India - Uttar Pradesh Public Tubewells Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 2758-IN INDIA STAFF APPRAISAL REPORT UTTAR PRADESH PUBLIC TUBEWELLS PROJECT March 20, 1978 South Asia Project:s Department Agriculture Division C This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS US$1.00 = Rupees (Rs) 8.40 WEIGHTS AND MEASURES (METRIC SYSTEM) 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.62 miles (mi) 1 hectare (ha) 3 = 2.47 acres (ac) 1 million cubic meters (Mm ) = 810 acre-feet (ac-ft) 1 thousand million cubic 3 feet (TMC) 28.32 MT 1 cubic foot per second (cusec) = 0.028 3m Is 1 liter per hectare (1/ha) 14 ft /1,000 ac 1 ton = 1,000 kilograms (kg) 2,205 pounds ABBREVIATIONS AO - Agricultural Officer ARDC - Agricultural Refinance and Development Corporation AS - Agricultural Supervisor ATS - Auto Transformer Starter CD - Department of Community Development CP - Cooperative Program DA - Department of Agriculture FAO - Food and Agriculture Organization GOI - Government of India GOUP - Government of Uttar Pradesh HP - Horse Power HYV - High Yielding Varieties ICB - International Competitive Bidding JE - Junior Engineer LCB - Local Competitive Bidding M&E - Monitoring and Evaluation OD - Outer Diameter O&M - Operation and Maintenance SGD - State Groundwater Directorate TDC - Terai Development Corporation TW - Tubewell Wing VLW - Village Level Worker GLOSSARY Kharif - wet season: June to September Rabi - dry season: October to May FISCAL YEAR GOI, GOUP - April 1 - March 31 1/ Until September 24, 1975, the Rupee was officially valued at a fixed Pound Sterling rate. Since then it has been fixed against a "basket" of currencies. As these currencies are floating, the US Dollar/Rupee exchange rate is subject to change. Conversions in this report have been made at US$l to Rs 8.40.  FOR OFFICIAL USE ONLY INDIA UTTAR PRADESH PUBLIC TUBEWELLS PROJECT Table of Contents Page No. I. PROJECT BACKGROUND ...................................... 1 Introduction ............................................ 1 Agriculture in India ..................................... 2 Irrigation in India ..................................... 2 II. THE STATE OF UTTAR PRADESH .............................. 4 A. An Overview ......................................... 4 General ............................................ 4 The Economy ........................................ 4 Employment and Rural Poverty ....................... 5 Public Services .................................... 5 B. The Agriculture Sector .............................. 6 Climate ............................................ 6 Topography and Regional Division 6.................. 6 soils .............................................. 6 Land Use ........................................... 7 Farm Size and Land Tenure .......................... 7 Crops and Cropping Pattern ......................... 8 Agriculture Production Trends ...................... 8 C. Irrigation and Power ................................ 9 Water Resources and Utilization .................... 9 General Trends in Irrigation Development .... ....... 10 Power Supply and Demand ............................ 11 III. THE PROJECT AREA ........................................ 12 General ................................................. 12 Topography, Soils and Climate ........................... 13 Groundwater Resources ................................... 13 Land Holdings ........................................... 14 Agricultural Situation .................................. 14 This report is based on the findings of a Bank mission which visited India in August/September 1979, comprised of: Ms. M. Nguyen, Messrs. J. Vivas and J. O'Brien (IDA); Mr. W. Barber (Consultant); and Mr. D. Campbell (FAO/ CP). Mr. J. Lindt (IDA) also participated during pre-appraisal mission in February 1979. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Table of Contents (Cont'd) Page No. IV. PERFORMANCE OF PUBLIC TUBEWELLS ......................... 15 General ................................................. 15 Past Performance ........................................ 15 Project Formulation and Objectives ...................... 16 V. THE PROJECT ............................................. 18 Project Components ...................................... 18 Description of a Tubewell System ........................ 18 Planning Criteria ....................................... 20 Design Criteria ......................................... 21 Operation and Maintenance Criteria ...................... 23 Project Costs ........................................... 24 Financing ............................................... 26 Procurement ............................................. 26 Disbursements ........................................... 27 Accounts and Audits ..................................... 27 VI. ORGANIZATION AND MANAGEMENT ............................. 28 The Tubewell Wing of the Irrigation Department ... ....... 28 Organization Within a Tubewell Command Area .... ......... 29 Monitoring and Evaluation ............................... 29 Progress Review and Reporting Equipment .... ............. 30 Training ................................................ 30 Cost Recovery ........................................... 31 VII. AGRICULTURAL DEVELOPMENT ................................ 34 Cropping Patterns ....................................... 