India - Maharashtra Agricultural Extension Project

Document of <t r The World Bank t j%I. l FOR OFFICIAL USE ONLY Report No. 3299-IN INDIA STAFF APPRAISAL REPORT MAHARASHTRA AGRICULTURAL EXTENSION PROJEr- March 23, 1981 Education and Agricultural Institutions Division South Asia Projects Department This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS US$1.00 = Rupees (Rs) 8.00 WEIGHTS AND MEASURES Metric System ABBREVIATIONS AND ACRONYMS AA - Agricultural Assistant ADA - Additional Director of Agriculture AEO - Agricultural Extension Officer(s) AO - Agricultural Officer APC - Agricultural Production Commissioner Asst.DA - Assistant Director of Agriculture AS - Agricultural Supervisor ASDAO - Additional Subdivisional Agricultural Officer BDO - Block Development Officer CDD - Community Development Department CEO - Chief Executive Officer DAO - District Agricultural Officer DDA - Deputy Director of Agriculture DlEA - Department of Economic Affairs DOA - Department of Agriculture DOE - Directorate of Extension (GOI) GOI - Government of India GOM - Government of Maharashtra HYV - High Yielding Varieties ICAR - Indian Council of Agricultural Research JDA - Joint Director of Agriculture PAO - Principal Agricultural Officer RPC - Regional Planning Committee SAO - Superintending Agricultural Officer SDAO - Subdivisional Agricultural Officer SMS - Subject Matter Specialist SPC - State Planning Committee T&V - Training and Visit System of Agricultural Extension VEW - Village Extension Worker(s) VLW - Village Level Worker(s) ziP - Zilla Parishad  INDIA FOR OFFICIAL USE ONLY MAHARASHTRA AGRICULTURAL EXTENSION PROJECT Table of Contents Page No. I. BACKGROUND .1 Introduction. 1 Agriculture in India ...............1.................. I Agricultural Extension ................................ 2 Existing State Projects ............................... 3 Agriculture in Maharashtra ............................ 6 Agricultural Services in Maharashtra .................. 7 Training .............................................. 7 Research .............................................. 8 Input Supply .......................................... 8 Credit ............................ 9 Irrigation ............................................ 9 Marketing and Processing ............................. 10 II. THE PROJECT ..................... . ....... 10 A. General Description 0....... -......... l 0 B. Detailed Features 1....... ............. l The Extension Methodology ...................... 11 Incremental Staff Requireme..L6 ........................ 13 Housing . .............................................. 15 Transport ............................................. 15 Equipment ............................................. 16 Operating Costs ....................................... 16 University Liaison .................................... 16 Training .......................... . 16 Monitoring and Evaluation .16 III. COST ESTIMATES AND FINANCING ........ ... .. ............... 17 A. Cost Estimates ........................................ 17 B. Proposed Financing .................................... 18 C. Procurement ........................................... 18 D. Disbursement and Audit ................................ 19 IV. ORGANIZATION AND MANAGEMENT ............. .. ................ 20 A. Linkage with Panchayat Raj System ..................... 20 Linkages between Extension and Research .... ........... 21 Formulation of Recommendations ........................ 21 Farm Trials ........................................... 22 Monitoring and Evaluation ............................. 22 Farm Information ...................................... 23 V. BENEFITS, JUSTIFICATION AND RISKS ......................... 23 - Economic Benefits .................................. 23 - Project Risks ...................................... 23 VI. AGREEMENTS REACHED ANND RECOiNENDATIONS .................... 24 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii - Table of Contents (cont.) ANNEX I - Project Costs Table 1 - Summary of Project Costs Table 2 - Civil Works Table 3 - Vehicles and Equipment Table 4 - Training Costs Table 5 - Incremental Staff Salaries Table 6 - Incremental Operating Costs Table 7 - Requirement and Availability of Extension Staff Table 8 - Requirement and Availability of Extension Staff by Sub-Division Table 9 - Requirement of Extension Staff by Years ANNEX II - Training ANNEX III - Draft Memo of Understanding Between the Government of Maharashtra and Agricultural Universities ANNEX IV Table 1 - Implementation Schedule Table 2 - Estimated IDA Disbursements ANNEX V Table 1 - Economic Analysis Table 2 - Economic Price for Paddy Table 3 - Economic Price for Wheat CHART I - Organization Chart - World Bank 22285 CHART II - Linkages Between Extension and Research World Bank 22350 MAP - IBRD 15428  INDIA MAHARASHTRA AGRICULTURAL EXTENSION PROJECT I. BACKGROUND Introduction 1.01 The proposed project would be the ninth in a series of IDA-assisted projects designed to reorganize and strengthen agricultural extension in India. 1/ Under the project, the Government of Maharashtra (GOM) would reor- ganize its extension service to provide farmers, on a regular and systematic basis, with up-to-date advice on farming practices best suited to their speci- fic conditions and capable of having an immediate impact on production and income. This would be achieved by strictly programmed visits from regularly trained field staff, supported by professional advice from the Department of Agriculture (DOA) and from research. 2/ The project was prepared by GOM with assistance of staff of the Bank's Resident Mission in India. Appraisal took place in October 1980. This report is based on the findings of the appraisal mission consisting of Messrs. C.P.R. Nottidge, B. Nekby and C.M. Mathur (IDA) and T. Lohavisapanich (FAO/CP). Agriculture in India 1.02 The area of India is 3.29 M km of which 55% is cultivable and about 25% of the net cultivated area irrigated. India's population of over 650 M is growing at an annual rate of about 2.0%. National income has grown at nearly 3.5% per annum since 1960, and the per capita GNP reached US$190 in 1979. Although average per capita income has increased, in general there has been little change in the living standards of the vast masses of urban and rural poor, conservatively estimated at 300 M people with incomes below the poverty line of US$79 per capita per year. Thus, GOI's development plans give priority to alleviating poverty and creating employment, especially in rural areas. 1/ The e:4>i previous prolects are described in the following appraisal reports: Assam Agricultural Development Project, Cr. 728-IN West Bengal Agricultural Extension and Research Project, Cr. 690-IN Rajasthan Agricultural Extension and Research Project, Cr. 737-IN Madhya Pradesh Agricultural Extension and Research Project, Cr. 712-IN Bihar Agricultural Extension and Research Project, Cr. 761-IN Orissa Agricultural Development Project, Cr. 682-IN Composite Agricultural Extension Project (Haryana, Gujarat and Karnataka), Cr. 862-IN Kerala Agricultural Extension Project, Cr. 1028-IN 2/ The main principles of the proposed extension reform are described in Agricultural Extension: The Training and Visit System (World Bank 1977).  - 2 - 1.03 Agriculture is the dominant sector of the Indian economy and contri- butes about 40% of GNP. It engages about 70% of the labor force and provides the base for about 60% of India's exports. During the last decade, GOI deve- lopment plans have emphasized agriculture and sought to raise foodgrain pro- duction by increasing the use of irrigation, fertilizers, plant protection chemicals, and seeds of improved varieties. In support of this, GOI has modernized and expanded its agricultural credit institutions and accelerated the development of irrigation. More recently, increased attention has been given to the establishment of improved extension services and upgrading the research capabilities needed to support this extension effort. 1.04 These efforts appear to be bringing significant results. Over the past decade foodgrain production has grown at about 2.75% p.a., sufficient to meet consumer demand, eliminate imports (which had averaged nearly 5 mil- lion tons per year for the 15 years preceeding 1976) and lower real foodgrain prices to consumers. At the same time India was able to build up sufficient buffer stocks of rice and wheat to cope with the 1979/80 drought with compa- rative ease, and to export about 0.5-0.6 million tons of rice in 1980/81. While these developments are very encouraging, great efforts will be required to maintain this pace. Moreover, per capita production of a number of other important crops, including cotton and oilseeds, has fallen during the period. Furthermore, India's agriculture is particularly susceptible to the vagaries of weather and foodgrain production can vary as much as 20% between successive years. Although expansion of irrigation facilities to reduce this variation remains a priority, GOI recognizes that the bulk of India's cropped area and over half of its farmers, cannot, in the foreseeable future, benefit from water-intensive agricultural technologies. Moreover, although much appropriate research is available, yields under rainfed conditions have shown little or no improvement over this period--a fact which prompts this project's emphasis on rainfed as well as irrigated farming. Agricultural Extension 1.05 State Governments have direct responsibility for agricultural exten- sion; they operate through their Departments of Agriculture (DOA), generally with the cooperation of other state departments. While organization varies between states, the extension service is generally headed by the Director of Agriculture who reports to the Secretary of Agriculture. He is assisted by staff located at state, divisional and district levels. The Collector (the senior representative of the civil administration at the district level) coordinates activities between the various agencies of government, with the District Agricultural Officer (DAO) representing DOA. Below the district level, Agricultural Extension Officers (AEO) generally report on routine matters to the Block Development Officer (BDO), an official of the state Community Development Department. In some states, locally elected councils (panchayats) also play a role and the BDO are responsible to these bodies. Given the multitude of local activities and lack of direct administrative control by DOA, AEO are often diverted to non-agricultural activities. The village level worker (VLW), a multipurpose worker, is supposed to spend 75-80% of his time on agricultural extension under the direction of the AED. However, the VLW is administratively responsible to the BDO and the lack of a well-defined agricultural program, combined with the demands of his other activities, generally result in his spending very little time on agricultural extension. The same is generally true of the AEO. What little extension work is done is neither planned systematically, nor supervised adequately.  - 3 - 1.06 Over the years, dissatisfaction with the effectiveness of the multi- purpose worker for increasing agricultural production has led to the develop- ment of a variety of special programs focusing on particular crops, areas, or techniques. Staff employed under these schemes are usually under the adminis- trative control of various subject matter departments of DOA. In a given state, such schemes usually cover only a few districts and only part (e.g. one crop) of the farmers' operations. These schemes have tended to dissipate extension efforts in many uncoordinated directions and divert attention and resources from the need to reform the main line extension agency. 1.07 In addition to .the organizational problems mentioned above, the ex- tension service often suffers from inadequate and outdated staff training. Moreover, there are usually too few staff to cover the farming community adequately and they lack sufficient mobility to reach farmers systematically and regularly. Furthermore, government owned housing is scarce and rented accommodation hard to come by. Additionally. linkages with research have been tenuous and irregular. All these factors have hampered effective extension work. They have resulted in a general stagnation in agricultural production, with most extension personnel having low status, low pay and poor rnorale. 1.08 With yields in irrigated and rainfed areas remaining at levels well below potential, GOI has become increasingly concerned with improving agricul- tural extension. A new system of extension--the Training and Visit System (T&V)--based on frequent and regular farm visits by full-time, adequately trained extension personnel was developed in 1974 with IDA assistance. Under this approach, a substantial portion of the multipurpose VLW is transferred from Community Development Departments to DOA to work exclusively on agricul- tural extension. The results from the Chambal Irrigation Scheme in Rajasthan 1/, where the system has been in operation since 1974, were so encou- raging that the approach was adopted in ten states under the projects discussed below. Existing State Projects 1.09 The Rajasthan Agricultural Extension and Research Project (Cr. 737- IN, US$13 M, effective in February 1978), was an outgrowth of the favorable results obtained with the new approach to agricultural extension pioneered under the Chambal Command Area Development Project (Cr. 562-IN, ef'fective September 1975) and the Rajasthan Canal Command Area Development EProject (Cr. 502-IN, effective December 1974). The Government of Rajasthan is presently reorganizing and strengthening extension and supporting adaptive research to serve 2.9 M of the state's 3.7 M farm families in 17 districts where an immediate potential for improving agricultural production exists. Project implementation has picked up rapidly. Farmers have responded favorably to the system, and adopted new practices like seed treatment, basal dressing with fertilizers, and intercropping with kharif pulses which have helped them grow a good crop even under drought conditions. There is now a need for more l/ This covered 84,000 farm families and 360,000 ha of which about two- thirds is irrigated.  - 4 - intensive work by researchers to develop more sophisticated technological packages since farmers have developed confidence in the extension staff and respond favorably towards adoption of new techniques and skills. 1.10 As a result of experience with improved extension activities in the Chambal Irrigation Command Area, Madhya Pradesh requested IDA assistance in extending the reorganization of agricultural extension services to cover both irrigated and rainfed areas in 15 of 45 districts in the state (Cr. 712-IN for US$10 M. effective September 1977). Progress was good in the early stages of the project, but slowed down later due to frequent changes in project management. The major problems noted by the early supervision missions were staff shortages, slow construction of buildings and houses, inadequate liaison between research and extension organizations and slow implementation of the T&V system, although district phasing had proceeded as planned. Despite the slow start, there has been considerable improvement during the past year and almost all posts, both in research and extension, have now been filled. Having overcome cumbersome bureaucratic tendering procedures, the building program is now gaining momentum. Liaison between research and extension has been well established resulting in a substantial involvement of research workers in training extension staff and with greater emphasis being given to resolving farm related problems within the overall research program. At a recent survey, 75% of contact farmers were aware of the day of visit of the VEW and almost all could identify him by name. About 81% of contact farmers have adopted at least one of the recommended practices. 1.11 In project districts, there has been a 300% increase in the use of clean and graded seed, a 35% increase in the planting of seed of improved varieties and a 28% increase in the use of seed dressings. Fertilizer use, both under rainfed and irrigated conditions, has increased by 66% over 1976/77 levels (as compared to 48% in other districts of the state) and the use of soil testing facilities increased by 69%. In October, 1980 IDA appraised a project to extend the T&V system to cover all remaining districts of the state. 1.12 Eastern India, including Assam, Bihar, Orissa and West Bengal, is the country's "rice bowl". Despite its high potential, foodgrain yields are low and production has barely kept pace with population growth. The stagna- tion of agricultural production has been partly due to the inability of the extension service to give meaningful advice to farmers; similarly, research has failed to focus on the majority need for simple, low cost means of im- proving production. Orissa was the first state to reorganize its agricultural extension service throughout the entire state (Cr. 682-IN, for US$20 M, effec- tive June 1977). Virtually all of the state's 3.4 M farmers are now covered by the program, and, according to the most recent supervision mission, good progress has been made, farmers have responded well and have accepted, on a widespread basis, new practices for increasing production, e.g., introduction of mustard as a new crop, seed treatment, and use of manually operated seed drills. In addition, the supervision mission has reported favorablv or the -.iav exrPnsinr mesqa2es qre reaching even the remotest \7Tllages.  - 5 - 1.13 During the preparation and appraisal of the West Bengal Agricultural Development Project (Cr. 541-IN, effective August 1975), which supports minor irrigation development in a portion of the state, one of the major constraints was identified as a lack of effective agricultural extension. Consequently, the project included a component to strengthen extension in six districts along the principles established in the Chambal and Rajasthan Canal Areas. The initial impact of extension rsorganization was so favorable that the state decided to expand the coverage. This was provided in Cr. 690-IN, for US$12 M, effective August 1977. Initially, the project was highly promising: 2,400 multipurpose workers were transferred from the Community Development Depart- ment to the control of DOA and were trained in the dissemination of specific messages for farmers and, together with DOA technical staff, worked with farmers in identifying and solving field problems. In the latter part of 1977, however, a new Government of West Bengal (GOWB) suspended its earlier decision to place the Village Extension Worker (VEW) under the administrative control of DOA pending a thorough review. This drastically reduced the abi- lity of VEWs to visit farmers regularly, and extension operations came to a virtual halt in most of the state. GOWB has now re-established the single line of command, placing all extension staff under DOA, thus removing the major obstacle to project implementation. Although recruitment and training of new VEW has started, the tempo of work has not yet reached former levels due to an injunction being brought against the government by some staff transferred from the Community Development Department. The injunction was partly lifted in January 1981, allowing newly recruited VEW to start field work. 1.14 Under the Assam Agricultural Development Project (Cr. 728-IN, for US$8.0 M, effective September 1977), Assam became the third state in the eas- tern region to reorganize its extension service. The project now covers all of the approximately 1.9 M farm families in Assam's plains districts. In the first districts covered, improved farm practices such as line transplanting of paddy, use of HYV paddy, increased area and higher yields of HYV wheat and increased consumption of fertilizers resulted. In the more recentLy covered districts, the effects of extension work are already starting to be seen. Unfortunately, in view of political unrest in Assam it has not been possible to superviEr the project since November 1979. 1.15 Under the Bihar Agricultural Extension and Research Project (Cr. 761-IN for US$8 M, effective May 1978), through a reorganization of existing staff, some 9,000 VEW were to reach all of Bihar's 7.6 M1 farm fam.ilies. How- ever, very little progress has been made so far with the reorganization. The posts of Director of Agriculture and Additional Director of Agriculture (Extension) remain vacant and the extension system is operating in only 5 of 31 districts. The persistent delay by the Government of Bihar in filling key posts and general commitment to the project is of great concern. More recently, government has expressed a renewed commitment to the project and some staff have been appointed. IDA and GOI are following the situation closely. The State Government has been alerted that unless significant  progress is made by March 31, 1981, IDA will have tu reassess its involvement in the project. 