India - Second Gujarat Irrigation Project (Vol. 1 of 2) : Main Report

Document of The World Bank FIPV FOR OFFICIAL USE ONLY Report No. 2843a-IN INDIA STAFF APPRAISAL REPORT GUJARAT IRRIGATION II PROJECT (IN TWO VOLUMES) VOLUME I - MAIN REPORT April 9, 1980 South Asia Projects 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 1/ WEIGHTS AND MEASURES (METRIC SYSTEM) 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.62 miles (mi) 1 hectare (ha) = 2.47 (ac) 1 million cubic meters (Mm3) = 810 acre-feet (ac-ft) 1 thousand million cubic feet (TMC) = 28.32 Mm3 1 cubic foot per second (cusec) = 0.028 cubic meters per second (m3/s) 1 ton = 1,000 kilograms (kg) 1 ton = 2,205 pounds 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 ae floating, the US dollar/Rupee exchange rate if subject to change. Conversions in this report have been made at US$1.00 to Rs 8.40, which represents the projected exchange rate over the disbursement period. FOR OFFICIAL USE ONLY PRINCIPAL ABBREVIATIONS AND ACRONYMS AD - Agricultural Department ADC - Area Development Commissioner CAD - Command Area Development CADA - Command Area Development Authority CB - Commercial Bank CCA - Cultivable Command Area CDO - Central Design Organization CE - Chief Engineer EE - Executive Engineer GERI - Gujarat Engineering Research Institute GAU - Gujarat Agricultural University GOG - Government of Gujarat GOI - Government of India GSFC - Gujarat State Fertilizer Corporation GWRDC - Gujarat Water Resources Development Corporation ICB - International Competitive Bidding ID - Irrigation Department IP - Irrigation Projects LBC - Left Bank Canal LCB - Local Competitive Bidding MIP - Medium Irrigation Project OSP - Officer on Special Duties PPM - Project Preparation and Monitoring RBC - Right Bank Canal RWS - Rotational Water Supply SE - Superintending Engineer SLDB - State Land Development Bank T&V - Training and Visit TCD - Trial-cum-demonstration VLW - Village Level Worker WRI - Water Resources Investigation Circle GLOSSARY Bandhara - Ungated tidal regulator Chak - Block or irrigation service area below the Government outlet Nalla - Natural Drainage Channel FISCAL YEAR Government of Gujarat and Agencies - April 1 - March 31 ARDC, Cooperatives - July 1 - June 30 Commercial Banks - January 1 - December 31 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.  INDIA GUJARAT IRRIGATION II PROJECT VOLUME I - MAIN REPORT Table of Contents Page No. I. PROJECT BACKGROUND........................................... 1 Introduction................................................. 1 Agricultural Development in Gujarat ......................... 2 Irrigation Development in Gujarat ........................... 3 Past Performance of Major and Medium Irrigation Projects .... 4 Evolution of IDA's Lending in Gujarat ....................... 5 Project Formulation ....................................... 6 II. THE PROJECT AREAS .......................................... 8 A. General .................................................... 8 B. The New Scheme Areas ...................................... 9 General .................................................... 9 Land and Water Resources ................................... 9 - Climate .................................................. 9 - Soils and Topography .................................... 9 - Surface Water Resources ................................. 10 - Groundwater Development ................................. 10 Present Level of Agricultural Development ............... 10 - Damanganga ............................................ 10 - Heran ................................................. 11 - Karjan ................................................ 11 C. The Ukai-Kakrapar Modernization Area .................... 11 General .................................................... 11 Soils, Topography and Drainage ............................ 12 Irrigation and Agricultural Development ................. 12 D. Saurashtra Coastal Development Area ....................... 15 General .................................................... 15 Land and Water Resources .................................. 15 Irrigation and Agricultural Development ................. 16 This report was prepared by Messrs. P. Ljung, C.J.R. Bridge, Ms. A Duncan, Messrs. G. Finlinson, M. Herman, R. Vick (Bank), and P.R. Borrowman and A.E. Gibbs (Consultants) and with contributions by Mr. W.G. Rodger (Bank). Table of Contents (cont'd) Page No. E. Agricultural Supporting Services .............. .......... 16 Agricultural Research .................................. 16 Agricultural Extension Services ......................... 17 Agricultural Inputs .................................... 17 Farm Mechanization ..................................... 18 Transport, Marketing and Processing .................... 18 Agricultural Credit .................................... 18 III. THE PROJECT ................................................ 19 A. Main Project Components .................................. 19 B. Detailed Project Description ............................... 20 The New Schemes ............................................ 20 - General .................................................. 20 - Dams ..................................................... 20 - Irrigation Systems .. .................................... 21 - Command Area Roads ...................................... 23 Ukai-Kakrapar Modernization ................................ 23 - General .................................................. 23 - Project Works ............................................ 23 Saurashtra Coastal Development Scheme ..................... 25 - General .................................................. 25 - Regulators ............................................... 25 - Check Dams ............................................... 26 - Reservoir ................................................ 26 - Gully Plugs ... ........................................... 26 - Afforestation . ........................................ 27 - Research, Demonstration, Monitoring ard Evaluation 27 Training Center for Land Development and Water Water Management Specialists ............................ 27 Operational and Managememt Improvements ................. 28 Monitoring and Evaluation .................................. 28 GOI Project Preparation Fund ............................... 29 C. Cost Estimates and Financial Arrangements ............... 30 Cost Estimates ... .......................................... 30 Financing .................................................. 31 Budgetary Implications .................................... 31 Procurement ................................................ 31 Disbursements .............................................. 33 Accounts and Audits ... .................................... 33 IV. IMPLEMENTATION AND OPERATION ...................... ......... 33 A. Project Implementation. ..................................33 Organizational Responsibilities..........................33 - The Irrigation Department .............................33 - The Building and Communication Department (B&C) 35 - CAD Authority........................................35 Implementation Programming .................... ......... 36 - 111 - Table of Contents (cont'd) Page No. - The New Major Schemes ......................... ...... 36 - Ukai-Kakrapar Modernization .......................... 37 - Construction Methods ...................... .......... 37 - Land Acquisition and Resettlement .................... 37 B. Irrigation System Development and Management ........... 39 Command Area Development Authorities (CADA) ............ 39 Water Allocation and Delivery .......................... 39 Operation and Maintenance of Irrigation Systems ........ 40 Road Maintenance ....................................... 40 V. AGRICULTURAL PRODUCTION AND COST RECOVERY .................. 41 A. Agricultural Production ........................ ........ 41 B. Cost Recovery .......................................... 42 Capital and O&M Costs ............................. .... 42 Water and Water-Related Charges ....................... 42 Other Agricultural Taxes ............................... 43 Levels of Cost Recovery ..................... .......... 43 Evaluation of GOG's Cost Recovery Policy ............... 44 - Promoting Efficient Water Use ....................... 44 - Public Savings ....................................... 45 - Farmer's Ability to Pay Water Charges ................ 45 - Conclusion ............................... ............ 46 VI. BENEFITS AND JUSTIFICATION ...................... .......... 47 General ................................................. 47 Employment Effects .......................... .......... 48 Income Effects ......................................... 49 Impact on Rural Poverty ....................... ........ 49 Economic Evaluation .......................... ......... 50 Sensitivity Analysis and Project Risk .................. 50 Environmental Effects ........................... ...... 51 VII. RECOMMENDATIONS ............................................ 52 LIST OF APPENDICES Appendix 1 - Criteria for New Projects Appendix 2 - Economic Analysis - iv - Table of Contents (cont'd) Supporting Tables and Charts TABLES T - 1 Project Area Characteristics T - 2 Salient Features of the Dams T - 3 Canal Network Features T - 4 Summary of Present and Forecast Groundwater Balances T - 5 Summary of Irrigation Water Requirements T - 6 Summary of Project Roads T - 7 Cost Estimate Summary T - 8 Cost Estimates for Individual Schemes T - 9 Composite List - Equipment and Vehicles T - 10 Cost Estimates for Land and Water Management Center T - 11 Annual Expenditure Schedule T - 12 Estimated Schedule of IDA Disbursements T - 13 Proposed Allocation of the Credit T - 14 Summary of Agricultural Production T - 15 Typical Financial Crop Budgets T - 16 Typical Economic Crop Budgets T - 17 Typical Farm Budgets T - 18 Cost Recovery T - 19 Estimates of Project Rent T - 20 Summary of Financial and Economic Prices T - 21 Cost and Benefit Streams for Economic Analysis T - 22 Estimates for Economic Analysis in Saurashtra Coastal Development Scheme T - 23 Sensitivity Analysis CHARTS C - 1 Implementation Schedule C - 2 Organization Chart - Gujarat Irrigation Department C - 3 Organization Chart - Gujarat Building and Communications Department REFERENCES Gujarat Irrigation (Composite) Project feasibility studies prepared by PPM Cell of GOI and GOG. August 1978. MAPS IBRD 14606 Gujarat Irrigation II Project IBRD 14608 Ukai-Kakrapar Modernization Scheme IBRD 14609 Saurashtra Coastal Development Scheme IBRD 14610 Damanganga Irrigation Scheme IBRD 14611 Karjan Irrigation Scheme IBRD 14612 Heran Irrigation Scheme - v - INDIA GUJARAT IRRIGATION II PROJECT VOLUME II - SECTOR REPORT Table of Contents I. Introduction II. The State of Gujarat III. The Agricultural Sector IV. The Irrigation Sub-Sector V. Assessment of Gujarat's Past Irrigation Program VI. Recommendations for New Projects VOLUME III - SUPPLEMENTARY DATA* Annex 1 - Project Briefs for each Scheme Annex 2 - Land Development and Water Management Training Annex 3 - Dams Annex 4 - Roads Annex 5 - Equipment and Vehicles Annex 6 - Procurement of Civil Works *Copies of this volume are available on request.  INDIA GUJARAT IRRIGATION II PROJECT Staff Appraisal Report I. PROJECT BACKGROUND Introduction 1.01 India has a population of 640 M which is growing at an annual rate of 2%. Per capita income reached approximately US$150 per annum in 1977 and is increasing at about 1.1% p.a. Some 70% of the population is engaged in agriculture, which accounts for about 45% of GNP and provides the base of 60% of India's exports. Although the average per capita income has increased and access to public services has improved, in general, there has been little change in the incomes of the vast masses of urban and rural poor; conserva- tively measured, they total some 300 M people with incomes below the poverty line of US$75 per capita per year (1977). 1.02 Against this background, the principal objectives of India's Five Year Plan (1978/79-1982/83) are: (i) the removal--over a 10 year period--of unemployment and significant underemployment; (ii) an appreciable rise in the standard of living for the poorest segments of the population, which would be achieved largely through the creation of productive employment; and (iii) pro- vision by the Government of some of the basic needs of the people in the low income groups. Agricultural growth and the expansion of irrigation facilities are the cornerstones in the development strategy of the Draft Plan: "The employment objective depends crucially on increased labor absorption in agriculture and allied activities. This means increasing the productivity of available land through irriga- tion, multiple cropping and improved technology. The main thrust of the planning strategy, therefore, would be to expand the area under irrigation as rapidly as possible, and to develop cropping patterns and agricultural practices which optimize the use of land and water resources." 1/ These priorities are also reflected in Gujarat's 1979-80 Development Program: "Agriculture has to be given the top-most priority. In a pre- dominantly rural economy the key to alleviating poverty is to accelerate the growth of agricultural incomes .... Extending the benefits of irrigation to additional areas and optimising utilisation will play an important role in promoting agricul- tural development .... A substantial stepping up of the utili- sation of the irrigation potential created already, has to be obtained." 2/ 1/ Draft Five Year Plan, 1978-1983, Volume I, page 9. 2/ Development Programme, 1979-80, Government of Gujarat, 1979, pages 5-6. - 2 - Although during the Fifth Plan (1974-79), Gujarat achieved a relatively high proportion (90%) of its targeted irrigation potential compared with the ave- rage for India, there has been a serious lag in utilization which, combined with unexpectedly low yields, has resulted in significantly reduced benefits. Thus, the aim of the proposed project is to help meet the national and State objectives of expanding the area under irrigation and of addressing the major causes of the under-utilization of irrigation investments in Gujarat: inade- quate planning, design and management. Gujarat's agricultural and irrigation development, and the nature and causes of this "underutilization" are discussed in Volume II (Sector Report) and summarized below. Agricultural Development in Gujarat 1.03 Gujarat covers an area of about 19.6 M ha and has a population of about 32.0 M (1979). It is relatively urbanized and has a large modern manu- facturing sector, but agriculture, which in a normal year contributes 30-40% of State income and employs about 65% of the labor force, has a predominant influence on the State's economy. Due to low and uncertain rainfall and limited irrigation facilities, Gujarat is extremely susceptible to droughts and famines. Although yields are therefore relatively low for most major crops, the combination of advanced farming practices and the cultivation of high value crops has resulted in a productivity per agricultural worker which is the fourth highest in India. Gujarat also has one of the best developed systems for agricultural supporting services in India. I 1.04 Between 1952/53 and 1964/65, agricultural production in Gujarat grew faster than in any other State, as a result of the rapid expansion of the cultivated area, a general yield increase and a shift towards high value cash crops. Two factors changed the agricultural scene in the mid-1960s: (i) the potential for an expansion of the net cultivated area had largely been exhausted; and (ii) high yielding varieties for a number of foodgrains were introduced on a large scale. Much of the transformation that was associated with the "green revolution" took place between 1965/66 and 1971/72. 1.05 Mainly as a result of favorable weather, agricultural production reached a peak in 1970/71 and 1971/72, which it barely recaptured in 1978/79 1/, and although this apparent stagnation of recent years can be explained largely by a combination of unfavorable exogenous factors, it appears that the easy benefits of the "green revolution" have already been reaped for the major crops. In order to regain the momentum, the Government of Gujarat's (GOG) present plans emphasize irrigation, soil conservation programs aimed at improv- ing soil moisture retention in rainfed areas, strengthening of agricultural extension and research with special focus on drought and pest resisitant varieties. 1/ 1978/79 is the last year for which production data is available. Because of erratic rainfall during the 1979 monsoon season, it appears likely that the level of agricultural production will be lower in 1979/80 than in 1978/79. - 3- Irrigation Development in Gujarat 1.06 According to official statistics, about 18% of the cropped area (1.76 M ha) is presently irrigated. This figure is less than two-thirds of the national average, and only two States (Madhya Pradesh and Maharashtra) have a lower percentage of its cropped area irrigated. Gujarat's water re- sources are heavily concentrated in the southern and central parts of the mainland: the State's three major rivers flow through this area, which has relatively high rainfall. The northern mainland, Saurashtra and Kutch, with high to exceptionally high irrigation needs have limited surface and ground- water resources. 1.07 Statewide, the potential for the development of surface water resources is limited by a number of factors: (i) the river flows are highly seasonal; (ii) where the flows are less seasonal, the topography is generally flat and most damsites costly to develop; and (iii) agreements with the upper riparian States limit Gujarat's use of river flows. With the exception of Narmada, most of the river flows are either being utilized at present or construction is underway to develop the remaining potential. Similarly, with the exception of Southern Gujarat, half or more of the potential for well irrigation in rainfed areas has been developed. Thus, any significant expan- sion of the irrigated areas can come only from: (i) construction of the Narmada Project; (ii) conjunctive use of surface and groundwater in command areas; (iii) expansion of well irrigation in the rainfed areas in the South; and (iv) irlprovements in the efficiency of existing and new projects. 1.08 A number of surface irrigation projects were started in the 1950s, but implementation was slow, and not until the early 1960s, did the develop- ment of surface irrigation accelerate. Nevertheless, on all three major projects started in the 1950's (Mahi, Kakrapar and Shetrunji), although the progress of storage diversion construction was relatively rapid, canal con- struction lagged far behind. While the State's major irrigation works are concentrated on the Gujarat mainland (only Shetrunji is located in Saurashtra and no major project is located in Kutch), there are about 65 completed medium irrigation projects (MIPs) 1/ located in all parts of the State. Minor surface schemes (mainly tanks) provide only supplementary irrigation during the kharif season, and the area irrigated varies substantially from year to year. 1.09 During the 1950s, the well irrigated area increased at an annual rate of about 3.5%, mainly due to the sinking of new wells. In the 1960s, the pace of development almost doubled and traditional lift methods were rapidly replaced by pumps driven by diesel engines. In several areas, the limit of groundwater resources is now being approached and the overall pace of develop- ment is slowing down. Along the southern coast of Saurashtra, this problem is compounded by salt water intrusion into the aquifer. 1/ With a CCA of between about 2,000 ha and 10,000 ha. Past Performance of Major and Medium Irrigation Projects 1.10 Since Independence, the average cost for major and medium irrigation projects in Gujarat has been about 30% higher than the national average. The higher cost can, to a large extent, be explained by a shortage of good dam- sites. However, the actual utilization of the irrigation potential is signif- icantly lower in Gujarat, resulting in a cost per irrigated ha that is almost twice the national average. In an attempt to remedy this situation, command area development (CAD) programs--focusing primarily on development below the Government outlet, i.e., on the construction of field channels, drains and land shaping--have been initiated in most major irrigation projects. However, the experience from projects where CAD programs have been operating indicates that a lack of on-farm development is only a partial explanation for the low yields and the underutilization of irrigation potential. 1/ It has become increasingly clear that one of the major constraints to higher yields and the greater utilization of irrigation water lies in the deficiencies of the system that occur between the dam and the Government outlet. In particular, these defi- ciencies are: (a) The hydrological data base is typically poor which results in over-or-under-design of the dam and the irrigation net- work in relation to the water de facto available. (b) Some of the projects are run-of-the-river schemes supplied from a diversion weir. Large variations of the river flows make the water supply unreliable and irrigation is usually limited to khairf. (c) Water losses in the conveyance system and on fields are grossly underestimated at the design stage resulting in the area actually irrigated being considerably smaller than the area commanded by the distribution system. (d) The water conveyance systems, especially in medium projects, are incomplete at the farm level. Water is presently supplied through outlets serving 40 ha blocks, ar.d the farmers are expected to construct water courses and field channels within the blocks. However, with few exceptiors, there are no effective organizations to help the farners with the design, implementation and financing of these works. Consequently, the field channels that exist have not teen constructed to exacting standards, resulting in both excessive water losses and unreliable supply to the individual farms. (e) Inadequate water allocation procedures. For the highest yields, the farmers should plant many irrigated kharif crops in June, but the approval of their water applications comes only after the reservoir has started to fill up in mid-July. 1/ See for example, "Gujarat Irrigation II Project; Volume II - Sector Report" IBRD Report No. 2843a-IN, dated April 9, 1980; and "Maharashtra Irrigation II Project; Volume II - Sectoral Background," IBRD Report No. 2529a-IN, dated September 13, 1979. -5- This usually results in too late a planting date--for both the kharif and the following rabi crop--especially if the application is rejected and the crop has to be grown under rainfed conditions. Being "risk minimizers", the farmers plant with the first monsoon rains in the later part of June and go for a "low technology package" under the assumption that they might not get any irrigation water. Only in the case of drought during the later stages of the crop will they apply for water. Thus, in normal years, the potential for kharif irrigation remains largely unutilized. (f) The farmers have limited experience in irrigated crop man- agement which leads to a wasteful use of water on the field. (g) There is no professional cadre of trained and experienced water management specialists who can operate the system in full response to agricultural requirements, or who can properly advise farmers on land development and irrigation practices. Consequently, the "underutilization" of irrigation potential is partly un- avoidable because there is little possibility for projects designed and con- structed to present standards to provide enough water to irrigate the originally designated area. 1.11 In conclusion, project design, water allocation and canal operation procedures have changed little since the nineteenth century when the prime ob- jective of irrigation was to provide "insurance" against droughts and famines. These design and management deficiencies make it impossible to operate the projects so as to ensure timely and reliable water deliveries at the farmgate which is a prerequisite for a productive and high value agriculture. Because the water supply is unreliable, there is little incentive for the farmers to carry out on-farm development (OFD), with the result that OFD programs have had only a limited impact on the performance of agriculture in the command areas. Improvements of irrigation infrastructure, water allocation procedures, system operation practices, and on-farm works are thus complementary. Evolution of IDA's Lending in Gujarat 1.12 The Bank Group's association with Gujarat in the irrigation sector has been longer than with any other State in India. The Bank's first loan or credit for irrigation development in India financed the construction of Shetrunji's canal system (Cr. No. 13-IN, 1961, US$4.5 M). Like other Indian irrigation projects financed by the Bank Group at about the same time, the Shetrunji project failed to achieve its agricultural potential due to an inadequate irrigation infrastructure, weak agricultural supporting services and over-optimistic planning assumptions. 1.13 These problems led to the development of a new emphasis in the Bank's irrigation lending. The Kadana Irrigation Project (Cr. No. 176-IN, 1970, US$35 M) was the first of a second generation of projects in India, which emphasized command area development: the project included a somewhat improved canal system, construction of field channels, drains and landshaping - 6 - (and financing of these works through institutional credit), the construction of market roads and an agricultural support program. As the project has only recently been completed--having been delayed by two serious floods and cons- truction problems--there is little data on the performance of the CAD pro- gram. In 1978 the Government of India (GOI) requested IDA assistance to finance a major part of Gujarat's irrigation development program: the result- ing line-of-credit, the Gujarat Irrigation Project (Cr. No. 808-IN, US$85 M) included construction of about twenty new, and the modernization of about ten existing medium irrigation projects (MIPs) located 1/ in most parts of the State. Through the proposed Gujarat Irrigation II Project, IDA would extend its involvement in Gujarat's irrigation sector: together with the on-going credit for medium irrigation schemes, it would then be involved at all levels of the State's irrigation program, 2/ for the first time in India. The bene- fits of this close involvement are reflected in the agreements on criteria for improved planning, design, construction and operation (see Annex 1) that have been reached between GOG and IDA during project preparation and appraisal. Project Formulation 1.14 Given that expanding of the irrigated area is one of the cornerstones of Gujarat's agricultural development strategy, and that the scope for ground- water development is limited, GOG gives high priority to surface irrigation; in the 1979/80 Annual Plan, 25% of the budget was allocated to irrigation. In per capita terms, the investment rate is almost twice the national average. Annual capital expenditures, in constant 1978/79 terms, rose from Rs 160 M during the First Five Year Plan (1951-56) to Rs 431 M during the Fourth Plan (1969-74) and reached Rs 818 M in 1978/79. 1.15 The plans for the next five year period emphasize: (a) The completion of all on-going major and medium projects in order to minimize the gestation period and get a more rapid buildup of irrigation benefits; (b) Construction of new medium projects, especially in drought prone and backward areas; (c) Start on the Narmada scheme; and (d) Modernization of existing projects, primarily through the provision of additional control structures, canal lining, drainage works and construction of watercourses/ field channels. 1/ Although GOI and GOG defines "medium irrigation projects" as projects with a CCA between 2,000 ha and 10,000 ha, the IDA Credit also included some projects with a CCA between 10,000 ha anc 30,000 ha. 2/ Minor surface irrigation projects implemented by the District Panchayats (Councils) would be excluded. - 7 - Two years have passed of the present five year plan (1978-82) and the original plan has not been officially updated. However, taking into account recent developments, it appears that the irrigation investments for the 1978/79- 1982/83 period will amount to about US$750 M, in constant 1978/79 terms, with the following approximate breakdown: Investments 1978/79-1982/83 -----US$ M----- Narmada 240 New projects with a CCA over 30,000 ha 200 New projects with a CCA between 2,000 ha and 30,000 ha 200 Modernization of existing projects 70 Others 40 Total 750 1.16 Within the constraints imposed by the State's limited surface water resources, this represents a well formulated investment program. It balan- ces short gestation, high yielding investments in medium irrigation projects, completion of major projects and modernization of existing medium and major projects with the need for a continuous long-term expansion of the irrigated area through the start of the Narmada Project. By the later part of the 1980s, wheA it is likely that the first areas will be irrigated from the Narmada Project, virtually all surface water resources outside the Narmada basin will have been fully developed. In the formulation of the program, a high weight has also been given to the needs of drought-prone and backward areas. The proposed project, which reflects the priorities in both the national and State Five Year and Annual Plans, would combine the completion of three new major schemes in the backward areas; first-phase modernization of Gujarat's largest project; coastal area development; operational and management improvements; a training institute for land development and water management; funds for preparation of Narmada Basin Projects in Gujarat and Madhya Pradesh and of selected irrigation projects in other States. 