34 Crop Yields ............................................. 34 Agricultural Production ................................. 34 Water Supply and Demand ................................. 35 Agricultural Supporting Services ........................ 35 VIII. BENEFITS AND JUSTIFICATION .............................. 37 General ................................................. 37 Income Effect ........................................... 38 Returns and Costs of Water .............................. 38 Economic Evaluation .................................... 39 Sensitivity Analysis .................................... 39 Project Risk ............................................ 39 Environmental Effect .................................... 40 IX. RECOMMENDATIONS ......................................... 40  - iii Table of Contents (Cont'd) ANNEX 1 - Supporting Tables and Charts T-1 - Agricultural Performance T-2 - Climatological Data T-3 - Water Balance Summaries for Project Districts T-4 - Summary of State Tubewell Performance T-5 - Performance of Existing and Experimental Tubewells T-6 - Cost Estimates for Well Construction and Development T-7 - Cost Estimates for Pumping Units T-8 - Cost Estimates for Energization of Pumping Units T-9 - Cost Estimates for Distribution Systems T-10 - Cost Estimates for Buildings T-11 - Cost Estimates for Principal Materials for Tubewell Construction T-12 - Cost Estimates for Equipment and Vehicles T-13 - Estimated Schedule of Expenditures T-14 - Proposed Allocation of Credit T-15 - Estimated Schedule of Disbursements T-16 - Cropping Patterns and Yields T-17 - Rates of Water Supply for the Irrigated Area T-18 - Farm Budgets T-19 - Estimates of Project Rent T-20 - Economic Cost and Value of Water T-21 - Economic Cost and Benefit Streams C-1 - Typical Well Design C-2 - Regulating Tank C-3 - Schematic Layout of the Distribution System C-4 - Implementation Schedule C-5 - Organization Chart - Tubewell Organization ANNEX 2 - Monitoring and Evaluation ANNEX 3 - Training ANNEX 4 - Assumptions for Financial and Economic Analysis ANNEX 5 - Selected Documents and Data Available in the Project File LIST OF MAPS IBRD 14639 - Project Districts IBRD 14640 - Soil Types IBRD 14641 - Annual Rainfall   INDIA IJTTAR PRADESH PUBLIC TUBEWELLS PROJECT Staff Appraisal Report I. BACKGROUND Introduction 1.01 The State of Uttar Pradesh (UP), located in the northeastern part of India, is well endowed with water resources. However, in spite of the rich water resources, large public investments in surface and tubewell irrigation as well as rapid private groundwater development, only about two-fifths of the cropped area is irrigated. Consequently, the Government of Uttar Pradesh (GOUP) has placed great emphasis on the acceleration of irrigation in recent Five-Year Plans. Since groundwater is the quickest and most assured source of irrigation, and the present statewide extraction is only about one-half of the total resources, GOUP gives priority to groundwater development. 1.02 The Bank Group has been involved in the financing of both private and public tubewells in UP. Private groundwater development in UP, financed through the lines of credit to three Agricultural Refinance and Development Corporation Projects (Cr. 540-IN, 1975; Cr. 715-IN, 1977; and Cr. 947-IN, 1979) are mostly shallow tubewells, each commands about 3 to 5 ha. Public tubewells, each commands about 100 ha or more, are normally constructed in areas where gravity irrigation is not feasible and where the potential for construction of shallow tubewells is limited due to the deep aquifer. From the equity point of view, public tubewells are desirable to overcome the underutilization of groundwater resources in certain areas where fragmented and small holdings make the cost of tubewells prohibitively high and thus unattractive to small farmers. Results from a Farm Benefit Survey for the Project Completion Report of the Uttar Pradesh Agricultural Credit (Credit 392-IN) showed that, even with great efforts to reach small farmers statewide, about 66% of the borrowers for private tube wells were small farmers (below 3 ha) and 34% were medium and large farmers. However, 91% of the total holdings in the state is below 3 ha. This implies that, proportionally, more medium and large farmers in the state can afford to borrow for private tubewells than small farmers. Furthermore, since proper spacing of private tubewells is difficult to enforce, the increased use of public tubewells in groundwater development, if properly constructed and managed, is desirable to prevent excessive extraction of the groundwater resources. 1.03 To support these endeavors, the Bank Group financed the construc- tion of 800 public tubewells in UP between 1961 and 1964 (Cr. 8-IN, US$6 M). While the physical implementation of the construction program was satisfactory, the post-project operation has fallen short of the expected agricultural and economic benefits. The poor performance has been caused by (a) incomplete and poorly constructed distribution systems which resulted in excessive losses of  -2- water; (b) overly large command areas in relation to well capacity; (c) inade- quate operation and maintenance which led to frequent breakdowns, delayed repairs and interruptions of services; (d) uncertain delivery of water, particularly to cultivators located distant from the outlets; and (e) inade- quate power supply. 