1.16 The Composite Agricultural Extension Project (Cr. 862-IN for US$25.0 M) became effective in December 1979. Under this project, the govern- ments of Gujarat, Haryana and Karnataka have undertaken the reorganization of extension services in their states. The project also includes strengthening of the capability of the Directorate of Agricultural Extension (DOE) of the Government of India (GOI) in order that it may assist all states in the imple- mentation and operation of the reorganized extension system. Extension acti- -vities are going well in Haryana and Karnataka. In Gujarat, the quality of extension work is not uniform. While in some districts its impact is highly effective, in other districts, it has suffered from inadequate supervision by the State Department of Agriculture. The State Government has been urged to remedy the situation. The most recent extension project, the Kerala Agricultural Extension Project (Cr. 1028-IN for US$10.0 M) became effective in June 1980. Recently, there have been changes at the top administrative and political levels in agriculture with the result that project implementa- tion has made little progress. A recent supervision mission discussed project proposals with the new officials and agreed on a modified program for imple- mentation. Field work has begun in three districts and will start in the remaining districts in May, 1981. Agriculture in Maharashtra 1.17 Maharashtra, in southwest India, is the third largest state in the Indian Union and divided into 25 districts. It covers 30.7 M ha and has a population of about 60 M (1979). It receives heavy rains during the south- west monsoon (from June to October), but these only extend inland as far as the Western Ghats, a range of hills about 1,000 M high and about 50 km, inland, running the length of India parallel to the coast. The eastern slopes of these hills and the land lying under this rain shadow are dry (annual rain- fall is about 500 mm). Rainfall increases gradually as one moves eastward across the state and reaches about 1,250 mm in eastern districts (where 70% of rainfall occurs during the monsoon). In addition, the eastern districts often receive substantial rain towards the end of the monsoon which allow the growing of rabi (winter) crops on residual moisture. The soils of the coastal zone are alluvial: paddy is the main crop. In the Western Ghats, brown and reddish-brown loams and lateritic soils are found; paddy, pearl millet or other lesser millets are the main crops. The eastern slopes of the hills comprise red and black basaltic coils on which paddy can be grown on higher slopes; at lower altitudes, pearl millet, sorghum and groundnut are the main crops. Further to the east, on similar brown black clay loams, sorghum, pulses, cotton and groundnut are found; still further east, in the higher rainfall areas, the principal crop is again paddy. 1.18 About 18.2 M ha are cultivated by 5.76 M farm families; 1.4 M ha is cropped more than once; about 8.4% of net sown area is irrigated. Agri- culture is the most important sector of the State's economy. It contributes 30-35% to the net domestic product and employs some 65% of the labor force. Over 90% of farms in Maharashtra are wholly owned by the cultivators. The Last agricultur< ^onR'lc- (Q70/''l qhnTvPc4 tIhnt -46' nf tbe farms qrp -ma11er -lnr Fc 7^  - 7 - 1.19 In agriculture, the Bank group is assisting GOM with implementatiorn of two irrigation projects (Cr. 736-IN and Cr. 945-IN), an Integrated Cotton Development Project (Cr. 610-IN), National Seeds Project (Loan 1274-IN) and the Drought Prone Areas Project (Cr. 526-IN). Agricultural Services in Maharashtra 1.20 The Panchayat Raj institution for peoples' participation in develop- ment has taken deep roots in Maharashtra during the 18 years since the Act establishing it was passed in 1962. Agricultural extension, although not specifically mentioned in the Act, is regarded as a task of the local govern- ment sector. The present system provides for a multipurpose village level worker (Gram Sevak) who receive technical guidance from an Agricultural Exten- sion Officer (AEO) stationed at the Block level. Both are employed by the Zilla Parishad (District Council) and work under the direct control of the Block Development Officer (BDO). The latter is in turn responsible for all development activities in the block to the Panchayat Samiti (Block Council) and is secretary of the Council. Administratively, at the district level, he is responsible to the Chief Executive Officer (CEO) of the Zilla Parishad who is in charge of all development activities entrusted to the Zilla Parishad and who is the liaison officer with the State Government. The CEO heads a number of departments at the district level. Agricultural activities are managed by an Agricultural Development Officer (ADO) at the district level who mainly deals with input supply questions and who, like other district departmental managers,operates through the BDOs. See Chart World Bank 22285. 1.21 Parallel with this local government organization, there are a number of Department of Agriculture state sector schemes mainly concerning cash crops. These, at the district level, are headed by an Assistant Director of Agriculture (cash crops), Residuary Officer (statistical tasks, orchards, etc.) or Hybrid Seed Production Officer. In 1978, these schemes were put under the Chief Executive officer of the Zilla Parishad but maintained their own village level field staff (Agricultural Assistants) outside the purview of the BDO and the Panchayat Samiti. 1.22 There are seven Divisions in Maharashtra. At this level of adminis- tration, the activities of the Department of Agriculture are headed by a Superintending Agricultural Officer, assisted by a number of Deputy Directors of Agriculture responsible for the technical guidance of the agricultural activities in their districts. Presently they are not located in the district and do not come under the jurisdiction of Zilla Parishad. Training 1.23 There are foujr agricultural universities a,;- -, separate agriculturn. colleges in the State; about 1,000 students graiuat-e ci7ery year with BSc. degrees and about 290 with MSc. qualifications. At present, AA receive two years training at one of the State's 25 agricultural schools which have a capacity of 1,200. These schools are under the guidance of the Agricultural Universities. Multipurpose workers (VLW) obtain two to six months of genera_ training at one of the nine gram sevak trainina centers. There is also a farmers' training center in each district.  - aJ - Research 1.24 Agricultural research in Maharashtra is fragmented. Although there are various coordinating committees, none has statutory powers and the four universities remain basically autonomous. Their influence areas are deter- mined on an administrative oasis (districts) and two or more universities may thus be active in a particular agro-ecological zone. Although Crop Coordina- tors have recently been apnointed at the Universities, they have no powers (scientific, administrative or budgetary) to influence research outside their own universities. With four independent Research Department heads, there is a tendency for research to lack clear-cut direction. This should not detract however, from the considerable achievements of the agricultural universities, but lack of coordination and risk of unnecessary duplication has so far made Maharashtra ineligible for assistance under the ongoing IDA assisted National Agricultural Research Project (Cr. 855-IN). Efforts at voluntary coordination are expected to allow ICAR to launch a statewide research review in December 1980. GOM has also appointed a committee to review the Agricultural Univer- sitv Act. Important recommendations arising out of this review will probab- ly be used to create a unified service for the universities, to decrease poli- tical influence, and to bring about effective coordination. The efforts of ICAR and GOM will undoubtedly clear the ground for strengthening of agri- cultural research. Input Supply 1.25 Input distribution arrangements are satisfactory. Seed, fertilizers and pesticides are distributed through taluka level marketing and sales socie- ties, some multipurpose cooperative societies, publicly operated agro-service centers, Maharashtra Agro-Industries Development Corporation (MAIDC) outlets, a few Maharashtra Seeds Corporation (1-4SC) sales points (seeds only) and through private dealers. Indicative of the number of outlets is that in Aurangabad District (with about 2 million inhabitants) there are reportedly some 250 outlets (1 per 8,000 population) of which 58 are in the public/cooperative sectors. 1.26 The requirements of inputs are discussed well ahead of the season at Taluka and District Coordinating Committees. The former is chaired by the Panchayat Samiti president and consists of the BDO and his agricultural officers, the manager of the Sales and Purchase Society, the Inspector of Cooperatives and the Assistant Engineer (irrigation). The District Coordi- nating Committee is headed by the Zilla Parishad president and includes the ADO, the Deputy Registrar of Cooperative Societies, the District Marketing Officer (representing the Cooperative Marketing Federation), the managers of the District Cooperative Bank, MAIDC or MSC and District Land Development Bank and the Executive Engineer (irrigation). The Committee's deliberations are based on a survey (census) of the areas which farmers intend to plant to different crops and varieties and carried out by BDO using VLW. 1.27 The ADO operating through the BDO and VLW is responsible for super- vising the distribution of inputs. Complaints from farmers are investigated and corrective action recommended. The quality of inputs (varietal integrity  of seed, chemical composition of fertilizers, correct weights, etc.,) are checked by visits to the sales points. 1.28 The ADO/BDO/VLW organization in Maharashtra would remain basically unaltered by the introduction of the T&V extension system under the project and there would be no disruption of the existing arrangements for planning and monitoring input distribution. An effective linkage between the input supply activities and the new extension organization would be established to ensure that extension recommendations are considered in input planning and that recommendations are modified if the inputs in question cannot be made available. Intensified contact with the farming community would also result in a better feedback of farmers' plans and complaints as to input use. On introduction of the project, the Principal Agricultural Officer in charge of extension in each of the districts (para 2.08) would participate in the deli- berations of his District Coordinating Committee and SDAO and appropriate AEO in those of the Taluka level committee. Furthermore, BDO and ADO would be invited to attend selected fortnightly training sessions before the start of the growing seasons in order to exchange information on the input situation. Credit 1.29 Crop loans are made available through a widespread network of cooperative credit societies as well as through commercial banks. Default has, however, made a great number of farmers ineligible for further loans. Under the rainfed conditions in Maharashtra, crop failure is a common reason for such default and no satisfactory method for rescheduling delinquent short- term credit has been developed. Recently, however, loans to defaulters, with small and marginal rainfed farms, have been written off when default was found to have been caused by crop failure. 1.30 The Panchayat organization plays no rule either in promoting member- ship and lending or in loan recovery,as registration and inspection of coope- rative societies is a state level responsibility. The credit requirements of members in a primary cooperative society are determined well in advance of each season. Irrigation 1.31 The T&V system of agricultural extension was introduced in Maharash- tra on the Jayakwadi Irrigation Project (Cr. 735-IN) in 1979. Although regular visits to farmers and training of staff has been initiated, the for- mulation of technological messages appropriate t-o the needs of the irrigated project area needs improvement before a real impact on production can be made. Before the advent oi the project most research concentrated on the problems oJ rainfed farming although the Agricultural -iCnrv\9rsities are now conducting research on irrigated cropping. The Maharashtra !I Irrigation P'roject (Cr. 954-IN), covering eight major irrigation schemes, also includes an exten- sion service. Command Area Development Authorities in these irrigated schemes were entrusted with the implementation of the improved extension coverage. With the emergence of the statewide project, a unifiea extension service would be created that would encompass the efforts being made under the aforementioned projects.  - 10 - Marketing and Processing 1.32 Marketing is regulated by statutory provisions and the administra- tion of markets is controlled by a committee on which farmers, traders, and local government bodies are represented. From local markets, produce moves to the four terminal markets of Bombay, Pune, Nagpur and Kolhapur. The present marketing and processing systems operate satisfactorily. Since Maharashtra is a net importer of all major foodgrains except rice, it is expected to have the capacity to absorb all the immediate production increases generated by the project. II. THE PROJECT A. General Description 2.01 The five-year project seeks to achieve early and sustained increases in agricultural production throughout Maharashtra's twenty-five districts through the reorganization and strengthening of the extension service of DOA. The project would support this reorganization by: (a) provision of incremental staff (2925 AA/AS: 416 AEO, 167 SMS; 2 SDAO and 1 ADA), (b) provision of transportation (168 4-WD vehicles, 747 motor- cycles and 3,000 bicycles), office equipment and audio-visual aids; (c) provision of incremental operating funds, travel allowances, vehicle operating costs and extension materials; (d) construction of housing for extension workers (AA/AS, 1,200) and their immediate supervisors, AEOs (150); (e) improvement of the capacity of the universities to collabo- rate with DOA by provision of staff (16 senior posts plus supporting staff), vehicles (4) and operating costs; (f) provision of funds for training of extension staff at different levels; and (g) creation of a monitoring and evaluation capacity through provision of staff, transportation (1 4-WD vehicle, 15 motor- cycles and 90 bicycles) and operating expenses.  - 11 - B. Detailed Features The Extension Methodology 2.02 Under the project, Maharashtra's agricultural services would be reorganized and intensified throughout the State (see Map IBRD 15428) fol- lowing the Training and Visit System adopted in other Indian states over the last four to five years. Project staffing would be phased over a three year period. The project would provide farmers, on a regular and systematic basis, with up-to-date advice on farming practices best suited to their specific conditions and emphasizing proven practices which have an immediate impact on income. This would be brought about by organizing extension field staff so that they visit farmers regularly and receive systematic training and tech- nical support from DOA and from research institutions. 2.03 Each Village Extension Worker (VEW) 1/ would be assigned to work with a number of farm families. The number would vary depending on local conditions, population density, cropping intensity and accessibility. Based on available statistics which probably overstate the number of families, one VEW would cover about 900-1,000 farm families. In effect, it implies that on an average, one VEW would cover 800-900 operating farm families with the actual number varying from around 600 in sparsely populated areas to around 1,000 operating farm families in densely settled areas. Contingency provi- sion is made for 600 additional VEW, if, in the course of the project imple- mentation, GOM and IDA determine that more intensive coverage by VEW is warranted. An assurance was obtained during negotiations that GOM and IDA would review progress of project implementation by March 31, 1984 to deter- mine if the number of field staff (VEW) would be increased. 2.04 To reach his farmers systematically, a VEW would divide the operating families in his jurisdiction into 8 smaller groups of 80-120 each. He would visit each group regularly on a fixed day of the week in a two-week cycle. During his visit, the VEW would go to the contact farmer selected from each group, involving as many other farmers as possible in the discussions and demonstrations. By the concrete results he achieves with the farmers he directly meets, the VEW can spread his recommendations more effectively to all farmers. During each visit, the VEW would concentrate his efforts on a few strategically selected recommendations relevant for that particular phase of the crop cycle. The extension message to be communicated to farmers at the initial stage would be simple, concentrating on the few important crops in the locality of the most important aspects of crop production practices at that time. Initially, the emphasis would be on low-cost improvements which the majority of farmers can afford within their resource capabilities. l/ In Maharashtra, VEWs are referred to as Agricultural Assistants and Agricultural Supervisors.  - 12 - 2.05 The VEW would be helped, guided and supervised in his work by an Agricultural Extension Officer (AEO) 1/ who would normally be a graduate in Agriculture. One AEO would be normally responsible for about 8 VEW and would spend at least four days a week visiting them in the field. Once every two weeks, VEW would receive a full day of intensive training in the recommenda- tions for that period (relevant to the coming two weeks). The AEO would also partake in this training session. Thus, every two weeks, VEW would spend eights days in visiting each of his eight groups and one day in training. On one day, the AEO would meet all his VEW in the field or at headquarters to review progress, reinforce practical skills and identify topics to be raised at the next training session. The remaining working days would be devoted to farm trials and making up for missed visits. 2.06 To provide regular training, continuous technical guidance and supervision of field work, three or four subdivisions would be established in each district (a total of 90 subdivisions for the state) each under the charge of a Subdivisional Agricultural Officer (SDAO). The SDAO would have full time and exclusive responsibility for supervising 8 - 10 AEO in his area. Where there are more than 10 AEO in a subdivision, the SDAO would be assisted by an Additional SDAO (ASDAO). As some subdivisions are small, the project would provide 60 teams of SMS, each comprising three Subject Matter Specialists (one in Agronomy,one in Plant Protection and one in Training/Communication). Where a team of SMS has to operate in more than one subdivision, the team would be under the administrative control of the SDAO where the team is based. This SDAO will ensure that the team divides its time equally between both subdivisions. SMS, under the control of SDAO would spend one-third of their time in field visits providing technical support and guidance to VEW and AEO, one-third in building their own stock of knowledge through a regular dialogue with research workers and carrying out farm trials, and one-third in partici- pation in zonal monthly training workshops and attending short training courses. 2.07 At district level, one SMS would be provided for training and exten- sion. He would provide technical support to SMS at subdivisional level on communication techniques and extension methodology. He would assist the Principal Agricultural Officer (District Deputy Director) in coordinating and supervising the training activities. Additionally, other SMS would be pro- vided at the district level to cover specializations not covered at the sub- divisional level and which are significantly important for a particular district. This could include water management specialists in intensive irrigated areas or specialists in horticulture, or plantation crops, farm implements and farm management. The specialists at the district level would also divide their time evenly between teaching, field visits and improving their own knowledge. 2.08 The Principal Agricultural Officer (PAO) would be in overall charge of the effective implementation of the extension program in the District. Other regulatory functions, input arrangements, coordinating schemes like the Small Farmers Development Agency, etc., would be looked after by the 1/ In Maharashtra,AEOs are referred to as Agricultural Officers.  - 13 - Agricultural Development Officer of the Zilla Parishad so that the PAO is free to undertake frequent visits so necessary to review the extension operation and guide the field staff in effective implementation. 2.09 A Divisional Joint Director of Agriculture (JDA) at the regional (zonal) level would be in charge of the three to four districts of his zone. He would be directly responsible for extension operations in all the districts in his zone. SAO (para 1.22)would continue to be responsible for input sup- plies and regulatory functions. 2.10 At the headquarters of DOA, the overall responsibility for general agricultural development in the state would continue to rest with the Director of Agriculture. An Additional Director of Agriculture (Extension) 1/ would be appointed for effective management and technical support of the extension service. The ADA (Extension) would be exclusively responsible for the day-to- day operations and management of the extension service both technically and administratively. He would also be made responsible for training and manage- ment of extension personnel. He would visit the field frequently and check on the effectiveness of extension operations. 2.11 Before negotiations, GOM established the post of ADA (Extension), agreed to maintain a suitably qualified officer in this position and give him full time exclusive responsibility for implementing the extension system with no other duties. 2.12 The ADA (Extension) would have a technical support staff of four SMS of the rank of JDA at headquarters (one each for plant protection, horti- culture, farm management and farm trials and training). These SMS would be responsible for improving the technical quality of the extension service in the area of their specialization, and would develop and interpret farm trials, promote linkages with research carried out by the four universities in Maharashtra and elsewhere in the country, organize training programs and serve as a clearing house of technical information. Incremental Staff Requirements 2.13 Staff required to implement the reorganized extension system in Maharashtra would be met by redeploying the staff already available with DOA, Zilla Parishads, CADA and by hiring new staff. Detailed breakdown of the staff requirements and availability by year, district and subdivision is given in Annex 1, Tables 5, 7, 8 and 9. The table below summarizes the staff available and required by category. Assurances were obtained that GOM would fill incremental staff positions according to or earlier than the schedules shown in Annex 1, Table 8. 1/ Initially the appointment might be at the Joint Director level, dependent on the seniority of the incumbent.  - 14 - Extension Staff Requirements Total Number Incremental Required Available Requirements AA/AS 6,000 3,075 2,925 AEO 747 331 416 SMS (SD) 180 45 135 SDAO 90 88 2 ASDAO 18 - 18 SMS (Dist.) 32 - 32 PA0 25 25 JDA 7 - 7 SMS (HQ) 4 - 4 ADA (Ext.) 1 - 1 2.14 In Maharashtra two cadres of field level workers exist: (i) Agri- cultural Assistants (AA) who are high school graduates with a two-year diploma from Agricultural Schools run by the Agricultural Universities; and (ii) Agricultural Supervisors (AS)--who are agricultural graduates. Both categories of employees (AA and AS) would be working as VEW. As the table indicates, 6,000 AA and AS are required--out of this, 1,447 AA working in the Agency Schemes and State Sector Schemes of DOA under the Zilla Parishads (ZP), 1,000 Gram Sevaks, 314 AS from State Sector Schemes and 318 from local sec- tor schemes under ZP, i.e., a total of 3,075 AA and AS, would be redeployed and assigned agricultural extension as their exclusive work. Some 2,925 new recruits would be hired. Output from agricultural schools and the four agri- cultural universities would be sufficient to meet new staff requirements (para 1.23). 2.15 Before negotiations, GOM issued a government order transferring 3,075 staff (1,447 AA, 1,000 Gram Sevaks, 628 AS) for agricultural extension work along with the budget, including those now seconded to CADA,and sanctioned 2,925 new positions, and redesignated the Gram Sevaks as Agricultural Assis- tants. GOM also agreed that of the total number of field level workers 20% would be of the rank of Agricultural Supervisor. In addition, GOM transferred all extension staff currently employed by CADA. 2.16 A total 747 AEO are required for the project. Some 331 existing AEO would be redeployed for extension work for which GOM issued orders before negotiations. The remaining 416 new posts be created and filled. 2.17 New posts would also be created and filled for 135 subdivisional SMS, 2 SDAO, 18 ASDAO, 32 district level SMS, 4 headquarters SMS, 7 JDA and one ADA. 2.18 Assurances were obtained that the AA and AS would be used exclu- sively for agricultural extension and their emoluments and benefits would not be adversely affected as a result of the reorganization.  - 15 - Housing 2.19 Under the reorganized extension service extension workers would be required to make regular and frequent visits to farmer groups. Consequently, it would be necessary for them to live in or near their area of work. An assurance was obtained that GOM would ensure that AA/AS and AEO live in or near the areas of work. As a result of a preliminary survey, the project would provide housing for about 20% of AA/AS and AEO, i.e., 1,200 houses for AA/AS and 150 houses for AEO. The details are given in Annex 1, Table 2. 2.20 The houses would be constructed through the Public Works Department or the PWD wing of the Zilla Parishad using the standard design approved by the government for the particular category of staff. GOM, when requested, would provide IDA from the appropriate agency responsible for construction, the specifications of houses and final cost estimates of construction. 2.21 GOM would agree to furnish IDA (through DOE) information on the progress of locating sites for housing to be financed under the Credit and progress on their construction. Transport 2.22 Effective extension requires a high degree of mobility both to enable field level staff to meet farmers regularly and to enable technical and supervisory staff to make frequent personal visits in order to provide the direct guidance needed. The entire system depends on a high level of personal contact between all levels of extension workers. To facilitate this, the project would provide two 4-WD vehicles at each subdivision, one for SDAO and one for a team of SMS. At the district level, one of the existing vehicles with DOA would be redeployed and one more would be provided by the project. At headquarters, one existing car would be used by ADA and one diesel 4-WD vehicle would be provided for his team of SMS. Details are given in Annex 1, Table 3. 2.23 AA would be provided loans (3,000) 1/ for the purchase of bicycles and similarly, loans (750) would be provided to AEOs and SMS for the purchase of motorcycles. GOM would provide this facility through existing arrangements. Further details are at Annex 1, Table 3. 2.24 Assurances were obtained that travel allowances would be sufficient to ensure the use of vehicles. Funds would be provided under the project for the operation and maintenance of vehicles. Details are given to Annex 1, Table 6. 1/ On the assumption that only 1/2 of all staff will require bicycles.  - 16 - Equipment 2.25 Funds for office equipment and furniture, as well as audio-visual aids would be provided to each district (25) and subdivisional office (90). Details are given in Annex 1, Table 3. Operating Costs 2.26 Incremental travel allowances and expenses for the extension staff, operating costs for incremental vehicles (168) and miscellaneous extension materials (diaries, charts, instructional materials, samples of small imple- ments, seeds and pesticides for farm trials) are included in the project. Details are given in Annex 1, Table 6. University Liaison 2.27 In order to allow the agricultural universities to perform the role envisaged under the project (particularly in relation to monthly workshops with the extension SMS and farm trials) some limited strengthening of these institutions would be necessary. The project would provide a Director of Extension Education at each university (4) and eleven university extension agronomists (to districts where there is no existing university-operated extension education unit). Supporting staff, vehicles (4) and operating costs are included. Details are given in Annex 1, Tables 3, 4, 5 and 6. No strengthening of the university research function is envisaged, as support under the IDA-supported National Agricultural Research Project (Cr. 855-IN) is expected to materialize for this purpose (para 1.24). The conclusion of a memorandum of understanding (Annex 3) between GOM and each university as to the role of the respective university in project implementation was a condition of invitation to negotiate the Credit. Training 2.28 The project would provide funds for one month of induction training for all VEWs (6,000), pre-season training (3 days) for VEW, AEO and SMS, special short courses for AEO and SMS, orientation courses for other staff, monthly district workshops with research staff and some fellowships for B.Sc. and M.Sc. training. The Agricultural Universities would be responsible for many of these courses (see Annex 1, Table 4), utilizing existing facilities (agricultural schools and Gram Sevak training centers). The construction of a hostel at the Konkan University is, however, included (Annex 1, Table 2). Agreement was reached between GOM and IDA at negotiations on staffing arrange- ments for VEW training institutions, the proposed training curriculum and schedule of training. Monitoring and Evaluation 2.29 The project would provide for the establishment and operation of a monitoring and evaluation system specifically designed to provide project management with current information on the effectiveness of the extension system. The methodology used would be similar to that described in World Bank  - 17 - Staff Working Paper No. 272, "A System of Monitoring and Evaluating Agricul- tural Extension Projects". This system would supplement direct personal supervision by each level of project management. Assurances were obtained that GOM would undertake monitoring and evaluation in a form acceptable to IDA and that results would be forwarded (through DOE) to the Association at least once a year. For this purpose, the project would include additional staff at headquarters (5 plus supporting staff), at district (15), and sub- divisional (90) levels, vehicles (1 car, 15 motorcycles and 90 cycles) and miscellaneous operating costs. Provision for external evaluation studies (Rs 150,000) is also included. III. COST ESTIMATES AND FINANCING A. Cost Estimates 3.01 Detailed cost estimates, based on incremental costs for carrying out the project over a five-year period are given in Annex 1, Tables 1 to 6. The following table summarizes the costs: Rs Million US$ Million /a % Foreign Category Local Foreign Total Local Foreign Total Exchange Incremental Staff Costs 114.8 114.8 14.3 14.3 Civil Works 37.8 37.8 4.7 4.7 Equipment & Vehicles 15.9 6.2 22.1 2.0 0.8 2.8 28 Training 12.5 1.1 13.6 1.6 0.1 1.7 8 Incremental Operating Costs 26.3 13.6 39.9 3.3 1.7 5.0 34 Total Base Cost 207.3 20.9 228.2 25.9 2.6 28.5 Contingencies Physical 8.3 0.8 9.1 1.0 0.1 1.1 Price 62.5 6.2 68.7 7.8 0.8 8.6 TOTAL PROJECT COST 278.1 27.9 306.0 34.7 3.5 38.2 9 /a Converted at the rate of Rs 8.0 = US$1.0. These costs include about US$4.9 M in duties and taxes and an estimated US$3.5 M in foreign costs. Physical contingencies of 5% have been applied to civil works, equipment, training, and operating costs and to meet the possible future need of 600 VEW (para 2.03) to readjust the farm family: VEW ratio. Price contingencies have been applied as follows: (1980: 10%; 1981-83: 7% per annum; 1984 and onwards: 5%) and compounded accordingly. As the project will be implemented in the local sector a 3% agency fee payable by GOM to Zilla Parishads has been added to the cost of staff transferred.  - 18 - B. Proposed Financing 3.02 Finance to cover total project costs of Rs 266.4 M (US$33.3 M) including contingencies, but net of taxes and duties would be provided as follows: Amount Source US$ Million Percentage IDA 23.0 69% GOM/GOI 10.3 31% Total 33.3 100% The proposed IDA Credit of US$23.0 M would be to GOI on standard terms and conditions and would finance about 70% of project costs, net of taxes and duties, but including estimated foreign exchange costs of US$3.5 M. IDA funds would be channeled through GOI to GOM in accordance with GOI standard arrangements for IDA assisted state development projects. The balance of project financing, beyond IDA financing, would come from state government sources and GOI. GOM has made adequate budgetary provision for the opera- tion of the first project year as a condition of invitation to negotiate. C. Procurement 3.03 The main items to be financed are: vehicles including bicycles and motorcycles; equipment; houses for VEW and AEO; training; project monitoring and evaluation; incremental staff; and incremental operating costs. Civil works contracts (US$4.7 M) for 1,350 houses, would be small and dispersed throughout the state, both geographically and over time; therefore, they would not be satisfactory for international competitive bidding. Contracts would be awarded on the basis of competitive bidding following local advertisement. There are numerous qualified local contractors to carry out such work. Arrange- ments for preparing tenders and overseeing construction were discussed during negotiations. All contracts for civil works, equipment and furniture estimated to cost US$100,000 or more would be reviewed by IDA both before bids are in- vited and contracts awarded. 