crops, it is the paddy yield that DOA most persistently challenges.) 6.04 A recent review of monitoring and evaluation of extension of several states provides evidence for a positive association of adoption rates with the frequency of visits (both for contact and other farmers). It also iudi- cates that contact farmers and others who adopt extension recommendations generally obtain higher yields than other farmers. (But it must be noted that, in some places, these farmers tend to be richer and bigger, although they mey also be good disseminators.) In some states, this difference is declining over time, indicating the diffusion impact of extension. In Haryana, crop cutting results show that, with similar fertilizer doses, contact farmers obtained better yields in part due to more appropriate combinations, timeliness and/or methods of application. Similarly in the case of non-fertilized plots, contact farmers often obtained bigher yields, especially in the case of paddy and chickpea, reflecting the impact of exten- sion tbrough the use of low-cost inputs and practices. 6.05 In late 1981, the need for an objective empirical assessment of the impact of the T&V system led to a study being undertaken by the Bank in collaboration with the Haryana Agricultural University at Hissar. 2/ It was designed to assess the extent to which T&V extension has accelerated the diffusion of knowledge about improved farming practices and increased farm productivity. A sample survey of farmers was used to assess the strengths and weaknesses of the T&V system relative to other systems of agricultural extension. Results from the study indicate that the T&V extension system is more successful in delivering information to farmers than the traditional system, that it achieves significantly higher rates of direct contact vith farmers, and that rates of knowledge diffusion for all wheat practices and for some paddy practices are higher than comparable rates under the former system. The study showed in the case of wheat, a yield increase of almost 2% per annum over the first four years of the phase I project which is directly attributable to extension and independent of the improved use of other farm inputs. Further, there is also no evidence that extension agents' visits are biased in favor of the largest or wealthiest farmers as has often been assumed. 1J A four-year rolling average is used so that the poor results for 1979180 would be included in each calculation of the index (SAR No. 4938-IN, para 6.03). IJ 'A Comparative Analysis of Some Aspects of the Training and Visit System of Agricultural Extension in India," Gershon Feder and Roger Slade, World Bank, February 1984.  -33- 6.06 Of major significance is the clear evidence from states and areas where improved agricultural extension is becoming vell established that it is exerting considerable pressure on other support services (particularly research) to improve performance in parallel with extension. This develop- ment underscores the important but frequently overlooked lead effect of a strong extension service. Ultimately, it vill be because of pressure and performance accountability that the entire development machinery will become better oriented to the needs of the target beneficiary; and, where problems have been identified, they are in many ways a reflection of the strengths of the system as well as of its veaknesses. Some of these weaknesses, as they impose risks to successful implementation of NAEP II, are noted belov. B. Risks 6.07 Withdrawal of direct IDA involvement after completion of the first five-year projects would increase the risk of the newly established single-line, single-purpose extension services succumbing to non-extension functions and of staff being transferred to other activities involved in administering, implementing and reporting on a number of activities. There are several reasons for this. Firstly, significant numbers of staff are still involved in administering, implementing and reporting on a number of special programs and target campaigns; this is a particular probLem in areas with special aid programs having a heavy subsidy component, but progress has also been slow elsewhere because transferring these activities to others has required changes in planning and funding procedures. Secondly, in some areas, VEWs are still seen by many farmers not just as technical officers but also as general representatives of government to whom all problems should be taken; to deny farmers their assistance could jeopardize the credibility of the system. Such pressures will continue until other support services become stronger and areas of responsibility are more clearly understood. Finally, District Deputy Coomissioners (Collectors) can requisitiou, at sbort notice, staff and vehicles from any department, as the need arises. This can be particularly disruptive to extension work since