1.17 The objectives of this credit would be to achieve an economic use of scarce surface water resources and to ensure a reliable and equitable supply to individual farmers. In order to meet these objectives, the credit would address the major causes of under-utilization of irrigation investments in Gujarat: inadequate planning, design and management of the systems (see Volume II-Sector Report). Under the MIP line-of-credit (Credit 808-IN), criteria for the planning, design, construction and operation of medium irrigation projects were agreed with GOG. These and additional criteria would be adopted for all the components. An agreement has been reached with GOG that it would implement the project works in accordance with the full set of planning criteria, design and construction standards and the operational procedures listed in Appendix 1 and summarized below: (a) The new irrigation projects would be planned and designed to such standards that the water would be supplied to each farm in the command area in a reliable and timely fashion with a minimum of losses in conveyance between the dam - 8 - and the plant. Typically, this would involve: (i) the Government would construct the channels down to each indi- vidual farm; (ii) a major part of the distribution system would be lined; (iii) a larger number of control structures and measuring devices would be provided along the system; and (iv) the number of farmers that have to cooperate in distributing the water to the farmgates would be reduced; (b) Technically feasible and economically viable programs for modernization of existing projects would be started in order to raise current distribution and water use efficiencies to more acceptable levels; the systems would then be able to meet the exacting requrements of high yielding, high value crops; (c) A special Command Area Development Wing would be esta- blished in the Agricultural Department. It would be staffed with properly trained land development and water management specialists; the CAD Wing would be responsible for both the operation of the irrigation systems and the development of agriculture in the command areas; (d) Water allocation and operational procedures that would help promote equity and efficiency inside the command areas would be introduced; this would inply that each farmer would get an allocation of water based on the size of his holding and that the deliveries to each farm would be in accordance with a predetermined rotational schedule; and (e) More comprehensive technical, agricultural and socio- economic investigations would be carried out as the basis for project planning, and the resources--in terms of both money and manpower--made available for preparation of feasibility studies would be increased. II. THE PROJECT AREAS A. General 2.01 The three main project components would be located in distinctly different areas of the State (Map 14606): the new major irrigation schemes (Damanganga, Heran and Karjan) are located in the more backward southeastern parts of the mainland; the modernization component: (Ukai-Kakrapar Project) is located on the fertile coastal plain of South Gujarat where farms are small and a large percentage of the population is landless; and the coastal development component (consisting of smaller surface schemes) would be located along the Saurashtra coast where a very productive area irrigated from wells is threatened by intrusion of saline groundwater from the sea. The individual scheme areas are shown on Maps 14608-14612 and their salient features are presented in Table T-1. The areas are described in detail in Volume III and summarized below. -9- B. The New Scheme Areas General 2.02 The Damanganga, Heran and Karjan scheme areas are generally char- acterized by small farms and the population is predominantly tribal. About one-third of the families are landless. Economically, these areas are among the poorest and most backward in Gujarat. It is estimated that almost three- quarters of the population have per capita incomes below the poverty line (US$75). The Damanganga River originates in the State of Maharashtra and dis- charges into the Arabian Sea in the southernmost part of Gujarat. The dam is located near the Maharashtra border and the project area extends to the coast. About 73% of the catchment is located in Maharashtra. The project would irrigate some 44,400 ha in the Valsad District of Gujarat, about 8,300 ha in the Union Territory of Dadra and Nagar Haveli and some 3,400 ha in Daman which is a part of the State of Goa, Daman and Diu. The total Culturable Command Area (CCA) is 56,100 ha. The Heran River originates in the State of Madhya Pradesh. It flows in a westerly direction to its confluence with the Orsang River, which is a right bank tributary of the Narmada River. About 49% of the catchment is located in Madhya Pradesh. The scheme area, with a CCA of 32,100 ha, is located in the Vadodara District. The Karjan River, which originates in the eastern hills of Gujarat, is a left bank tributary of the Narmada River. The scheme area, with a CCA of 56,200 ha, is located in the Bharuch District. 2.03 The total population of the three new scheme areas is about 450,000, over half of which is tribal; in the Damanganga area, 75% of the population is tribal. The average and medium farm sizes are about 2.0 ha and 1.2 ha, respectively. Over 95% of the holdings are owner operated. The salient features of the three project areas are: Damanganga Heran Karjan Total Rural Population 240,000 60,000 150,000 450,000 Percentage Tribal 75% 46% 17% 52% CCA (ha) 56,100 32,100 56,200 144,400 Land and Water Resources 2.04 Climate. Most of the annual rainfall occurs during the monsoon period from mid-June through September; during the rest of the year it is negligible and erratic. The average rainfall is 1,800 mm in Damanganga; 900 mm in Heran and Karjan. The winters are mild and temperatures peak in May; however, in Damanganga, the temperatures are moderated by the influence of the sea. 2.05 Soils and Topography. The topography of the Heran project area is generally flat while the Damanganga and Karjan areas are gently rolling. The areas are intersected by extensive networks of small rivers and other natural drainage channels that generally meet the surface drainage requirements, ex- cept in a limited area of the Damanganga scheme near the coast. Fine-textured, - 10 - deep (over 90 cm) brown soils that are derived from basaltic parent-material cover 75-90% of the project areas. These soils are moderatly well-drained and have a tendency to crack vertically during the dry season. The gently sloping upland areas are covered with moderately deep (45-90 cm) gravelly, fine textured soils that are well drained. About 10% of the Damanganga area is covered by very deep, fine-textured coastal alluvial soils with imperfect internal drainage. 2.06 Surface Water Resources. The three project rivers all depend on monsoon rainfall for their run-off and more than 95% of the flow occurs during the June-September period. The Damanganga and Heran Rivers both have a major part of their catchments in Maharashtra and Madhya Pradesh, respectively. There are no interstate agreements regarding any eventual sharing of the waters. Consequently, only run-off from the unintercepted catchment located in Gujarat has been taken into account in the water balance studies. Because of the topography in the catchments, it is highly unlikely that the upper riparian States would be able to divert all run-off from their catchments. Furthermore, return flows would occur from upstream irrigation, but have not been taken into account in the formal water balance of the project areas. Thus, the following table gives a conservative estimate of the annual surface water resources available to the projects: Damanganga Heran Karjan 50% dependable yield (MM3) 702 271 623 75% dependable yield (Mm ) 640 186 446 2.07 Groundwater Development. At present, irrigation from wells plays only a limited role in the development of the scheme areas. However, when year-round water deliveries from the canal systems become available, the infil- tration from return flows is likely to at least do-ble--and could quadruple --the utilizable groundwater resources. Experiences from other projects in Gujarat and similar areas in India indicate that the farmers rapidly respond to the increased availability of groundwater and that wells account for 20-40% of the total water used for irrigation inside the command areas. This development would be particularly important for irrigation of aash crops, additional hot season crops, high water demanding perennials, and for added security during extended drought periods. Present Level of Agricultural Development 2.08 Damanganga. The most important feature of the command is the large area of natural grass land, which can easily be adapted to orchards, and ultimately vegetables. The grass is grown as a relatively high value, rainfed cash crop. It is harvested annually, baled and sold principally in Bombay as fodder for milk animals. Historically, most of the command area was covered by grass, but over time, and especially over the last 15 years, much of it has been converted to paddy (38% of CCA) and to orchards (10%). At present, about 45% of the area remains under grass. Besides paddy, the main kharif crops are minor millets (3%) and pulses (3%). Rabi crops are confined to pulses (9%), sown in paddy stubbles and grown on residual moisture, and a small area of wheat (1%). Fruits--primarily mango, but also chiku, guava, pineapple, papaya - 11 - and banana--occupy some 10% of the command. The mangoes, well known for their high quality, are sold primarily on the Bombay market. The fruit trees are provided with supplementary irrigation from dug wells (about 2,000 are located in the command). Sugarcane (1%) and kharif and rabi vegetables are also grown around the wells. Paddy, the main rainfed crop has a relatively low yield due to the short rainfall season, and its unpredictability. Despite the relatively high average annual rainfall, its uncertain timing renders it ineffective in meeting the water requirements of the high-yielding and improved varieties. Yields of fruits and vegetables are high where well water is available. A dairy has recently been established in the area and milk production is increas- ing rapidly. Most farmers have cows or buffalos and derive a significant part of their earnings from milk. Given favorable climate and soils and established links to urban markets (principally Bombay), it is expected that a rapid transformation of the area will take place once irrigation water becomes available. 2.09 Heran. The command area has no irrigation facilities beyond a limited number of low yielding dug wells which are scattered throughout the area. The cropping pattern is kharif-oriented with cotton--mostly local herbaceum varieties--as the major crop (32% of the CCA). Pearl millet (26%) is the staple foodgrain of the area. Hybrid varieties are extensively grown but downy mildew and ergot have decreased yields. In spite of the low rain- fall, rainfed paddy covers about 18% of the area. The paddy is usually drilled using short duration, tall varieties. Groundnuts of the spreading, long duration varieties are grown on 11% of the area. The principal rabi crop is local sorghum (10%). Due to the limited irrigation facilities, the area under wheat is negligible. The area under bananas is small (0.4%) but the crop is irrigated and yields are high. 2.10 Karjan. The cropping pattern is two seasonal, with 70-75% of the land under cultivation in the kharif and rabi seasons. The dominant crop is rainfed cotton which covers 54% of the CCA. As in Heran, mostly locally improved herbaceum varieties are grown. The varieties are late maturing and frequently affected by failure of the late rains. Consequently, the average yield is low (about 0.4 tons/ha). The main foodgrain is rabi sorghum which is grown on 17% of the area. The kharif foodgrains are drilled paddy (4%), pearl millet (4%), sorghum (2%) and pulses (6%)--primarily long duration pigeon pea. Some bananas, guavas and miscellaneous vegetables are grown around wells. C. The Ukai-Kakrapar Modernization Area General 2.11 The Ukai-Kakrapar scheme is located on the Tapi River in southern Gujarat. The southern part of the area has relatively high rainfall (1,500 mm) but it declines to about 600 mm in the northern part. Because of the moderat- ing influence of the sea, there is little variation in the temperatures over the year. Construction of the Kakrapar weir and its associated canal system was started in the early 1950s. The weir was completed and irrigation started in 1957 but construction of the canal system continued for another decade. The Kakrapar scheme was designed to serve a CCA of about 225,000 ha (subse- quently revised to 204,000 ha). In 1960, construction was started on the Ukai dam across the Tapi to provide carry over storage for the Kakrapar command and - 12 - to extend the CCA by another 152,000 ha. The dam was essentially completed in 1971 and the final works on the Ukai canal system will be finished in 1980. 2.12 The command is one of the most densely populated areas in Gujarat. Surat (population about 472,000 in 1971) is located in the center of the area and Bharuch (92,000) and Valsad (55,000) at its rorthern and southern fringe, respectively. In addition, there is a network of about a dozen smaller market towns with a total population of about 240,000 inside the area. The rural population in the command is about 1,400,000. Because of the high population density, farms are small--average size about 2.2 ha--and almost half the agricultural labor force is landless. In spite of the large number of land- less agricultural workers, there is a significant immigration of laborers from Madhya Pradesh and Maharashtra during the sugarcane harvesting season. It is estimated that 50-60% of the population have incomes below the poverty level (US$75). In spite of high pressure on land, over 95% of the farms are owner-operated. Soils, Topography and Drainage 2.13 The Kakrapar command slopes gently towards the west and becomes almost completely flat near the coast. In general, the micro-topography is determined by small rivers and natural drainage ways. However, land shaping and grading have been carried out over most of the area and virtually all the land has slopes below 1%. The soils of the command area consist of montmorillonite clays. Though they were initially formed as residual deposits from disintegrated basalt, they have been denuded from the place of origin, transported by river flows and laid as flood plain deposits. During their transportation, they have been intermixed with granular material and, there- fore, they vary in texture, stratification and physico-chemical properties. They now form alluvial deposits of stratified layers of residual clay inter- mixed with sands and silt. Because of high clay content, the soils crack on drying--usually to one meter depth--and swell on wetting. The cracks are numerous, thin and vertical. 2.14 In general, the permeability of the soils is low, few field drains have been constructed by the farmers and the capacity of main drains is inade- quate because of poor design, irregular natural gradients, siltation and heavy growth of typha (cattail reeds). As a result, the water table is rising (at least 15 cm per year) and the problem of waterlogging is increasing. In 1967/68, before perennial supply was available from Ukai dam, post-monsoon water tables were within 3 m of the surface in about 50,000 ha; in 1976/77, after perennial irrigation, the areas affected by high water table had increased to 155,000 ha. Some 22,000 ha located along the coast are affected by restricted natural drainage and occasional flooding by sea water during high tides. Although some attempts have been made in the past to protect and reclaim this land, the success has been limited and most of the areas are fallow. Irrigation and Agricultural Development 2.15 Fertile land, perennial water supply from the Ukai dam, good marketing facilities, easy access to major urban centers and export markets, rapid development of agro-industries and progressive farmers provide the - 13 - basis for what could be one of the most productive agricultural areas in India. However, because of the inadequacies of the irrigation system and poor water management practices, the actual production is far below its potential. 2.16 In a historic perspective, the shortcomings of the Kakrapar part of the command are easily explained: at Independence, there was a great deal of experience available on large-scale surface irrigation in India. However, this experience, which dated back to the nineteenth century, was largely limited to two typical situations: (i) supplementary irrigation of paddy, primarily in the eastern delta areas (Cauvery, Krishna, Godavari and Mahanadi); and (ii) extensive irrigation of a limited number of upland crops to provide insurance against drought and famine (primarily in the Punjab but also in some parts of the Deccan). Virtually, no experience existed on irrigation of mixed crops in intermediate rainfall areas. Consequently, when Kakrapar was planned in the early 1950s, the design standards and the management practices adopted were inappropriate for local agro-climatic conditions. 2.17 Initially, the inadequacies of the irrigation system were obscured by the adverse impact of the unreliable irrigation supply from the Kakrapar weir due to variable river flows. However, even after a firm perennial supply was available from the Ukai dam, it became apparent that the main constraints to a highly productive cultivation could be found in the design and operation of the canal system. The advent of the "green revolution" made the adopted standards and practices even more inappropriate. The system did not permit timely and reliable water deliveries to the farms, which is a prerequisite for a modern agriculture based on high yielding, high value crops. Thus, the unreliable water supplies, combined with the rapidly wor- sening drainage problems have provided a clear disincentive to many farmers to use irrigation water. 2.18 At present, the irrigated area in the Kakrapar system is about 85,000 ha or about 42% of the reported CCA. However, the reported CCA of 204,000 ha includes 20,000 ha of cultivable waste land, 12,000 ha of coastal, salt affected lands that are not cultivated and 18,000 ha of grass land or perennially fallow land that either has very low production potential or appears to be out of command. In addition, there are local high spots that cannot be irrigated by gravity. Consequently, the net CCA appears to be only about 150,000 ha. Thus, the actual irrigated area is about 56% of the net CCA. About 72,000 ha are cultivated under rainfed conditions. 2.19 The main irrigated crops are: paddy (40% of the area), sugarcane (30%), wheat (10%), cotton (6%) and banana (3%). Because of the varying rainfall over the area, there are significant variations in the cropping pattern in the various parts of the command: - 14 - Zones /a Northern Central Southern --(% of irrigated area in zone)-- Paddy 13 41 77 Other kharif crops 25 3 1 Wheat and other rabi crops 25 9 6 Cotton and other two-seasonals 19 2 0 Perennials 18 45 -16 Total 100 100 100 (% of official CCA) Irrigation Intensity 39 41 47 /a Northern Zone: Kakrapar Right Bank Area (official CCA: 58,700 ha) Central Zone : Upper part of Kakrapar Left Bank Area (official CCA: 111,200 ha) Southern Zone: Lower part of Kakrapar Left Bank Area (official CCA: 34,100 ha) The importance of paddy declines with the monsoon. rainfall from the south to the north. Upland crops (sorghum and groundnuts in kharif, wheat in rabi and cotton) are primarily confined to the northern parts of the Kakrapar command area. Sugarcane and bananas are grown in all parts of the command, but are concentrated in the central area, and in the upper reaches of the distribu- tion system'. The general time trend in the cropping pattern is towards more perennial crops and paddy, while the area under cotton is decreasing, primarily because of deteriorating drainage conditions. 2.20 Since sugarcane and bananas both use more water and give much higher returns per ha, it is clear that the Central Zone of the command receives an disproportionately large share of the irrigation benefits. The net returns per ha of CCA are approximately 1-1/2 - 2 times higher in the Central Zone than in the two other zones. However, the benefits are not only inequitably distributed between the main zones of the scheme, they are even more inequitably distributed within the zones. Typically, the irrigation intensities are high at the head of the distribution system while the water often does not reach the tail-end of the distribution system. Consequently, there are large areas close to the coast that are not irrigated. Also, inside the chaks (i.e., the areas--typically 40 ha--served by a government irrigation outlet) the water is inequitably distributed. A review of irrigation intensi- ties inside 88 chaks in the Kakrapar system reveal the following pattern: Annual Irrigation Location Intensity /a - Upper third of chak 117% Middle third of chak 98% Lower third of chak 78% /a The sum of the areas irrigated in kharif, rabi and hot weather divided by the CCA of the chak. - 15 - 2.21 The inequitable distribution of irrigation benefits is a result of excessive losses and lack of operational control which results in inadequate and unreliable supplies to the tailends of the system. Thus, a modernization program including lining, reduction in chak sizes, construction of additional control structures, selective increase in canal capacities, and drainage works would not only result in increased agricultural production but with stronger management would also ensure that the berefits are more equitably distributed. D. Saurashtra Coastal Development Area General 2.22 The Saurashtra Coastal Development scheme is located in Gujarat along the South Coast of the Saurashtra Peninsula. The narrow coastal plain has long been known as a very fertile and productive tract, with orchards and vegetable gardens in addition to intensive field crops. Due to the low and unreliable monsoon rainfall 1/ and the lack of extensive surface water irrigation systems, farmers in the area are heavily dependent on groundwater for irrigation. The water is obtained from shallow open wells, tapping a productive aquifer which extends inland for 5-7 km along the entire coastal plain. Prior to the early 1960's, when limits to the rate of groundwater extraction were set by the available human and animal power, a delicate balance between the discharge and recharge of groundwater was maintained. However, sihce the introduction and expansion of motorized pumping, the dis- charge rate has exceeded the recharge rate, and the underlying saline water of the aquifer system has intruded into the fresh water body. Although some deterioration in groundwater quality was first noted in the 1950's and 60's, it was not until 1970 that a problem of regional scale had developed. The most heavily affected area lies along a coastal strip of about 160 km long between Madhavpur and Una. Within this region, the area affected by saline groundwater has increased from about 35,000 ha in 1971 to 100,000 ha in 1977, and the area irrigated by groundwater has been reduced from approximately 24,500 ha to 16,900 ha, as wells have been abandoned. 2.23 The population living in the salinity affected areas of the Saurashtra scheme is about 280,000. The population density per cultivated ha in Junagadh district is the same as the average for Gujarat State. Veraval is the largest town and is likely to develop further as a fishing port and market center. Land and Water Resources 2.24 The Saurashtra coastal area has limestones of Gaj and Dwarka beds, milliolitic limestones and recent alluvium in a 10-15 km belt along the coast line. The Gaj and Dwarka beds consist of alternating compact limestone and impervious clay beds and are inland from the milliolitic limestones, which 1/ The average monsoon rainfall is about 600 mm on the coastal plain with a coefficient of variability exceeding 50%. The temperatures are moderated by the influence of the sea. However, because of high wind velocities, the evapotranspiration of crops is the highest in Gujarat. - 16 - lie along the sea coast. The latter consists of banks of shale and hard compact limestone but have solution cavities through which groundwater flows. The recent alluvial deposits along the coastal belt have good soil moisture retention capacity, gentle to flat topography and thus form good horticultural land; they vary in depth from 25 to 100 cm; their texture is loam to clay loam near the coast becoming sandy loam further inland. Because of their proximity to the sea and their permeability, the areas most severely affected by saline intrusion are to be found on the recent alluvial deposits and the milliolitic limestones. The salt water intrusion results largely from the upward movement of the freshwater-saltwater interference and replacements of the freshwater deficit by salt water. 2.25 The catchment area of this section of the coastal plan between Madhavpur and Una is 5,880 km2; of this area, 1,580 km2 is intercepted by reservoirs serving medium irrigation systems, leaving a balance of unregulated catchment of 4,300 km2. The runoff to rainfall coefficient is about 20%. Thus, in an average year with 700 mm of rainfall, the run-off to the sea from the unregulated catchment is about 600 Mm3. The small streams in Saurashtra are flashy; they reach their peak a few hours after heavy rainfall and subside quickly. The base flow is virtually non-existent: and most of the run-off occurs after a relatively small number of heavy rains. Some 90% of the rain- fall occurs during the monsoon season from late June through September and in this period run-offs are relatively frequent. There is a fairly high probability of post-monsoon storms generating run-off during October and in some years in November. Irrigation and Agricultural Development 2.26 The most important crops in Junagadh district are groundnuts (42% of the area), pearl millet (26%), sorghum (8%), wheat (5%), and sugarcane (5%). About 20% of the gross cropped area is irrigated, mostly from private wells. Foodgrains are grown on nearly half of the irrigated area, 33% being under wheat. Cotton is the next most important irrigated crop (27%). Due to the relatively large livestock population in the district, fodder is a fairly important irrigated crop, and is grown on 9% of the irrigated area. Sugarcane, fruit (4%) and vegetables (2%) are concentrated in the coastal areas, and are almost entirely dependent on wells. The effect of the groundwater salinity on the vegetation has become increasingly apparent. Some of the farmers have shifted their pumping installations towards fresh water zones, resulting in further travel of the saline water. In the absence of fresh water, some of the farmers use saline groundwater for protective irrigation and this affects the soil structure and salt balance of the soil. As a result, the yields of sugarcane and other irrigated crops in the area have been drastically reduced. E. Agricultural Supporting Services Agricultural Research 2.27 Since 1973, Gujarat Agricultural University (GAU) has been responsi- ble for agricultural research. Its four campuses--Anand, Dantiwada, Junagadh and Navsari--are located in different agro-climatic zones. The University has - 17 - seven main research stations, specializing in different crops, and about 50 regional stations. In general, Gujarat's plant breeding programs have been highly successful. In particular, the research station at Jamnagar has achieved impressive results in the development of hybrid pearl millet. Large- ly due to this research, the all-India yields of pearl millet have increased faster than those of any other kharif crop. Significant contributions have also been made in the development of long staple hybrid cotton. However, research on dry-land farming technology and water management has not achieved the same level of success as the plant breeding programs. 