3.04 About 173 motor vehicles (US$1.5 M) of various types would be required under the project. They would be purchased in small quantities over three years and would be widely dispersed in rural areas. As adequate maintenance and avai- lability of spare parts would be of paramount importance, this would necessi- tate purchase of locally made vehicles of types already used by government departments. Thus, procurement would be according to existing government pro- cedures, which are competitive and satisfactory to IDA. Motorcycles (750) and bicycles (3,000) (US$0.7 M) would be purchased by individual staff from loan funds provided by state government.  - 19 - 3.05 Orders for purchase of minor equipment and furniture (US$0.6 M) would be bulked wherever possible and purchased according to established local bidding procedures, except where valued at less than US$50,000 when they would be purchased by prudent shopping through normal trade channels. Assurances on procurement procedures mentioned in paras 3.03-3.05 were obtained during nego- tiations. 3.06 The balance of project costs (US$21.0 M) would consist of local training and fellowships (US$1.7 M), incremental salaries and allowances (US$13.8 M), monitoring and evaluation (US$0.5 M), and incremental operating expenditures for offices and vehicles (US$5.0 M) which would not involve procurement. All of the above figures exclude contingencies which amount to US$9.9 M. D. Disbursement and Audit 3.07 Disbursement under the credit would extend over six years and would be made against: (a) 100% of the cost of training; (b) 80 of the cost of civil works, equipment and vehicles; and (c) 30% of the total eligible staff costs. 1/ The percentage is calculated to bring total IDA disbursements to about 70% of the project cost. 3.08 Disbursements against expenditures for staff costs, training, pay- ments for locally procured vehicles and equipment of Rs 150,000 or less, payments under civil works contracts not exceeding Rs 300,000 would be against certified statements of expenditures, the documentation for which would not be submitted to IDA for review but would be retained by GOM and DEA. These documents would be available for inspection by IDA during the course of project review missions. Disbursement against all other items would be fully documented. Certificates of expenditures would be audited at least once every year and a report submitted to IDA promptly thereafter. All disbursement applications would be forwarded and processed through the Department of Economic Affairs. Schedules of implementation and project disbursements are presented in Annex 4, Tables 1 and 2. 1/ Extension staff costs eligible for partial reimbursement would be the following VEW, AEO, SMS, SDAO, ASDAO, PAO, JDA and ADA at village, sub- division, district, divisional, and state levels and staff of monitorin; and evaluation unit. Directors of Extension Education and Extension Agronomists salaries would also be eligible for partial reimbursement.  - 20 - 3.09 Assurances were obtained that separate accounts would be kept of expenditures made under the project. These would be audited annually for each fiscal year, in accordance with sound auditing principles consistently applied and the audit reports submitted to IDA as soon as available. In addition, certified copies of project accounts would be submitted to IDA within nine months of the end of the fiscal year. Such reports and audits would show, inter alia that the funds withdrawn were used for the purpose intended, that goods have been received or work performed, and that payments have been made. All reports would be submitted by GOM to the Department of Economic Affairs for onward transmission to IDA. IV. ORGANIZATION AND MANAGEMENT A. Linkage with Panchayat Raj System 4.01 In introducing the T&V approach the aim would be to build a profes- sional extension service which is answerable to the Zilla Parishad but which cannot be diverted for other purposes except in rare emergency situations. The proposed organization builds on the existing set-up at the district level with two parallel lines. Input supply, regulatory and statistical work, etc., would remain under the ADO and be executed through the BDO by village level workers. The present organization for cash crops would be expanded into a general T&V extension service and the Deputy Director of Agriculture would be moved to the District and would, under the CEO, be put in charge of this service. The Subdivisional Agricultural Officer (SDAO) would be the drawing and disbursing officer and in charge of preparing the annual performance re- ports of AA, AEO and SMS serving in the subdivision. Agricultural extension would be a periodic item on the agenda of Panchayat Samiti meetings and the 2-3 AEO serving in the block would, together with the SDAO (covering 2-3 blocks), be required to be present and report at these meetings. Thus, in his capacity as Secretary of the Panchayat Samiti, the BDO would be kept fully in the picture. He would, however, not be in a position to divert extension staff to report writing, surveys or other activities which, due to outside pressures in the past, have often taken precedence over extension work. The extension staff would, at the same time, be kept fully informed about input supply and other issues. For details see Chart World Bank 22285. 4.02 To minimize the chance of friction, it has been decided to keep staff presently working under the various cash crop development schemes in the state sector. Similarly, new recruits would be kept in the state sector. The number of posts to be transferred from the present gram sevak organiza- tion has been carefully determined so as to safeguard the satisfactory execu- tion of tasks remaining with the ADO. This staff would be kept in the local government sector but requisitioned for service with the extension organiza- tion. Only volunteers and vacant posts would be transferred in this way.  - 21 - Linkages between Extension and Research 4.03 The key link between the Universities and the Department of Agricul- ture would be the monthly district workshop designed to prepare detailed plans for the fortnightly training of agricultural assistants, and provide a basis for discussion and feedback from field staff. The Principal Agricultural Officer and the University Extension Agronomist would jointly organize these sessions for DOA staff and SMS of the district and subdivision. The Extension Agronomist would be appointed exclusively for this purpose and would organize participation of university research staff depending on the time of year and the crops to discussed. University staff would need to set aside some five days each month in order to prepare for and participate in these workshops. See Chart World Bank 22350. 4.04 A zonal seasonal workshop would be arranged at each of the four university campuses and would cover their respective areas of influence. Although these areas do not fully correspond to the agro-ecological zones of Maharashtra, working on this basis would simplify the administration and the links between the monthly district and zonal workshops. The purpose of the zonal workshop would be to review agricultural practices recommended as a result of new research and experience, to plan multi-locational verification of any new technology; to assess research priorities for the zone and to review the plans for and results of farm trials executed at the district level. The Director of Research at each university would be responsible for organizing the workshop in collaboration with the Additional Director Extension Education. Zonal JDAs, PAOs and District SMS would participate as would the Director of Extension, selected Department heads, Crop Coordinators and Extension Agronomists from the University. 4.05 Zonal recommendations would be presented by the Directors of Research of the Universities and the Additional Director Extension to the State Extension and Research Committee which is headed by the Secretary of Agriculture. Apart from the above, the following staff would also attend-- the Director of Agriculture and other state level expertise, the Vice Chancellors of the Universities, the Directors of Extension Education, Crop Coordinators and selected 1-eads of other university departments (appointed by the Vice Chancellors coordinating committee). The purpose would be to review zonal recommendations with respect to practicesand research priorities, and to assess progress of the project especially of research support and any constraints resulting from deficient coordination. Assurances were obtained that the Committee would hold its first meeting by September 30, 1981 and meet at least twice yearly thereafter. Formulation of Recommendations 4.06 The experience gained from existing recommendations and the results of farm trials wouild be reviewed at monthly district workshops. Monthly dis- trict workshops would have two functions: (i) to train SMS; and (ii) to review recommendations and to adapt them for appropriate transmission to VEWs and AEOs, and to suggest modification to the farm trials program for consideration at a zonal seasonal workshop. The State Level Extension and Research Committee would review the zonal conclusions which would then be passed back as guidance to the monthly workshops at the district level.  - 22 - Farm Trials 4.07 While it is clear that the universities are responsible for applied research and the Department of Agriculture for extension work and adaptive research, the scope of the latter type of research has remained a grey area. It is true that the technology developed by the universities requires multi- locational verification under various agro-ecological conditions. This should, however, be the task of the universities and would require replicated scien- tific experiments on substations, DOA farms and occasionally on farmers' fields. The universities must be equipped to handle such multi-locational verification (through NARP or other sources). 4.08 The T&V approach does not require government supported demonstrations on farmers' fields. The farmer who agrees to try the recommendations on the whole or part of his field is the best demonstration possible. 4.09 The objective of the adaptive research (a more proper term would be farm trials) program would be to guide the extension staff on how to adjust the recommendations to differing farm situations. Even with recommendations being formulated to fit the various agro-ecological conditions, it would be necessary to adjust the recommended package of practices in relation to: (a) various cropping sequences; (b) reliability of water supply; (c) farmers' skills; (d) farmers' resource and risk situation; and (e) agro-climatic conditions. The farm trial program,details of which would be planned in the district monthly workshop on the basis of the various farming situations in the district, would be executed by the DOA, SMS at the district and subdivisional levels through the AAs. The university extension agronomist would take an active part in all phases of the program. The trials would be unreplicated and would compare the farmers' present situation with some proposed improvement derived from an analysis of his particular farming situation. Since each AA would have one or two such trials, the number of trials in any one season is expected to be fairly large and may lend itself to some statistical analysis. The results would, in any case, be analyzed in the monthly district workshop and conclu- sions and recommendations for further trials be reported to the zonal workshop. 