1.04 Problems facing public tubewells are partly due to inadequate management and partly due to poor planning and design. Nevertheless, for reasons described above (para 1.02), they remain attractive sources of irri- gation. Furthermore, in comparison with the surface irrigation schemes, they have a shorter gestation period and more flexibility in operation. The Government of India (GOI) has requested IDA assistance to finance the con- struction of about 500 public tubewells in UP. The proposed project would introduce significant changes in technical design and operational stanclards used in the construction and management of public tubewells. These new stanclards are aimed at improving the utilization of groundwater resources which so far has returns that are significantly below the potential. Agriculture in India 1.05 India covers some 3.27 million km of which 49% is cultivable and about 15% irrigated. India's population of about 650 M is growing at an annual rate of 1.9%. National income has grown at about 3.4% per annum since 1960 and the per capita GNP reached US$150 in 1977. Although average per capita income has increased, in general, there has been limited progress in the improvement of the living standards of the urban and rural poor who comprise some 330 M people with annual incomes below the poverty line of US$75 per capita. Accordingly, GOI's development plans give priority to alleviating poverty and creating employment, especially in rural areas. 1.06 Agriculture is the dominant sector of the Indian economy and con- tributes about 45% of GNP. It engages about 70% of the labor force and pro- vides the base for about 60% of India's exports. During the last decade, GOI development plans have emphasized agriculture and sought to raise food- grain production by increasing the use of fertilizers, plant protection chemicals, and improved seed varieties. In support of this, GOI has modern- ized and expanded its agricultural credit institutions and accelerated the development of irrigation. 1.07 Despite these endeavors and the impressive results of the Green Revolution in some areas such as the States of Punjab and Haryana, the annual overall growth rate in foodgrain production over the last 15 years was only about 2.3% or slightly above the population growth. Furthermore, India's agriculture remains heavily dependent on the weather since only about 31% of the net cultivated area is irrigated. Major factors in reducing this dependence would be an expansion of the irrigated area and better use of existing irrigation facilities. Irrigation in India 1.08 Up to 1964/65, the irrigated area increased at a rate of only about 2.1% per year, of which approximately two-thirds was from surface water  - 3 - resources and one-third from groundwater. Since then, the rate of increase has about doubled, maimly through an accelerated program of groundwater devel- opment. At present, tlae irrigated area is some 50 M ha, about three-fifths of which is surface irrigated and two-fifths served by groundwater. 1.09 The pace of surface water development remained relatively constant at about 0.5 M ha per year until the end of the Fourth Plan (1969/70-1973/74). During this period, the physical plan targets set by GOI for a more rapid development of surface irrigation were never fulfilled. A major problem was the pressure, mainly political, in the States to start as a large number of projects as possible. Because of limited financial resources, this policy resulted in long construction periods for projects and delayed benefits. In recent years, however, budgetary allocations have grown and the authorities have made concerted efforts to complete ongoing projects. As a result, the surface irrigation potential created in 1976/77 was 1.1 M ha, more than twice that achieved in any single year before the start of the Fifth Plan in 1974/75. 1.10 Actual utilization in many completed irrigation projects remains significantly lower than the potential created. Some reasons for this are: (i) water losses from the distribution systems are significantly higher than what is normally assumed when the irrigation potential is calculated; and (ii) construction of watercourses and field channels below irrigation outlets was left to farmers and often built to low standards. The Command Area Devel- opment (CAD) programs, introduced in the early 1970s, attempted to improve this situation by providing technical advice, organizational support, and institutional finance to farmers in the command areas. Unfortunately, the standards of water distribution still remained inadequate even under CAD because costs of construction of watercourses and field channels are kept to a minimum to encourage farmers to pay for these communal works. The vested interests of farmers who, at present, benefit from inequitable water distri- bution have also severely interfered with the CAD process. During recent years, some States in India have adopted improved measures of irrigation development, including: (i) construction of public irrigation systems down to individual farms, or in the case of small holdings, as near as possible to the farm; (ii) conveyance of water from the source to the farm outlet in lined canals; and (iii) provision of controls in the system -- operated by the project authority -- to enable a reliable and timely water supply to each farm. 1.11 Groundwater development had been accelerated in the northwestern