2.28 Research on irrigated agriculture is carried out primarily at the Navsari campus of GAU, which is located in the Ukai-Kakrapar command and on 15 trial-cum-demonstration (TCD) farms. The main focus of this research has been to determine water requirements in relation to soil types, climate and critical stages of crop growth. So far, relatively little attention has been given to irrigation practices and land development for irrigation. Results are mixed, as farmers do not readily accept demonstrations under these controlled conditions, which they regard as not adaptable to their own farms. At the same time, many of these TCD farms do not have adequate staff and equip- ment to properly fulfill their research function. Agricultural Extension Services 2.29 Agricultural extension is the responsibility of the Department of Agriculture (DA). The administrative set-up is presently being reorganized --with financial assistance from IDA (Cr. No. 862-IN, 1978, US$53.4 M)-- in accordance with the "training and visit" (T&V) system. The basic elements of this reorganization are: (a) Transfer of the Village Level Workers (VLW), who are the primary contact with the farmers, to the admin- istrative control of DA; (b) Strengthen applied agricultural research and establish a better link between research and extension; and (c) Increase staff mobility at all levels. Under the scheme, the VLW would work only on extension, covering 500 to 800 families, through a system of visiting groups of 60-100 farmers on a regular basis every two weeks. Agricultural Inputs 2.30 There is a well developed system for distribution and sale of seeds, fertilizers and pesticides throughout the State. Certified seeds are produced both by the District Panchayats, under the guidance of Agricultural Department (AD), and by the State Cooperative Marketing Federation. They are distributed primarily through the cooperative marketing societies. Gujarat is more than self-sufficient in the production of nitrogenous and phosphatic fertilizers (the Gujarat State Fertilizer Corporation (GSFC), a joint venture between the GOG and the private sector, is India's second largest manufacturer). Fertili- zers and pesticides are distributed through both cooperative marketing socie- ties and approved private retailers. There are about 6,000 distributors, of which 5,000 are cooperatives, and inputs are usually available within easy reach of the markets. - 18 - Farm Mechanization 2.31 There are an estimated 16,000 tractors in Gujarat or 1.6 tractors per 1,000 ha, which is below the national average. Most of the tractors are owned by individual farmers but group ownership is not uncommon. The Agro- Industries Corporation has recently established a network of "Agro-Service Centers" which provide repair facilities for tractors and implements and custom hiring services (at a rate of Rs 30 per hour for a 50 hp tractor). They also provide training facilities for mechanics and drivers. The private sector, however, handles most of the sales and repairs of tractors and imple- ments. Transport, Marketing and Processing 2.32 With about half of the area under cash crops, Gujarat has a well developed system for agricultural marketing and processing. Most of the trade is through regulated markets that serve a specified area, usually within a 10 km radius. The 280 regulated markets are under the control of Agricultural Produce Marketing Committees. Some 30 markets have not yet been regulated, mainly due to resistance from vested interests. Licensed traders are allowed to operate inside the service areas of the regulated markets. Normally, these traders pay the same price -- at farm gate -- as the farmers would get at the regulated market. About three-quarters of the storage and processing facilities are owned by the private sector, with the remainder provided by the public and cooperative sectors. In general, the present system for marketing and processing, which is highly competitive, has responded quickly to increased output of both foodgrains and cash crops. 2.33 The rail and main road networks in Gujarat are generally well developed and provide good access to the project areas. However, the existing road networks within the commands are inadequate to meet the projected trans- portation needs of productive irrigated areas. Agricultural Credit 2.34 The organization for institutional credit to farmers follows the normal pattern in India. The cooperative banks, which provide short (up to one year) and medium-term (one to five years) credit at an interest rate of about 13%, are organized on a three tier basis with the Gujarat State Coop- erative bank at the State level, 18 central cooperative banks at the district level, and 8,700 primary cooperative credit societies at the village level. The cooperative movement has always been strong in Gujarat and about 80% of the farmers are members. The State Cooperative Land Development Banks (SLDB) with about one million members, has 182 branches. It provides long-term (up to 15 years) loans at an interest rate of about 11%. In recent years, the recovery performance of the cooperative banks has been poor but GOG is under- taking a program to restore the financial viabiLity of these institutions. 1/ 1/ See Annex 5 of "Third Agricultural Refinance and Development Credit Project", IBRD Report No. 2404a-IN. - 19 - Commercial Banks (CB), which provide all three types of credit, have, since 1969, rapidly expanded their lending for agricultural purposes and they now account for about 15% of all loans to farmers. III. THE PROJECT A. Main Project Components 3.01 The project would consist of financing a five-year time-slice of Gujarat's irrigation program. The components of the project would be: (a) Completion of the dams and major canals and partial comple- tion 1/ of irrigation service blocks on three on-going major irrigation schemes (Damanganga, with a CCA of 56,100 ha, Heran, 32,100 ha and Karjan, 56,200 ha); and improving the command area road network (580 km of new and improved roads); (b) Modernization of irrigation facilites on about 52,000 ha of which 33,000 ha would be completely modernized during the five-year project period; drainage improvements on about 20,000 ha; and about 190 km of village roads in Ukai-Kakrapar, Gujarat's largest existing irrigation scheme; (c) Construction of storage and distribution facilities to provide supplies for the irrigation of about 25,000 ha of coastal areas in Saurashtra, where the groundwater is affected by salt-water intrusion from the sea; (d) Operational and management improvements (RWS) on existing and new schemes; (e) A training center for land development and water management specialists that would fill the cadre of the special Command Area Development Department to be established under the project; (f) Monitoring and evaluation studies; and (g) Financing of consultants, incremental staff, equipment and special studies for the preparation of irrigation projects in Gujarat and other states. 1/ See para 3.02, Table 3.2. - 20 - B. Detailed Project Description The New Schemes 3.02 General. The salient features of the new schemes are: Table 3.1: Salient Features of the New Schemes Damanganga Heran Karjan 3 Dam - Gross storage (MI ) 566 451 630 - Live storage (Mm ) 502 320 581 Length of main canals & branches (km) 98.3 40.5 70.5 Length of new and improved roads (km) 134 247 198 Cultivable command area (ha) 56,100 32,100 56,200 Annual irrigation (ha) 62,200 36,900 62,900 Domeslic/Industrial use (Mm) 62 - - Investment cost/irrigated ha (Rs) 16,770 15,270 17,370 The current status of the works is summarized below: Table 3.2: Present Status of Infrastructural Development of the Three New Schemes and Expected Status at the end of Project Period (March 1985) (% Completed) Irrigation Dams Canals Blocks Roads- Scheme 1980 1985 /a 1980 1985 /a 1980 1985 /a 1980 /b 1985 Damanganga 65 100 61 100 0 50 0 100 Heran 7 100 0 100 0 30 0 100 Karjan 25 100 8 100 0 33 0 100 /a From beginning of construction through March 31, 1985. 7-b Percent of the roads to be financed under the credit. 3.03 Dams. Three dams would be financed under the project. They are described in Volume III, Annex 3 and the salient features are summmarized in Table 2. The Damanganga and Heran dams are comprised of: earth fill embank- ments with clay cores to impermeable bed-rock; and masonry non-overflow and spillway sections that are provided with drainage galleries. The spillway gates are of radial design and operable by both electric powered and manual lift mechanisms. The Karjan dam was originally designed as a masonry struc- ture, but it is now planned for concrete construction. The design and construction methods of the dams have been reviewed by GOI and IDA and found adequate from the standpoint of structural stability, functional efficiency - 21 - and safety. GOG has appointed an independent panel of experts, with qualifi- cations and terms of reference acceptable to IDA, who would routinely review dam safety and efficiency. The panel includes an engineering geologist, a flood hydrologist and a dam design/construction engineer. This panel would visit the damsites and meet periodically as required--not less than once in 12 months--to review and evaluate design and construction practices, and to make specific recommendations to GOG concerning: embankment safety; foundation and abutment integrity; and spillway adequacy. An agreement has been reached with GOG that it would maintain the expert panel until the dams have been completed and their performance during the first filling has been assessed. 3.04 The dams are designed to store surplus monsoon inflow during July through September for later releases during the rabi and hot weather seasons for pre-monsoon early sowing irrigations. The Heran dam would also provide carry-over storage from one year to another. The operations for this type of reservoir with large variations in the inflow include seasonal decision points for adjustments of the cropping pattern on the basis of the water available in storage. Thus, the area irrigated in rabi would be determined each upon the basis of water in storage at the end of September. Given the conservative estimates of inflows (para 2.06), nominal shortages (less than 10%) during the kharif season have been accepted in the computerized reservoir simulations carried out by GOG for the feasibility studies; 1/ the water supply in all the schemes is adequate-for the proposed cropping pattern. 3.05 Irrigation Systems. Given the past success of agricultural research in the State; the well educated and progressive farmers; the easy access to both domestic and urban markets and export markets; and the well developed network of processing and marketing facilities, the prospects for a sustained high growth rate for agricultural production are favorable. However, as discussed in Volume II, this growth is likely to be associated with the fol- lowing changes in crops and cultivation practices: (a) High value cash crops will become more important and coarse grains less important; (b) The cropping pattern will become more complex; (c) Most future varieties will have shorter duration than at present; (d) Crops will be planted at their optimum days; and (e) Irrigations have to be given at critical stages of crop growth; 1/ The feasibility studies were based on 30-year streamflow and rainfall records and took into account upstream, domestic and industrial water uses, effective rainfall, reservoir inflows, evaporation and spills and estimated irrigation system losses together with crop water require- ments (derived by the modifed Penman method) for the annual cropping patterns expected to be adopted. Overall systems efficiencies--dam to plant--were assumed at 50% for these lined systems. - 22 - These changes have the following implications for the planning, design and operation of irrigation projects. (a) The water supply has to be reliable, i.e., the farmers must be ensured that they can get water at the time when the crop needs it; (b) Operation of the projects, will no longer be done in accordance with the traditional irrigation seasons, instead different kharif crops will be planted at dif- ferent times, which requires a more flexible operation of the system; and (c) The peak carrying capacity of the system has to be higher than at present, particularly in the lower parts of the system, to permit RWS. In order to ensure a timely and reliable water supply to all farmers in the command area, the entire conveyance system for the Heran and Karjan schemes would be lined from the dam intake down to irrigation turnouts serving approx- imately 8 ha blocks. (Implied in this criterion is the objective that no field would be further away from a lined channel than 300 m). The Damanganga scheme is located in an area with high rainfall ar.d relatively impermeable soils and the available river flows are ample to meet scheme requirements. In this scheme the lining would be carried down to the 20 ha level. However, the irrigation turnouts would serve 8 ha blocks. Furthermore, distributaries in the Damanganga scheme, with a capacity between 10 cusecs and 100 cusecs, would be lined selectively depending upon the estimated seepage losses from unlined channels. The lining would reduce conveyance losses and maintenance, and, more importantly, would allow improved operation of the system. The expend- itures for this and for construction of unlined field channels to each indi- vidual farm would be met from GOG's budget. The distribution system (from minors down) would be in pipes wherever sufficient natural head is available. It is estimated that 30-40% of the Damanganga CCA, 10-20% of Heran and 20-30% of Karjan would be served by a piped distribution network. 3.06 The minor distribution system would be designed "from the tail up", i.e., the alignment of minors and sub-minors would not be finalized until a tentative layout of the field channels has been prepared. This procedure would require large-scale survey work and increased allocation of professional manpower for the survey, planning and design of the minor distribution system. Chak sizes would be based on topography, soils, cropping patterns and farm sizes, but would not normally exceed 20 ha. For o-erational purposes, the chaks would be broken down into 8 ha sub-chaks each served by a gated turnout. In order to permit an efficient and equitable operation of the system, measur- ing devices (such as standing wave flumes, V-notch weirs) would be provided throughout the system down to the chak outlet. All-weather service roads would be provided along all channels with a capacity above 50 cusecs and all weather bicycle/motorcyle paths along all minors and sub-minors. A modern communication system would be provided in the catchment area (for flood control purposes) and at various control points on the canal, the dam and the - 23 - divisional headquarters. Planning and construction of field drains within the chaks and drains connecting to the main drainage system would proceed concurrently with the distribution system. 3.07 Command Area Roads. All-weather road access between farms and markets is essential The roads program, which is described in Volume III, Annex 4, would comprise improvements to about 237 km of existing roads, reconstruction of about 138 km of roads and tracks and construction of some 204 km of new roads. The principal planning criteria would be: (i) to provide all-weather road access to within a distance of about 3 km from almost all parts of the command areas and to villages having ever 1,500 inhabitants; (ii) to utilize existing road alignments and new canal embankments whenever technically and economically appropriate; and (iii) to bypass village centers as far as possible. Project roads would be designed and constructed to Indian Road Congress standards and minimum widths for right-of-way, formation and pavement would be 18 m, 7.5 m and 3.7 m, respectively. All roads would have adequate drainage, hard shoulders and waterbound macadam pavements with black top surfacing. In addition to the project roads, the agreed layouts include some 461 km of existing black top roads which have been identified and listed as constituting essential links in the networks. An agreement was reached with GOG that whenever necessary, these existing roads would be upgraded to project standards in phase with project road development. Ukai-Kakrapar Modernization 3.08 General. Modernization of the irrigation., drainage and road infra- structure and the introduction of improved management practices could yield exceptionally high benefits. However, since the irrigation system is already in operation, the potential loss of agricultural production due to extended and repeated canal closures for remodelling work can, under certain condi- tions, outweigh both the direct cost of the works and the potential benefits of modernization. These problems require careful planning, design and imple- mentation. However, since both the problems and solutions to a large extent are unique to a specific scheme, it is necessary to proceed slowly initially, and to learn by experience, in order to avoid unnecessary costs. A step-by- step approach is thus the only viable course for modernization of the Ukai- Kakrapar command, from both an economic and an engineering standpoint. This would involve a large-scale pioneering exercise over the first 2-3 years during which the planning, implementation, organization and resulting benefits would be carefully monitored and fed back into the current and future project planning. This staged approach would be restricted to specific segments of the irrigation system which typify different stages and aspects of the moderniza- tion problems. The initial areas would be limited to enable both control of the implementation and manageable evaluation of the results. This approach would also help develop sufficient trained staff for a gradual build-up of the implementation program. 3.09 Project Works. The IDA-assisted project would, over a 5-year period, undertake a complete package of works in specific areas of the Kakrapar part of the command. It is expected that the remaining parts of the command would be modernized gradually after the completion of the IDA time-slice. However, the economic viability of the works carried out during the first-year period is not contingent on the rate of implementation of subsequent modernization - 24 - works. The project works are described in detail in Volume III, Annexes 1 and 4 and summarized below: 3.10 The distribution system covering two bLocks of 9,800 and 28,200 ha respectively under the Kakrapar Right Bank Canal (RBC) would be scheduled for modernization. In this part of the command, perennial crops--i.e., sugar- cane and bananas--cover only a small part of the area and regular and longer canal closures are thus feasible. The works would involve: enlarging and selected lining (above 20 cusecs) of distributaries; lining all minors and sub-minors down to chaks of mangeable sizes; drainage works on a sub-catchment basis; and construction of necessary control structures and measuring devices. The works would be staged: in the initial 2 year period some 10,000 ha under the Hajira Branch Canal 1/ would be taken up and in the following 3 year period--with some overlap--an -additional area of about 10,000 ha under the Karanj distributary would be completed and work would be initiated on the remaining 18,200 ha under the Hajira Branch Canal. As part of the Kakrapar RBC, some 2,000 ha of salt-affected coastal lands located at the tail-ends of the distribution system would be protected from tidal flows (through construc- tion of sea dykes and double-gated tidal regulators), provided with irrigation and drainage works, and then fully reclaimed (through a program of leaching and land development). The coastal reclamation would be associated with a settlement program (para 4.13). 3.11 The distribution and drainage system covering an area of about 14,000 ha under the Umbrath Branch Canal in the Kakrapar Left Bank Command would also be modernized. The works in this area would be carried out to the same standards as on the Right Bank. However, since a large part of the area is under perennial crops, the remodelling works would be carried out during shorter canal closure periods. Standby arrangements for secondary pumping from wells and impounded drainage channels would be tested. If these con- struction methods prove feasible, recourse would be made to channel diversions and small coffer dams in order to continue irrigation supply during recon- struction. During the first phase, 3,000-4,000 ha would be covered, followed by 10,000-11,000 ha in the second phase. A special feature of the Umbrath Branch modernization would be a pilot operation undertaken with farmer par- ticipation. It would test the technical, administrative and economic feasibility of conjunctive use of groundwater and surface water to meet the heavy water demand for sugarcane. This pilot exercise would include both direct and augmentation tubewells on a limited basis and would examine the role of dugwells for individual farms. Coastal reclamation works would cover an area of about 3,000 ha. 3.12 High priority drainage works would be completed for an area of about 20,000 ha and be initiated for the remaining 37,500 ha under the Surat Branch Canal in the Left Bank Command. This area is seriously waterlogged and main and secondary drains would be provided largely through the improvement of existing natural drainage channels and construction of maintenance roads along the channels. A specific program of maintenance, on a regular cycle, using a combination of equipment and hand labor would be devised and instituted. 1/ Additional capacity would be provided in the Branch and one minor to supply the Hazira Fertilizer Plant. - 25 - 3.13 Construction of 31 km new, reconstruction of about 72 km and improve- ments to 85 km of existing farm-to-market roads in the areas covered by the modernization and drainage works would be undertaken. The road program would be planned and constructed in accordance with the criteria adopted for the new schemes (para 3.07). Saurashtra Coastal Development Scheme 3.14 General. GOG has developed a comprehensive scheme for water conser- vation, direct irrigation and artificial recharge along the southern coast of Saurashtra which has been adversely affected by the intrusion of saline groundwater from the sea. The scheme includes a comprehensive package of run-off conservation measures and small reservoirs for direct irrigation. IDA's assistance in the scheme, over a five year period, would include the following components: (a) Construction of 14 (17) 1/ gated or ungated regulators at the mouths of the rivers and provision of lift irri- gation facilities at the reservoirs; (b) Construction of about 150 (200) check dams along the nallas and rivers and making arrangements for the establishment of individual or cooperative lift schemes at the check dams; (c) Construction of 1 (2) reservoir scheme for regulated releases to downstream lift schemes; (d) Construction of about 1,000 (10,000) "gully plugs" i.e. small check structures across natural drains; and (e) Afforestation of 10,000 ha (10,000 ha) on government waste land and community owned land in the upper catchments. 3.15 The 3 existing and the 17 planned regulators would control all the important streams discharging to the sea. The total storage volume of these structures would be 119 Mm3 or about one-fifth of the total run-off. An analysis of rainfall and run-off data for medium irrigation schemes located in the area indicates that the storages of tidal regulators and the other structures that control all the important streams discharging to the area, would fill up three to four times during the monsoon and post-monsoon seasons. Since same of these run-offs would occur within .a couple of weeks of each other, it is estimated that on the average a volume equal to 2-1/2 times the storage would be available for irrigation, or approximately half the annual flow. It is expected that water deficits would occur at the reservoirs in very low rainfall years (i.e., about one year in five). The annual irrigation resulting from these structures is estimated at 20,000 ha. 3.16 Regulators. Gated regulators on 7 rivers are included in GOG's program of which 4 would be financed under the credit. These gated masonary 1/ Figures in parenthesis indicate the scope of GOG's complete scheme. - 26 - structures would serve the dual purpose of arresting the inflow of sea water into the rivers and providing a reservoir of fresh water for irrigation, to be distributed using low-lift pumps. Generally the gates remain closed, but are operated during floods to prevent excessive submergence of upstream land. Ten ungated regulators would be constructed on smaller streams where the height of tide water is limited. The locations of regulators are shown on Map 14609. Depending on the topography, a number of pumping stations would be constructed at the reservoirs. Water would be pumped to the highest level in an irrigation block through a rising main, feedin3 into a small storage tank. From the tank it would be distributed to the fields through pipes or open lined channels, depending on the topography. The outlets from the irrigation system would serve 8 ha areas. The credit would finance the irrigation system for the 14 regulators built under the credit and Eor 3 existing bandharas. The regulators that would be included under the IDA project have been selected to ensure an economic rate of return of at least 12% for each individual structure. 1/ 2/ 3.17 Check dams are a key element in the overall recharge plan. The structure would utilize stop-log gates to regulate water at the recession of each flood. During prolonged stream flow periods the gates would be removed so that the flood flows would pass down the stream channel unrestricted. Through the repeated filling and emptying of the pools behind the gates, the water would percolate through the wetted perimeter into the ground water it would thus be available for supplementary irrigation to kharif crops and for the essential early waterings to plant and establish rabi crops. It is also expected that the private sector would undertake the construction and opera- tion of pump lift schemes to utilize the water stored behind the check dams, and the more sustained surface flows generated in the streams themselves. 3.18 Reservoir. The storage reservoir (Sangavadi) would be constructed at the upper reaches of a large river. It would provide regulated releases to the structures further downstream to supplement the catchments of the regulators and check dams. Although no distribution system from the reservoir would be financed under the credit, it is expected that some farmers would install their own low-lift pumps. 3.19 Gully Plugs. Additional soil and moisture conservation measures would include small stone check dams, ring bunds and similar structures for plugging channels and gullies. Nalla plugging would also be beneficial on the high ground above check dams as a means of increasing infiltration into the soil mantle, and in reducing silt loads; thus, in effect, increasing the water yield of the downstream structures. The Gabion design (rubble rock enmeshed in galvanized wire baskets) is ideally suited for this purpose. 1/ This would imply an investment cost--in financial terms--for the storage structure, pump installation and distribution network of less than Rs 4.0 per m3 of storage created. 2/ The estimated opportunity cost of capital in India is 12%. - 27 - 3.20 Afforestation would be carried out on the higher ground of the catch- ment areas where slopes are too steep for cultivation, and on Government and community lands scattered throughout the coastal region. Terraces would be constructed along the contours with seedlings planted in pits both on the terraces and in the intervening spaces at the rate of 800 plants per hectare. 3.21 Research, Demonstration, Monitoring and Evaluation. In association with, but without direct financial support from the credit, GOG is undertaking a research and demonstration program. There is a significant scope for devel- opment of water-conserving irrigation techniques to reduce groundwater use, and for growing more salt-resistant fruit crops such as bor, date palm, guava, etc., in areas where the groundwater is already saline. Research on these subjects is carried out on trial-cum-demonstration farms in the area, under the guidance of the Gujarat Agricultural University (GAU) at Jungadh. The GAU would also be responsible for monitoring and evaluating: (i) water quality and soil condition changes in the area; (ii) groundwater supply, demand and usage; (iii) crop yields, cropping patterns and intensities, crop calendars, and agricultural production related to specific deliveries of water from wells; (iv) input costs and farm incomes; and (v) the costs and benefits of alternative crop varieties and planting methods. Training Center for Land Development and Water Management Specialists 3.22 'As a first step in a long-term program to build up a professional cadre for irrigation management, GOG would commence, under the proposed pro- ject, a training program in water management and land development for irrigated agriculture. The program would comprise courses of duration varying from 6 to 9 months for recently graduated students or existing GOG personnel who hold university degrees or diplomas in civil engineering, agronomy or agricultural engineering. About 60 students would be trained annually. New entrants would be absorbed into the CAD organization for their entire professional career and in-service candidates would be required to serve a minimum of three years in the CAD Department following completion of the course. In addition, GOG would annually provide technical upgrading courses for some 100 agricultural and irrigation field assistants of the two departments engaged in irrigation management and land development. The project would assist the establishment of a new training center to be located in or adjacent to one of the major irrigation schemes in Gujarat, and would provide residential and training accommodation, equipment, incremental staff salaries and training allowances, consultant services and, to a limited extent, overseas training for the institute's staff. An agreement has been reached with GOG that it would commence a training program for land development and water management spe- cialists, acceptable to IDA, by October 1, 1981. Before the new buildings have been completed, the courses would be given at COG's Staff Training College in Gandhinagar. - 28 - Operational and Management Improvements 3.23 During the 1978/79 rabi season, GOG introduced Rotational Water Supply (RWS) 1/ as a pilot scheme on three of the minors in the Mahi Right Bank Command area. GOG is encouraged with the results and is anxious to expand RWS in the same command area and to other projects. However, large scale introduction of RWS would require (i) a buiLd-up of considerable know- how and organizational capabilities among the irrigation adminis7rators; and (ii) some modifications of existing irrigation networks--primarily construc- tion of cross regulators, measuring devices and group turnouts within the 40 ha chaks. 