it may tie up staff for lengthy periods, irrespective of season, and has been an important cause of weak field supervision by district and divisional level staff. Although extension will always be vulnerable to outside pressures, raere is increasing recognition that its primary function must be technical and that it cannot substitute for weaknesses in other support services. Within the field of agricultural development, however, some pressure for non-technical involve- ment of extension staff is likely to continue. This may be offset to some extent by better planning so that staff involvement in thebe activities can be concentrated outside the main growing seasons. IDA participation is especially useful in resisting these pressures. No precist period necessary for such IDA involvement can be established, but at least five years beyond the implementation period of the initial project in any particular state should be expected given the institutional changes required. After this period of additional involvement, extension efforts at state levels should be in a better position to continue independent of IDA support, particularly if the central supporting agency, DOE, has been sufficiently strengthened, as envisaged under NAEP I.  -34- 6.08 To develop professional cadres and provide technical staff with opportunity for promotion within their field of expertise is difficult, but it is needed to develop higher professional standards and encourage staff to rasain within their specialities. Providing the type of training required for increased specialization, and improvement of extension services will be an important task. The number of SHS which current projects are to employ amounts to more than 3,000 SMSs at full development, and there has been a tendency in the past to underestimate the training needs for SMSs as vell as the competition for trained staff from other agencies. Moreover, training in extension, planning, monitoring and evaluation, and management (especially at middle and senior levels) is required to improve extension implementation and supervision. Use of training resources has been slow because of a failure to systematically identify training needs, to draw up plans to meet those needs, and because of difficulties in the selection of appropriate staff for train- ing; considerable improvement is noY apparent, however, in most states. Links with universities where extension staff can be trained need to be further strengthened. Appropriate selection for training and cadre develop- ment would continue to be sought through NAEP II as well as during the super- vision of ongoing projects. NAEP I would belp deal with extension training needs by strengthening the Extension Training Unit of DOE, through the train- ing components in state subprojects, and through various special subprojects in training that may be developed. 6.09 A number of general administrative constraints and policy problems frequently encountered in extension projects are likely to continue to impede development of extension and will require continued attention from GOI and IDA. Promotion by seniority, frequent transfer, and inappropriate selection criteria for training are key practices in all government departments that adversely affect extension. Little progress has been made in these areas, although some success has been achieved in altering other aspects of administration to the benefit of extension (e.g., installing of a technical, single-function extension service, weakening of the "target approach" to agricultural development among agricultural and other officers, reduction in paperwork at all levels of the extension system, and greater delegation of authority). 6.10 In the States of Haryana and Karnataka, the progress of civil works under CAEP was slow due to lack of coordination between the Department of Agriculture and the constructing agencies, the inability of Public Works Departments to deal with small projects, and because of problems in identify- ing suitable contractors and in awarding contracts. These states have decided that in addition to PWD, the civil engineering wing of the DOA would construct small houses and offices, and the SAU would construct their own project related buildings. In the cases of vehicle loans and operation, inadequate loan amounts and terms and insufficient travel and mileage allowances have sometimes discouraged staff from using vehicles and from purchasing motorcycles or bicycles, although the situation for staff-owned vehicles has improved. For government-owned vehicles, there is a strong need to ensure that adequate vehicle operating and maintenance allowances are given. To bring about improvements in the states' financing of travel allowances and vehicle operating costs, the project would provide funds for incremental costs for the entire staff engaged in T&V extension in each project state. A total of 55Z of incremental travel allowance for vehicle  -35- and other operating expenditures vould be reimbursed over the life of the project on a declining scale. 