part of India and in some States in the Deccan Plateau and in the South (Gujarat, Maharashtra, and Tamil Nadu). The potential created increased from 0.5 M ha per year by the end of the Fourth Plan (1968/69-1973/74) to 1.1 M ha in 1977/78. At present, net groundwater extraction is about one- half of the mean annual recharge. Levels of development vary widely between States, from a small portion of recharge in Assam (5%) to as high as 75% in Tamil Nadu. The bulk of future groundwater development will occur in the Eastern Region where only about one-third of the ultimate potential has been developed. Demand for tubewells is relatively strong in this region. Of the 3.5 M ha of groundwater developed during the Fifth Plan (1973-78), about 2.2 M ha, or 62%, were in the Eastern Region. The growth rate of area irrigated by groundwater in the Eastern Region during this period was 6.5% per annum compared with 3% in the rest of India.  - 4 - 1.12 Groundwater development through private tubewells is not subject to most of the water efficiency problems encountered with major and medium surface schemes. Storage is provided naturally; conveyance from well to field is over short distances; water can be tapped and delivered to farmers' fields quickly; and it is always timely, being under the complete control of individual farmers. Even then, there is considerable scope for improvement, particularly in the design and implementation standards for pumping equipment. Public schemes for groundwater development, including augmentation tubewells and direct irrigation tubewells, face similar problems as surface irrigation systems. Public tubewells, however, are easier to manage due to smaller command areas and more flexibility in irrigation delivery. II. THE STATE OF UTTAR PRADESH A. An Overview General 2.01 The State of Uttar Pradesh (UP) is the most populated State in India. It has a population of about 100 M (1979), accounting 2for 15% of total Indian population, whereas its geographical area (298,000 km ) covers only 9% of the2 count:ry. The population density is thus extremely high at 340 persons per km and about two-thirds of all farm holdings in UP are below one hectare, compared to about 50% for the nation. The Economy 2.02 The economy of UP is predominantly agrarian, with agriculture con- tributing about 55% of the State income and employing about 78% of the working force. Between 1960/61 and 1976/77, the rate of growth of the primary sector, incluiding agriculture, forestry, fishing and mining was only 1.7% per annum (p.a.) compared to an all-India average of 2.0%. Similarly, the secondary sector, including manufacturing, construction, electricity, gas and water supply, (15% of the State income) only grew at 2% p.a., which was half the national rate of 4%. The performance of the tertiary sector, including transport, trade, finance and services, (30% of the State income) fared better at 4%, growth p.a. However, since tertiary sector activities started from a relatively small base and were concentrated mostly in the urban areas, their rapid growth only contributed marginally to the majority of population (85%) living in the rural areas. 2.03 As a result of the poor performance of the primary and secondary sectors, State income only grew at an annual rate of 2.2% p.a., well below the national rate of 3.1%. Per capita income only increased by 0.5% p.a. and was one of the lowest in India (Rs 870 in 1976/77 compared to the national average of Rs 1,015). Since agriculture is the main activity in the State, and it has close links to other sectors, economic progress is largely dependent on the removal of constraints to further agricultural growth, particularly through the expansion of irrigation.  -- 5 Employment and Rural Poverty 2.04 The labor force constitutes about 30.9% of the UP population. Its participation rate is significantly higher in rural areas (31.4%) than in urban areas (27.7%). Cultivators and agricultural laborers account for 65.7% and 22.8% of the rural labor force, respectively. Because of the slow growth of agriculture and manufacturing, productive employment has failed to keep pace with population growth. An attempt was made in 1978/79 to quantify the unemployment rate as follows: 1/ No. of Unemployed % of Rural % of Urban % of Total '000 jobs Labor Force Labor Force Labor Force Rural 2,381 9.0 - 7.8 Urban 272 - 6.6 0.9 Total 2,653 9.0 6.6 8.7 2.05 The poor performance of the agricultural sector also resulted in a sharp rise in the proportion of rural population living below the poverty line (US$75 per capita per annum) from 41.6% in 1960/61 to 63.6% in 1970/71. 2/ According to the National Sample Survey in 1973/74, at least about two-thirds of the rural population lived below the poverty level. Agricultural laborers account for a substantial part of the poor. It is estimated that 90% of the agricultural laborers in Uttar Pradesh lived below this poverty level. 2/ A series of programs have been created to raise standards of living of this group, including measures to secure tenants rights, land redistribution and public works program. These programs so far have been largely unsuccessful due to faulty planning and poor implementation. 