2/ Consequently, implementation would 'e constrained by a need to learn from experience, rather than by a lack of finds. Since RWS would be the basis for operation of the new projects financed inder the credit, it would be essential that sufficient experience be gained ra-idly. Consequently, the credit would finance the required works on an area of about 60,000 ha, about half of which is expected to be located in the Mahi-Kadana command. Monitoring and Evaluation 3.24 Under the project, improved conveyance :echnologies and more effi- cient operational procedures would be introduced. The performance of these innovations would be systematically monitored and evaluated during and after project implementation. A first evaluation point would be in October 1984, when the initial results would be reviewed. At that time the design and operations criteria could be modified if necessary. Monitoring and evalua- tion will be carried out on a continuous basis by GOG's PPM Cells. The PPM Cells would, with the assistance of consultants if required, carry out the following studies: (a) Monitoring of water deliveries in each completed segment of the schemes. The measurement work will be carried out by teams deputed from the ID; (b) Collection and tabulation of cost data related to each component of the schemes; (c) Measurement of crop yields, cropping intensities, crop- ping calendars and patterns, and agricultural production related to specific deliveries of canal- and well-water; the cost of inputs, the volume of production, and the resulting farm incomes 3/; 1/ For a discussion of the merits of RWS see Volume II. 2/ Under the Bombay Irrigation Act, the farmers apply for water to irrigate a specific area under a specific crop. As proposed under RWS, the farmer would instead be allocated a specific quantity of water which he would be free to use to irrigate whatever area and whatever crop he chooses. This might require a change in the Irrigation Act. 3/ Base-line agro-economic surveys have been carried out in the new scheme areas and are in progress in the Ukai-Kakrapar command. - 29 - (d) Derivation of related costs and benefits arising from: alternative levels of irrigation service; lined vs. unlined minor and sub-minor canals; size of outlet com- mands; varying levels of land development; the impact of new varieties, planting methods, irrigation and drainage methods and comparative standards of canal maintenance; and (e) A transportation study covering: comprehensive traffic counts; marketing patterns; seasonal traffic variations; commodity freight charges; and vehicle and pack animal ownership and operating costs. A special feature of this study would be to assess the impact of road access on cropping patterns, on marketing options and on farm gate prices. GOI Project Preparation Fund 3.25 The GOI has requested that US$10 M be provided--for a two year period--for preparation of future irrigation projects for Bank Group financing. The funds would be utilized for the following purposes: (a) About US$1.9 M for the establishment of 8 project prepa- ration cells in Gujarat, Madhya Pradesh, Bihar, Orissa, U.P., Kerala, West Bengal, and Karnataka, and two project preparation cells in the Center, one to deal with the Narmada Valley development and the other for project pre- paration of other Bank Group-financed projects; (b) About US$1.1 M for equipment (such as calculators, mini- computers, office and other technical equipment and sur- vey instruments), vehicles and other non-recurring expen- ditures for the project preparation cells; and (c) About US$7.0 M for data collection, studies, consultancies, and other project preparation and pilot works in the eight above-mentioned States (including for Narmada development). The data collection and studies to be financed out of the facility would include among others: the preparation of topographical surveys, soil surveys, geological surveys, hydrological surveys (surface and groundwater), socio- economic surveys, etc. The consultancy funds under this category would pay for consultants in project preparation, including systems analysis, watershed studies, project implementation studies and specialized detailed designs for major engineering structures. The project preparation facility would also finance internationally recruited con- sultants as may be needed. (At present, a need has been identified in the fields of inland water transport and dam foundation design.) The pilot project work to be financed under the credit would be used for experiments with alter- native canal lining materials and procedures, minor water conveyance systems, groundwater recharge and exploitation - 30 - systems, etc. The program and scope of these studies would be mutually agreed among GOI, the concerned States and the Bank Group. C. Cost Estimates and Financial Arrangements Cost Estimates 3.26 The total project cost, over the five-year time slice (April 1980 - April 1985), is estimated at US$360.0 M, net of taxes and duties (which are negligible). This amount includes a foreign exchange component of about US$59.0 M or some 16% of project cost. The provisions for physical contin- gencies range between 10% and 20% depending on the status of designs and cost estimates. The physical contingency allowance for civil works average 15%. No physical contingencies have been applied for equipment and vehicles. Administration, engineering and design are estinated at 15% of the civil works cost. Detailed costs of all civil works and equipment have been updated to reflect April 1980 contract prices. Expected price increases are taken as 10% in 1980, 7% in 1981-83 and 5% thereafter. Cost estimates are detailed in Tables T-7 and T-8 and summarized below: Percentage of Local Foreign Total GOI -Base -Cost ----- US$ Million----- ------%------ Damanganga 43.9 9.2 53.1 20.7 Heran 33.3 8.4 41.7 16.3 Karjan 49.1 12.3 61.4 23.9 New Major Schemes 126.3 29.9 156.2 60.9 Ukai-Kakrapar Modernization 26.7 4.7 31.4 12.2 Saurashtra Coastal Development 20.7 6.5 27.2 10.6 Training Institute 3.0 0.8 3.8 1.5 Operational Improvements 2.0 0.4 2.4 0.9 Monitoring and Evaluation 1.7 0.1 1.8 0.7 Engineering and Administration 33.9 0.0 33.9 13.2 Base Cost 214.3 42.4 256.7 100.0 Physical Contingencies 23.3 5.7 29.0 11.3 Expected Price Contingencies 54.0 10.3 64.3 25,0 GUJARAT PROJECT COST 291.6 58.4 350.0 136.3 Preparation of Future Irrigation Projects 9.4 0.6 10.0 TOTAL PROJECT COST 301.0 59.0 360.0 - 31 - Financing 3.27 The proposed IDA credit of US$175.0 M would finance the foreign exchange component (US$59.0 M) and about 39% of local cost, or about 49% of total project cost. All expenditures for the Gujarat component would be met from GOG's development budget which includes a GOI contribution. The credit would be made to GOI on standard terms. Agreements have been reached with GOI that it would: (i) make the proceeds of the credit, except disbursements for project preparation undertaken by GOI or other States, available to GOG on GOI's standard terms and arrangements for development assistance to the State;s and (ii) disbursements for project preparation expenditures in other States would be channeled to these States in accordance with GOI's standard procedures for development assistance to the States. Agreements have been reached with GOG that it would: (i) provide sufficient funds to execute the project in accordance with the implementation schedule for the five-year program supported under the credit; and (ii) after the credit has been dis- bursed, complete the three new schemes (Damanganga, Heran and Karjan) as soon as technically and financially feasible. Budgetary Implications 3.28 The GOG plans to allocate about US$750 M from its budget in the period 1978/79 through 1983/84 for the development and modernization of irrigation schemes. This amount, representing 25% of the budget, is consis- tent with Oast GOG policies. The total anticipated expenditure on major and medium irrigation is US$400 M, excluding Narmada, which will account for US$240 M over the next five years. The expected growth of Gujarat's economy and the expected growth in the sources of the state government revenues, transfers from the center and proceeds from external assistance and other loans, are such that the Government of Gujarat will be able to finance Plan expenditure envisaged over the next five years, including that for irrigation development. Procurement 3.29 Civil Works financed under the Project would cost approximately US$174 M excluding physical contingencies, price increases, engineering and administrative costs. Of this, about US$40 M or 23% of the civil works would be let through International Competitive Bidding (ICB); and about US$102 M or 59% would be let through Local Competitive Bidding (LCB); and the remaining US$32 M or 18% would be let under piecework contracts or be carried out by GOG's departmental forces. (a) ICB Contracts for Dams and Main Canal Works: US$40 M. Works for dams and main canals in excess of US$6 M per contract would be let in accordance with IDA-approved ICB procedures. However, to encourage the participation of smaller Indian contractors, tenders would be designed to allow tendering for parts of the works (individual sched- ules). The individual schedules would, in general, include only one type of work (for example, earthwork or structures). - 32 - Indian contractors would be entitled to a 7.5% preference. Tender documents would specify the requirements for pre- ference eligibility and the manner of its application. (b) On-going LCB Contracts for Dams and Main Canal Works: US$3.4 M. Construction of dams and main canals is in progress and some works have been awarded under multi-year contracts through LCB. Work on 18 su!h contracts, with an aggregate value of US$35.3 M and about US$24.8 M worth of work remaining, is ongoing at present. Four contracts, each costing less than US$6 M, have been found acceptable for financing under the project (see Volume III, Annex 6). These four contracts were let after the pre-appraisal mission identified them as components of the project and would have approximately US$3.4 M wor:h of works outstanding on April 1, 1980. (c) Other LCB Contracts: US$98 M. Most works which are individually small, scattered over a large area and carried out intermittently as determined by weather conditions, would be let through GOG's LCB procedures which have been reviewed and found acceptable to the Association. Contracts which exceed a value of US$1.0 M would be subject to full pre-action review by the Association, with the remainder subject to ex-post review. (d) None-ICB/LCB Works: US$32 M. These works would also be scattered, individually small and their implementation will be governed by weather and agricultural conditions. Because of these and other technical constraints there would be a general lack of competition which would make these works impractical for tendering. Most of these works would instead be carried out under small piecework contracts. Force account would be used only when required by safety, quality considerations or when the quantities are exception- ally difficult to estimate in advance. Force account would be limited to US$16 M. 3.30 The Central Water Commission (CWC) of GOI has recently developed model ICB and LCB contracts and procedures for works procurement that have been approved by the Association. The GOG has adopted these models and procedures and will use them for procurement of works under the project (see volume III, Annex 6 for detailed list of major civil works). 3.31 Equipment, Instrumentation and Vehicles financed under the project would cost approximately US$28 M excluding price contingencies. All heavy equipment and instrumentation worth about US$20 : would be let through ICB procedures. Local manufacturers will be entitled to a preference of 15% or prevailing customs duty, if lower, in the evaluation of bids. Tender docu- ments will specify the requirements for preference eligibility and the manner of its application. Light equipment and vehicles worth about US$8 M would be procured through LCB procedures acceptable to IDA. The equipment and vehicles - 33 - will be conveniently grouped to promote efficiency and attract competition; however, awards will also be accepted on individual schedules to attract small manufacturers. Because of existing servicing and spare parts supply facili- ties, there are considerable benefits to be derived from procuring local models of the items listed as light equipment and vehicles (see Volume III, Annex 5 for detailed list of equipment, vehicles and instruments). Disbursements 3.32 Disbursements would be made for: (i) 100% of the foreign expendi- tures for directly imported equipment; (ii) 100% for locally manufactured goods procured ex-factory; (iii) 70% for other locally procured goods; (iv) 100% of foreign and 70% of local expenditures for operational improvements, training, monitoring and evaluation; (v) 70% of expenditures for civil works incurred up to March 31, 1983 and 50% thereafter; and (vi) 100% of eligible expenditures for project preparation. Disbursements for force account work and for payments of less than Rs 300,000 under civil works contracts and Rs 150,000 for equipment and vehicles would be made against certificates of expenditure--itemized by sub-project--submitted by GOG. Documentation for these works would be retained by GOG and made available for inspection by IDA during review missions. Full documentation would be required for all other disbursements. The estimated schedule of expenditure, the semi-annual dis- bursement schedule and the proposed allocation of the proceeds of the credit are presented in Tables T-11 to T-13. It is expected that disbursements would be completed by June 1986. Accounts and Audits 3.33 The Irrigation and Public Works Departments is subject to normal Government control and auditing procedures are satisfactory. An agreement was reached with GOG that: (i) it would maintain separate accounts on project expenditures (accounts would be maintained for each scheme); (ii) these accounts would be audited by the State auditor; (iii) audit sum- maries would be submitted to IDA within nine months from the end of each fiscal year together with the auditor's reports; (iv) complete accounts and financial statements would -be made available for inspection during IDA review missions; and (v) disbursements against certificates of expenditure would in addition be audited through internal auditors. An agreement was also reached with GOI that the other states benefitting from the project preparation facilities would maintain accounts and be audited in accordance with the same procedures as agreed with GOG. IV. IMPLEMENTATION AND OPERATION A. Project Implementation Organizational Responsibilities 4.01 The Irrigation Department. The direct responsibility for the planning and implementation of the new major irrigation schemes and the main - 34 - civil works in the Saurashtra Coastal Development Scheme would rest with the Irrigation Department (ID). The ID, which has a sufficient staff of well- trained engineers to meet the increased construction workload 1/ under the credit, is organized, as shown in Chart C-2, into six branches, headed by Chief Engineers (CE)--five of whom are also Joint Secretaries--who work under the guidance of the Secretary, Irrigation: 2/ (a) The Irrigation Projects (IP) Branch is responsible for planning, design and construction of all medium and some of the major projects in the State. The IP Branch would be responsible for the Saurashtra scheme. (b) The Projects Branch was originally set up for the design and construction of the IDA-financed Kadana Irrigation Project (Credit No. 176-IN). Its responsibilities have now been extended to cover selected major projects in central Gujarat, including the Heran and Karjan schemes proposed for financ- ing under the credit. (c) The Narmada Construction Branch is responsible for plan- ning and construction of the Narmada Scheme. (d) The Narmada Planning Branch was establi'shed for the plan- ning and monitoring of the Narmada Scheme. It would be responsible for the Narmada planning component of the pro- posed project. (e) The Damanganga Branch is responsible for implementation of the Damanganga scheme. (d) The Irrigation (I) Branch operates all major and medium irrigation projects are present. It also assists the district Panchayats in the design and construction of minor irrigation projects. The I Branch has planned and started to implement the Ukai-Kakrapar modernization scheme. 4.02 The ID's construction organization is flexible and adjusted to the implementation program. The main units are the construction circles. Each circle is headed by a Superintending Engineer (SE) and handles a work program of US$5-10 M annually. All designs of canals and minor canal structures for the circle are prepared by a design office directly under the SE. Typically, the circle consists of 4-6 divisions, headed by Executive Engineers (EEs), 1/ However, the staff is not sufficent to meet the increased requirements for operating the system; the training institute to be financed under the credit would train staff to meet this shortage. 2/ Until April 1979, ID was a wing of the Public Works Department (PWD). The Secretary, Buildings and Communications retains certain administative responsibilities for ID. - 35 - and about 25 sub-divisions. The divisions employed on major projects have functional responsibilities, for example: canal surveys, masonry dam con- struction or quality control. Testing of construction materials is carried out by GOG's Engineering Research Institute (GERI). 4.03 The central support units report to the CE-IP. The three Water Resources Investigation Circles (WRI), headed by SEs, are responsible for the hydrological, geological and soil surveys and the preliminary design of all major and medium projects. In order to provide basic data for irrigation planning purposes, they maintain a network of rainfall and river discharge gauging stations and carry out in-depth studies of selected river basins in the State. The Central Design Organization (CDO) with three SEs, prepares detailed designs of earth and masonry dams and major canal structures. It lays down design standards and provides typical designs for minor canals and canal structures to the construction circles. The CDO has a special unit that also assists the construction circles in computerized PERT planning for proj- ect implementation. Model studies for the design of irrigation projects are carried out by GERI in Vadodara or by GOI's Central Water and Power Research Station in Pune, Maharashtra. In 1977, a Project Preparation and Monitoring Cell (PPM), with a multidisciplinary staff was established in order to better integrate agricultural development aspects in the planning of irrigation projects. The ID's Mechanical Organization--with heavy construction equipment--also reports to the CE-IP. 4.04 The Building and Communications Department (B&C). It would survey, plan, design, supervise construction and maintain the command area roads, acting as sole executing agency and in close consultation with the CAD Admini- strators. Overall control and liaison would be the responsibility of the Chief Engineer and Joint Secretary PWD and would be operated through the existing Roads Section of the Project Preparation and Monitoring Cell. This section which is headed by an Officer on Special Duties (OSD) of SE grade, would be strengthened so that the OSD would be supported by two EEs and four Deputy Engineers. Two Command Area Roads Circles would be created to be engaged exclusively on command area road works. To meet the implementation targets, both these circles would be established at the beginning of GOG's fiscal year 1980/81. In addition, two specialist Sub-Divisions would be provided in each of the four commands, one being responsible for quality control and one for maintenance of construction equipment. Back-up for these two services would be provided by the B&C Quality Control Organization and Mechanical Wing, respectively. The project would provide field testing equip- ment for quality control and mobile maintenance units to undertake a regular program of in spection and servicing of all equipment employed on the widely scattered construction sites. In order to improve the operational efficiency of road construction units, B&C would provide in-service training for engineers, supervisors, technicians and plant operators employed on project works. The organization of B&C is shown on Chart C-3. 4.05 CAD Authority. 1/ The GOG would appoint a special Project Manager for implementation of the Ukai-Kakrapar modernization works. He would be 1/ See paras 4.14-4.16. - 36 - under the administrative control of the CAD Commissioner but he would, in technical matters, report to the CE-I. He would be assisted by staff deputed from the Irrigation and Agricultural Departments. Three separate planning and design cells (one each for the Karanj, Umbrath and Surat Modernization areas and one for the coastal reclamation works) would be established, and staffed with irrigation engineers, drainage specialists and agriculturalists. An assistant project manager would be responsible for PERT planning and for day-to-day monitoring and evaluation: there would be a continuous feed-back from the field so that designs and construction methods can be modified based on actual experience. An expert group of engineers and agricultural experts would be established to advise on project implementation and to make a formal mid-term evaluation of the design and construction aspects of the moderniza- tion works. It is expected that in 1983 sufficient data would be available for the mid-term review and for formulation of the second phase program. 4.06 The reclamation of coastal lands in Ukai-Kakrapar would be inte- grated into the modernization works and be the rasponsibility of the project manager. The irrigation, drainage and protectio-n works would be planned and implemented as described above. However, an OSD would be functioning as assistant project manager for the agricultural development and settlement aspects. The GOG would appoint a committee or panel of experts to advise on implementation plans and to monitor progress on the coastal land develop- ment. The actual composition of the committee could be variable and flexible but it should be small--consisting of three to five members selected from Gujarat or throughout India. One member would come from the Central Soil Salinity Research Institute in Karnal; others would be from agricultural research institutions or from development projects where similar problems have been overcome successfully, or be consultants with expertise in selected fields. This committee would meet periodically (about once every six months) to advise on problems and to monitor progress. Implementation Programming (see Implementation Schedule - Chart C-1). 4.07 The New Major Schemes. The credit would finance a five year time- slice (approximately between April 1980 and 1985) of the three projects. The construction program would complete the dams, main and branch canals, the road networks and a major part of the distribution systems of the three projects. The irrigation system (lined distributaries, minors, sub-minors and unlined field channels from the 8 ha turnout to the fie1cs) and the drainage system would be constructed simultaneously and completed on a block-by-block basis. 1/ The command area roads would also be completed or a block-by-block basis. However, in order to facilitate the construction and reduce the cost of the irrigation works, the roads would be completed, where necessary, in advance of the other components. A commissioning period of at least two years would follow the completion of each block of the irrigation system. During this period, the Irrigation Department (ID) and the Command Area Development Authority (CADA) would be jointly responsible for the system and required 1/ An irrigation block--typically 3,500-4,000 ba--consists of the distri- bution system below the branch canals, as far as the government outlet, and includes field drains and the channels between this outlet and the individual farms. - 37 - adjustments to the system would be done by the ID. A special budgetary provision would be made for this purpose. The subsequent commissioning would verify that the design discharges could be delivered to all parts of the block. 4.08 Ukai-Kakrapar Modernization. Planning, design and construction of the modernization works would be a continuous process programmed on the basis of critical-path analysis. The objective of this analysis would be to imple- ment the works in a timely fashion with minimum interruptions of irrigation deliveries. Furthermore, there would be a continuous feed-back from the field so that designs and construction methods can be modified based on actual experience. The planning and design work would be carried out within such a time frame that the canal closures would be notified at least one year ahead to enable the farmers to make suitable adjustments in cropping patterns and, eventually, arranging a supplementary water supply. 4.09 Construction Methods. At present, canal and dam foundation excava- tion and canal and road embankment construction are implemented mostly by manual labor. Construction under the credit would continue to be labor- intensive. However, because of the rapid urban development in Southern Gujarat, significant migration of skilled construction workers to the Middle East and the heavy labor demand from the Narmada scheme which is just starting, it is expected that in the future an increasing share of the work tradition- ally done manually, would be carried out by machinery. Under the credit, all compaction of dams, canal and road embankments, paving of roads and some excavation--especially for drains--and stone breaking operations would be done with mechanical equipment. Large and medium sized contractors in Gujarat typically own most equipment. However, heavy and specialized equip- ment is usually owned by the ID and leased to the contractors. For work where quality control and safety is especially important or quantities are exceptionally difficult to estimate in advance, ID implements the work with its own equipment. 4.10 Land Acquisition and Resettlement. The construction of the three major irrigation schemes 1/ would include the resettling of about 5,700 families from villages submerged by the reservoirs on to new sites selected by the GOG. Number of Villages Cultivable Land Affected Submerged (ha) Heran 22 3,620 Karjan 28 2,560 Damanganga 36 4,420 Total 86 10,600 1/ The Ukai-Kakrapar Modernization and Saurashtra Coastal Development Works would involve only limited acquisition of land and no submer- gence of existing village sites. - 38 - 4.11 The GOG has a well developed policy for land acquisition, resettle- ment and rehabilitation of families displaced by major irrigation schemes. Full compensation is paid for land, houses and other immovable property. New village sites with schools, public buildings, roads, water and electricity supply are constructed by GOG. Transport of families to the new site with all household belongings and whatever building materials can be recovered from the old houses is provided by GOG. Furthermore, special resettlement grants are given to the affected families. 4.12 However, the most important feature of GOG's land acquisition policy is not the full compensation for property lost but the aim of rehabilitating the displaced families by providing alternative means for their future live- lihood. This is done though a variety of means: making cultivable land available--each family is provided with new land equal to the amount acquired by the GOG, however, if the original farm is smaller than 2.0 ha, the family would be given at least 2.0 ha; providing credit at favorable terms; estab- lishing dairy or fishing cooperatives; and vocational training. GOG's resettlement plans for the Damanganga, Heran and Karjan schemes include not only the standard provisions--i.e., new village infrastructure, allocation of cultivable land, etc.--but also the provision of irrigation facilities where technically and economically feasible. This would be done either by relocating the displaced families inside the command of a surface irrigation project or by providing irrigation wells or lift: irrigation schemes for the new farms. In allocating irrigable land preference would be given to those families from whom irrigated land has been acquired. To facilitate the rehabilitation of the displaced families, the GOG would appoint, for each scheme area, a rehabilitation committee comprising representatives of the resettled families, GOG officials from concerned departments and voluntary agencies active in the areas. The resettlement work would be supervised and coordinated by a Director of Rehabilitation in the ID. An agreement was reached with GOG that as part of its resettlement plans for the Damanganga, Heran and Karjan schemes, it would allocate cultivable land to the displaced families. 