6.11 An important task for a strengthened DOE and Extension Division in the central Ministry of Agriculture will be the coordination of extension activities with GOI Special Schemes. GOI special schemes at the state level may conflict with extension programs and activities. In most states, many subjects of interest to agricultural extension services (such as animal husbandry, horticulture, water management, soil conservation, farm forestry and agricultural credit) are the responsibility of organizations other than the Department of Agriculture. Reconciliation of extension with continued support for the multi-purpose village workerlcommunity development approach is also important to the continued success of extension reform. Coordination within states is encouraged by committees at various levels and through the state Agricultural Production Commissioner and would be further strengthened at the center through the establishment of the proposed Extension Technical Advisory Committee established under NAEP I. 6.12 Without an effective two-way communication between research and extension, it is unlikely that the technology needed by farmers to increase productivity would be developed and transferred. To promote such linkage betveen extension and research, each state participating in the project vould obtain before negotiations a written memo of understanding between the SAU and the Department of Agriculture spelling out university responsibilities for support of the extension services (para 5.06). Such formal instruments were not initially used under CAEP, but have been found necessary in the course of implementation experience. The project would also provide support to SAU for extension-related expenditures. To date, technology has not been a major constraint, but as the backlog of research findings becomes more widely adopted, additional adaptive research, field testing and development of new technology will be required. While early work may be aimed at zonal and district recommendations, ultimately technology development needs to be directed more at meeting the needs of smaller groups of farmera and those in more remote and difficult areas. NARP (for which a second project is under appraisal) would help strengthen research efforts to provide relevant tech- nology for extension transfer to such farmers. 6.13 The Extension Division and the DOE in MOA is being reorganized and strengthened under NAEP I. While this reorganization and the appointment of key staff are expected to improve the center's ability to assume its envisaged role in advising and assisting the states to develop extension and to monitor and evaluate the IDA-assisted extension projects, IDA would con- tinue to work directly with states while passing on to the center more responsibilities as it becomes strengthened to handle them.  -36- VII. AGREEMENTS AND UNDERSTANDINGS REACHED AND RECOMIENDATIONS 7.01 During negotiations, agreements were reached with GOI and the involved states on the following: (a) The states would fill _'cremental staff positions with staff having qualifcetions and experiencR satisfactory to IDA and according to the schedule in their respective annexes of this report (3.09); (b) The states agreed that all extension positions assigned to the administrative control of the DOA under this project would be used exclusively for agricultural extension work and be retained under the administrative control of DOA (para 3.09); (c) The states agreed that extension staff would not be adversely affected in respect of their entitlement to emoluments, benefits and promotional prospects by reason of assignment (para 3.09); {d) The states would make available (a) to all eligible staff in need of credit for the purchase of motorcycles, mopeds or bicycles, such credit on terms and conditions designed to provide incentives for the purchase of such motorcylces, mopeds or bicycles; and (b) such financial incentive, including appropriate travel allowances, in order to encourage optimum use of the motorcycles, mopeds and bicycles to be purchased under the project (para 3.11); Ce) The State of Gujarat confirmed the establishment of a single line of administrative command from DAO to VEW (para 3.16); (f) The states, in consultation with IDA and GOI, would undertake a mid-term review of overall project performance by September 30, 1987 which would inter alia review the adequacy of the existing staff and recommend any necessary adjustments in number and/or discipline of staff. If the findings of such review reveal that the number of staff or other facilities deployed under the Project are not suffi- cient for the efficient implementation thereof, state goverrments shall increase the number of staff and other