2.06 Public Services. By most traditional indicators, UP is one of the least advanced States in India. The literacy rate, 21.8%, is lower than the national average of 30%. The number of doctors and health centers per 1,000 persons is the lowest in India. Although the State is well connected to the rest of India, through national highways, railways and airways, the intra-State communication is inadequate. In 1975/76, the road length per 100 km2 was only 24 kms compared to the national average of 36 kms. The provision of safe, potable and adequate drinking water has been slow. At present, water supply schemes are being implemented in about 20% of the villages with no adequate source of drinking water. The Bank Group has supported GOUP in water supply schemes through the ongoing Uttar Pradesh Water Supply and Sewerage Project (Cr. 550-IN, US$40 M). 1/ See Planning for the Development of Uttar Pradesh, State Planning Institute, Uttar Pradesh, 1978/79. 2/ See Nayyar, Rohini: "Wages, Employment and Standard of Living of Agricultural Laborers in Uttar Pradesh" in Poverty and Landlessness in Rural Asia, International Labor Organization, Geneva, 1977.  - 6 - B. The Agricultural Sector Climate 2.07 Uttar Pradesh has a tropical monsoon climate but there are great variations in temperature in accord with changes in altitude. On the Gangetic plain, the average temperature ranges from a minimum of 3-4 C in January to a maximum of 43-45 C in May and June. The Himalayan region of the State is much cooler with snowfalls from December through March, The mean annual rainfall ranges from about 700 mm in the western part of the plain to about 1,200 mm in the east. It exceeds 1,800 mm in the Himalayan foothills (Map No. 14641). About 87% of the rainfall occurs during the June-September period. However, there are considerable variations in both amounts and distribution. Variability is directly related to the mean annual precipitation; thus the eastern part of the Gangetic plain is subject to the greatest variation (+30- 35% of mean annual rainfall). The times of onset and end of the monsoon are uncertain and long dry spells may occur within the rainy season. Uncertainty regarding amount and distribution of rainfall makes irrigation a pre-requisite for successful crop production even during the monsoon season. Topography and Regional Division 2.08 The State divides naturally in three physical regions; the Himalayas, the Gangetic plain and the Central Indian Plateau. The Himalayan region is of rugged topography with high mountains intersected by deep valleys. A large proportion of the land is not suitable for agriculture. The Gangetic plain is an area of subdued topography which slopes to the south east. This is the most heavily populated and cultivated area of the State. The southern edge of Uttar Pradesh rises on to the Central Indian Plateau. This is an area of low hills and plateau lands; part of the region is unsuitable for agriculture due to the undulating topography and thin soils. All the major rivers originate in the Himalayas and flow south eastwards across the Gangetic plain in deeply incised channels. Only some of the minor tributaries of the Yamuna River and Ganges River originate in the Central Plateau. 2.09 For planning purposes, the State is divided into five regions: the Hills comprising mainly the Himalayas; the Western region consisting of a small strip of sub-Himalayas and the western part of the Gangetic plain; the Central region covering the central Gangetic plain; the Eastern region extending over the eastern part of the Gangetic plain; and the Budelkb.and lying in the Central Indian Plateau. Soils 2.10 A wide variety of soils occurs in different parts of the State (Map 14640). The soils of the Himalayan region are generally thin, occur in pockets or along valleys and are absent on steep slopes. They are usually immature and exhibit many of the characteristics of the parent rocks. The soils of the Gangetic plain are alluvial of different ages. The western part of the plain is characterized by shallow loams and sandy loams. The west  central plain has thick, heavy loam soils while the central area and eastern plain have loam or sandy loam soils. The soils of the Central Plateau region categorize mainly into black or red varieties. The former are heavy and calcareous occurring mainly on the valley floor. The red soils are light and occur on the plateaux tops and on the upper slopes of hills. Thickness of soil profile is variable and soils may be absent on steeper slopes. Some areas of saline soils occur on the Gangetic plain but alkalinity is not a common problem. Fertility levels are low to medium. Land Use 2.11 About 18.2 M ha (61% of the reporting area for land utilization in the State of 29.8 M ha) is under cultivation. The forest area of 5.1 M ha (17%) is less that what is required to maintain a healthy ecological balance. About 3.4 M ha (11%) are either barren, uncultivable or put to non-agricultural use. Cultivable waste land accounts for 1.5 M ha (5%). The remaining 1.7 M ha (6%) are either fallow or used as permanent pastures and groves. Since 1960/61, the net cultivated area has remained stagnant and there is little scope for increasing it in the future. Farm Size and Land Tenure 2.12 The average farm size in UP is 1.2 ha, but there are large varia- tions from one region to another. As noted below, the farm size distibution is largely determined by local agro-climatic conditions as well as population density: Annual Population % of Farms in Size Group (ha) Average Region Rainfall Density 0-1 1-3 3-5 5-10 10+ Size (mm) (no/km2) ----------------