4.13 The protective, irrigation and drainage works in the tail-ends of the Ukai-Kakrapar modernization area (paras 3.08-3.13) would cover both pri- vately and publicly owned land. On-farm reclamation works on private land would be contingent on agreements by the owners to finance these works. The public land would be reclaimed through leaching and initial cultivation of green manure followed by paddy. After it is fully reclaimed, the land would be subdivided and settled. Settlers would be given 2 ha farms. Priority would be given to people living in the area. Any family presently owning less than 2 ha would be eligible to get land to bring their total holding up to about 2 ha. However, lots of less than 0.5 ha would not be distributed. People from reservoir submergence areas would be resettled--on a village-by- village basis--in a limited part of the reclaimed area. They would not be integrated into existing villages but settled into new villages that would be provided with all community facilites. - 39 - B. Irrigation System Development and Management Command Area Development Authorities (CADA) 4.14 At present, the direct responsibility for operation and maintenance of irrigation projects rests with the I Branch of the Irrigation Department (para 4.01). The I Branch also constructs field channels in the Ukai-Kakrapar project while the soil conservation wing of the Agricultural Department is responsible for construction of field channels in most other irrigation projects. In order to achieve an effective coordination between irrigation management and agricultural supporting services and to assist the farmers to carry out on-farm development, GOG has established three Command Area Develop- ment Authorities (CADA); one for Mahi-Kadana, one for Ukai-Kakrapar and one for a group of smaller schemes in Saurashtra and Northern Gujarat. Each CADA is headed by an Area Development Commissioner (ADC) who reports to the Secretary, Agri culture. However, the CADAs do not have any staff of their own and the ADCs fulfill only loose coordinating functions. The parent departments (the Agriculture and Irrigation Departments) retain full technical and partial administrative control of their field units. The performance of these field units is further hampered by the fact that there is no professional cadre of trained and experienced water management specialists who can operate the irrigation systems in full response to agricultural requirements or who can properly advise farmers on land development and on-farm water management. 4.15 Under the proposed project, a separate CAD Wing for water manage- ment would be established in the Agricultural Department. It would be staffed with properly trained land and water development specialists. Al- though initially the staff would be deputed to the CAD Wing, the objective is to transform the Wing into a separate department for water management with its own cadre of land and water management specialists. The GOG would examine the feasibility of establishing such a separate CAD Department. Over time, graduates from the water management and land development training center (para 3.22) would fill up the cadre. Short term training would also be provided for the deputed staff. 4.16 Special Circles would be established under existing CADAs for the Damanganga, Heran and Karjan command areas. The CADAs would be responsible for operation and maintenance of the projects; organizing the farmers to establish (together with the extension service) rotational water allocation schedules and advising farmers on land development and irrigation practices. When sufficient trained staff would be available, the CADAs would also be responsible for the survey, planning and design of the minor irrigation and drainage works. Water Allocation and Delivery 4.17 As noted in Volume II, present water allocation procedures do not ensure an equitable and dependable irrigation supply to the individual farmers, nor do they provide sufficient incentives for on-farm development. The project would finance the introduction of RWS in a number of existing schemes (para 3.23). From the start of irrigation in the new scheme areas, water deliveries to the farmers would be on rotational basis in accordance with - 40 - predetermined schedules established for the rabi and hot weather season. GOG would also examine how rotational deliveries can be introduced during the kharif season when rainfall is subject to significant variations. Before the start of each irrigation season every farmer under a distributary/minor would be notified by CADA of his allocation for water for the forthcoming season and the way the supply will be made available to him (rotational interval 1/). The allocation would be based on: (i) the seasonal availability of water; (ii) the cropping pattern and the calculated water demand for this pattern for the minor/distributary under which he is located; (iii) the size of his holding; and (iv) soil conditions. The farmer would have the right to refuse, within a stipulated time period, to use part or all of his allocation. Water not utilized by a farmer would be reallocated first to farmers under the same distributary/minor, but if they do not want to use it, to other farmers in the command., In establishing the allocation, preference could be given to small farmers. 4.18 Seasonal irrigation schedules would depend on the storage avail- able in the reservoirs and would be established through fortnightly assess- ments of scheme water requirements. These schedules would be based on updated rainfall and streamflow records, measured conveyance and distribution efficiencies and information feedback on actual cropping patterns in the command area. In the new schemes, the reservoirs would be operated to provide pre-monsoon irrigation for those kharif crops for which early planting is beneficial. Operation and Maintenance of Irrigation Systems 4.19 The irrigation and drainage networks would be constructed by the ID and handed over to the CADA for operation and maintenance (O&M). The basic field operating unit would be a distributary command block, covering about 3,000-5,000 ha and managed by a junior engineer, The block would be equipped with the necessary communication and climatic data collection devices. To ensure that the irrigation schemes are completely functional from the outset, the ID would commission each distributary block prior to handing it over to the CADA. The commissioning would be carried out by the ID during a period of 24 months after completion of construction and would include repairs or recon- struction to remedy any deficiencies in design and construction. A similar procedure would be used for the main and link drainage systems. To ensure adequate operation and maintenance of the canal systems, annual O&M budgets would be determined on the basis of a detailed operation and maintenance program for each segment of the scheme works, and the canals would be closed for maintenance for an appropriate period which would be determined and adequately publicized each year at the beginning of June. An agreement was reached with GOG that it would undertake periodic safety inspections of the dams and spillways in accordance with sound engineering practices. Road Maintenance 4.20 The B&C is directly responsible for maintenance of only the National and State Highways in Gujarat. All other roads are maintained by Local 1/ The frequency and amounts of irrigation deliveries would be adjusted to fit crop, soil and seasonal climatic conditions. - 41 - Authorities (Panchayats) which are controlled by elected bodies and whose operations are funded partly from various State departmental budgets and partly from local revenue. The Chief Engineer, B&C retains ultimate respon- sibility for the construction and maintenance of road works undertaken by the Panchayat Divisions, supervision being exercised through a Superintending Engineer at State level. In some cases, this arrangement is rather tenuous as it is very difficult to achieve effective technical control of a large number of divisions, located throughout the State, which are under the administra- tive and financial control of the semi-autonomous Panchayats. Consequently, an agreement was reached with GOG that it would maintain all project roads as well as all existing roads that form an integral part of the command area road networks. V. AGRICULTURAL PRODUCTION AND COST RECOVERY A. Agricultural Production 5.01 Present agricultural production in the new scheme areas and along the Saurashtra coastal plain reflects the uncertain rainfall. Average yields are low and cropping intensities only around 100%. This climatic risk factor is the principal constraint in the farmers' use of modern high yielding varie- ties, which require relatfvely costly inputs of labor, seed, fertilizer and chemicals. Existing minor irrigation facilities (wells, pumplifts), which are dispersed throughout the scheme areas, have demonstrated that local farmers quickly adopt profitable cropping patterns once an assured water supply is available. A wide variety of crops including high yielding sorghum, fodder, wheat, vegetables, flowers, fruit and sugarcane are grown under minor irriga- tion. Under assured year-round canal irrigation, farmers can be expected to adopt more profitable cropping patterns employing high yielding varieties, and to move away from the present subsistence type agriculture. The introduction of efficient farm irrigation and drainage practices, would, however, need considerable inputs from developmental research and agricultural extension. 5.02 Agricultural production in the new scheme areas and along the Saurashtra coast would increase through the adoption of more intensive crop- ping patterns (Table T-14) through increased yields (Table T-15) and from a switch from drought resistant to more water responsive crops. The Ukai- Kakrapar modernization would result in reduced water losses, more reliable irrigation supplies and improved drainage. As a result, the irrigated area would expand and both rainfed and irrigated yields would increase. Expected total incremental agricultural production at full development (about 10 years after commencement of irrigation delivery in each block of the irrigation schemes) is shown below for major crop categories; details of individual crop production are shown in Table T-14. - 42 - Incremental Production /a Foodgrains Sugarcane Fruit Cotton ----------------1,000 tons---------- Damanganga 66 123 59 0 Heran 43 0 89 5 Karjan 72 0 23 7 Ukai-Kakrapar 13 287 14 0 Saurashtra 10 0 0 8 Total 204 410 185 20 /a Incremental = Future with Project minus Future without Project (W - W). B. Cost Recovery Capital and 0&M Costs 5.03 The average capital costs for the three new major schemes are esti- mated as follows (details for each irrigation scheme are shown in Table T-18). /a /b Infrastructure- On-Farm Development-_ O&M Total -------------------Rs/ha of net CCA ----------------- Total Capital Costs 14,340 1,060 - 15,400 Annual Financial Requirement 1,460 /d 173 /e 100 1,733 /a Including sunk cost and field channels and drains. 7 Financed through institutional credit. Tc All expressed in June 1979 prices. /d In present value terms, at 10% interest rate over 50 years. /e In present value terms, at 10% interest rate over 10 years. 5.04 Annual O&M costs are estimated at Rs 100/ha. The costs of land development would be financed through institutional sources (refinanced by ARDC). The 10-year repayment schedule includes a 2-year grace period. Water and Water-Related Charges 5.05 At present, the prime vehicle for recovery of capital and 0&M costs for irrigation works is the water charge. GOG has a policy of reviewing and revising the water charge every two or three years. Over the last decade, the rates have increased about 2% annually in real terms, reflecting the increased - 43 - agricultural productivity. The present rates, together with the rates in Maharashtra, are the highest in the country: Crop Rate (Rs/ha) Paddy 106 Other Kharif Foodgrains 28 Groundnuts 76 Other Kharif Foodcrops 48 Wheat 76 Other Rabi Foodgrains 76 Cotton 126 Sugarcane 597 Orchards 693 Grass 48 5.06 For the projected cropping pattern of the three major schemes, the water rate would average about Rs 184 per cropped ha. A 20% local cess is levied on the water rate, which would bring the total assessment up to about Rs 220 per cropped ha or Rs 247 per ha of net CCA. 5.07 The Irrigation Act 1/ provides for the collection of a betterment levy from farmers benefitting from irrigation works. According to the Act, the betterment levy should be set at half the increase in land value due to an individdal project (defined on a before-and-after basis). The repayment period and the interest to be charged on the outstanding amount are set through an executive order, published in the Official Gazette. However, the assessment of the betterment levy has been successfully challenged in the courts, and, as in most other States, the levy is not collected at present. Other Agricultural Taxes 5.08 Since incomes in the agricultural sector are much lower than in the manufacturing and service sectors, the rate of agricultural taxation is rela- tively modest. The land revenue and associated cesses amount to about Rs 15-20 per ha. More important from a revenue point of view is the agricultural sales tax which is levied--at a rate of 4%--on cotton and oilseeds. It is estimated that GOG's revenues from the agricultural sales tax would increase on average by about Rs 40 per ha in the three major irrigation schemes. Purchase tax on sugarcane-at a rate of 6%--is another source of revenue. Levels of Cost Recovery 5.09 If the water and water-related charges remain at their present levels--in real terms--the GOG would recover about 27% of project cost from the three major irrigation schemes: 1/ The Bombay Irrigation Act of 1897, as subsequently modified. - 44 - Cost Revenue Cost Recovery (Rs/ha of net CCA) Index (%) Annual Capital and 0&M Costs 1,733 Direct Cost Recovery Water Charges 206 11.9 Cess on Water Rate 41 2.4 Incremental Land Revenue 18 1.0 Land Development 159 9.2 Sub-total 424 24.5 Indirect Cost Recovery Agricultural Sales Tax 40 2.3 Purchase Tax on Sugarcane 6 0.3 Sub-total 46 2.6 Total Cost Recovery 470 27.1 Evaluation of GOG's Cost Recovery Policy 5.10 The adequacy of GOG's cost recovery policies should be evaluated in terms of: (i) the usefulness of water charges to promote efficient use of irrigation water; (ii) the need to generate public savings to sustain a high level of investments in irrigation; and (iii) equity and the farmers' ability to pay water charges. 5.11 Promoting Efficient Water Use. In general, volumetric water rates promote a more efficient water use than area-based water charges, but the unlined distribution systems existing at present do not permit either a reli- able irrigation supply nor an accurate measurement of the water supplied to each farmer. The new technical standards for the distribution network and the rotation water supply introduced under the credit. are specifically designed to ensure that each farmer in the command areas receives a predetermined volume of water in a reliable fashion. Thus, it would be technically feasible to charge the farmers on a volumetric basis. 1/ 5.12 When the farmer is allocated a predetermined amount of water, he tends to select his crops and his intensity of irrigation in such a way that he optimizes his returns to water. In the absence of major distortions in the price structure of major crops, this allocation system generally leads to an efficient use of water. However, an area-based water charge provides an incentive to use the water on a smaller area than that which is desirable from society's point of view. Consequently, area based charges might adversely 1/ The volumetric measurement of water deliveries would be carried out at this stage by measuring the time during which a fixed flow of water is made available to the farmer at the chak outlet. - 45 - affect production if they are set at too high a level. Volumetric charges would allow farmers to vary their crops and the irrigated area to maximize the private and social returns to water irrespective of the level of water charges. The introduction of a system of water charges based on water quantities delivered is therefore of highest priority. 5.13 Public Savings. Although the water and water-related charges are relatively low and contribute little to the State's revenues, GOG is making a strong effort in resource mobilization by other means. 1/ In recent years, its tax revenue has increased by about 10% per year in real terms, and is presently about Rs 130 per capita or roughly 50% above the national average. Due to the difficulty of assessing and collecting taxes on the agricultural sector and the relatively low incomes in the sector, GOG depends heavily on indirect taxes on the non-agricultural sectors. 5.14 GOG would directly recover about 25% of project cost from the bene- ficiaries. In addition, GOG would recover about 2% through sales and pur- chase taxes on the incremental production resulting from the operation. This would bring the cost recovery index up to 27% and imply that about 73% of the costs are met from the Government budget. However, this over-estimates the net impact on the budget since the increased farm incomes would lead to further increases in GOG and GOI revenues through other indirect taxes. On the basis of agricultural production and indirect taxes for the whole State during 1960/61 to 1975/76, it is estimated that Rs 1.0 of value added in agriculture would generate about Rs 0.04 in indirect taxes other than those discussed earlier. Under the operation, the incremental value added would amount to about Rs 6,200 per ha and GOG's incremental revenues from non- agricultural taxes would be about Rs 250 per ha. 2/ Consequently, the net contribution from GOG's budget would be no more than Rs 1,010 per ha or about 58% of the annual financial requirements. 5.15 Farmer's Ability to Pay Water Charges. For the assessment of farmers' ability to pay water charges, the "project rent" has been estimated. The project rent is equal to net incremental farm income less the necessary rewards to the farm family for its labor, entrepreneurship and cultivation risk. The project rent has been analyzed for representative farm models in each scheme (Table T-19). At full development the project rent is estimated 1/ For a review of GOG's finances see: "Gujarat State Finances and Planning for Irrigation and Agriculture", by Roger Grawe, December 1977. 2/ It should be noted that this represents only part of GOI's and GOG's incremental revenue resulting from the operation. The reason is that increased agricultural incomes would generate growth in the non- agricultural sectors of the State's economy and the implicit taxation on these sectors are significantly higher than on agriculture. Thus, the total cost recovery from the direct and indirect benefits of the operation would be considerably higher. - 46 - to average about Rs 2,660 per ha. Thus if the water rates remain unchanged the rent recovery index for the project would be 18%. However, in the past, the water rates have been increased in real terms to reflect the increased benefits from irrigation. This trend is likely to continue in the future. Given the expected large increases in incomes as a result of the construction of the schemes, there would appear to be scope for subsequent increases in the water- related charges. 5.16 However, there are large variations nct only in the benefits accruing from different projects but also between different farmers in the same scheme. In view of the difficulties of assessing the benefits to each individual farmer, the general policy in India is to charge a uniform water rate. It has been observed in the older projects, that the water supply to most tailend farmers is highly unreliable and that their benefits from "irrigation" are fairly low. This is well illustrated by estimates of farm budgets in Ukai-Kakrapar (Table T-17). 5.17 Consequently, water rates have to be set at a low level in order to give the tailend farmers sufficient incentive to use irrigation water, even though the "average" farmer would be able to pay substantially higher charges. Because of the low charges, the "average" irrigated farmer makes a significant profit which is taxed only to a limited extent. Both from an equity point of view and from a resource mobilization point of view it would be desirable to have a system of water charges that are directly related to the benefits accuring t6 each farmer. Therefore, without volumetric charges, that better reflect the benefits of irrigation, the water charges will generally have to remain at a relatively low level. 5.18 Conclusion. The technical standards introduced under the project are specifically designed to ensure that each farmer in the command area receives a reliable water supply. Consequently, it would be technically feasible to collect water charges based on volumetric measurements of the water delivered. The cost per actually irrigated hectare of command area would be lower 1! than in existing projects, while at the same time the bene- fits to the individual farmer would be higher ane more secure. Efficiency considerations imply that the introduction of a charge related to the volume of water delivered is of the highest priority. Consequently, an agreement was reached with GOG that, by December 31, 1981, it would review the water and water-related charges in the State; and that, based on the outcome of the review and after paying due regard to IDA's comments, it would begin to exper- iment with different systems of volumetric charges to promote efficient water use by the consumers. By December 31, 1984, GOG would have evaluated the experience from these experiments and, if the experience is favorable, would start implementing a volumetric system of charges in all the scheme areas. These charges would recover the annual 0&M costs and, to the extent possible, the cost of the irrigation infrastructure. In establishing the level of charges, due consideration would be given to farmers' incentives and payment capacity and to the overall budgetary requirements of the State. The study 1/ However, the cost per hectare of command area would be higher than in existing systems. - 47 - would be based on a careful evaluation of the benefits accruing from the higher design standards and the rotational water supply introduced under the project. VI. BENEFITS AND JUSTIFICATION 1/ General 6.01 The proposed investment would lead to completion of three on-going major irrigation schemes, modernization of Ukai-Kakrapar (Gujarat's largest irrigation scheme), increased irrigation potential for coastal areas in Saurashtra and would assure operational and management improvements. It would increase the production of foodgrains, cotton, sugarcane, fruit and other crops, and generate additional and more stable employment opportunities for landless laborers and small farmers. 6.02 The overall impact in terms of agricultural production, employment generated and of farm families benefitting at completion at full development is summarized below: 1/ The assumptions regarding yields, prices, input requirements and the derived crop and farm budgets and economic benefits are given in Appendix 2 and Tables T-16 to 22. - 48 - SUMMARY OF BENEFITS AT FULL DEVELOPMENT Ukai Damanganga Heran Karjan Kakrapar Saurashtra Total Directly benefitting farm families 47,000 26,000 27,000 22,000 14,000 136,000 Increased irrigated area (ha) 62,200 36,900 62,900 7,900 20,200 190,100 Increased foodgrain production (1000 tons/year) 66 43 72 13 10 204 Increased cotton. production (1000 tons/year) - 5 7 - 8 20 Increased fruit pro- duction (1000 tons/year) 59 89 23 14 - 185 Generated family employment (jobs) 3,800 2,100 2,900 500 1,200 10,500 Generated farm employ- ment for hired labor (jobs) 7,900 4,200 5,800 900 2,500 21,300 Generated Non-farm employment (Jobs) 19,900 11,000 18,600 2,100 6,900 58,500 Value added to local economy (RsM) /a 640 330 600 70 220 1,860 /a Defined as the sum of gross farm incomes minus cash inputs (excluding labor). Employments Effects 6.03 The provision of new and the improvement of existing irrigation schemes would have strong emloyment generation effects. The irrigation schemes together would increase family employment by about 3.2 M mandays which is equivalent to the creation of about 10,000 full-time jobs. More important from an equity point of view would be the creation of about 21,000 full-time jobs for non-family labor. The latter would consist largely of landless laborers, from the area and migrants from outside. 6.04 With an increase in value added in agriculture of some Rs 1,900 M, the operation would generate additional income and employment in local non- farm sectors such as marketing, transport and processing. On the basis of district level data on value added in agriculture and non-farm employment in the State of Karnataka in 1970/71, 1/ (with adjustments for inflation between 1970/71 and 1979/80), the increase in non-farm employment is expected to be of the order of 58,000 manyears. Thus, the operation would substantially decrease the high level of unemployment and under-employment in the scheme areas and help to stem rural-urban drift. 1/ See IBRD Staff Project Report: Appraisal of the Karnataka Irrigation Project, March 15, 1978. Report No. 1835a-IN. -49 - Income Effects 6.05 Low, poorly-distributed and variable rainfall is the major constraint facing farmers in Gujarat. Once this constraint is released, substantial income gains are possible. In the three major schemes, the average net increment in farm incomes is estimated at about 215%. The estimated income effects are: Net Farm Incomes /a Future With- Future With Relative Increase Scheme Farm Size Present Out Project Project Due to Project % (ha) P W W W-W x 100 -----------------Rs-------------------- W Heran 0.5 530 710 2,280 221 3 2,750 3,780 13,130 247 8 6,400 9,090 32,070 253 Karjan 1 820 1,280 4,610 260 3 2,090 3,430 13,460 292 8 4,810 8,220 33,130 303 Damanganga 0.5 720 1,070 2,740 156 3 3,910 5,910 15,700 166 5 6,100 9,260 25,230 173 Weighted Average per ha 990 1,500 4,720 215 /a After deduction of water and land related charges; for Ukai-Kakrapar and Saurashtra farm income estimates, see Table T-17. Impact on Rural Poverty 6.06 The project would significantly reduce the incidence of poverty in the scheme areas. The following table shows the percentage of farm families with incomes 1/ below the poverty line (US$75 per capita): 1/ This was derived using the distribution of farm sizes and the estimates of net farm income/ha; estimates were made of off-farm income and of average family size. - 50 - % of Participating Farm Families Below Poverty Line /a Future Without Present Project Heran 78 15 Karjan 90 13 Damanganga 77 38 Ukai-Kakrapar 33 19 Saurashtra 45 7 Weighted Average 70 20 /a The estimated poverty line is Rs 600 p.c. per annum. 6.07 Income levels of landless laborers in the scheme areas are generally lower than the incomes of small farmers. The effects of the project on the incomes of landless laborers are difficult to forecast, but a survey in the Tungabhadra command area 1/ of Karnataka revealed that as a result of irriga- tion, the average days worked annually by landless laborers increased from about 130 to 230 days. With an increase in hired labor demand of 5.6 M man- days, the operation would almost double the average income of some 50,000 landless laborers in the project areas. Economic EV'aluation 6.08 The assumptions used for the economic evaluation are detailed in Appendix 2. Appropriate conversion factors have been applied to all costs and benefits to make them comparable at world market prices. The cost and benefit streams have been discounted over a 50-year period (30 years in the case of Ukai-Kakrapar Modernization Scheme). The overall economic rate of return (ERR) is estimated at 18%. The ERR and the net present values for the project individual components are as follows: ERR Net Present Value at: (%) 10% 12% Damanganga 16 298 147 Heran 17 293 162 Karjan 21 696 441 Ukai-Kakrapar 20 255 172 Saurashtra 18 68 18 Whole Project 18 1,610 940 Sensitivity Analysis and Project Risk 6.09 The results of sensitivity analyses indicated that only large (and unlikely) deviations from the project assumptions would cause the various 1/ Canal Irrigation in Bellary District, G.P. Xishra, M. Vivekananda and Y.K. Jayaram, mimeograph, undated. - 51 - components not to be economically viable. The relative output prices would have to decline by one-third, future with project yields by one-fifth, or the construction cost would have to increase by at least 60%. With the exception of Ukai-Kakrapar, the ERRs are relatively insensitive to construction delays or to a slower buildup of agricultural benefits (see Table T-23). 6.10 However, the sensitivity analysis did highlight the critical impor- tance of careful scheduling of the Ukai-Kakrapar modernization works. Any prolonged closure of the canal system would result in lost agricultural pro- duction. Assuming that the canal system--inside a distributary block--would be closed for 6 months each construction year, the ERR would be related to the construction period in the following manner: Years of Construction ERR 1 27% 2 20% 4 12% 6 8% 6.11 In Ukai-Kakrapar, the modernization works would be carried out on a distributary-by-distributary basis and, thus, the closures would be limited in time. However, from an economic point of view, one 6-month closure period would have 'cost equivalent to 70% of the basic civil works cost. Thus, in order to avoid two 6-month closure periods, it would be appropriate to spend as much as an additional 140% on civil works to provide an alternative source of water during the construction period. 1/. Environmental Effects 6.12 The main water-related diseases in Gujarat are malaria and typhoid. The construction of drainage facilities and the lining of canals in the new schemes would minimize areas of stagnating water which are suitable breeding grounds for mosquitoes. Also, borrow-pits excavated in the course of project implementation would be drained. Under these conditions, it is not expected that the incidence of malaria and typhoid would increase due to the construc- tion of the new schemes. The modernization and drainage works would signif- icantly reduce waterlogging and drainage problems in the Ukai-Kakrapar area. The Saurashtra coastal development works would improve the groundwater quality in the area. Thus, the overall environmental effects of the new schemes would be positive. However, an agreement would be reached with GOG that it would take all necessary measures to minimize the hazards of malaria and other water- related diseases in areas covered by the credit. 