facilities so deployed taking into account the Association's recommendations (para 3.19); (g) Beginning July 15, 1986 and annually thereafter, the states would submit to IDA for review their annual project budgets (para 4.02); (h) Each implementing agency would implement procurement procedures satisfactory to IDA (paras 4.03-4.06);  -37- (i) GOI would cause each implementing agency to maintain separate accounts of each subproject and keep records of expenditures (para 4.10); (j) Each implementing agency would prepare and present to MOA/DOE for transmission to IDA administrative and financial data regarding progress of the project, including procurement of goods and serv- ices, civil works, expenditures, audits and requests for disburse- ment in accordance with the schedules agreed (para 4.10); (k) GOI agreed that, through MOA/DOE, it would submit to IDA semi-annual progress reports each June and December for each state subproject under the credit, in a form acceptable to IDA. The reports would include a summary of activities undertaken during the prior six months (October-March, April-September), details of staffing, physi- cal and financial targets achieved and implementation problems encountered. Further, each state would also prepare, for review by DOE/IDA, subproject completion reports Cpara 5.03); (1) The State of Jamu and Kashmir would establish a project coordinat- ing committee no later than August 31, 1985 to coordinate implemen- tation of its extension project (para 5.08); and (m) The states would undertake monitoring and evaluation of the projects in accordance with procedures satisfactory to IDA and would forward to IDA, through MOA/DOE, annual summaries of results (para 5.14). The following matters were discussed and understandings reached: Ca) Understanding was reached with the State of Gujarat that subdivi- sional SMS recruitment would be reviewed vithin one year of the signing of the proposed Credit, and that existing unqualified SMSs would receive training to upgrade their skills (para 3.17); (b) The State of Gujarat gave assurance that no undue demands or pres- sures would be placed on DOA extension staff to perform non-extension work (para 3.16); and (c) The States of Haryana, Gujarat and Karnataka had complied with covenants of the first phase investment (CAEP Cr 862-IN) and that satisfactory arrangements had been made for the preparation of project completion reports (para 4.02);  -38- 7.02 To encourage the prompt implementation of the project and to recog- nize the early initiatives taken by GOI and the state governments to imple- ment the project, it is recommended that retroactive financing up to a total of US$2.0 H be made available for expenditures incurred after September 30, 1984 (para 4.09). 7.03 With the above assurances, the proposed project vould be suitable for a credit of SDRs 50.26 N (US$49.0 M) to GOI on standard IDA terms.  ANNEX 1 -39w - 1 of 3 INDIA NATIONAL AGRICULTURAL EXTENSION PROJECT T&V-based Agricultural Extension The training and visit (T&V) extension methodology provides farmers, on a regular and systematic basis, with current advice on farmi'g practices best suited to their specific conditions and emphasizes proven practices with immediate impact on production and income. It is accomplished by a regular system of training and visits by field staff, supported by professional advisors from within the state's Department of Agriculture and from state research institutions. This system calls for a single line of commuand from the Director of Agriculture to the Village Extension Worker (VEW) and the merging of the transferred VEWs and all agricultural field staff into a unified extension service, employed exclusively on agricultural extension. To reflect their exclusively agricultural role, such workers are called Village Extension Workers. Non-agricultural village level activities are handled by the Village Level Workers (VLW) with the Comunity Development Department and other staff. The number of farm families covered by each VEW varies depending on population density, accessibility, intensity of farming, and other measures of need. On an average, between 700 and 800 families are served by a VEW, with these divided into eight groups which would be visited regularly on a given day during a two-week cycle. These norms have vorked in the relatively densely populated plain areas, but will require mod- ,ication in the hill areas of Himachal Pradesh and Jammu and Kashmir. The VEW vorks primarily with 8 to 10 contact farmers selected within each group. The Extension messages are kept simple, concentrating initially on the most important crops in the locality and the most important aspects of crop cultivation at that time. Initially, emphasis is placed on improving cultural practices. At a later stage, use of inputs and more sophisti- cated cropping systems may be emphasized. The VEW is