1/ No attempts have been made in this analysis to assess the effects of closing a major part of a scheme to make improvements on a main canal. However, the results discussed above indicatet that in schemes with a large percentage of the area under hot weather and perennial crops, the cost of closing down a whole or major part of the system could exceed the potential benefits that might result from improvement works on main canals. - 52 - VII. RECOMMENDATIONS 7.01 Agreements have been reached with GOI that: (a) it would make the proceeds of the credit, except disburse- ments for project preparation in other States, available to GOG on GOI's standard terms and arrangements for deve- lopment assistance to the States (para 3.27); and (b) part of disbursements for project preparation expenditures would be channelled to the States in accordance with GOI's standard terms and arrangements for development assistance to the States (para 3.27); and (c) the States benefitting from the project preparation facili- ties would maintain accounts and be audited in accordance with procedures agreed for GOG (para S.33). 7.02 Agreements have been reached with GOG that: (a) it would implement the project works in accordance with the planning criteria, the design and construction stan- dards and the operational procedures listed in Annex 1 (para 1.17); (b) it would maintain its independent panel of experts who would review dam safety and efficiency (para 3.03); (c) it would undertake periodic safety inspections of the dams and spillways, financed under the project, in accordance with sound engineering practices (para 4.19); (d) whenever necessary, existing roads in the command areas would be upgraded to project standards in phase with project road development (para 3.07); (e) it would commence a training program for land development and water management specialists by Ocl:ober 1, 1981 (para 3.22); (f) it would provide sufficient funds to execute the project in accordance with the implementation schedule for the five-year program supported under the credit (para 3.27) (g) it would, after the credit has been disbursed, complete the three new schemes (Damanganga, Heran and Karjan) as soon as technically and financially feasible (para 3.27); - 53 - (h) (i) it would maintain separate accounts on project expen- ditures (accounts would be maintained for each scheme); (ii) these accounts would be audited by the State auditor; (iii) audit summaries would be submitted to IDA within nine months from the end of each fiscal year together with the auditors reports; (iv) complete accounts and financial statements would be made available during IDA review missions; and (v) disbursements against certificates of expenditure would in addition be audited through internal auditors (para 3.33); (i) as part of the resettlement plans, it would allocate culti- vable land to the displaced families (para 4.12); (j) it would maintain all project roads as well as all existing roads that form an integral part of the command area road networks (para 4.20); (k) it would, by December 31, 1981, review the water and water- related charges in the State; and that, based on the out- come of the review and after paying due regard to IDA's comments, it would begin to experiment with different systems of volumetric water charges to promote efficient water use by the consumers (para 5.18); (1) it would, by December 31, 1984, have evaluated the experience from these experiments and, if the experience is favorable, would start implementing a volumetric system of charges in all the scheme areas (para 5.18); and (m) it would take all necessary measures to minimize the hazards of malaria and other water-related diseases in areas covered by the credit (para 6.12). 7.03 With the above agreements, the proposed project would be suitable for a credit of US$175 M on standard IDA terms. The Borrower would be the Government of India. April 9, 1980 54 55 Appendix 1 Page 1 INDIA GUJARAT IRRIGATION II PROJECT Criteria for New Projects 1/ 1. Planning Process (a) Planning of irrigation projects would be a continuous process into which there is a systematic feedback of experience. To make this possible, a continuous monitoring and evaluation program is required to feed back information to the planners from current experience on the construction and operation of the project under implementation and from other projects. For this purpose, the project preparation and monitoring cells would be suitably strengthened; and (b) A systematic experimental and research program would be under- taken so that fully developed and evaluated technologies are available when the time is ripe to introduce them. This means that research has to be started today on technologies that will be needed and ready for introduction 10-15 years from now. Provision for this would be made under the Project. 2. Project Preparation (a) A continued upgrading of existing procedures for collecting hydrological data from rivers feeding the project, including the continual collection and evaluation of monthly flow records and the use of computerized reservoir operation studies; (b) Systematic classification of the command area for irrigability (on the basis of detailed topographical, soil and drainage surveys, etc); and (c) Preparation of periodic reviews (i.e., at approximately five year intervals) to highlight socio-economic changes in the project areas (e.g., labor and farm power availability) which influence cropping patterns and water demand. 3. Design Standards (a) Increased professional manpower made available for the survey, planning and design of the minor distribution system; (b) Appropriate large-scale survey work to permit proper align- ment of minor conveyance channels and outlets; 1/ Partly, these criteria codify existing practices in Gujarat. 56 Appendix 1 Page 2 (c) Design of the required number of cross regulators in the main and distributary canals allowing the network to be operated efficiently at two-thirds of design depth. (d) Lining of the entire conveyance system from the dam intake down to irrigation turnouts that serve approximately 8 ha blocks. 1/ (Implied in this criterion is the objective that no field should be further away from a lined channel than 300 m.) The lining would be of high quality as to reduce conveyance losses and maintenance; (e) A piped distribution system (from minors down) would be pro- vided wherever sufficient natural head is available unless it is economically not viable. Turnouts from this system would typically serve 8 ha blocks; (f) The minor distribution system would be planned "from the tail-up". Thus the alignment of minors a:id sub-minors would be decided first after a tentative layout of the field channels has been prepared; (g) Chak sizes should be based on topography, soils, cropping patterns and farm sizes, but would in general not exceed 20 ha. For operational purposes, the chaks would be broken up in 8 ha sub-chaks each served by a gated turn- out; (h) Measuring devices (such as standing wave flumes and V-notch weirs) would be provided throughout the system down to the Government outlet; (i) Service roads would be provided along all channels with a capacity above 50 cusecs and all weather bicycle/motorcyle paths along all minors; (j) A master plan of the drainage system would be prepared together with the irrigation system and in coastal areas drains would be provided with tidal regulators; and (k) A modern communication system would be provided in the catchment area (for flood control purposes) and at various control points on the canal, the dam and the divisional headquarters. 1/ The Damanganga project area has high rainfall and heavy soils. Since ample water would be available in the river, the lining would be extended by down to the 20 ha level. However, the turnouts would serve 8 ha blocks. Furthermore, distributaries, with a capacity between 10 cusecs and 100 cusecs, would be lined selectively depending upon the estimated seepage losses from unlined channels. 57 Appendix 1 Page 3 4. Construction Standards (a) The irrigation system (lined distributaries, minors, sub- minors and unlined field channels from the 8 ha turnout to the farm-gate), and the drainage system and road networks would be constructed simultaneously by the Government and completed on a block-by-block basis; where necessary to fac- ilitate the irrigation and drainage works the road network would be constructed in advance of the other components; (b) A commissioning period of at least two years would be intro- duced. During this period required adjustments to the system would be done and a special budgetary provision would be made for this purpose. The commissioning would be on a block-by-block basis; (c) The organization for monitoring implementation performance (both in quality and quantity terms) would be suitably strengthened,at both project and Sachivalaya level; and (d) An existing dam review panel composed of specialists in engineering geology, flood hydrology, dam design and con- struction, would be maintained during project implementation. This'panel would meet periodically as required, but not less than once in 12 months, to review and evaluate all data and design and construction practices, and make specific recom- mendations to GOG concerning: embankment safety; foundation and abutment integrity; and spillway capacity. 5. Operational Procedures (a) Water deliveries to the farmers would be on rotational basis in accordance with predetermined schedules established for the rabi and hot weather season. GOG would examine how rota- tional deliveries can be introduced during the kharif season when rainfall is subject to significant variations; (b) Before the start of each irrigation season, every farmer under a distributary/minor would be notified by CADA of his allo- cation for water for the forthcoming season and the way the supply will be made available to him (rotational interval). The allocation would be based on: (i) the seasonal availability of water; (ii) the cropping pattern and the calculated water demand for this pattern for the minor/distributary under which he is located; (iii) the size of his holding; and (iv) soil conditions. The farmer would have the right to refuse, within a stipulated time period, to use part or all of his allocation. Water not utilized by a farmer would be reallocated first to farmers under the same distributary/minor, but if they do not want to use it, to other farmers in the command. In estab- lishing the allocation, preference could be given to small farmers; 58 Appendix 1 Page 4 (c) Seasonal irrigation schedules would depend on the storage available in the reservoirs and would be established through fortnightly assessments of project water requirements. These schedules would be based on updated rainfall and streamflow records, measured conveyance and distribution efficiencies and information feedback on actual cropping patterns in the command area; (d) Irrigation water for kharif crops, for which early planting is beneficial, would be available at the beginning of June and the project reservoirs would be operated to provide appropriate carryover storage for pre-monsoon irrigation; (e) The canals would be closed for maintenance for an appropriate period which would be determined and publicized each year at the beginning of June; (f) Annual O&M budgets would be determined on the basis of a detailed operation and maintenance program for each segment of the schemes; and (g) The method of assessing water charges would be revised to promote the use of kharif irrigation. 6. Organizational Changes (a) A separate CAD Wing for water management would be established in the Agricultural Department. It would be staffed with properly trained land and water development specialists. Although initially the staff would be deputed to the CAD Wing, the objective is to transform the Wing into a separate department for water management with its own cadre of land and water management specialists. The GOG would examine the feasibility of establishing such a separate CAD Department; and (b) Special Circles would be established under existing CADAs for the Damanganga, Heran and Karjan command areas. The CADAs would be responsible for operation and maintenance of the projects; organizing the farmers to establish (together with the extension service) rotational water allocation schedules and advising farmers on land development and irrigation practices. When sufficient trained staff would be available, the CADAs would also be responsible for the survey, planning and design of the minor irrigation and drainage works. 59 Appendix 2 Page 1 INDIA GUJARAT IRRIGATION II PROJECT Economic Analysis General 1. The economic prices of major traded agricultural outputs and in- puts are derived from the IBRD projected 1990 world market prices expressed in 1979 currency value with appropriate adjustments for freight, handling and processing. The projected economic prices for non-traded foodgrains, on the other hand, are derived by applying a foodgrain conversion factor to the financial prices of various crops are projected on the basis of their historical price trends. Present and projected financial and economic prices are given in Table T-20. The cost and benefit streams are given in Table T-21. The detailed assumptions behind the estimates are described below. Official Exchange Rate (OER) 2. 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 ex- change is subject to change. Conversions of financial prices have been made at US$1 to Rs 8.40, which represents the projected exchange rate over the disbursement period of the credit. Standard Conversion Factor (SCF) 3. The benefits of the operation are evaluated at world market prices, i.e. they measure what India would have to pay for imports or receive for exports. Most of the costs, however, are for items that are not traded on the world market. Tariffs and trade restrictions introduce a distortion in the price relationship between traded goods - valued at world market prices - and non-traded goods - valued at local prices. Thus, the costs are not directly comparable with the benefits. In order to make them com- parable, an SCF is applied to the price of non-traded goods and consumption. In the absence of trade restrictions, the SCF can be approximately calculated using the formula: 60 Appendix 2 Page 2 X + M SCF = X +S +M 4T 1/ x m - For the period since 1970, this calculation gives an SCF of 0.86. However, since this estimate does not take into consideraLion quantitative restric- tions, it provides only an upper limit for the SCF. The Indian Planning Commission recommends for the evaluation of industrial projects the use of conversion factors for foreign exchange and for untraded goods that impli- citly give a SCF of about 0.75. Because of the approximate nature of this estimate, a SCF of 0.8 has been used in the economic analysis. Prices of Agricultural Outputs 4. The economic prices for traded goods such as rice, wheat, cotton, groundnuts and sugarcane are based on their border prices at the official exchange rate (OER). The domestic cost component-s (i.e. local transport and marketing charges) are adjusted by the SCF of 0.80. The economic prices for non-traded foodgrains (sorghum, maize and pulses are assumed to be non-traded) are derived by applying a foodgrain conversion factor (FCF) to the financial price. The FCF can be estimated with the following formula: FCF = (Q rice x PE rice) + (Q wheat x PE wheat) (Q rice x PE rice) + (Q wheat x PF wheat) Q: Gujarat production PE: Economic price PF: Financial price The projected financial prices for various crops are based on the estimated historical price trends in Gujarat and India. Prices of Agricultural Inputs 5. Fertilizers, pesticides and insecticides are potentially traded commodities; to make allowance for taxes and subsidies and the total cost of transport and marketing, a conversion factor of 0.95 has been applied to the financial price. The financial price of bullocks and miscellaneous charges has been multiplied by the SCF to express them in economic terms. Analyses of farm labor supply and demand in various Indian irrigation projects typic- ally give an economic shadow wage rate for farm labor in the range of 1/2 to 2/3 of the average financial wage rate. For the analysis of this project a shadow wage rate of 67% of the market wage has been assumed. 1/ X = fob value of exports at the official exchange rate (OER); M = cif value of imports at OET; S = export subsidies; T = import duties. 61 Appendix 2 Page 3 Construction Conversion Factor (CCF) 6. The schemes would be constructed using a mixture of equipment, skilled and unskilled labor. For the economic analysis, the CCF is estimated as follows: (a) Traded Component - This component includes capital-intensive works which require imported materials. Since it is traded, the conversion factor is 1.00. It is estimated that about 15% of the construction costs fall under this category. (b) Non-Traded Component - This component includes works that require skilled labor and locally manufactured materials. The SCF of 0.80 is used as the conversion factor for these works. About 30% of the construction costs are included in this category. (c) Unskilled Labor - A minimum wage is in force in Gujarat. Since daily worker virtually never are paid above the minimum wage, it is likely that this wage is higher than the wage at which the workers would be willing to work (i.e. their supply price). Civil works construction is harder physical work than farming, and experience from similar areas in India indicates that the laborers require a premium of 25%-30% to shift from agriculture to construc- tion work. By comparison with agricultural wages in the State, it is estimated that the construction laborers' supply price is about 15% to 20% below the minimum wage. This gives a shadow wage factor which is 10%-20% below the SCF, or approximately equal to 0.67. It is estimated that unskilled labor constitutes about 55% of the con- struction cost. Conversion Factor Traded Items 1.00 Non-traded Items 0.80 Unskilled Labor 0.67 Construction Costs (weighted average) 0.75 Land Acquisition and Resettlement Costs 7. Costs of the operation include the cost of resettling families from villages submerged by the reservoirs. The economic cost of resettle- ment is calculated by multiplying the financial cost by the construction conversion factor (CCF). Where the cost of land acquisition is concerned, the real cost to society is the opportunity cost, that is, the production foregone by the submersion of the land in the reservoirs and the loss of lands acquired for the construction of the distribution system. The per ha value of production in the future "without project" situation was taken to represent this opportunity cost and deducted from the benefit stream. 62 Appendix 2 Page 4 Economic Rate of Return and Net Present Value 8. The economic cost of all civil works, equipment, land acquisition, administration and engineering, operation and maintenance costs have been included in the derivation of the ERR. Discounting costs and benefits over a 50 year period, the estimated rate of return and the net present value of 10% and 12% interest rate for each scheme at full development are as follows: Net Present Value Rs M ERR 10% 12% Heran 17% 293 162 Karjan 21% 696 441 Damanganga 16% 298 147 Ukai-Kakrapar /a 20% 4.9 3.3 Saurashtra 18% 68 18 Whole Project 18% 1,610 940 /a 1000 ha development block with cost and benefits discounted over 30 years. Sensitivity and Risk Analysis 9. Several tests were performed to determine the sensitivity of assump- tions made in the economic analysis (see Table T-23). The sensitivity of ERR to changes in output prices and yields is moderate. A decrease of more than 20 per cent in either of these variables in the major schemes would lower the ERR below that of the opportunity cost of capital. The sensitivity to in- creases in construction cost is very low, however, that is the case only under the assumption of no construction delays. Construction delays, a frequent occurrence in Indian irrigation projects, would slow down agricultural devel- opment in scheme areas. 10. The existing analysis did highlight the critical importance of careful scheduling of the Ukai-Kakrapar modernization works. Any prolonged closure of the canal system would result in lost agricultural production. Assuming that the canal system -- inside a distributory block -- would be closed for six months each construction year, the ERR would be related to the construction period in the following manner: Years of Canal Closure ERR 1 27% 2 20% 4 12% 6 8% 63 Appendix 2 Page 5 11. Since the modernization works will be done on a distributory-by- distributory basis, the closures will be limited in time. According to the analysis, one six-month closure period would have "cost" equivalent of 70% of the basic civil works cost, i.e. it would be appropriate to spend as much as an additional 140% on civil works to provide an alternative source of water during the construction period. 12. No attempts have been made in this analysis to assess the effects of closing a major part of a scheme to make improvements on a main canal. However, the results discussed above indicate that in schemes with a large percentage of the area under hot weather and perennial crops, the "cost" of closing down a whole or major part of the system could far exceed the potential benefits that might result from improvement works on main canals. Estimates of Benefits for the Saurashtra Coastal Development Scheme 13. The value of water at plant was estimated for the Saurashtra coastal irrigation schemes to quantify scheme benefits. The estimates were conducted by using two independent methods: Method 1: estimates of net incremental return per ha and crop water requirements per ha for a typical cropping pattern in the area was used to estimate the value of one cubic meter of water 3(see Table T-22). The resulting weighted average return per one m is Rs 0.62. Method 2: yield of groundnuts, a predominant crop in the area was estimated as a function of effective rainfall. District data on rainfed yields and monsoon rainfall (MR) for the period 1972-76 were adjusted for trend growth up to year 1978/79 with the resulting equation: Yield = -52.1 + 1865.9 MR - 587.0 MR2 Using daily rainfall data for two stations in Saurashtra over five years, the effective rainfall (ER) was estimated in accor- dance with the "Potential Evapotranspiration/Precipitation Ratio Method." 1/ Subsequently, ER was expressed as a function of MR through regression analysis. The resulting relationship was: ER = 7.763 x MRO.634 The yield of groundnuts was then derived as a function of effective rainfall by merging the two equations (see Chart in Table T-22). he resulting marginal value of water at plant was estimated at Rs 0.63 per m of water. 1/ FAO Irrigation and Drainage Paper No. 25, page 24. 64 Appendix 2 Page 6 14. The alue of water at the plant was f.rthSr adjusted to give the valuS of one m at the pumping station. From one m pumped from the resirvoir 65 m would be available for urface irrigation at plant, from the .35 m remaining in the aquifer .2 m would be utilized for irrigation from wells. In recharge of one m of groundwater .76 would be available at plant, i.e. .152 from the reservoir as could be seen overleaf from a flow chart: one m3 of water - 0.65 available at plant through surface irrigation at reservoir .35 in aquifer 2 groundwater -.152 available at plant recharge .15 lost .048 lost Adjusted for losses in the Irrigation system, the benefits of one m3 at pump station are then estimated at about Rs 0.49. 15. The total storage capacity of regulators and bandharas in 3the Saurashtra Coastal Devilopment Scheme is estimated at about 80.8 Mm . The total inflow of 202 3Mm corrected for losses due to evaporation and percola- tion gives 130.9 Mm of water available for irrigation, i.e, the value of water is estimated at about Rs 64.14 M at full development. 16. Since the water supply situation for bandharas and regulators is similar, direct comparison is possible. 3Weighting the capital cost of all schemes gives an average of Rs 2.0 per m of water storage available. The weighted average of capital cost of regulators and bandharas and the O&M cost for pumps and distribution systems were adjusted for economic analysis. Dis- counting the weighted average of cost and benefits over a 50 year period the ERR is 18% (Table T-22). INDIA GUJARAT IRRIGATION II PROJECT Area Characteristics Land Holding Rural Average Annual Topography No. of Irrigation Scheme Population Rainfall % Slope % of Area Size Farmers Area (Service Area, ha) (No.) (mm) (ha) (%) (%) Damanganga <0.6 43 0-1 61 19 (56 00 ha) 240,000 1,800 0.6-3 51 1-5 33 46 >3 6 >5 6 35 Heran <0.6 81 0-2 43 14 60,000 900 0.6-3 19 2-5 38 38 011 >3 0 >5 19 48 Karlan <0.6 56 0-1 30 6 (56,200 ha) 150,000 900 0.6-3 35 1-5 59 54 >3 9 >5 11 40 Jkai-Kakrapar 1/ 1,500 (South) <1 98 0-1 39 8 (50,000 ha) 200,000 600 (North) 1-3 2 15 48 48 >5 13 44 Saurashtra <1 95 0-2 22 5 (25,000 ha) 280,000 600 1-3 2-5 34 21 >5 44 74 1/ Part financed by IDA. i I-A 66 TABLE T-2 INDIA GUJARAT IRRIGATION II PROJECT Salient Features of the Dams Damanganga Karjan Heran 1. Name of Reservoir Damanganga Karjan Heran 2. River Damanganga Karjan Heran 3. River Basin Damanganga Narmada Narmada 4. Catchment Area (in Sq. Km): Total 1,813 1,403 945 Productive 495 1,017 484 5. Yields (in Mm3 ): a) 75% dependable 640 446 186 b) Average from Reservoir Operation Study 771 675 256 '3 6. Storage (in Mm ): a) Gross 566.3 630.0 379.2 b) Live 501.5 581.0 319.8 7. Maximum Height of Dam (in Meters): Masonry 48.5 93.7 46.4 Earthfill 31.2 - 39.4 8. Crest Length (in Meters): Masonry Non-Overflow 161.2 693.9 132.4 Masonry Overflow 191.1 191.1 182.3 Main Dam Earthfill 2,376 - 707.7 Saddle Dams 100 74.0 1,009.6 Total 2,828 959.0 2,032 9. Spillway: Type Gated Ogee Gated Ogee Gated Ogee Size (Numbers and. Meters) 10 Nos. 10 Nos. 10 Nos. 15.54 x 14.02 15.54 x 14.02 14.94 x 10.67 Inflow Design Flood (Cusecs) 19,960 15,260 10,300 10. Elevations (in Meters): Full Reservoir Level 79.86 115.25 146.30 High Flood Level 79.86 115.25 146.30 Top of Dam 83.52 117.70 149.35 INDIA GUJARAT IRRIGATION II .PROJECT Canal Network Features -------Command Area--------- Bed Flow Irriga- Length Bed Width Depth B/d ---Capacity----- CCA tion Principal (Km) Gradient (m) (m) Ratio Cumecs 1/s/ha (ha) Blocks Crops Damanganga Paddy, orchard, and grassland R.B.M. Canal 45.5 1:4,000 5.79 2.59 2.24 30.58 0.86 35,510 8 L.B.M. Canal 33.4 Ridge 3.00 1.35 2.22 11.46 0.61 18,690 4 Karjan Cotton, wheat, and groundnuts a R.B.M. Canal 12.6 Ridge 2.36 1.56 1.51 9.06 0.66 13,690 4 L.B.M. Canal 52.0 1:3,000 3.89 2.67 1.46 28.30 0.67 42,510 12 and 1:5,000 4.27 2.67 1.60 Heran Cotton, wheat, and groundnuts R.B.M. Canal 29.8 1:4,000 2.95 2.09 1.40 11.35 0.63 18,015 5 and 1:5,000 L.B.M. Canal 6.2 1:5,000 2.50 1.78 1.40 8.24 0.57 14,105 3 INDIA GUJARAT IRRIGATION II PROJECT Summary of Present and Forecast Groundwater Balances Surface Mean Annual Estimated Net Draft % of Net Draft % of Irrigation District Area Rainfall Recharge 1976/77 Recharge 1980/81 echarge Scheduled (kmz) (mm) (Mcm) (Mcm) (Mcm) (ha) Ahmedabad 8,707 782 639 152 24 230 36 1/ Sabarkantha 7,390 749 898 444 53 509 57 30,770 Rajkot 11,203 594 771 436 56 454 59 27,940 Junagadh 10,607 844 598 347 58 368 62 61,940 Jamnagar 14,125 466 383 248 65 261 68 18,620 Kutch 45,612 340 336 154 46 192 57 19,840 Surendranagar 10,488 487 278 168 60 178 64 18,220 o' Amreli 6,760 515 400 333 83 348 87 6,100 Bhavnagar 11,155 620 619 331 54 353 56 23,480 Valsad 5,238 1,071 1,091 67 6 79 7 70,850 Kaira 7,194 770 1,736 218 13 288 17 7,690 Vadodara 7,788 917 788 142 18 215 27 157,490 7 1 r Surat 7 ,7/45 1,806 1,571 146 9 161 10 24,290 Banaskantha 12,702 758 944 237 25 305 32 10,530 Bharuch 9,045 877 595 66 11 117 20 13,360 Panchmahals 8,866 1,027 601 186 31 196 33 64,780 Mahesana 9,027 613 708 644 91 668 94 3,000 1/ Some local overdraft near city, but large surface irrigation development scheduled. INDIA GuJARAT IRRIGATION II PROJECT Summary of Irrigation Water Requirements (using 507 Probable Precipitation Measured at Vadodara) Requirement at Crop Aprnt Marte 6un Jul _02Aug Set- Oct Nav Dec jan Feb Fare Turnout C _ Month Periods -------- > 7 8 92 13 14 15 rm I//b . ..----------------------.--.----------------------------------------------Millimeter- ------------------------------------------- ------------ A. Irrigation Requirements at the Field (Includes Farm Application Losses but no Conveyance Losses) 1. Sugarcane 133 155 173 170 183 206 198 140 72 80 0 0 0 6 66 127 131 119 107 100 97 103 111 114 2,594 1.59 2. Banana 121 141 167 181 207 223 204 136 61 66 0 0 0 0 31 83 87 83 76 77 81 90 99 103 2,315 1.72 3, Orchard 94 107 127 138 161 188 187 94 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 1,096 1.45 4. Groundnut H.W. 132 35 98 156 187 219 203 0 1,031 1.70 5. Fodder Jowar 81. 136 67 156 196 230 84 869 1.77 6. Misllaneouu H.W, 132 42 120 161 187 210 13 866 1.62 7. HYV Paddy Transplanted 1-15 July 12 129 161 0 0 17 37 88 123 0 568 1.24 8. HYV Paddy Transplanted 16-31 July 12 59 114 0 17 37 88 146 124 0 597 1.13 9. Rice Drilled 16-30 June 157 3 0 0 1 17 76 128 0 383 1.21 10. HYV Jowar planted 16-30 June 107 0 0 0 0 15 57 0 179 0.83 11. Main planted 16-30 June 107 0 0 0 0 0 0 107 0.83 12. Bajra planted 1-15 July 0 0 0 0 15 17 0 31 13. Groundnut planted 16-30 June 107 0 0 0 0 10 52 0 169 0.83 S 14. Groundnut planted 1-15 July 0 0 0 0 9 66 108 0 184 0.83 15. Cotton transplanted 16-30 June 84 0 0 0 0 17 77 137 124 62 0 501 1.06 16. L. S. Cotton planted 16-30 June 79 0 0 0 0 15 77 137 137 115 46 0 606 1.06 17. Desi Cotton.planted 16-30 June 78 0 0 0 0 11 75 137 138 125 107 91 37 0 799 1.06 18. Tobacco transplanted 16-31 Aug 0 0 25 88 110 114 106 101 93 0 637 0.88 19. Chillies transplanted 16-30 June 106 0 0 0 0 17 77 134 109 0 443 1.03 20. Wheat planted 1-15 Nov 130 53 90 99 104 109 36 0 621 1.00 21. Wheat planted 16-30 Nov 127 50 88 104 109 110 51 639 0.98 22. Joar/Rajra planted 16-31 Oct. 123 50 78 94 95 100 57 0 597 0.95 23. Gran planted 16-31 Oct 127 96 55 0 279 0.98 24, Potato/Vegetables planted 1-15 Nov 135 45 60 78 96 105 100 0 619 1.04 25. Oilseeds planted 1-15 Nov 129 35 59 91 104 109 107 56 692 1.00 26. Lucerne planted 16-31 Oct 114 134 148 44 43 44 49 62 79 91 102 915 1.14 Diversion requirement in MCM for mean year with design cropping pattern and assuning 25% conveyance and operational losses from headworks to pipe outlets Daanganga Irrigation Scheme L.B.M. Canal 8 8 9 9 10 12 12 8 11 13 6 0 1 3 10 15 15 10 8 7 7 7 7 5 R.B.M, Canal 15 15 17 17 20 23 22 16 21 25 12 0 1 6 19 29 29 19 16 12 14 14 13 10 Karjan Irrigation Scheme L.B.M. Canal 6 4 4 5 5 6 6 4 18 6 3 0 0 2 19 25 31 30 26 19 19 20 15 8 R.B.M. Canal 2 1 1 2 2 2 2 1 6 2 1 0 0 1 6 5 10 10 8 6 6 6 5 3 eran Irrigation Scheme L,B.M. Canal 3 3 3 3 4 4 4 2 8 4 1 0 0 1 8 12 12 13 10 6 6 7 6 5 R.B.M. Canal 4 4 4 4 5 5 5 3 10 5 2 0 0 1 11 16 15 16 12 8 6 9 8 6 INDIA GUJARAT IRRIGATION II PROJECT Summary of Project Roads Approx. New Construction Reconstruction Improvement Estimated Total Estimated Estimated Estimated Offices and Civil Works Command Area Length Length Cost Length Cost Length Cost Staff Housing Cost (km) (km) (Rs M) (km) (Rs M) (km) (Rs M) (Rs M) (Rs M) Heran 247 115 36.8 21 5.6 111 18.1 2.0 62.5 Karjan 198 70 23.9 58 16.8 70 11.7 2.0 54.4 Damanganga 134 19 6.3 59 15.9 56 8.8 1.3 32.3 Sub-total 579 204 67.0 138 38.3 237 38.6 5.3 149.2 Ukai-Kakrapar (Karjan Dist. & Tail Sections of Hajira and Unbrath Branch Commands Only) 188 31 11.6 72 20.3 85 14.0 1.3 47.2 Total 767 235 78.6 210 58.6 322 52.6 6.6 196.4 Note: Based on January 1980 prices (excluding engineering and equipment cost and contingencies). 01' 71 TABLE T-6 Page 2 INDIA GUJARAT IRRIGATION II PROJECT Roads Component - Implementation Schedule Command Category* 1980-81 1981-82 1982-83 1983-84 Total ------------------k-------------------- Heran NC - 18 44 53 115 REC 10 11 - - 21 IMP 30 30 30 21 111 Sub-total 40 59 74 74 247 Karjan NC - 16 27 27 70 REC 10 15 17 16 58 IMP 14 21 18 17 70 Sub-total 24 52 62 60 199 Damanganga NC - 3 8 8 19 REC 10 7 21 21 59 IMP 14 14 14 14 56 Sub-total 24 24 43 43 134 Ukai-Kakrapar NC - 9 12 10 31 (Three Blocks Only) REC 15 19 20 18 72 IMP 19 22 23 21 85 Sub-total 34 50 55 49 188 TOTAL 122 185 234 226 767 *NC - New Construction; REC Reconstruction; IMP = Improvement INDIA GUJARAT IRRIGATION II PROJECT Cost Estimate Summary % of Base Damanganga Karian Heran Ukai-Kakrapar Saurashtra Total Project Cost 1/ 2/ 1/ 2/ 1/ 2/ 1/ 2/ 1/ 2/ Rs M US$%M ------------------------------------Rs M---------------------------------- Storage Structures: 561.4 66.9 26.1 Dams 36 133.7 78 217.5 94 145.2 Tidal Regulators 34 45.0 Bandharas 86 20.0 Main Canals 88 96.1 96 103.0 99 34.2 233.3 27.8 10.8 Land Acquisition and Rehabilitation 60 23.1 87 18.1 98 15.4 56.6 6.7 2.6 Project Drains 82 23.0 100 9.4 100 6.1 44 17.0 55.5 6.6 2.6 Comnnand Area Roads 100 32.3 100 54.4 100 62.5 100 47.2 196.4 23.4 9.1 Irrigation Service 75 92.0 59 54.0 56 29.2 62 135.6 310.8 37.0 14.4 Modernization 100 5.0 62 160.6 165.6 19.7 7.7 Conservation Measures 50 28.1 28.1 3.3 1.3 Buildings 54 24.5 67 27.1 98 30.9 82.5 9.8 3.8 Equipment 15 21.2 30 32.3 20 22.2 47 38.6 114.3 13.6 5.3 Training Institute 31.9 3.8 1.5 Operational Improvements 20.2 2.4 0.9 Monitoring & Evaluation 15.1 1.8 0.7 Engineering & Administration 70.0 83.4 56.8 40.5 34.0 284.7 33.9 13.2 TOTAL Base Cost 515.9 599.2 407.5 303.9 262.7 2,156.4 256.7 100.0 Physical Contingencies 42.6 72.6 49.3 44.9 34.3 243.7 29.0 Totals 558.5 671.8 456.8 348.8 297.0 2,400.1 285.7 Expected Price Increases 64.3 Gujarat Project Cost 350.0 Preparation of Future Irrigation Projects 10.0 TOTAL PROJECT COST 360.0 1/ Percent of total itemccompleted in IDA time-slice. 2/ Planned expenditure in Rs Million from April 1, 1980 through March 31, 1985. INDIA GWTABAT IRRIGATION II PROJECT Damonganga Irrigation Scheme - Cost Estimates --- Total Estimated Cost---- June 1979 April 1980 Expenditure Balance to ------- Planed Expenditure by Fiscal Y --- Total for Teare Price Levels Price Levels to 3/31/80 Compl1ete 1980-81 1981-82 1982-83 1983-84 1984-85 1980/81-1984/85 Remaining --------------------------------------ReM----------------------------------------------------------------- Damanganga Dam 371.0 375.5 241.8 133.7 56.3 47.1 20.9 9.4 133.7 Spillway Section (59.0) Non-Overflow & Power Section (34.8) Earth Dam Sections (226.0) Radial Gates (16.3) Head Regulator (6.3) Miscellaneous (33.1) Left Bank canal System 35.4 49.2 2.8 46.4 6.2 13.2 13.3 11.7 2.0 46.4 Earth Work and Lining (23.4) Structures (22.7) Service Roads (3.1) Right Bank Canal System 56.1 59.8 10.1 49.7 15.9 17.7 11.7 4.4 49.7 Earth Work and Lining (29.4) Structures (25.4) Service Roads (5.0) Land Acquisition & Rehabilitation 22.7 38.4 15.3 23.1 7.0 7.0 5.1 2.6 1.4 23.1 Project Drains 26.0 28.0 28.0 1.0 4.0 6.0 6.0 6.0 23.0 5.0 Command Area Roads 30.9 32.3 32.3 5.3 5.6 11.0 10.4 32.3. Buildings 35.2 45.4 20.9 24.5 10.0 10.0 4.5 24.5 Irrigation Blocks (12) 97.3 125.0 2.3 122.7 12.0 14.0 22.0 22.0 22.0 92.0 30.7 Distribution Systems (86.2) (84.7) Field Channels (1.5) (29.7) Field Drains (9.6) (10.6) Equipment 16.0 21.2 21.2 11.3 9.9 21.2 Roads (12.4) O&M (8.8) Total Direct Costs 481.6 125.0 128.5 94.5 66.5 31.4 445.9 35.7 Physical Contingencies (10%) 1/ 46.2 11.4 11.9 9.4 6.7 3.2 42.6 3.6 Engineering, Supervision and Administration (15%) 21 75.9 18.8 19.6 15.4 11.0 5.2 70.0 5.9 TOTAL PROJECT COST 603.7 155.2 160.0 119.3 84.2 39.8 558.5 45.2 1/Not applied to equipment. ( . INDIA GUJARAT IRRIGATION II PROJECT Heran Irrigation Scheme - Cost Estimates ---Total Estimated Cost---- June 1979 April 1980 Expenditure Balance to -------Planned Expenditure by Fiscal Year------ Total for Years Price Levels Price Levels to 3/31180 Complete 1980-81 1981-82 1982-83 1983-84 1984-85 1980/81-1984/85 Remaining ----------------------------------------------------------------Rs M---------- - ---- ------------------------------ Heran Dam 144.0 154.0 8.8 145.2 27.7 36.4 45.3 35.8 145.2 Masonry Dam and Spillway (78.1) Earth Dam Sections (53.5) Head Regulator (3.2) Radial Gates (9.2) Left Bank Main Canal System 10.1 10.8 0.1 10.7 4.2 4.6 1.9 10.7 Earthwork and Lining (7.1) Structures (1.5) Service Roads (1.5) Right Bank Main Canal System 22.1 23.8 0.3 23.5 6.2 8.2 6.4 2.7 23.5 Earthwork and Lining (14.2) Structures (4.2) Service Roads (3.7) Comnand Area Roads 57.4 62.5 62.5 8.3 14.3 19.6 20.3 62.5 Project Drains 5.6 6.1 6.1 1.0 1.2 1.4 1.5 1.0 6.1 Land Acquisition & Rehabilitation 15.7 0.3 15.4 2.6 5.5 6.0 1.3 15.4 Buildings 29.1 31.4 0.5 30.9 13.0 11.0 4.6 2.3 30.9 Irrigation Blocks (8) 48.0 52.3 52.3 3.2 5.0 7.0 7.0 7.0 29.2 23.1 Distribution Systems (36.3) Field Channels (5.3) Modernization of Rajawasna System 5.0 5.0 5.0 5.0 Equipment 15.4 22.2 22.2 6.3 15.9 5.0 22.2 Roads (18.3) 05M (3.9) Total Direct Costs 373.8 72.5 102.1 97.2 70.9 8.0 350.7 23.1 Physical Contingencies (15%) 1/ 52.8 9.9 13.0 14.6 10.6 1.2 49.3 3.5 Engineering, Supervision and Administration (15%) 1/ 60.8 11.4 14.9 16.8 12.2 1.5 56.8 4.0 TOTAL PROJECT COST 487.4 93.8 130.0 128.6 93.7 10.7 456.8 20.6 1/ Not applied to equipment INDIA GUIARAT IRRIGATION II PROJECT Karfan Irrigation Scheme - Cost Estimates --- Total Estimated Cost---- a Blnet --- lne xedtr yFsa er--- June 1979 April 1980 Expenditure alne------lneEpndtrby islYe------Total for Years Prc Lvls P1~eLees_o3/180 gsBlete 1980481 1981-82 1982-83 1983-84 1984-85 1980/81-1984/85 Remaining --------------------------------------ReM----------------------------------------------------------------- Karjan Dam 258.0 281.0 63.5 217.5 65.0 79.7 55.1 17.7 217.5 Concrete Spillvay (127.0) Masonry/Non-Overflow Dam (112.0) Head Regulators (4.0) Radial Gates (15.0) Right Bank Main Canal System 9.2 12.9 3.0 9.9 3.9 4.8 1.2 9.9 Earth Work (1.7) Lining (3.8) Structures (2.3) Service Roads (1.6) Left Bank Main Canal System 86.8 94.6 1.5 93.1 5.5 18.1 31.8 21.9 15.8 93.1 Earth Work (26.2) Lining (21.2) Structures (29.9) Service Roads (6.9) Branch Canal (2.6) Land Acquisition & Rehabilitation 20.9 2.8 18.1 4.0 5.0 5.0 4.1 18.1 Project Drains 8.6 9.4 9.4 1.3 1.8 2.2 2.2 1.9 9.4 Comand Area Roads 48.8 54.4 54.4 5.9 14.0 17.8 16.7 54.4 Buildings 37.8 40.3 13.2 27.1 12.1 6.0 6.0 3.0 27.1 Equipment 24.8 32.3 32.3 6.0 8.3 18.0 32.3 Roads (15.4) 0&M (7.2) Miscellaneous (9.7) Irrigation Blocks (16) 84.8 91.6 91.6 4.0 8.0 12.0 15.0 15.0 54.0 37.6 Distribution Systems (63.5) Field Channels (10.1) Field Drains (11.2) Total Direct Costs 553.4 107.7 145.7 149.1 80.6 32.7 515.8 37.6 Physical Contingencies (15%) 1/ 78.2 15.3 20.6 19.5 12.1 5.1 72.6 5.6 Engineering Supervision & Admini- stration (157.) 2/ 89.8 17.6 23.7 22.4 14.1 5.6 83.4 6.4 TOTAL PROJECT COST 721.4 140.6 190.0 190.0 106.8 44.4 671.8 49.6 1/Not applied to equipment. INDIA GUJARAT IRRIGATION II PROJECT Ukai-Kakrapar Modernization Scheme - Cost Estimates ---Total Estimated Cost---- June 1979 April 1980 Expenditure Balance to -------Planned Expenditure by Fiscal Year------ Total for Years Price Levels Price Levels to 3/31/80 Complete 1980-81 1981-82 1982-83 1983-84 1984-85 1980181-1984/85 Remaining --------------------------------------------------------------- ------------------------------------------------------------ Karanj Distributary Modernization Block, Right Bank Main Canal 40.2 43.8 - 43.8 8.2 13.8 13.8 8.0 43.8 Remodelling Irrigation Distri- butary System (5.8) Operational Improvements (4.2) Project Drainage System (12.6) Water Conservation & Development (9.9) Coastal Land Development (7.7) Hajira Branch Modernization Block, Right Bank Main Canal 129.5 146.7 - 146.7 7.4 22.8 25.0 54.2 92.5 Widening of part of KEMB (5.5) Remodelling Irrigation Distri- butary System (24.8) Operational Iprovements (13.0) Project Drainage System (36.3) Water Conservation & Development (33.3) Coastal Land Development (22.1) 1Ubrath Branch Modernization Block Left Bank Main Canal 57.4 70.6 - 70.6 3.0 6.4 10.4 20.4 22.4 62.6 8.0 Widening of upper part of branch (8.0) Remodelling Irrigation Distri- butary System (8.3) Operational Improvements (6.0) Project Drainage System (18.0) Water Conservation & Development (14.1) Coastal Land Development (11.0) Surat Branch Drainage Block, Left Bank Main Canal 35.5 38.7 - 38.7 1.0 4.0 4.0 4.0 4.0 17.0 21.7 Sub-Catchment Drainage Systems (7.5) Resectioning of Main Natural Drains (13.2) Tidal Regulators (2) (8.0) Guide Bunds (6.8) Comnand Area Roads 44.6 47.2 - 47.2 3.9 8.5 12.6 12.2 10.0 47.2 Equipment 31.6 38.6 - 38.6 7.8 14.9 15.9 38.6 Roads (6.9) Construction (31.7) Total Direct Costs 385.6 23.9 47.6 63.1 67.4 61.4 263.4 122.2 Physical Contingencies (20%) 1/ 69.3 3.2 6.5 9.4 13.5 12.3 44.9 24.4 Engineering Supervision and Administration (15%) 1/ 62.4 2.9 5.9 8.5 12.1 11.1 40.5 21.9 M TOTAL PROJECT COST 517.3 30.0 60.0 81.0 93.0 84.8 348.8 168.5 1/ Not applied to equipment. Guiarat Irrigation II Project Saurashtra Coastal Development Scheme - Cost Estimates ----Total Estimated Cost- June 1979 April 1980 Expenditure Balance to ----------Planned Expenditure by Fiscal Year---------- Total for Price Levels Price Levels to 3/31/80 Complete 1980-81 1981-82 1982-83 1983-84 1984-85 1980/81-1984/85 --------------------------------------------------------------------Re M-------------------------------------------------------------------- Tidal Regulators Ccplete with Irrigation Distribution Systems 115.0 125.0 10.0 115.0 20.0 24.0 24.0 24.0 23.0 115.0 Meghal (chorwad) (26.1) (6.0) Badodara Zala (19.0) (3.6) Vasoj (3.4) Medha Creek (66.5) Bandharas Covplete with Irrigation Distribution Systems 36.7 40.0 1.0 39.0 6.0 10.0 10.0 10.0 3.0 39.0 Adri (0.6) Veraral (.23) Lati (1.5) Badalpur (0.6) Hirakot (0.5) Esroda (14.4) Sodam (10.4) Jankhawad (3.2) Khada (3.2) Check Dams (150) 22.8 24.8 - 24.8 5.0 5.0 5.0 5.0 4.8 24.8 Reservoir 20.0 21.8 - 21.8 6.0 8.0 7.8 21.8 Nalla Plugs (1,000) 10.0 10.9 - 10.9 1.0 2.0 2.6 2.6 2.7 10.9 Afforestation (10,000 ha) 15.8 17.2 - 17.2 2.0 3.0 4.0 4.0 4.2 17.2 Total Direct Costs 228.7 34.0 44.0 41.6 53.6 45.5 228.7 Physical Contingencies (15%/) 34.3 5.1 6.6 7.8 8.0 6.8 34.3 Engineering Supervision and Administration 34.0 4.9 6.4 8.0 8.0 6.7 34.0 TOTAL PROJECT COST 297.0 44.0 57.0 67.4 69.6 59.0 297.0 H 78 TABLE T-9 Page 1 INDIA GUJARAT IRRIGATION II PROJECT Composite List - Equipment and Vehicles Method of Item Quantity Procurement 1. Light Equipment & Vehicles Concrete Mixers (42/28 cu ft) 3 LCB Concrete Mixers (7/5 cu ft) 8 " Concrete Mixers (10/7 cu ft) 19 "V Concrete Mixers, Hand 32 " Road Rollers 49 Vibrators, Roller (light) 3 Vibrators, Surface 9 Vibrators, Pin 20 Trucks, Water Tank 55 Buses 5 Trucks, Tipper 61 Trucks, Stake 45 Trucks, Asphalt Tank 6 Trucks, Explosives 3 Ambulances 3 Generators, Diesel (20 KVA) 10 Generators, Diesel (125 KVA) 1 Pumps, Diesel (10 HP) 49 Pumps, Diesel (20 HP) 4 Pumps, Diesel (20 cusecs) 2 Pumps, Diesel, Heavy 3 Jack Hammers 28 Drills, Wagon 5 Diamond Core Drill 1 Air Compressors (210 cu ft) 2 Air Compressors (360 cu ft) 23 Grouting Equipment 2 4 x 4 Units 171 Automobiles 31 Trucks, 1/2 ton 36 Mobile Workshops 7 Mobile Laboratory 4 Boat, Inspection 2 Tractors, Wheel 11 Recorder, Earthquake 3 Pavement Finishers 3 Motorcycles 48 Bicycles 192 Survey and Testing Instruments Various ICB Sub-total Rs 67 M 79 TABLE T-9 Page 2 INDIA GUJARAT IRRIGATION II PROJECT Composite List - Equipment and Vehicles Method of Item Quantity Procurement 2. Heavy Equipment Dragline, Excavators (1.5 cu yd) 9 ICB Hydraulic Excavators (0.9 cu m) 56 Hydraulic Excavators (3 cu m) 3 Excavators, Shovel (2 cu m) 5 Scarpers (10-12 cu m) 38 Scrapers (23 cu m) 11 Crawler Tractors (150 HP) 31 Crawler Tractors (300 HP) 13 Crawler Tractors (400 HP) 2 Dumpers (25 ton) 11 " Dumpers (35 ton) 14 Low Ped Trailers (15 ton) 1 Truck-Trailer, Low Bed (60 ton) 2 Crane Mobile (15 ton) 1 Cranes, Mobile (35 ton) 2 Weed Removers 6 Motor Graders (115 HP) 6 Front End Loaders (2 cu m) 8 Loaders (3 cu m) 3 Hotmix Plants 3 Rollers, Pneumatic 6 Rollers, Vibrating 22 Rollers, Sheep-Foot 2 Canal Lining Equipment 2 Batching Plant (120 cu m) 1 Concrete Plants, Mobile (60 cyd) 2 Screening and Washing Plant 1 Transit Mixers (4 cyd) 8 Cable Way (10 T) 1 Water Plant (chilled) 1 Stone Crushing Plants 3 Truck, semi Articulated 2 Scrapers Dozers (6 cu m) 31 Concrete Bucket (4 cyd) 4 Locomotive with flat bed car 2 Sub-Total Rs 422 Y TOTAL COST - Equipment and Vehicles Rs 489 M or US$ 58.2 M 80 TABLE T-10 INDIA GUJARAT IRRIGATION II PROJECT Cost Estimates for Land and Water Management Center Cost A. Non-Recurring Costs (US$ Million) Buildings of Training Institute Land Acquisition 0.3 Non-Residential 1.0 Residential 0.3 Equipment 0.6 Sub-total 2.2 B. Overseas Training Visits 0.2 C. Recurring Costs Salaries for Faculty and Other Staff (Five Years) 0.15 Stipend for Trainees (Four Years) 0.10 Maintenance and Operation of Institute (Four Years) 0.05 Miscellaneous (Four Years) 0.01 Annual Cost 0.31 Sub-total - Cost for Five Years 1.4 TOTAL 3.8 81 TABLE T-11 INDIA GUJARAT IRRIGATION II PROJECT Annual Expenditure Schedule 1980/81 1981/82 1982/83 1983/84 1984/85 Total ------ -----------------------us$ Damanganga 18.5 19.1 14.2 10.0 4.7 66.5 Horan 11.2 15.5 15.3 11.1 1.3 54.4 Karjan 16.7 22.6 22.6 12.8 5.3 80.0 Ukai-Kakrapar Modernization 3.6 7.2 9.6 11.1 10.1 41.5 Saurashtri Coastal Development Scheme 5.2 6.8 8.0 8.4 6.9 35.3 Training, Operational Iaprovements and Moni- toing and Evaluation 0.6 1.9 2.3 1.7 1.5 8.0 Sub-total 55.8 73.0 72.0 55.1 29.8 285.7 Ipected Price Increases 4.3 11.6 17.9 18.7 11.8 64.3 GUJARAT PROJECT COST 60.1 84.6 89.9 73.8 41.6 350.0 001 Project Preparation Fund J0 J0Q- - - - 10.0 TOTAL PROJECT COST 64.1 90.6 89.9 73.8 41.6 360.0 82 TABLE T-12 INDIA GUJARAT IRRIGATION II PROJECT Estimated Schedule of IDA Disbursements IDA FY & Semester Semester Cumulative -----------US$ M------------ 1981 1st 2nd 5 5 1982 1st 13 18 2nd 17 35 1983 1st 21 56 2nd 23 79 1984 1st 23 102 2nd 22 124 1985 1st 21 145 2nd 19 164 1986 1st 11 175 83 TABLE T-13 INDIA GUJARAT IRRIGATION II PROJECT Proposed Allocation of the Credit US$ M 1. Civil Works 125.5 70% of expenditures incurred up to March 31, 1983; 50% of expen- ditures incurred thereafter 2. Equipment and Vehicles 28.0 100% of foreign expenditures; or 100% of exfactory cost; or 70% 3. Technical Assistance 1/ 6.5 100% of foreign expenditures; or 70% 4. GOI Project Preparation Expenditures 10.0 100% of approved expenditures 5. Unallocated 5.0 TOTAL 175.0 1/ This category includes training in water management, monitoring and evaluation and operational improvements. INDIA GUJARAT IRRIGATION II PROJECT Incremental Agricultural Production (in '000 tons) Damanganga Heran Karian Ukai-Kakrapar Saurashtra Total Project W W (-) (-) w(-)w Paddy 50.02 15.91 17.16 13.9 0.0 135.29 Sorghum 3.36 5.08 18.99 -2.4 5.8 24.23 Wheat 10.42 15.80 27.20 0.7 0.0 56.02 Pulses 2.14 3.09 0.00 1.2 0.0 9.63 Other -0.45 2.89 8.88 - 3.8 15.12 Total Foodgrains 65.49 42.77 72.23 13.4 9.6 240.29 Groundnuts 0.00 4.88 12.59 0.7 5.9 20.77 Vegetables 28.11 24.60 28.10 3.9 0.0 95.31 Trit 58.88 88.65 22.81 13.9 0.0 227.64 Sugarcane 123.35 0.00 0.00 287.3 0.0 1,273.15 Cotton 0.00 4.46 7.30 -0.8 7.9 14.46 Note: W (-) W - Incremental Production = Future with project minus future without project. 1-d. M (D --i INDIA GUJARAT IRRIGATION II PROJECT Agricultural Production ('000 tons) --------------Heran--- ----------------Karjan---------------- -----------------Damanganga------------------ Season/Crops % P % W W W % P % % W % P % % KHARIF Paddy Transplanted 4.0 1.28 5 1.93 15 14.45 4.0 2.25 4.0 2.70 10 16.86 38.0 27.70 38.0 34.09 50.0 84.11 Paddy Drilled 14.0 3.60 15 4.82 5 3.21 - - - - - Groundnuts 11.0 2.47 11 2.83 15 7.71 2.0 0.79 2.0 0.90 15 13.49 - - Sorghum Local - - - 2.0 0.56 2.0 0.67 - - - Sorghum Hybrid - 5 2.41 10 8.03 - 2.0 1.69 10 14.05 - - Pearl Millet Local 25.0 5.62 20 5.14 - 4.0 1.57 4.0 1.80 - - - Pearl Millet Hybrid - - 5 3.21 - - 3 3.37 - - - Local Millets - - - - - - 3.0 0.50 2.0 0.45 - Pulses - - 2* 0.39 6.0 1.35 6.0 1.69 5* 1.69 4.0 1.01 4.0 1.23 - oilseeds - - - - - - 0.2 0.05 0.2 0.05 - Maize - - 5 4.82 0.4 0.16 2.0 1.12 5 8.43 - - - Cotton Desai 29.0 3.73 25 4.02 10* 1.93 54.0 12.14 50.0 14.05 10* 3.37 - - Cotton Hybrid 3.0 0.96 3 1.16 15 7.71 - - 20 17.98 - - Tobacco - - - 0.3 0.19 0.3 0.20 - - - - Vegetables - - 2 6.42 - - 5 22.48 0.3 0.56 0.7 2.13 3.0 16.82 CROPPING INTENSITY 86.0 84 84 72.7 72.3 83 45.5 44.9 53.0 RABI Wheat 0.5 0.11 1 0.26 20 16.06 1.0 0.39 2.0 0.90 20 28.10 1.0 0.34 2.0 0.79 10.0 11.21 m Sorghum Local 10.0 1.61 9 1.73 - 17.0 4.78 15.0 5.06 - - - 3.0 3.36 Sorghum Hybrid - - 2 1.61 - 2.0 1.69 10 14.05 - - - Gram - - 6 2.70 - - 4 3.15 9.0 3.03 8.0 2.69 12.0 6.06 Oilseeds - - 3 0.96 - - 3 1.68 - - 3.0 1.68 Vegetables - - 2 6.42 - - 1 5.62 0.6 1.68 1.0 3.36 3.0 16.82 Lucerne - - - - - - 0.2 3.36 1.0 19.63 2.0 44.86 CROPPING INTENSITY 10.5 10 33 18.0 19.0 38 10.8 12.0 33.0 PERENNIALS Bananas 0.4 2.57 1 7.71 10 96.36 - - - -- Orchards - - - 0.4 0.79 0.4 0.79 6 23.60 10.0 19.63 10.0 19.62 20.0 78.50 Sugarcane - - - - - - 1.0 28.04 3.0 100.93 5.0 224.28 Grass - - - - - - 43.0 42.0 10.0 TOTAL CROPPING INTENSITY 96.9 95 127 91.1 91.7 127 110.3 111.9 121.0 TOTAL IRRIGATION INTENSITY 0.0 0.0 115 0.0 0.0 112 11.8 14.0 111.0 P = Present; N = Future Without Project; W = Future With Project * = Rainfed > OQ t 86 TABLE T-15 Page 1 INDIA GUJARAT IRRIGATION II PROJECT Damanganga - Financial Crop Budget - - --- Yield------------ Gross Total Net Crop Time Ty Main Product By-Product Valie Labor Animal Other Inputs Value t/ha Rs/t t/ha Rs/t R-------------------------Rs/ha------------------------ KHARIF Paddy-Transplanted P RF 1.3 1,250 1.6 80 1,733 497 300 172 969 784 6 RP 1.6 1,580 1.9 80 2,680 497 300 211 1,008 1,672 W IR 3.0 1,580 3.0 80 4,980 663 264 1,040 1,967 3,013 Pigeon Peas P RF 0.4 1,820 0.8 100 808 194 120 68 382 426 W RF 0.5 2,060 0.9 100 1,120 221 133 252 606 514 Pulses P RF 0.5 1,820 0.3 100 9L.0 194 120 75 389 551 W RF 0.6 2,060 0.4 100 1,276 221 133 268 622 654 Millets P RF 0.3 1,040 0.3 90 329 179 112 13 304 35 i RF 0.4 1,112 0.4 90 4E1 201 119 13 333 148 Mustard P RF 0.4 4,000 - - 1,600 431 300 13 744 856 w RF 0.4 3,520 - - 1,408 442 300 13 755 653 Vegetables P RF 2.0 860 - - 1,720 582 264 348 1,194 526 W RF 2.0 860 - - 1,720 582 264 348 1,194 526 V IR 10.0 860 - - 8,600 1,122 288 1,316 2,726 5,874 RABI Wheat P RF 0.6 1,460 0.9 80 924 266 180 260 706 218 w RF 0.7 1,650 1.0 80 1,233 275 180 317 772 463 W IR 2.0 1,650 3.0 80 3,540 360 193 1,044 1,597 1,943 Pulses P RF 0.6 1,820 0.9 100 1,182 194 120 75 389 793 W RF 0.7 2,060 1.0 100 1,542 221 133 192 546 996 W IR 0.9 2,060 1.3 100 1,984 221 133 291 645 1,339 Sorghum-HYV W IR 2.5 1,530 2.5 120 4,125 321 180 1,144 1,645 2,480 Mustard W IR 1.0 3,520 - - 3,520 - 501 305 930 1,736 1,784 Vegetables P RF 5.0 860 - - 4,30C 687 246 346 1,279 3,021 i RF 6.0 860 - - 5,16C 739 274 553 1,566 3,594 W IR 10.0 860 - - 8,60C 1,122 288 1,316 2,726 5,874 Lucerne P RF 30.0 220 - - 6,600 331 180 840 1,351 5,249 w RF 35.0 220 - - 7,700 387 210 1,087 1,684 6,016 W IR 40.0 220 - - 8,800 442 370 1,364 2,176 6,624 PERENNIALS Grassland P RF - - - - 561 40 - - 40 521 W RF - - - - 561 40 - - 40 521 W IR - - - - 561 40 - - 40 521 Sugarcane P RF 50.0 64 - - 3,200 415 360 2,142 2,917 283 W RF 60.0 124 - - 7,440 1,115 384 3,321 4,820 2,620 W IR 80.0 124 - - 9,920 1,215 384 3,698 5,297 4,623 Orchards P RF 3.5 2,100 - - 7,350 428 184 1,423 2,035 5,315 i RF 3.5 2,200 - - 7,700 428 184 1,423 2,035 5,665 W IR 7.0 2,200 - - 15,400 593 305 2,063 2,961 12,439 P = Present; = Future Without Project; W = Future With Project; IR = Irrigated; and RP = Rainfed. 87 TABLE T-15 Page 2 INDIA GUJARAT IRRIGATION II PROJECT Karian/Heran - Financial Crop Budget ------------ Yield------------ Gross Total Net Crop Time Type Main Product By-Product Value Labor Animal Other Inputs Value t/ha Rs/t t/ha Rs/t ------------------------- Rs/ha ------------------------ KHARIF Paddy-Transplanted P RF 1.0 1,250 1.2 100 1,370 497 300 172 969 401 W RF 1.2 1,580 1.2 100 2,016 497 300 227 1,024 992 W IR 3.0 1,580 3.0 100 5,040 663 264 1,040 1,967 3,073 Paddy-Drilled P RF 0.8 1,390 1.0 100 1,212 448 270 306 1,024 188 W RF 1.0 1,760 1.2 100 1,880 448 270 362 1,080 800 W IR 2.0 1,760 3.0 100 3,820 597 238 1,086 1,921 1,899 Groundnut P RF 0.7 2,500 2.8 250 2,450 431 300 534 1,265 1,185 w RF 0.8 2,200 3.2 250 2,560 441 300 534 1,275 1,285 W IR 1.6 2,220 4.8 250 4,752 508 360 798 1,666 3,086 Sorghum-Local P RF 0.5 1,180 1.5 150 815 249 144 93 486 329 W RF 0.6 1,530 1.8 150 1,188 276 156 154 586 602 Sorghum-HYV W RF 1.5 1,180 3.0 120 2,130 276 156 226 658 1,472 W IR 2.5 1,530 4.0 120 4,305 360 180 866 1,406 2,899 Pearl Millet-Local P RF 0.7 1,300 1.8 120 1,126 249 144 72 465 661 W RF 0.8 1,390 2.0 120 1,352 264 144 98 506 846 Pearl Millet-HYV W IR 2.0 1,260 3.5 100 2,870 360 180 595 1,135 1,735 Pulses P RF 0.4 1,820 0.6 100 788 194 120 73 387 401 RF 0.5 2,170 0.7 100 1,155 221 133 257 611 544 W RT 0.6 2,170 0.9 100 1,392 221 133 325 679 713 Maize P RF 0.7 1,100 0.7 100 840 249 180 245 674 166 W RE 1.0 1,190 1.0 100 1,290 264 180 319 763 527 W IR 3.0 1,190 3.0 100 3,870 342 193 898 1,433 2,437 Cotton-Desai P RF 0.4 4,080 - - 1,632 525 168 433 1,126 506 W RF 0.5 4,310 - - 2,155 581 168 534 1,283 872 W RF 0.6 4,310 - - 2,586 581 168 805 1,554 1,027 Cotton-Hybrid P IR 1.0 4,080 - - 4,080 578 184 821 1,583 2,497 W IR 1.2 4,310 - - 5,172 639 184 936 1,759 3,413 W IR 1.6 4,310 - - 6,896 773 193 1,968 2,934 3,962 Vegetables (2 Seasons) W IR 10.0 860 - - 8,600 1,122 288 1,311 2,721 5,879 RABI Wheat P RF 0.7 1,460 1.1 80 1,110 266 180 267 713 397 Wi RF 0.8 1,650 1.1 80 1,408 275 180 323 778 630 W IR 2.5 1,650 3.8 80 4,429 360 193 1,077 1,630 2,799 Sorghum-Local P RE 0.5 1,300 1.5 150 875 221 144 93 458 417 W RE 0.6 1,690 1.8 150 1,284 243 144 154 541 743 Sorghum-HYV W IR 2.5 1,530 3.8 120 4,281 321 180 1,150 1,651 2,630 Gram W IR 1.4 1,970 1.4 100 2,898 342 180 508 1,030 1,868 Mustard W IR 1.0 3,520 - - 3,520 430 360 931 1,721 1,799 Tobacco P RF 1.1 6,000 - - 6,600 430 360 761 1,551 5,049 w RE 1.2 7,700 - - 9,240 430 360 903 1,693 7,547 PERENNIALS Bananas P RF 20.0 730 - - 14,600 872 383 3,275 4,530 10,070 W RE 24.0 730 - - 17,520 1,005 499 3,517 5,021 12,499 W IR 30.0 730 - - 21,900 1,207 638 4,031 5,876 16,024 Orchards P RF 3.5 2,100 - - 7,350 428 184 1,423 2,035 5,315 W RF 3.5 2,200 - - 7,700 428 184 1,423 2,035 5,665 W IR 7.0 2,200 - - 15,400 593 305 2,063 2,961 12,439 Sugarcane P RE 50.0 80 - - 4,000 415 360 2,142 2,917 1,083 W IR 60.0 190 - - 11,400 1,115 384 3,321 4,820 6,580 w IR 80.0 190 - - 15,200 1,215 384 3,698 5,297 9,903 P = Present; W = Future Without Project; W = Future With Project; IR - Irrigated; and RF = Rainfed. 88 TABLE T-16 Page 1 INDIA GUJARAT IRRIGATION II PROJECT Damanganga - Economic Crop Budgets - ---- Yield------------ Gross Total Net Crop Time T Main Product By-Product Value Labor Animal other Inputs Value t/ha Rs/t t/ha Rs/t ------------------------Rs/ha RIIARIF Paddy-Transplanted P RF 1.3 1,290 1.6 80 1,305 333 240 160 733 1,072 W RF 1.6 1,570 1.9 80 2, 664 333 240 784 1,357 1,307 W IR 3.0 1,570 3.0 80 4,950 444 211 960 1,615 3,335 Pigeon Peas P RF 0.4 1,920 0.8 80 832 130 96 65 291 541 W RF 0.5 2,170 0.9 80 1,157 148 106 234 488 669 Pulses P RF 0.5 1,920 0.8 80 1,024 130 96 72 298 726 W RF 0.6 2,170 0.9 80 1,274 148 106 239 493 881 Millets P RF 0.3 1,100 0.3 96 359 120 90 12 222 137 1w RF 0.4 1,180 0.4 96 510 135 95 12 242 268 Mustard P RF 0.4 3,700 - - 1,480 289 240 12 541 939 RF 0.4 3,190 - - 1,276 296 240 12 548 728 Vegetables P RF 2.0 860 - - 1,720 390 211 325 926 794 S RF 2.0 860 - - 1,7.20 390 211 325 926 794 W IR 10.0 860 - - 8,600 752 230 1,222 2,204 6,396 RABI Wheat P RF 0.6 1,560 0.9 64 994 178 144 247 569 425 V RF 0.7 1,910 1.0 64 1,401 184 144 298 626 775 W IR 2.0 1,910 3.0 64 4,012 241 154 974 1,369 2,643 Pulses P RF 0.6 1,920 0.9 80 1,224 130 96 72 298 926 W RF 0.7 2,170 1.0 80 1,599 148 106 179 433 1,166 W IR 0.9 2,170 1.3 80 2,057 148 106 272 526 1,531 Sorghum-1YV W IR 2.5 1,420 2.5 96 3,790 215 144 1,060 1,419 2,371 Mustard W IR 1.0 3,190 - - 3,193 340 288 859 1,487 1,703 Vegetables P RF 5.0 860 - - 4,301) 460 197 325 982 3,318 W RF 6.0 860 - - 5,160 495 219 518 1,232 3,928 W IR 10.0 860 - - 8,600 752 230 1,222 2,204 6,396 Lucerne P RF 30.0 220 - - 6,600 222 144 786 1,152 5,448 W RF 35.0 220 - - 7,700 259 168 1,045 1,472 6,228 W IR 40.0 220 - - 8,800 296 192 1,308 1,796 7,004 PERENNIALS Grassland P RF - - - - 561 27 - - 27 534 W RF - - 561 27 27 534 W IR - - - 561 27 - - 27 534 Sugarcane P RF 50.0 80 - - 4,000 278 288 2,015 2,581 1,419 w RF 60.0 190 - - 11,400 747 307 3,120 4,174 7,226 w IR 60;0 190 - - 15,200 814 307 3,466 4,587 10,613 Orchards P RF 3.5 2,100 - - 3,750 320 127 1,345 1,792 5,558 W RF 3.5 2,200 - - 7,700 320 127 1,345 1,792 5,908 W IR 7.0 2,200 - - 15,400 430 224 1,934 2,588 12,812 P = Present; W = Future Without Project; W = Future With Project; IR = Irrigated; and RE = Rainfed. 89 TABLE T-16 Page 2 INDIA GUJARAT IRRIGATION II PROJECT Karian/Heran Economic Crop Budget ------------ Yield------------ Gross Total Net crop Time T Main Product By-Product Value Labor Animal Other Inputs Value t/ha Rs/t t/ha Rs/t ----------------------- Rs/ha-------------------------- Paddy-Transplanted P RF 1.0 1,290 1.2 80 1,386 333 240 160 733 653 W RF 1.2 1,570 1.2 80 1,980 333 240 211 784 1,196 W IR 3.0 1,570 3.0 80 4,950 444 211 960 1,615 3,335 Paddy-Drilled P RF 0.8 1,440 1.0 80 1,232 300 216 289 805 427 ii RF 1.0 1,750 1.2 80 1,846 300 216 341 857 989 W IR 2.0 1,750 3.0 80 3,740 400 190 647 1,237 2,503 Groundnuts P RF 0.7 2,920 2.8 200 2,604 289 240 505 1,034 1,570 i RF 0.8 2,520 3.2 200 2,656 296 240 505 1,041 1,615 H IR 1.6 2,520 4.8 200 4,992 340 288 748 1,376 3,616 Sorghum-Local P RF 0.5 1,100 1.5 120 730 167 115 88 370 360 RF 0.6 1,420 1.8 120 1,068 185 125 144 454 614 Sorghum-HYV W RE 1.5 1,420 3.0 96 2,418 185 125 214 524 1,894 W IR 2.5 1,420 4.0 96 3,934 241 144 803 1,188 2,746 Pearl Millet-Local P RF 0.7 1,370 1.8 96 1,132 167 115 67 349 783 i RF 0.8 1,470 2.0 96 1,368 177 115 96 388 980 Pearl Millet-HYV W IR 2.0 1,330 3.5 96 2,996 241 144 642 1,027 1,969 Pulses (rainfed) P RF 0.4 1,920 0.6 80 816 130 96 70 296 520 W RF 0.5 2,170 0.7 80 1,141 148 106 239 493 648 W RF 0.6 2,170 0.9 80 1,374 148 106 302 556 818 Maize P RF 0.7 1,200 0.7 80 896 167 144 229 540 3356 i RF 1.0 1,260 1.0 80 1,340 177 144 298 619 721 W IR 3.0 1,260 3.0 80 4,020 229 154 829 1,212 2,808 Cotton-Desat P RF 0.4 3,680 - - 1,472 352 134 400 886 586 H RF 0.5 4,630 - - 2,315 389 134 493 1,016 1,299 W RF 0.6 4,630 - - 2,778 389 134 743 1,266 1,512 Cotton-Hybrid P IR 1.0 4,580 - - 4,580 387 147 757 1,291 3,289 W IR 1,2 5,760 - - 6,912 428 147 863 1,438 5,474 W IR 1.6 5,760 - - 9,216 518 154 1,871 2,543 6,673 Vegetables (2 seasons) W IR 10.0 860 - - 8,600 752 230 1,222 2,204 6,396 RABI Wheat P RF 0.7 1,560 1.1 64 1,162 178 144 253 364 798 i RF 0.8 1,910 1.1 64 1,598 184 144 304 632 966 W IR 2.5 1,910 3.8 64 5,018 241 154 1,104 1,372 3,646 Sorghum-Local P RF 0.5 1,210 1.5 120 785 148 115 88 351 434 H RF 0.6 1,560 1.8 120 1,152 163 115 144 422 730 Sorghum-RYV W IR 2.5 1,420 3.8 120 4,006 215 144 1,060 1,419 2,587 Gram W IR 1.4 2,080 1.4 80 3,024 229 144 469 842 2,182 Mustard W IR 1.0 3,190 - - 3,190 340 288 859 1,487 1,703 Tobacco P RF 1.1 5,220 - - 5,742 925 288 701 1,914 3,828 RE 1.2 7,700 - - 9,240 944 288 828 2,060 7,180 PERENNIALS Bananas P IR 20.0 670 - - 13,400 450 466 3,056 3,972 9,428 H IR 24.0 700 - - 16,800 540 559 3,276 4,375 12,425 S IR 30.0 700 - - 21,000 675 670 3,752 5,097 15,903 Orchards P RF 3.5 2,100 - - 7,350 320 127 1,345 1,792 5,558 i RF 3t5 2,200 - - 7,700 320 127 1,345 1,792 5,908 H IR 7.0 2,200 - - 15,400 430 224 1,934 2,588 12,812 Sugarcane P RF 50.0 80 - - 4,000 278 288 2,015 2,581 1,419 W RF 60.0 190 - - 11,400 747 307 3,120 4,174 7,226 w IR 80.0 190 - - 15,200 814 307 3,466 4,587 10,613 P = Present; = Puture Without Project; W = Future With Project; IR = Irrigated; and RF = Rainfed. 