supervised in the field by Agricultural Extension Officers (AEO), each supervising about eight VEW, who work with them during field visits to convince farmers to adopt recommendations. VEWs receive the extension message for the fort- night at training sessions held on a fixed day in each fortnight by Sub- ject Matter Specialists (SNS). Training and visits take nine days per fortnight. The three other working days in the period are devoted to field trials, making up missed visits, and performing occasional office work. Technical Suprnort and SuDervision The general pattern calls for staff at the subdivisional and district levels to be strong enough to ensure satisfactory supervision, training and guidance. Subdivisional level staff include a Subdivisional  ANNEX 1 -40- 2 of 3 Agricultural Officer (SDAO) with an Assistant SDAO (ASTAO) in large sub- divisions so as to keep a ratio of about 6 to 8 AEO per supervisor. To strengthen technical support and training, a team of SMS at subdivisional level is provided, initially one each in agronomy, plant protection and training. At district level, a District Agricultural Officer (DAO) super- vises the work of subdivisional staff, while specialists provide addi- tional technical support in such specialities as water management, farm implements, entomology and horticulture. SMS divide their time about equally between field visits (including guiding and supporting lower level staff), research (including field trials), and training. Civil Works To enable regular and frequent farm visits, field staff need to live near their areas of work. States undertake to provide suitable low-cost housing or rent allowances. All states are encouraged to use rented accommodations where possible; however, in some rural areas, hous- ing, either institutionally owned or for rent, is limited. In such areas, state subprojects usually provide for construction of part of the low-cost housing needed. With increased staffing levels, certain states need also to construct new field offices and to expand existing ones. In addition, some states need to develop training facilities to meet increased needs. Transport Adequate transport is needed to enable field extension staff to maintain fixed schedules of visits and for supervisory staff to reach the field easily and frequently. Generally, projects provide for additional motor vehicles at headquarters, zonal, district and subdivisional levels; for motorcycles for AEO, SMS and other supervisory staff; and for bicycles for VEW. State governments extend credit to staff to purchase motorcycles and bicycles. Credit terms aud travel allowances are reviewed to ensure sufficient incentive for purchase and use of these vehicles by field staff. Subprojects also may provide funds for operation and maintenance of vehicles and for staff travel and subsistence allowances. Equipment and Incremental Operatinr Costs To meet increased needs ror training and office equipment, state projects may provide for simple audio-visual aids to support field opera- tions and for necessary office equipment and furniture. Incremental operating costs such as vehicle operation, materials, housing and travel allowances may also be covered. In addition, projects may also provide funds for printing various materials for VEW, for purchase of small samples of seeds and other inputs for farmer training and establishment of field trials and for simple visual aids. Traininx State extension projects generally support a variety of training activities. These include the key training program - research/extension  -41- ANNME 1 3 of 3 monthly workshops, the fortnightly training sessions -- pre-service train- ing, additional seasonal training programs and special short courses for all extension staff. For more senior staff, in-state training programs are organized by departments of agriculture and by state agricultural universities. Each state designates an officer to help coordinate train- ing activities in the state with the agricultural university and with the department of agriculture. Monitoring and Evaluation To provide systematic evaluation of performance, a small unit with staff responsible for carrying out regular sample surveys is set up at each state headquarters, under control of the Secretary of Agriculture. Ad hoc studies may also be made with focus on specific topics. Detailed guidelines for monitoring and evaluation procedures were drawn up and agreed with the Directorate of Extension during previous IDA credits and subsequently revised and reviewed by IDA staff. These procedures are described in the basic manual, "The Monitoring and Evaluation of Training and Visit Extension in India: A Manual of Instruction," World Bank, October 1981, which is intended to provide a uniform system of evaluating and reporting for states undertaking extension reorganization and improve- ment with IDA assistance. References Benor, Daniel, James Q. Barrison and Michael Baxter, Agricultural Extension: The Training and Visit System. Washington, D.C., World Bank 1984. Benor, Daniel and Michael Baxter., Training and Visit Extension. Washington, D.C., World Bank, 1984.  