90 TABLE T-17 Page 1 INDIA GUJARAT IRRIGATION II PROJECT Typical Farm Budgets Farm Gross Hired Other Total Net Scheme Time Size Value Labor Animals Inputs Inputs Value (ha) -------------------------Rs------------------------ HERAN P 0.5 804 31 95 151 277 527 W 1,057 43 104 198 345 712 W 3,507 123 172 839 1,134 2,373 p 3.0 4,614 512 57C 903 2,045 2,569 7w 6,036 525 579 1,152 2,256 3,780 W 20,283 742 99C 4,878 6,610 13,673 P 8.0 11,752 1,619 1,400 2,336 5,355 6,397 W 15,288 1,792 1,424 2,984 6,200 9,088 W 52,070 3,419 2,536 12,592 18,547 33,523 KARJAN P 1.0 1,376 96 168 297 561 815 W 1,948 124 171 374 669 1,279 W 6,893 298 341 1,488 2,127 4,766 P 3.0 3,921 507 459 863 1,829 2,092 wi 5,541 559 468 1,089 2,116 3,425 W 19,923 693 984 4,308 5,985 13,938 P 8.0 9,904 1,755 1,104 2,232 5,091 4,813 W 13,968 1,806 1,128 2,816 5,750 8,218 W 51,112 3,115 2,520 11,072 16,707 34,405 DAMIANGANGA P 0.5 964 25 87 128 240 724 w 1,403 44 94 192 330 1,073 W 3,944 159 150 740 1,049 2,895 P 3.0 5,517 388 477 738 1,603 3,914 W 8,016 468 519 1,116 2,103 5,913 w 22,917 1,156 861 4,284 6,301 16,616 P 5.0 8,755 754 720 1,185 2,659 6,096 W 12,690 832 790 1,805 3,427 9,263 W 36,950 1,954 1,370 6,880 10,204 26,746 P = Present; W = Future Without Project; and W = Future With Project 91 TABLE T-17 Page 2 INDIA GUJARAT IRRIGATION II PROJECT Farm Budgets for Ukai-Kakrapar and Saurashtra 1/ Gross Hired Other Total Net Ukai-Kakrapar Time Value Labor Animals Inputs Inputs Value Head of System P&W 14,028 610 558 2,956 4,124 9,904 Near Outlet W1 16,807 711 598 3,644 4,953 11,854 W2 14,998 658 571 3,237 4,466 10,532 Head of System Far from Outlet P&W 11,480 679 519 2,398 3,596 7,884 W1 15,509 674 578 3,352 4,604 10,905 W2 14,998 658 571 3,237 4,466 10,532 Tail of System Near Outlet P&W 8,963 472 479 1,847 2,798 6,165 W1 14,210 636 558 3,060 4,254 9,956 W2 14,998 658 571 3,237 4,466 10,532 Tail of System Far from Outlet P&W 6,380 396 430 1,285 2,111 4,269 W1 13,494 614 548 2,899 4,061 9,434 W2 14,998 658 571 3,237 4,466 10,532 Saurashtra P 4,320 554 420 866 1,840 2,480 W 5,148 568 422 968 1,958 3,190 W 9,880 803 492 2,260 3,555 6,325 P - Present W = Future without Project W = Future with Project' W1 = Existing irrigation design and management W2 = Improved irrigation design and management 1/ Farm size of 2 ha. 92 TABLE T-18 INDIA GUJARAT IRRIGATION II PROJECT Cost Recovery Ukai- Heran Karjan DamanganEa Kakrapar Saurashtra Capital Costs/ha of Net CCA 1/ (Rs/ha) Irrigation Infrastructure 2/ 14,540 13,720 15,170 4,030 11,300 Land Development 700 700 1,300 360 700 Total 15,240 14,430 16,470 4,730 12,000 Annual Financial Requirement/ha of Net CCA (Rs/ha/year) Irrigation Infrastructure 3/ 1,470 1,390 1,530 410 1,210 Land Development 4/ 120 120 220 60 114 0&M 100 100 100 100 100 Total Annual Financial Requirement 1,690 1,610 1,850 570 1,424 Cost Recovery Under Existing Charges (Rs/ha/year) Direct 5/: Water Charges 152 133 253 59 80 : Cess on Water Rate 30 27 51 12 15 Sub-total (Rs/gross irrigated ha) 182 160 304 71 95 Sub-total (Rs/ha of net CCA) 209 179 337 79 105 Land Revenue (incremental) 18 18 18 0 18 Land Development Loan 120 120 220 60 114 Sub-total (Rs/ha of net CCA) 347 317 575 139 237 Indirect: Sales tax on cotton and oilseeds 54 67 4 0 69 Purchase tax on sugarcane 0 0 16 57 0 Sub-total (Rs/ha of net CCA) 54 67 20 57 69 Total Cost Recovery 401 384 595 196 306 Project Rent 2,389 2,561 2,922 768 1,632 Cost Recovery as a % of Project Rent 17 15 20 26 19 Cost Recovery as a % of the Cost of Each Scheme 24 24 32 34 22 1/ All expressed in June 1979 prices. 2/ Including suck costs and field channels and drains. 3/ Annuity for recovery over 50 years. 4/ Annuity for recovery over 10 years at 10% interest rate. 5/ Per gross irrigated ha. INDIA GUJARAT IRRIGATION II PROJECT Estimates of Project Rent HERAN KARJAN DAMANGANGA Q.5 ha farm 3 ha farm 8_ha farm 1 ha farm 3 ha farm 8_ha farm 0.5 ha farm 3 ha farm Sha farm W w w W W W W W W W W W W W 1. Expected Gross Value of Production 1,057 3,507 6,036 20,283 15,288 52,070 1,948 6,893 5,541 19,923 13,968 51,112 1,403 3,944 8,016 22,917 12,690 36,950 2. Certainty Equivalent of (1) 1/ 634 2,806 4,225 17,241 12,230 46,863 1,169 5,514 3,879 16,935 11,174 46,001 842 3,155 5,611 19,480 10,152 33,255 3. Production Cost 345 1,134 2,256 6,610 6,200 18,547 669 2,127 2,126 5,985 5,750 16,707 330 1,049 2,103 6,301 3,427 10,204 4. Family Labor 179 236 696 1,457 1,336 2,181 350 459 671 1,296 1,186 1,837 142 201 534 878 656 1,214 5. Net Returns (2)-(3)-(4) 110 1,436 1,273 9,174 4,694 26,135 150 2,928 1,082 9,654 4,238 27,457 370 1,905 2,974 12,301 6,069 21,837 6. Management Fees 2/ 11 144 127 917 469 2,614 15 293 108 965 424 2,746 37 191 297 123 607 2,184 7. Implicit Land Rent 99 1,292 1,146 8,257 4,225 23,521 135 2,635 974 8,689 3,814 24,711 333 1,714 2,677 12,178 5,462 19,653 8. Project Rent - 1,193 - 7,111 - 19,296 - 2,500 - 7,715 - 20,897 - 1,381 - 9,501 - 14,191 9. Project Rent per ha - 2,386 - 2,370 - 2,412 - 2,500 - 2,571 - 2,612 - 2,762 - 3,167 - 2,838 10. Weighted Average 3/ --------------------2,389-------------------- --------------------2,561-------------------- --------------------2,922-----------------292 I/ Some studies of farmers' behavior show that a simple approach can be adopted to take into account the farmers' risk aversion by estimating a certainty equivalent value (CE) of the expected value (EV). The formula used is: CE =EV - n x a where a = the standard deviation and n = a factor that expresses the farmers' risk aversion. The studies indicate that the farmers' choice of cropping patterns and production techniques can be predicted for values of "n" in the interval 1 to 2 and that "n" decreases when the farm size increases. For this analysis, it is assumed that n = 2 for a 0.5 ha farm and n = 1.5 for the 3.0 ha farm in mainland Gujarat and n = 1 for the 5 ha and 8 ha farm models. The variation in historical gross returns under rainfed conditions are roughly within 20% of the average values in mainland Gujarat and 30% in Saurashtra, It has been assumed that under "with project" conditions, the gross returns would vary within 10% of the average values. 2/ The reward for management and entrepreneurship is primarily a premium for the special skills that farm management requires. Consequently, it has been assumed that the "management fee" is equal to 10% of the net returns. 3/ Weighted by area of each scheme. 'OH W = Future with Project and W = Future without Project. In Ia INDIA GUJARAT IRRIGATION II PROJECT Estimates of Project Rent in Ukai-Kakrapar Top of System Top of System Tailend of System Tailend of System Near Outlet Far From Outlet Near Outlet Far .From Outlet 14 1 W2 1 I 2 1 2 1 W2 1. Expected gross value of production 14,028 16,807 14,998 11,480 15,509 14,998 8,963 14,210 14,998 6,380 13,494 14,998 2. Certainty equivalent of (1) 1/ 9,258 11,093 9,899 7,579 10,236 9,899 5,916 9,379 9,899 4,211 8,906 9,899 3. Production cost 4,124 4,953 4,466 3,596 4,604 4,466 2,798 4,254 4,466 2,111 4,061 4,466 4. Family labor 749 873 808 849 858 808 577 777 808 484 750 808 5. Net return (2)-(3)-(4) 4,385 5,267 4,625 3,134 4,774 4,625 2,541 4,348 4,625 1,616 4,095 4,625 6. Management fees 2/ 439 527 463 313 477 463 254 435 463 162 410 463 7. lmplicit land rent 3,946 4,740 4,162 2,821 4,297 4,162 2,287 3,913 4,162 1,454 3,685 4,162 8, Project rent - 794 216 - 1,476 1,341 - 1,628 1,875 - 2,231 2,709 9. Project rent 397 108 - 738 671 - 813 938 - 1,116 1,354 1/ Ssom -ndies of f'rmcrs' LIvior shows that a simple approach can be adopted to take into account the farmers' risk aversion by estimating a certainty equivalent value (CE) of the expected value (EV). The formula used is: CE = EV - n x s where s - the standard deviation and n = a factor that expresses the farmers' risk aversion. The studies indicate that the farmers' choice of cropping patterns and production techniques can be predicted for values of "n" in the interval 1 to 2 and that "n" decreases when the farm size increases. For this analysis, it is assumed that "n" = 1.7 for a 2 ha farm in Ukai-Kakrapar. The variation in gross return was assumed to be 20% of the average values. 2/ The reward for management and entrepreneurship is primarily a premium for the special skills that farm management requires. Conse- quently, it has been assumed that the "management fee" is equal to 10% of the net returns. W= Future Without Project W Existing irrigation design and management W2 Improved irrigation design and management INDIA GUJARAT IRRIGATION II PROJECT Saurashtra - Estimates of Project Rent for a 5 ha Farm w 1. Expected Gross Value of Production 12,870 24,700 1/ 2. Certainty Equivalent of 1. - 9,010 22,230 3. Production Cost 4,895 8,888 4. Family Labor 1,948 2,118 5. Net Returns 2. - 3. - 4. 2,167 11,224 6. Management Fees 2/1 217 1,112 7. Implicit Land Rent 1,950 10,112 8. Project Rent - 8,162 9. Project Rent per ha 1,632 1/ Some studies of farmers' behaviour shows that a simple approach can be adopted to take into account the farmers' risk aversion by estimating a certainty equivalent value (CF) of the expected value (EV). The formula used is: EC = EV - n x s where s = the standard deviation and n a factor that expresses the farmers' risk aversion. The studies indicate that the farmers' choice of cropping patterns and production techniques can be predicted for values of "n" in the interval 1 to 2 and that "n" decreases when the farm size increases. For this analysis, it is assumed that "n" = 1.0 for a 5 ha farm in Saurashtra. The variation in gross return was assumed to be 30% of the average values in situation "without projects" and 10% in situation "with projects". 2/ The reward for management and entrepreneurship is primarily a premium for the special skills that farm management requires. Consequently, it has been assumed that the "management fee" is equal to 10% of the d 3 net returns. W W = Future Without Project W = Future With Project INDIA GUJARAT IRRIGATION II PROJECT Derivation of Economic Prices for Major Crops and Inputs Paddy Wheat Groundnut Cotton Sorghum Nitrogen 4/ Phosphate 4/ Potash 4/ (N) (P) (K) Projected 1990 World Market Price (US$/ton) 1/ 475 204 473 2,012 148 196 179 90 Adjustment for Quality Differential (%) 65 100 100 100 110 100 100 100 Projected Price Adjusted for Quality (US$/ton) 309 204 473 2,012 163 196 179 90 International Shipping and Handling (US$/ton) 2/ 28 44 - - 44 33 33 33 FOB/CIF Price (US$/ton) 337 248 473 2,012 207 229 212 123 (Rs/ton) 2,831 2,083 3,973 16,901 1,739 1,924 1,781 1,033 Transport and Processing Cost in Domestic Market (Rs/ton x SCF) 3/ -236 -176 -264 -840 -176 210 190 130 1 Farm Gate Price (Rs/ton) 2,595 1,907 3,709 16,061 1,563 2,134 1,971 1,163 Processing Ratio (%) 66 100 68 35 100 46 5/ 46 5/ 60 5/ Adjusted Varm rnte Pric (Ps/tou) (Rounded) 1,710 1,910 2,520 5,620 1,560 4,640 4,280 1,940 1/ Source: IBRD Commodity Price Forecasts dated May 1979. These forecasts are expressed in 1979 Prices. Pricing Basis: Wheat : Canadian No. 1, Western Red Spring, FOB Thunder Bay Rice : Thai, Milled 5% Broken, FOB Bangkok Cotton : Mexican SM-1-1/16", CIF N. Europe Sorghum: U.S. No. 2, Milo Yellow, FOB Gulf Ports 2/ India is a net importer of foodgrains, long staple cotton and fertilizers and a net exporter of sugar. The State of Gujarat is a net importer of foodgrains and a net exporter of cotton and oilseeds. 3/ Including processing cost. 4/ Prices derived from urea, phosphate and muriate of potash, respectively. 5/ Nutrient ratio. 97 TABLE T-20 Page 2 INDIA GUJARAT IRRIGATION II PROJECT (Rs/ton) Summary of Prices for Economic and Financial Analyses Crops Economic Prices Financial Prices 1979 1990 1979 1990 Paddy - Transplanted 1,290 1,570 1,250 1,580 -Drilled 1,440 1,750 1,390 1,760 Sorghum - Kharif: Local 1,100 1,420 1,180 1,530 : HYV 1,100 1,420 1,180 1,530 Pearl Millet - Local 1,370 1,470 1,300 1,390 - HYV 1,250 1,330 1,180 1,260 Maize 1,200 1,260 1,100 1,190 Wheat 1,560 1,910 1,460 1,650 Groundnut 2,920 2,520 2,500 2,200 Pulses 1,920 2,170 1,820 2,060 Gram 1,840 2,080 1,740 1,970 Mustard 4,000 3,520 3,700 3,190 Vegetables 860 860 860 860 Cotton - Local 3,680 4,630 4,080 4,310 - Hybrid 4,580 5,760 5,080 5,360 Sorghum - Rabi: Local 1,210 1,560 1,300 1,690 HYV 1,100 1,420 1,180 1,530 Tobacco 5,220 7,700 6,000 7,700 Bananas 670 700 730 730 Orchards 2,100 2,200 2,100 2,200 Sugarcane 80 190 64 124 Inputs Nitrogen (N) 3,830 4,630 4,040 4,870 Phosphate (P) 3,010 4,190 3,170 4,410 Potash () 1,520 1,860 1,600 1,960 Animal Power 1/ 9.6 9.6 12 12 Farm Labor 2/ 3.7 3.7 5.5 5.5 Conversion Factors Standard Conversion Factor 0.80 Construction Conversion Factor 0.75 Skilled Labor 0.80 Unskilled Labor 0.67 Farm Labor 0.67 Seed 1.00 Pesticides 0.95 Byproducts 0.80 Manure 0.80 1/ Per animal per day (imputed cost). 2/ Per man day. INDIA GUJARAT IRRIGATION II PROJECT Damanganga Scheme - Cost and Benefits for Economic Analysis (in Rs M) Capital Cost Capital Cost Capital Cost Economic in Current Price Index in 1979/80 in Economic Cost of Land Total Agricultural Industrial Total Net Prices 1979/80=100 Constant Prices Prices Acquisition O&M Cost Benefits Benefits Benefits Benefits 1971/72 1.17 55.4 2.11 1.58 0.00 0.00 1.58 0.00 0.00 0.00 -1.58 1972/73 0.80 61.0 1.31 0.98 0.00 0.00 0.98 0.00 0.00 0.00 -0Z98 1973/74 3.33 73.3 4.54 3.41 0.00 0.00 3.41 0.00 0.00 0.00 -3.41 1974/75 7.79 91.7 8.50 6.38 0.30 0.00 6.64 0.00 0.00 0.00 -6.64 1975/76 12.71 90.7 14.01 10.51 0.77 0.00 11.28 0.00 0.00 0.00 -11.28 1976/77 13.95 92.6 15.07 11.30 1.43 0.00 12.73 0.00 0.00 0.00 -12.73 1977/78 48.09 97.4 49.37 37,03 2.54 0.00 39.57 0.00 0.00 0.00 -39.57 1978/79 78.16 98.7 79.19 59.39 3.44 0.00 62,83 0.00 0.00 0.00 -62.83 1979/80 129.84 100.0 129.84 97.38 4.29 0.36 102.03 5.65 0.01 5.66 -96.37 1980/81 349.05 100.0 349.05 261.79 5.18 0.90 267.87 18.39 0.01 18.40 -249.47 1981/82 225.44 225.44 169.08 6.10 1.37 176.55 35.62 0.01 35.63 -140.92 1982/83 91.17 91.17 68.38 7.09 1.90 77.38 57.17 0.04 57.21 -20.16 1983/84 0.00 0.00 0.00 7.24 2.46 9.70 82.67 0.05 82.72 73.02 1984/85 0.00 0.00 0.00 7.40 3.11 10.51 112.27 0.07 112.34 101.83 1985/86 7.55 3.62 11.17 142.53 0 O 142.61 131.44 1986/87 ,.55 4.21 11.76 173.60 0.09 173.69 161.93 19s"183 4.21 11.76 196.14 0.11 196.25 184.49 1988/89 211.96 0.11 212.07 200.31 1989/90 222.42 222.53 210.77 1990/91 228.74 228.85 217.09 1991/92 231.45 231.56 219.80 1992/93 232.80 232.91 221.15 1993/94 232.80 232.91 221.15 2021/22 0.00 10.0 0. 0.00 7.55 4.21 11.76 232.80 0.11 232.91 221.15 202122 o J 00 0 75 4 0.2N INDIA GUJARAT IRRIGATION II PROJECT Heran Scheme - Cost and Benefits for Economic Analysis (in Rs M) Capital Cost Capital Cost Capital Cost Economic in Current Price Index in 1979/80 in Economic Cost of Land Total Total Net Prices 1979/80=100 Constant Prices Prices Acquisition O&M Cost Benefits Benefits 1977/78 19.3 97.4 19.82 14.87 0.00 0.00 14.87 0.00 -14.87 1978/79 20.5 98.7 20.77 15.58 0.00 0.00 15.58 0.00 -15.58 1979/80 57.4 100.0 57.40 43.05 0.67 0.50 44.22 0.00 -44.22 1980/81 129.8 100.0 129.82 97.37 2.60 1.10 101.07 0.00 -101.07 1981/82 113.4 113.43 85.07 3.57 1.58 90.22 3.91 -86.31 1982/83 86.4 86.41 64.81 4.12 2.07 71.00 11.34 -59.66 1983/84 62.3 62.27 46.70 4.34 2.58 53.62 20.87 -32.75 1984/85 0.0 0.00 0.00 4.56 3.18 7.74 47.40 39.66 1985/86 0.0 0.00 0.00 4.78 3.74 8.52 63.94 55.42 1986/87 4.99 4.25 9.24 81.84 72.60 1987/88 5.21 4.25 9.46 100.78 91.32 1988/89 5.43 9.68 114.69 105.01 1989/90 5.65 9.90 124.53 114.63 1990/91 5.86 10.11 131.14 121.03 1991/92 5.86 10.11 135.22 125.11 1992/93 137.32 127.21 1993/94 137.92 127.81 1994/95 137.92 127.81 2027/28 0.0 100.0 0.00 0.00 5.J6 4.25 10.11 137.92 127.81 INDIA GUJARAT IRRIGATION II PROJECT Karjan Scheme - Cost and Benefits for Economic Analysis (in Rs M) Capital Cost Capital Cost Capital Cost Economic in Current Price Index in 1979/80 in Economic Cost of Land Total Total Net Prices 1979/80-100 Constant Prices Prices Acquisition O&M Cost Benefits Benefits 1977/78 35.2 97.4 36.14 27.11 0.00 0.00 27.11 0.00 -27.11 1978/79 39.7 98.7 40.22 30.17 0.00 0.00 30.17 0.00 -30.17 1979/80 128.7 100.0 128.70 96.53 0.27 0.50 97.30 7.14 -90.16 1980/81 206.2 100.0 206.20 154.65 0.79 1.10 156.54 21.59 -134.95 1981/82 110.5 110.50 157.88 1.37 1.58 160.83 40.69 -120.14 1982/83 173.3 173.30 129.94 1.82 2.07 133.83 63.11 -70.72 1983/84 89.0 89.00 66.76 1.94 2.58 71.28 88.48 -17.20 1984/85 0.0 0.00 0.00 2.06 3.18 5.24 117.25 112.01 1985/86 0.0 0.00 0.00 2.17 3.74 5.91 147.35 141.44 1986/87 2.29 4.25 6.54 177.12 170.58 0 1987/88 2.41 4.25 6.66 198.55 191.89 1988/89 2.53 6.78 213.58 206.80 1989/90 2.65 6.90 223.54 216.64 1990/91 2.77 7.02 229.56 222.54 1991/92 277 7.02 232.47 225.45 1992/93 234.46 227.44 1993/94 234.46 227.44 2027/28 .0 100.0 0.00 0.00 2.77 4.25 7.02 234.46 227.44 +tl 101 TABLE T-21 Page 4 INDIA GUJARAT IRRIGATION II PROJECT UKAI-KAKRAPAR MODERNIZATION SCHEME Cost and Benefits for Economic Analysis 1/ (Rs '000) Agricultural Production Incremental Capital Cost Foregone O&M Benefits 1 1081 1296 0 0 2 1081 1296 0 0 3 0 0 75 374 4 749 5 1123 6 1347 7 1497 8-30 0 0 75 1497 1/ 1000 ha Development Block. 102 TABLE T-21 Page 5 INDIA GUJARAT IRRIGATION II PROJECT Saurashtra - Cost and Benefits Streams for Economic Analysis (Rs '000) Capital Cost Distribution Pump Incremental Year Regulator System etc. Installation O&M Benefits 1 8,544 0 0 0 0 2 8,544 2,457 0 0 0 3 0 2,457 5,194 0 0 4 0 0 0 842 2.088 5 0 0 0 1,122 3,393 6 0 0 0 1,122 4.280 7 0 0 0 1,122 4.959 8 0 0 0 1,122 5.220 9 0 0 0 1,122 5.220 10-50 0 0 0 1,122 5.220 103 TABLE T-22 Page 1 INDIA GUJARAT IRRIGATION II PROJECT SAURASHTRA COASTAL DEVELOPMENT SCHEME - ESTIMATES FOR ECONOMIC ANALYSIS Estimates of the Value of Water from a Typical Cropping Pattern Cropping Net Return/ha 1/ Crop Water Value Crop Pattern Rainfed Irrigated Requirements of Water ----%---- --------Rs--------- ---m3/ha---- -Rs/m Cotton 35 1,200 6,700 7,800 0.71 Groundnuts 35 1,500 3,600 3,850 0.55 Sorghum 15 600 2,800 4,050 0.54 Pearl Millet 15 900 2,000 2,950 0.37 Weighted Average 1,100 4,300 5,130 0.62 1/ Estimated from farm interviews, taking into account projected prices, yields and input changes. 104 TABLE T-22 Page 2 INDIA GUJARAT IRRIGATION II PROJECT Saurashtra - Cost of a Typical Lift Irrigation Scheme Rs '000 Financial Conversion Economic Capital Cost Cost Factor Cost 1. Tidal Regulator 16,876 0.75 12,657 2. Pump Equipment 4,328 1.00 4,328 3. Pump House, etc. 602 0.75 452 4. Distribution System 4,244 0.75 3,183 Total Direct Cost 26,050 20,620 5. Physical Contingencies (20%) 5,210 4,124 6. Engineering and Super- vision (15%) 1/ 3,694 2,716 TOTAL Cost 34.954 27,460 Operation and Maintenance Cost 1. Pumping Fuel 749 1.00 749 2. Pump Repairs & Maintenance 170 1.00 170 3. Distribution Network at Rs 50/ha 132 0.75 99 4. Management Staff 130 0.80 104 TOTAL O&M Cost 1,181 1,122 1/ No engineering and supervision overhead has been applied to equipment. 105 TABLE T-22 INDIA Page 3 GUJARAT IRRIGATION II PROJECT $AURASHTRA COASTAL DEVELOPMENT SCHEME - ESTIM1ATES FOR ECONOMIC ANALYSIS Yield of Groundnuts (kg) 1,500 Yield Estimates of Groundnuts 1.400 Yield L E 634 Yield -52.1 + 1,865.9 MR 58.0 MR2 1,300 1,200 1,100 1,000 900 800 700 600 500 400 300 200 100 10 200 300 460 U 6 b 7SU o00 9 1,SOU 1,100 1,100 1,300 1,400 1,500 Monsoo Rainfall Effective Rainfall INDIA GUJARAT IRRIGATION II PROJECT SENSITIVITY ANALYSIS RERAN KARJAN DAMANGANGA UKAI-KAKRAPAR 2/ SAURASTRA 1/ Appraisal SChange Appraisal Sw gChange Appraisal Switching Change Appraisal Switching Change Appraisal Switching Change Value Value % Value Value % Value Value % Value Value % Value Value % 1. Output Prices 3/ 100 73 -27 100 62 -38 100 71 -29 100 64 -36 100 66 -34 2. Yields at Full Development 4/ 100 80 -20 100 71 -29 100 81 -19 100 88 -12 100 73 -27 3. Construction Costs (Rs M) 220.5 382.3 73.4 400.9 841.9 110 246.7 393.4 59.5 1.8 5.1 181 11.1 40.1 61.3 4. Overall Project Efficiency 5/ 50 36 -28 50 30 -40 50 38 -24 50 42 -16 50 27 -45 5. Construction Period (years) 7 11 57 7 12 71 12 16 33 2 4 200 3 5 60 6. Full Agricultural Development Reached 13 20 54 14 23 64 14 21 50 - - 5 2 60 in (years) 1/ The value of a variable tested, ceteris paribus, beyond which the ERR would be below the opportunity cost of capital at 12%. 2/ 1,000 ha development block with cost and benefits discounted over 30 years. 3/ Weighted average price index. 4/ feighted average yield index 5/ Percentage of the diverted water that is effectively used by the plants. L W1 INDIA GUJARAT IRRIGATION II PROJECT IMPLEMENTATION SCHEDULE Pre- Project Balance to Total Project 1980/81 1981/82 1082/83 1983/84 1984/85 Complete Major Irrigation Schemes 1. Dams % 100 65 34 1 Damanganga % 100 25 21 27 2 Karjan % 100 7 Heran 2. Canals and Branches Damanganga km 98.3 60.4 13.0 27.4 24.5 Karjan km 70.5 5.6 7.0 10.0 17.61 5.8 Heran km 40.41 0 3. Main Drainage System Daanana% 00 017 26 26 26 5 Damanganga % 100 0 15 19 23 23 20 Heran % 100 0 16 20 23 25 16 4. Irrigation Blocks (DistributaryServiceAreas) 2,700 5,087 8,700 11,640 27,873 Damanganga ha 56,070 0 2,070 6,745 9,740 37,645 Karjan ha 56,200 0 3,240 6,400 22,480 Heran ha 32,120 0 5. Command Area Roads 24 24 43 43 Damangana km 134 0 24 2 62 60 Karjan km 198 0 24 52 62 60 Heran km 247 0 4 59 55 4 Ukai-Kakrapar km 188 0 50 55 49 6. Ukai-Kakrapar Modernization Scheme 1,800 3,200 3,200 1,620 Karanj Distributary ha 9,820 0 2,800 3,600 3,600 18,200 Hajira Branch ha 28,200 0 1,600 2,800 2,800 2,800 2,800 1,200 Umbrath Branch ha 14,000 0 1,500 3,500 5,000 5,000 5,000 37,450 Surat Br. Drainage ha 57,450 0 7. Saurashtra Coastal Development Scheme 2,200 4,300 5,000 6,500 7,000 Irrigation ha 25,000 0 1,000 2,000 2,200 2,400 2,4(0 Conservation ha 10,000 0 8. Training Water 14 20 21 22 23 Management Specialists % _0__15_25_25_25 10 15 25 25 2S 9. 0 & M Improvements %3 10. Monitoring and Evaluation % . . 20 23 23 2 11. Narmada Planning Assistance % 10 17 21 26 26 12. GOI Project Preparation % World Bank - 21300 108 Ch昌rtレス GUJARAT協RR懲GAT監ON OEPARTMENT ORGANIZATIONASOFJULY1979 ラ『 109 ORGANIZATION CHART BUILDINGS& COMMUNICATION DEPARTMENT Chart C-3 SECRETARY C.E. (B. & CA & J.S. - -7 1 C.E. MPA a i.e. S.E. SUPERtNTENDING ENGINEERS S. E. INSPECTION AHMEDABAD AHMEDABAD VADODARA OT MECHANICAL ELECTRICAL ROAD PROJECT DESIGN PANCHAYAT PANCHAYAT PANCHAYAT PANCHAYAT DIRECTOR CAPITAL R RAJK UNIT NO. I R. & a. R. & S. . &'B. R. B. R. 8, B. CIRCLE CIRCLE CIRCLE, R. & B. CIRCLE CIRCLE CIRCLE CIRCLE STAFF PROJECT GANDHINAGAR CIRCLE NO. I CIRCLE NO. 2 CIRCLE CIRCLE CIRCLE GANDHINAGAR GANDHINAGAR GANDHINAGAR GANDHINAGAR AHMEDABAD VADODARA FIAJKOT TRAINING CIRCLE AHMEDABAD GANDMINAGAR GANDHINAGAR O.&D. AHMEDABAD MEHSANA VADODARA RAJKOT WORKSHOP ELECTRICAL ROAD PROJECT DESIGN GANDHINAGAR AHMEDABAD VADODARA RAJKOT CAPITAL :P.P.M.) R. & B. DIV. I A. & B. DIV. H. & B. DIV. R. & B. DIV. PLANNING DIV. DIV- DIVSION UNIT NO. 1 PANCHAYAT PANCHAYAT PANCHAYAT PANCHAYAT PROJECT RURAL ROADS) AHMEDABAD AHMEDABAD AHMEDABAD GANDHINAGAR DIV. DIV. DIV. Div. OIV. NO. I GANDHINAGAR GANDHINAGAR D.S. 5 NOS, AHMEDABAD PALANPUR SHARUCH JAMNAGAR INSPECTION ELECTRICAL ROAD PROJECT DESIGN MEHSANA KHEDA BHARUCH BHAVNAGAR CAPITAL R. & B. DIV. 2 R. & B. DIV. A. & B. DIV. R. & B. DIV. UNIT Div. UNIT UNIT NO. 2 PANCHAYAT PANCHAYAT PANCHAYAT PANCHAYAT PROJECT AHMEDABAD VADODARA RAJKOT GANDHINAGAR DIV. DIV, DIV. DIV. DIV. NO. 2 GANDHINAGAR KHEDA SURENDRA- SURAT JUNAGADH MECHANICAL ELECTRICAL ROAD PROJECT DESIGN BANASKANTHA PANCHMAHAL SURAT JAMNAGAR CAPITAL R. & S. DIV. NAGAR R, & B. DIV. R. & B. DIV. Dlv DIV. UNIT UNIT NO. 3 PANCHAYAT PANCHAYAT PANCHAYAT PANCHAYAT PROJECT R. & B. DIV. RAJKOT RAJKOT VADODARA GANDHINAGAR DIV DIV. DIV. DIV. DIV. NO. 3 GANDHINAGAR I HIMATNAGAR BHUJ NAVSARI BHAVNAGAR CENTRAL CAPITAL ROAD PROJECT DESIGN SURENDRA- SABARKANTHA VALSAD JUNAGADH CAPITAL R. & B. DIV. R. & B. DIV. R. & B. DIV, R. St S. DIV. WORKSHOP ELECTRICAL UNIT UNIT NO. 4 NAGAR PANCHAYAT PANCHAYAT PANCHAYAT PROJECT ODHAV DIV. GANDHINAGAR GANDHINAGAR PANCHAYAT DIV. DIV. DIV. DIV. NO. 4 GANDHINAGAR DIV. GANDHINAGAR GODHRA AMRELI DESIGN BHUJ DANG AMRELI CAPITAL R. & B. DIV. R . & 8. 0 IV. UNIT NO. 5 PANCHAYAT PANCHAYAT PANCHAYAT PROJ. DIV. NO. 5 GANDHINAGAR DIV. DIV DIV GANDHINAGAR DESIGN UNIT NO. 6 GANDHINAGAR C' E. - CHIEF ENGINEER DESIGN J.S. - JOINTSECRETARY UNIT NO. 7 GANDHINAGAR World B.Ak-20$03 110 INDIA GUJARAT IRRIGATION II PROJECT MAJOR IRRIGATION PRCJECTS Index to Map Number 14606 Sr. CCA No. Name of Project ('000 ha) COMPLETED 1. Dantiwada 54.66 2. Shetrunji 57.75 ON-GOING 3. Damanganga 56.11 4. Kakrapar 227.60 5. Ukai 190.90 6. Panam 30.99 7. Mahi Stage I 263.20 8. Mahi Stage II (Kadana) 19.49 9. Watrak 23.89 10. Dharoi 57.94 11. Karjan 55.78 12. Heran 43.55 13. Sukhi 19.12 FUTURE 14. Orsang 16.19 15. Sipu 31.78 111 INDIA GUJARAT IRRIGATION II PROJECT MEDIUM IRRIGATION PROJECTS Index to Map Number 14606 Sr. CCA Sr. CCA No. Name of Project ('000 ha) No. Name of Project ('000 ha) COMPLETED 16. Ver I 1.37 44. Ozat P.W. 3.24 17. Doswada 0.92 45. Ozat II 2.50 18. Heran P.W. 3.42 46. Hiran I 3.96 19. Karad 6.19 47. Sandroli - 20. Patadungri 5.07 48. Munjisar 3.46 21. Meshwa P.W. (10.77) 49. Moj 3.10 22. Moti Fatewade 29.15 50. Vartu 2.91 23 Kharicut Canal 10.53 51. Ghee 2.57 24. Karoldam (1.21) 52. Puna 1.03 25. Hathmati Weir (19.31) 53. Sasoi 4.32 27. Hathmati Dam 19.31 54. Sapda 1.13 27. Meshwa 24.33 55. Fulzar I 2.19 28. Harnav I 3.24 56. Demi 4.21 29. Bhogavo I 3.24 57. Machhu I 10.42 30. Bhogavo II 0.61 58. Brahmani 30.36 31. Limbdi Bhogavo 4.22 49. Gajod 4.23 32. Goma 3.24 60. Kankawati - 33. Bhimdad 1.98 61. Sanadro 3.02 34. Ghelo 4.18 62. Niruna 2.71 35. Rangola 10.12 63. Kaila 3.56 36. Rojki 2.52 64. Rudramata 3.13 37. Malan 3.38 65. Suvi 2.08 38. Khodiar 9.87 76. Madhuwante 2.51 39. Surajwadi 1.35 79. Chhaparwadi (L) 1.13 40. Raval P.W. 1.35 81. Phophal 4.68 112 Index to Map Number 14606 (cont.) Sr. CCA Sr. CCA No. Name of Project ('000 ha) No. Name of Project ('000 ha) 41. Machhundri P.W. 3.24 82. Kalindri 2.10 42. Bhadar 26.59 8.5. Machhu II * 9.11 43. Gondli - 87. Kaswati 0.81 * Failed 11 August 1979. 113 INDIA GUJARAT IRRIGATION II PROJECT MEDIUM IRRIGATION PROJECTS Index to Map Number 14606 Sr. CCA Sr. CCA No. Name of Project ('000 ha) No. Name of Project ('000 ha) ON-GOING 66. Saraswati 8.74 80. Chhaparwadi (J) 3.36 67. Sakhbhadar 3.86 83. Sorthi 2.14 68. Dhari 0.94 84. Fulzar 11 0.73 69. Rajawal 0.41 86. Nara 1.79 70. Bagad 2.02 88. Gajansar - 71. Dhatarwadi 3.12 108. Baldeva 2.11 72. Raval II 6.14 110. Rami 1.89 73. Machhundri II 4.28 113. Wankaleshwar Bhey - 74. Shingoda 6.07 117.. Machhanala 3.03 75. Hiran II 9.51 130. Kalubhar - 77. Ambajal 0.94 141. Sani 4.72 79. Jhanjeshwari 4.05 154. Ghodatad 1.32 114 INDIA GUJARAT IRRIGATION II FROJECT MEDIUM IRRIGATION PROJECTS Index to Map Number 14606 Sr. CCA Sr. CCA No. Name of Project ('000 ha) No. Name of Project ('000 ha) FUTURE 89. Manal Dam & 124. Vekri N.A. Kothar P.W. N.A. 125. Rupen N.A. 90. Nani Vahial N.A. 126. Bhakhari N.A. 91. Delhi. P.W. N.A. 127. Chimnabai (Lake) N.A. 92. Sindhumber N.A. 128. Rel (Dhanera) N.A. 93. Tan - Amba N.A. 129. Nal-Lake N.A. 94. Kelia N.A. 131. Kharo N.A. 95. Jhuj N.A. 132. Lakhanka N.A. 96. Kahndolpura N.A. 133. Sangawadia N.A. 97. Shra N.A. 134. Datardi N.A. 98. Antapur N.A. 135. Meghal 0.40 99. Zhankhri 37.73 136. Vrajani 1.08 100. Piparia N.A. 137. Amipur 8.06 101. Lakhigam 0.79 13E. Minsar N.A. 102. Ver II 4.05 139. Vadala 0.63 103. Sankara 1.64 140. Shedha-Bharathi N.A. 104. Pigut 1.42 142. Vardai N.A. 105. Kakdi - Amba N.A. 143. Weiron Bhadar N.A. 106. Chopadvav N.A. 144. Karmal 1.40 107. Dholi N.A. 145. Venu II 6.19 109. Men 4.44 146. Und-Jivapur 4.62 111. Deo 7.77 147. Aji III N.A. 112. Umaria 2.19 148. Gadadharoi 3.31 114. Hadaf 5.82 149. Bhahmani N.A. 115. Edalwada 1.38 150. Bitaveladia N.A. 116. Kabutary 1.82 151. Kalaghoda N.A. 118. Bhadar (Mahi) 4.41 152. Mitti 1.78 119. Mazam 6.53 153. Janghadia 0.55 120. Bakrol N.A. 155. Bawia N.A. 121. Vaidy 2.01 156. Mathal 1.04 122. Gujai N.A. 157. Bhukhi 1.38 123. Harnav II N.A. …긷  IBRD 14608 9o9 N 73"99 73°x ¯. ¯ DE7_ EBER 1979 GUJARAT IRRIGATION II PROJECT BHARUCH D 1S T R l C T KILOMETERS 0 2 3 4 5 6 7 8 9 0 UKAI-KAKRAPAR IRRIGATION SCHEME M 7 OLES2 0 6 --- Proposd Conal Alignrenrt 7+---- Proposed Drams I Kosmb. Kokrapar Rght ond Left Bonk Modermzot on Blocks and Demonstrotion Areos - - Dnrnge mprovement Block - - 2 |2Ca ai .. Ex t,ng Commn nd Areos 9- ~ Dom and Reservoi, Under Construchon - <2-- - - -- Mojon Dis1-ric1 Roods Stato Highways Nonal Highways - --- - - -----.-,- Roilnoods -o Prme :Pal Cities -. .----- District BoundaOries D,er- t B-d.- R,ver - - - N D A 1 -- p~ RÅ ------- --SCHEME -K- -FT BANK ATION - -. IEM T IST RICT  ] c - -i - o_ - u < O - . I I ii- --- - 1 ....- - 2 --I -, -- \0 L -~- c0~ I 2 2- -- 00  IBRD 14610 73 15 DECEMBER 1979 Å INDIA GUJARAT IRRIGATION 11 PROJECT - . DAMANGANGA IRRIGATION SCHEME t. - Proposed Caal Alignmens - Proposed Command Anea () -4 IrIrigation Blocks 2 1 - Dam and Reservoir under Construction sts Rivers - -Existing Weir - - - Maior District Roods - - - State Highway National Highway Roilroad 0 PrirIcipal Cities -- -. - Union Territory Boundaries --.-..- Guiarat State Boundary Jil -•r s -V..K L - KlOMETERS 0 1 9 3 5 b 7 8 910 MILE 0 1 2 3 4 5 1 Í la. 20 - ,Y 5 d, nk h - f th ---- --4-. y *rio u rpa unsors • C H IN A PA Kl STAN /<ý M A H A R A SH T R A . 73 0*,5  -i ILs- - 1 1N ---i---2 - -1  ~0 I, i 4=5, « 55- i i 5/5,55 -\ 5, i St ~ 5 ~ 55 ii:, =, 5- 5- I ~4=5, 5,5,5\ Ø \ - 374=5>,, >,S ~ 4.5.5 i , - ______________ 5 SS ~ 55 '5>-,- 0~ '-5- 5, i , - I I -. -- 553 5 - .5/ i 0~ = ~ 5>' -I 1- / 5-> I 555,~ (/ - \ Jo-. 5,4= Ct Ø' ~o & i tø i 5, 5-, '1 >':7>'~~ 0 i-. sijjt 5' I I- i - I - -- 4:-. ti--- 5' i-~>sss4= - , - --I 'm v/rr. <I '-' -- , -- 7. I - .-- . - '7= i I, 'i , -~ I - ''I - ~~~5~5,, -- -. .5 5 5, [I I -9, 37 i I .5 ., '-"'*j - -- II - . - '4=> >55> , 5-' =5 4= 4= = iii ~ St's -~ 2 i: 5' -Jo,