35T1031L AIC Lf3I. TUIOUn onhJcr It U681T or IDSF3IC3D LaICULTULAL UT IO P%uOcTS Pull DeVelont and Cuwreut Adbieeeet treieet/Criis. 153214. ..Sui... Sui. A 4rea C.wed __tsign Staff (No.] Civil Worksia xrsn (US$ MA PLeb. Crap Dist. Farm Q0 Divis. Diet. Subdiv. C, Laud r_iLli. 0 U0 Slt 6D4O a. A40 VD Off LC lleuu 4WD IK ___ ha) ( NIt) (1' __ ORilM 6U2-DI Effective 6/77 Full Devi. 40.0 20.0 4.5 30 3.4 2 104 30 90 62 124 865 6502 16 2323 161 3 Closien 6/U6 Current (UU/4) 18.2 4.5 30 3.4 2 76 30 52 50 88 774 6020 15 1363 14 3 x (1) (409)1IL mLiNCA& *90-Ilt ffective 8/77 Full Del. 20.2 12.0 6.6 17 4.0 4 0 17 51 30 150 450 4000 0 1345 133 Closing 3/05 Current (9/84) 4.7 t.6 17 4.0 4 0 17 22 J 50 250 1923 0 341 73 1 XSNIAl IaI 712-IN Effective 9/77 Full Devi. 20.9 10.0 7.0 15 2.1 * 0 16 S0 50 150 731 3951 52 812 07 2 Closing 9/03 Current (9/63) 9.7 7.0 15 2.1 4 0 16 79 47 150 730 3007 49 S89 *7 1 AlW 728-ID Ufective 9/77 Full DlWI. 16.4 3.0 2.1 9 1.9 5 5 9 18 50 60 355 244 6 1649 112 2 Closing 3/85 Current (11/84) 7.2 2.1 9 1.9 2 5 14 19 49 66 300 24"4 5 1229 95 1- 1JAE 751-DI Effective 6/78 rull Dewl. 21.6 13.0 6.5 20 2.9 e D 31 60 150 540 4000 53 1452 12i 3 Closing 6/63 Current (2/B4) 13.0 6.5 20 2.9 6 0 30 55 135 427 3150 28 099 103 MAE 761-13 rffective 5/78 Full Dwl. 16.0 6.0 0.3 31 7.6 5 7 32 55 35 70 625 4997 52 600 113 7 Cloaieg 3/15 Current (9134) 2.0 8.3 31 7.6 1 7 26 0 55 52 325 33U3 2 4 63 1 CUJRAT 862-D3 Effective l2179 Full Dev1. 14.7 7.0 9.6 16 2.4 4 a 16 48 55 78 431 340 37 713 136 2 Closing 6/85 Currmt (11/64) 5.1 9.8 IS 2.4 A 5 27 47 56 36 393 3145 29 622 138 1 UItAMA 862-DI Effective 12179 Pull DevI. 13.2 6.2 4.0 11 1.0 5 2 11 11 30 103 136 1490 31 557 67 Closing 6/05 Current (11/4) 4.2 4.0 11 1.0 5 1 12 11 33 177 103 1337 10 181 52 Kh1MA2% 862-ID Effective 12/79 Full Dl. 23.9 11.1 11.0 19 3.56 22 a 27 85 175 180 750 5200 67 1400 129 5 Closing 6/85 Current (11/14) 10.1 11.0 19 3.56 20 a 25 81 169 169 730 4056 16 524 119 3 KaLD& 1023-11 Effective /160 tull DvI. 15.3 10.0 1.6 13 2.1 11 0 13 32 47 144 376 1952 0 582 116 1-- Clgeing 6/36 Curret (11/84) 2.8 1.6 13 2.6 11 0 14 39 46 141 260 13U7 0 2 96 I 5IIIRISKI 1135-iN Effective 7/61 ull Dowl. 38.2 23.0 18.2 25 5.76 5 11 29 32 108 130 747 6000 1 1350 173 3 Cloeiag 8/37 current (7/14) 3.2 18.2 25 5.76 5 7 28 29 106 161 643 5510 1 23 166 3 TAMIL 7LO 1137-111 Efective 7/81 7ull Dewl. 45.6 28.0 6.3 14 1.8 3 0 14 57 100 297 645 4777 4 1776 153 3 Cloping 6/87 Current (6/84) 6.1 6.3 14 1.6 3 0 10 57 99 283 626 3930 1 138 152 2 RAMZA lD2R 1138-17 REfective 7/1 Pull DWl. 60.0 37.0 11.0 33 3.8 4 33 81 81 243 1114 7690 90 3602 170 6 Closing 6/37 Curret (9184) 2.7 N.A. P.A. 2.6 3 20 47 47 73 517 4197 0 0 103 AUID MI 1219-11 Effective 6/62 Pull Dowl. 9.7 6.0 11.3 23 5.5 7 6 22 66 67 201 853 6776 4 195 60 7 Cloeing 3/65 Current (7164) 0.5 11.3 23 5.5 5 0 22 58 67 209 516 3524 3 0 61 /& MI_bers nder coutraction in parenthesee. April 283 1911  ANNEX 3 -43- 1 of 6 INDIA NATIONAL AGRICULTURAL EXTENSION PROJECT II Summary Data on State Sub-Proiect. Jamu Harvana Karnataka Guiarat Kasbuir Population (M) 13 37 34 6 No. of Agric. Districts 12 19 19 14 No. of Extn. Subdivisions 35 175 37 - No. of N.E.S. Blocks 95 175 250 (184 Taluks) 125 Net Cultivated Area (M/Ra) 3.6 (81182) 10.4 (83/84) 10.4 (83/84) 0.7 Gross Cultivated Area (MH|a) 5.5 t " ) 20.6 ( " ) 19.6 ( n ) 1.04 Land Holdings (1 Farmers/lArea) Small (below I ha) 32/4.6 33/5 71.7/35.6 - Semi-Medium (1-4 ha) 40/26 45/31 15/22.5 - Medium (4-10 ha) 21.4/37.9 18/34 10/26.5 - Large (10 ha and above) 6.4/31.3 4/30 2.9/15.4 - No. of Agro-climatic zones 2 10 6 5 Staffinx Keadauarters Add'l Jt/Dy. Dir. A 25 8 22 B - 2 2 c 25 10 24 ABst. Director A 19 10 - B - C 19 10 - SMS (DDA) A 4 20 3 B - 8 3 C 4 28 6 J A - Existing; B - Incremental under NAEP II; C - Total 2/ Some existing staff in Farm Management Data Unit and Bureau of Economics And Statistics will be used.  -44- AUNEX 3 2 of 6 Zonal/Regional Jt. Director A 3 8 6 0 B - 2 C 3 8 6 2 Dy. Dir./SNS A - 16 4 0 B - 8 8 8 C - 24 12 8 District Dist. Ag. Ofer. A 12 27 18+18 (Add'l DAO) 14 3 - - 2 0 C 12 27 19 14 SKS A 11 85 48 14 B 13 40 37 30 C 24 145 85 44 Subdivision SDAO A 30 175 37 0 B 5 - 8 56 C 35 175 45 56 Add'l SDAO A - - 21 - B - 3 C _ - 24 SMS A 103 180 78 0 B 20 60 16 142 C 123 260 94 142 Field AKO A 186 /c 750 455 297 Id B 70 - 300 57 C 256 750 755 /4 354 yEw A 1,485 /c 5,200 3,699 435 /e B - - 1,353 1365 C 1,317 5,200 4,826 lb 1800 N&E Staff / HQ/Reg. Level A 5 18 13 0 B 1 1 9 9 C 6 19 22 9 Field Level A 41 40 24 0 B 5 12 27 30 C 46 52 51 30 Training and Information IQ/Reg. Level A 5 7 2 0 B - 7 10 C 5 7 9 10 Farming Training Ctr. A - - 0