4.10 Participating farmers, who would often be contact farmers, would bear the cost of the trials unless the input costs are substantially higher than those associated with present practice and/or the risks involved are significant in which case the extra cost could be borne by the Department. Monitoring and Evaluation 4.11 The Additional Director of Agriculture (Planning, Monitoring and Evaluation) at headquarters would have responsibility for monitoring and evaluation. He would be assisted by a Deputy Director and other support staff. The monitoring and evaluation unit would report directly to the Secretary for Agriculture.  - 23 - Farm Information 4.12 The ADA (Extension), through the SMS (Adaptive Trials and Training), would draw on the services of the existing Farm Information Bureau to produce pamphlets, charts, posters and other training aids as needed. V. BENEFITS, JUSTIFICATION AND RISKS 5.01 Total project costs over the five year development period, excluding price contingencies, amount to US$29.6 M, which is US$1.6 per ha of cropped land or US$5.1 per farm family, assuming 5.8 M farm families. Incremental costs after the project development period to be met from state budget sources, would be about US$8.0 M annually or US$1.4 per farm family. Incremental costs would be partly recovered through market levies on agricultural produce entering commercial markets. 5.02 Economic Benefits. Attributing a precise level of benefits to this type of project is difficult since it is not possible to determine what pro- portion of benefits are due to extension alone and what are due to additional purchased inputs and other factors. In practice, it is the combination of a number of factors, with extension playing the role of a catalyst, that brings the desired benefits. It is also difficult to estimate acceptance rates of recommended practices. However, since the project relies primarily on reorga- nization and strengthening of an existing extension structure, the incremental cost is low per hectare and per farm family. Hence, even very small and slow production increases in the project areas would generate a high rate of return. This project would be able to generate a 50% rate of return if, by 1988, yields of paddy (1.5 M ha), wheat (1.2 M ha) and sorghum and millets (8.3 M ha) (which cover 60% of cropped land area) increase by only 31 kg/ha, 14 kg/ha and 10 kg/ ha, respectively and which requires an increase of under 1% over current yield levels of all three crops. Details are given in Annex 5. Yield increases have far exceeded this level where the extension system is operating effec- tively for a few years. One significant feature of the system is that the practices initially stressed by the extension service focus on improving cultural practices (timely operations, good land preparation, proper seed rates, line sowing and weeding) to maintain adequate and healthy plant popu- lations over unit area cultivated; as these operations usually involve more work and little cash outlay, they are particularly well-suited to the needs of many small farmers. 5.03 Project Risks. The transfer of multipurpose field workers and establishment of a single, unified professional extension service marks a major departure from past practice in India. The fact that such a reform is underway in large parts of the country reflects a willingness to develop an extension system capable of serving all farmers well. Nevertheless, it is difficult for governments to make and maintain such decisions. The main risk, therefore, is that the state government would find it difficult to maintain a single line of command from extension headquarters to the VEW who work exclu- sively on agriculture. In this project these risks are relatively low because  - 24 - only a small proportion of field staff are to be transferred from another department. To reduce these risks further, efforts were made during project preparation and appraisal to ensure full understanding of the impor- tance of this by the Maharashtra State Government. In addition, an assurance were obtained during negotiations, that VEWs would remain as full time agri- cultural extension workers throughout the project period, and that their seniority, emoluments and other benefits would be protected. Staff changes in the upper ranks of government are frequent and there is the additional risk of lack of sustained, informed and motivated management. To avoid this, it will be necessary for IDA to continue to supervise these projects closely and frequently and provide constant encouragement and assistance to state governments until the principles of the extension reform become fully accepted and permanently institutionalized. 5.04 Experience has shown other risks to be minimal. Farmers responsive- ness to recommendations has been generally excellent wherever visits are made systematically. In addition, VEW have gained confidence in their own profes- sional ability to introduce innovations. The ability of the service to develop and disseminate recommendations leading to yield increases well above the level needed for a 50% return has been demonstrated adequately. Initially, in most situations, availability of suitable technology for different condi- tions has not been a constraint as there is a backlog of research findings as yet not widely adopted. Major yield increases are possible even in the process of bringing the production level of average farmers to that of best farmers. To reduce the risk of technological constraints lowering anticipated project benefits, the project supports programs of field testing of research results and development of good working relationships with the four Maharashtra Agricultural Universities to ensure a continuous flow of recommendations adapted to specific regional problems. VI. AGREEMENTS REACHED AND RECOMMENDATIONS 6.01 During negotiations, assurances were obtained from Government of India and Government of Maharashtra on the following matters: (a) By March 31, 1984 GOM and IDA would jointly review progress of project implementation to determine if the number of field staff should be increased (para 2.03); (b) GOM would fill incremental staff positions according to or earlier than the schedules shown in Annex 1, Table 8 (para 2.13); (c) GOM would ensure that AAs, ASs, and AOs would be used exclu- sively for agricultural extension work under the project, and that they would not be adversely affected, in respect of their entitlement to emolument and benefits by reason of the assignment, (para 2.18); (d) GOM would ensure that AEOs and AAs/ASs would live in or near the area assigned for their operations (para 2.19);  - 25 - (e) GOM would ensure that credit and travel allowances would be made available to staff on such terms and conditions as to create incentives for the purchase and use of motorcycles and bicycles (para 2.24); (f) GOM would undertake monitoring and evaluation of the project in the form already agreed with the GOI. Further, GOM would forward to IDA (through DOE) a yearly summary of results in a form acceptable to IDA (para 2.29); and (g) GOM would maintain a State Extension and Research Committee which would hold its first meeting by September 30, 1981 and meet at least twice a year thereafter (para 4.05). 6.02 With these conditions and assurances the project would be suitable for a credit of US$23.0 M to the Government of India on standard IDA terms.  - 26 - ANNEX 1 INDIA TABLE 1 MAHARASHTRA AGRICULTURAL EXTENSION PROJECT SUMMARY OF PROJECT COST (Rs' 000) (Rs' 000) Foreign Exchange Year 1 Year 2 Year 3 Year 4 Year 5 Total % Cost Incremental Staff Costs - Base Cost 8,877.4 20,149.4 28,598.0 28,598.0 28,598.0 114,820.8 - Physical Contingency a - - - 1,710.0 3,420.0 5,130.0 - Price Contingency b/ 798.9 3,223,9 6,863.5 9,151,4 10,867,2 30,904.9 TOTAL 9,676.3 23,373.3 35,461.5 39,459.4 42,885.2 150,855.7 - - Civil Works - Base Cost 192.0 7,537.5 11,306.3 11,306.3 7,537,5 37,879,6 - Physical Contingency c/ 9.6 376.9 565.3 565.3 376.9 1,894.0 - Price Contingency b/ 17.2 1,206.0 2,713.5 3,618,0 2,864,3 10,419 - - TOTAL 218.8 9,120,4 14,585.1 15,489.6 10,778.7 50,192.6 - - Training - Base Cost 987.1 2,418.8 3,481,5 3,269.5 3,461.5 13,618,4 - Physical Contingency c/ 49.4 120.9 174.1 163.5 173.1 681.0 - Price Contingency b/ 88.8 387,0 835.6 1,046,2 1,315.4 3,673,0 TOTAL 1,125,3 2,926.7 4,491.2 4,479.2 4,950,0 17,972.4 8% 1,L37.8 Equipment and Vehicles PhBase Cost 6,413.5 7,259.9 7,506.0 894.0 - 22,073.4 Physical Contingency c/ 320,7 362.9 375.3 44.7 - 1,103.6 - Price Contingency b/ 577.2 1J161.6 1,801,4 286.0 _ 3,826.2 TOTAL 7,311.4 8,784.4 9,682.7 1,224.7 - 27,003.2 28% dl 7,560.9 Incremental Operating Cost - Base Cost 2,662.7 6,321.6 10,278.8 10,296.3 10,396.3 39,955.7 - Physical Contigency c/ 133.1 316.0 513.9 514.8 519,8 1,997,6 - Price Contingency b/ 239,6 1,011.5 2,466,9 3,294.8 3,950,6 10,963,4 TOTAL 3,035.4 7,649.1 13,259.6 14.105,9 14,866,, 52,916.7 34% 17,991.7 TOTAL Base Cost 19,132.7 43,687.2 61,170.6 54,364,1 49,993.3 228,347,9 Physical Contingency 512,8 1,176.7 1,628.6 2,998,3 2,779.8 9,096.2 Price Contingency t/ 2,362,8 8,545.6 17,005.3 19,639,2 21,150.6 68,703.5 GRAND TOTAL 22,008.3 53,409.5 79,804.5 77,001.6 73,923,7 306,147.6 9% 26,990.4 a/ Calculated as staff salary of 300 VEW (AA) in last 2 years only for additional VEW if needed after a mid-term review. b/ Inflation rate = applied cumulatively at 9%, 16%, 24%, 32% and 38% respectively for project years 1 through 5 (expected date of loan effective July 1981), c/ Physical contingency calculated at 5%, d/ Weighted average of vehicle (25%) and equipment (40%), e! Includes price contingencies and 3% agency fee to Zilla Parishad.  * b INDIA MARARAShTRA AGRICULTURAL EXTENSION FROJECT CIVIL WORKS (Re' 000) qty (MI) (R.m2 Year I Year 2 Year 3 Year 4 Year 5 bty (M2) (Rs/M ) Unit Cost No. Cost No. Coso. o. Cost N. Cost No. Cost Total Cost VEW 1200 36 0.75 27.0 _ 240 6,480.0 360 9,720.0 360 9,720.0 240 6,480.0 32,400.0 AO 150 47 0.75 35.25 - 30 1,057.5 45 1,586.3 45 1,586.3 30 1,057.5 5,287.6 hostel!' 1 2400 sft. 8.0/sft. 192.0 1 192.0 - - - - 192.0 Total (Excluding Contingencies.) 192.0 7,537.5 11,306.3 11,306.3 7,537.5 37,879.6 Physitel Contingencies (5!.) 9.6 376.9 565.3 565.3 376.9 1,894.0 Grand Total 201.6 7,914.4 11,871.6 11,871.6 7,914.4 39,773.6 1/ Housing is provided to 20Z VEWs and Ao.. 2/ Hostel for 20 trainees/batch at Konkan Krishi Vidyapeeth.  - 28 - ANNEX 1 INDIA TABLE 3 MAhA8ASRTRA AGRICULTURAL EXTENSION PROJECT VEHICLES AND EQUIffENT (Re' 000) Year 1 Year 2 Year 3 Year 4 Year 5 Tvpe Qt. Unit Cost No. Cost No. Cost No. Cost No. Cost No. Cost Total Cost Vehicles headquarter 0- M 4-ND 1 72.0 1 72.0 - - - - 72.0 District=v - SMS 4_UD 25 72.0 8 576.0 8 576.0 9 648.0 - - 1,800.0 Subdivision - SDAO21 4-WD 82 65.0 21 1,365.0 29 1 885.0 32 2,080.0 - - 5,330.0 _ SMI 4t 4-WD 60 65.0 18 1,170.0 21 1,365.0 21 1,365.0 - - 3,900.0 TraininFg- - Konkan Krishi Vidyapeeth 4-WD 1 65.0 1 65.0 - - - - 65.0 - iahat.s Phule Xrirhi Vidyapeeth 4-WD 1 65.0 1 65.0 - - - - 65.0 - Punjabrao Krishi Vidyapeeth 4-WD 1 65.0 1 65.0 - - - - 65.0 - Marathwsda Kri.hi Vidyapeeth 4-WD 1 65.0 1 65.0 - - - - 65.0 Staff-OwnedL/ - VEW Cycle 3,000 0.5 1,000 500.0 1,000 500.0 1,000 500.0 - - I 500.06 - AO X.Cycle 747 6.0 149 894.0 224 1,344.0 225 1,350.0 149 894.0 - 4,482.0 h' & E Unit - 4.UD 1 65.0 1 65.0 - . - - - . - 65.0 - Cycle 90 0.5 27 13.5 32 16.0 31 15.5 _ - 45.0 - M.Cycle 15 6.0 5 30.0 5 30.0 5 30.0 - - 90.0 SUB-TOTAL 4,945.5 5,716.0 5,988.5 894.0 - 17,544.0 Office 4qcup..ent and Furniture Headquar8prs-/ 14.0 14.0 - - 14.0 District- 25 21.0 8 168.0 8 168.0 189.0 - - 525.0 Subdivisio. 90 25.0 27 675.0 32 800.0 31 775.0 _ - 2,250.0 M & E Unit To 63.5 55.9 31.0 - - 1S0.4 TralninSll/ 4 10.0 4 40.0 - - - 40.0 SUB-TOTAL 960.5 1,023.9 995.0 - - 2,919.4 Audio-Visual Aids Headquartes 12! 50.0 - - - 50.0 District.. 25 15.0 8 120.0 8 120.0 9 135.0 - - 375.0 Subdivisiorl14! 90 5.0 27 135.0 32 160.0 31 155.0 - - 450.0 Field Level (VEi and AO)lS/ 0.15 1,350 202.5 1,600 240.0 1,550 232.5 - - 675.0 507.5 520.0 522.5 - - 1,550.0 SUB-TOTAL Total (Excluding contingencies.) 6,413.5 7,259.9 7,506.0 894.0 - 22,073.4 Physical contingencies (5.) 320.7 362.9 375.3 44.7 1,103.6 GRAND TOTAL 6,734.2 7,622.8 7,881.3 938.7 23,177.0 1/ Oue 4-WD already available for Add. D.A. 2/ One 4-WD already available for each PAO 3/ Eight 4-WD already available. 4/ None available. 51 one for each agricultural university. 6/ 507. of VEW already own cycles and motorcycles for 1007. of AO. 7/ Two typewriters at Rs. 4,000 each in year one and one electric duplicator at Ra. 6,000 in year one. 8/ Tvo typewriters at Rs. 4,000 each and one electric duplicator at Rs. 6,000, tables *and chairs, steel cupboards, racks for each district office. 9/ Two typewritera at Rs. 4,000 each, one electric calculator at R.. 6,000, tables and chairs, steel cupboard, racks for each subdivision and 50 chairs for 50 trainees/batch for each subdivision. 10/ Two typewriters at Rs. 4,000 in year one and more in year tw, one duplicator at Rs. 6,000 in year one, 8 sets of tables and chairs in year one for senior staff, 5 sets in year two and year three respectively, 33 sets of tables and chairs for Junior staffs in year one, 37 and 31 in year tw and year three respectively, 3 calculator at Rs. 6,000 in year 1 and 3 nore in year 2, record cabinets in year one at a.. 1,500, I.. 1,500 in year two and year three, 32 pocket calculators at Rs. 400 each in year one, 37 and 36 in year two and year three. 11/ Tables, chairs and cabinets etc. calculated at REs. 10,000 per unit. 12/ Flanel and chalk board, c..ette tape recorder, 35,.-. cener-, sil screen unit, slide viewers, slide projector, overhead projector, camers with flash gun, 8m.m. ctamera, tripid screen and projector at Rs. 50,000. 13/ Flanel and chalk boards, casette tape recorder, 35m.m. camera, silk screen unit, slide viewers, slide projector, overhead projector at Rs. 15,000 for each district. 14/ Flanel and chalk boards, tripid slide projector and overhead projector and small library. 15/ Slide viewer, folding blackboard, insect preservation bo.sa etc. at Rs. 150 per extension worker.  ANNEX I TABLE 4 - 29 - INDIA MAHARASHTRA AGRICULTURAL EXTENSION PROJECT TRAINING COST (Rs' 000) Unit Cost Year 1 Year 2 Year 3 Year 4 Year 5 Type of Training (Rs' 000) No. Cost No. Cost No. Cost No. Cost No. Cost Total 1. Induction Training (A.A./A.S.)- 0.76 1,200 312.0 2,000 .[?0.P 2,000 51:,: 800 208.0 _ _ 1,56C.C 0/ 2. Pre Season Training AA/A.S.-/ C.07 1,924 134.7 3,912 273.8P 6,000 420.0 6,000 420.0 6,000 420.0 1,66S.5 2/ 3. Pre Season Training (AEO/S.M.S.)- 0.15 305 45.8 615 92.0 1,049 157.0 1,049 157.0 1,049 157.0 60&.8 4. Special Short Courses AA!AEO-3 0.07 2,164 141.5 4,400 308.0 6,847 479.3 6,847 479.3 6,847 479.3 1,887.4 5. Special Short Court?s for S.M.S./other Staff- 1.2 97 116.4 235 246.0 317 379., 317 379.2 317 379.2 1,500.0 6. iroject Orientation Workshops- at all levels for all Staff 0.1 2,261 226.1 4,605 460.5 7,164 716.4 7,164 716.4 7,164.0 716.4 2,835.6 7. De ,utation of A.A. for B.Sc Course-' 8.0 - - 32 256.0 50 400.0 50 40t .0 50 400.0 1,456.0 6/ 8. Deputation of AEO/SMS for M.Sc- Course 15.0 - - 16 240.0 25 375.0 25 375.0 25 375.0 1,365.0 9. Monthly District Training Workshop for S.M.S./S.D.A.C ASDO S.M.S.(Dist) P.A.C. 0.1 106 10.6 225 22.5 346 34.6 346 34.6 346 34.6 136.9 1C. Refresher Course for AA/AlO7 0.25 - - - - - 400 100.0 2,000 500.0 600.C Total (Excluding contingencies) 987.1 2,418.8 3,481.5 3,269.5 3,461.5 13,618.4 Physical Contingencies (57.) 49.4 120.9 174.1 163.5 173.1 681.0 GRAND TOTAL 1,036.5 2,539.7 3,655.6 3,433.0 3,634.6 14,299.4 1/ The training will be I month imparted by university staff at Konkan, Sholapur, Manjri, Parbhani. In first year only 1,200 can be trained against a capacity of 2,000. 2/ rotal for both seasons. 3/ Includes courses by D.O.A. or univeristy. 4/ Includes course in Maharashtra and other states, National and International Institutes. 5/ Project orientation for all staff at different levels. The cost is sufficient to include expenditure on special workshops or seminars on Extension (T&V System) or Technology or any workshop for the improvemenit of the system. 6/ Two A.A. per district for B.Sc. Course starting from second year. (2 years) 7/ Refresher courses will be given to the AA/AS by the institutions providing Induction lraining after they finish these - all from year IV.  ANEX 1 _30 - TAbdLE S INDIA MAhARASHTRA AGRICULTURAL EXTENSION PROJECT INCREMENTAL STAFF SALARIES AND INCENTIVES (Rs' 000) Annual Unit Cost Year 1 Year 2 Year 3 Year 4 Ye ar (Rs' 000) No. Cost No. Cost Na. Cost No. Cost No. Cost Total Cost Incromnrtal 1 ftensian Staff Headq-artars- Add. Dir . Agric. 5.3-' 1 5.3 1 5.3 1 5.3 1 5.3 1 5.3 26.5 - SMS 14.5 4 58.0 4 58.0 4 58.0 4 58.0 4 58.0 290.0 Division - JDA 26.5 7 185.5 7 185.5 7 185.5 7 185.5 7 185.5 927.5 Dlstrict - INS 12.2 11 134.2 21 256.2 32 390.4 32 390.4 32 390.4 1,5b1.6 - AO 10.0 8 80.0 16 160.0 25 250.0 25 250.0 25 250.0 990.0 Subdivisions -SDA0O- 0.6 27 1.6 57 3.4 88 5.3 88 5.3 88 5.3 20.9 13.4 - - 2 26.8 2 26.8 2 26.5 2 26.8 107.2 - SMS 12.2 37 451.4 90 1,098.0 135 1,647.0 135 1,647.0 135 1,647.0 6,490.4 - ASDAO 10 0 7 70.0 16 140.0 18 180.0 18 180.0 18 180.0 750.0 Field Level - VEU5A4.A. 59.7/ 681 3,881.7 1,669 9,513.3 2,357 13,434.9 2,357 13,434.9 2,357 13,434.9 53,699.7 - )A.S. 7.5- 150 1,125.0 396 2,970.0 568 4,260.0 568 4,260.0 568 4,260.0 16,875.0 - AO 10.0 128 1,280.0 293 2,930.0 416 4,160.0 416 4,160.0 416 4,160.0 1I,6SO.0 SUB-TOTLL 7,272.7 17,346.5 24,603.2 24,603.2 24,603.2 98,428.8 Incrrental Support Staff Headquarters- 6 11.8 11.8 11.8 11.8 11.8 59.0 Dictrict/S.bdivliior6 528.4 1,398.1 2,307.5 5,307.5 2,307.5 e Ydt.7 SUB-TOTAL 540.2 1,409.9 2,319.3 2,319.5 2,319.5 8,908.0 M & E Unit - H/.dq..rj?r- 103.9 142.4 142.4 142.4 142.4 673.5 _adqutrg7r- 50.0 100.0 150.0 150.0 150.0 600.0 - SDbsdititi_ 202.5 442.5 675.0 675.0 675.0 2,670.0 SUR-TOTAL 356.4 684.9 967.4 967.4 967.4 3,943.5 Traislog - Koskan iriahi 10dybppeeth-/ 11/ 123.1 123.1 123.1 123.1 123.1 615.5 - Tahatika Phule KrVidysppe-th-1 lit 216.1 216.1 216.1 216.1 216.1 1,080.5 Pusgab-so Krishi VidyIpdt,h 214.8 214.8 214.8 214.8 214.8 1,074.0 - Narathwada Erishi Vidyopeeth- 154.1 154.1 154.1 154.1 770.5 SUB-TOTAL 708.1 708.1 708.1 708.1 708.1 3,540.5 Total (Excluding costingenciee) 8,877.4 20,149.4 28,598.0 25,598.0 28,598.0 114,820.8 Physiral cuetlofeectee - - - 300 1.700.0 600 3 420.0 5,130.0 GRAND TOTAL 8,877.4 20,149.4 28,598.0 30,308.0 30,308.0 118,240.8 1/ Exiating past of JDA could be upgraded as Add. DA, the additional snnual pay in Rs. 5,301. 2/ Additional ansual pay of Rs. 60 for 88 esisting SDAO, ad R.. 13,400 for 2 new SDAO per acao included apeoia additional pay of Rs. 60 per annum furs year 2 onwards. 3/ Agricoltcral Diplpoe (Too year Diploae). 4/ Agricultoral graduate. 5/ Seven clerks froa year one o-trds at RN. 6,000 pee annau each, one driver fran year one onwards at Rs. 5,800 per annun. 6/ 8 Atsistant Administrative Officers at Rs. 12,400 per annum in year 1, 16, 25 in year 2 sad year three onwards. Ten onsior clerks at RN. 7,500 in year 1, 37, sad 70 in year 2 and year three onwards. Forty-saves driv-r. at RN. 9,750 pet aorm is year use, 105 and 167 in year 2 and year 3 oswards. (All are cumulative figures). 7/ One Head of N & E Unit (JDA) at Re. 26.5 per annum fram year one onwards, one Deputy Director (icosnoic) at Re. 15.7 per ansue fron year one onwards, one Deputy Dir. (Statistics) at Rs. 15.7 per Cnon fros year one onwards, oar Senior Statistical Assistant at Re. 10.0 per anecm in year S and one eors in year two onwards, one key punch operator at Rs. 7.5 per aenum in year 1 and one eare is year two onwards, two computers at 7.5 per asnsn each in year I and two nore in year two onwards, one senior clerk at Es. 7.5 per -nanu fran year one onwards, one junior clerk at Rs. 6.0 per aannu in year one and one oors in year twa anwards. 8/ Fi-e Senior Statistical Assistants at Rs. 10.0 per annu each ia year one, 5, and Seoillion year twa and year three respectively. 9t/ Nwnty seven junior statitical assistants at Rs. 7.5 per annum in year one, 32 and 31 more in year twa aed year three respectively. .lO/ One Director of Extension Education at Rs. 26,500 froee year one onwards, one eatension agroDamiat at Re. 22,600 per asnum fr.e year one onwards, two assistant professors at Rs. 31,000 per annum free year 1 onwards, one superintendent at Rs. 12,300 per snsue fra. year I onwards, one senior clerk at RN. 8,100 per snnum, twa stenogr-phers (Dower grade) at Re. 8,350 per ansuu; and one driver at Ra. 5,750 par annu froa year one anwards. 11/ One Director of Extension Education, at Rs. 26,500 per ansun, four extenaion agronseists at Rs. 90,400 pee annum, two assistant professors at Rs. 31,000 per annum, one superintendent at Rs. 12,300 per ensue, one senior olerk st Rs. 8,100 per aenue, five stear stenographers (toser grade) at Rs. 8,350 and one driver at RE. 5,750 fro. year one onwards. 12/ One Director Extecelon Education at Re. 26,500 per ancn, three satension agronmlsts at R.. 67,800 per annu, two associate professor at Rs. 45,200, one assistant professor at Re. 15,500 per ann=, one superintendent at Re. 12,300 per ensn, one senior clerk at RE. 8,100 per ennu, four stenographers (lower grade) at RE. 8,350 per arso and one driver at RE. 5,750 pear annun fran year ass onw rds. 13/ One Director Extenslon Education at Re. 26,500 per anon, three extension agrononist/specialist at Rs. 67,800 per *ann, one superintendent at RE. 12,300 per anen, senior clerk at RE. 8,100 pear ann, four stenographers (lower grade) et Re. 8,350 per non= and one driver at Rs. 5,750 pear an.u fran year one oneerds.  -' 31-ANNEYX I TABLE 6 INDIA MAIIARASHTRA AGRICUTURAL EXTENSION PROJECT INCREMENTAL OPERATING CCSTS (R.' 000) Annual Year I Year 2 Year 3 Year 4 Year 5 Unit Cost No. Cost No. Cost No. Cost No. Coat No. Cost Total Cost Operating Expenses & Extension Materials VEJ/AC 2/ 0.5- 2,194 548.5 4,614 1,730.3 6,747 3,373.5 6,747 3,373.5 6,747 3,373.5 12,399.3 Other Staff-l 1.0- 104 52.0 216 160.5 327 327.0 327 322.0 327 327.0 1,193.5 10 Other Pxpenses- 5.0 35 175.0 75 375.0 115 575.0 115 575.0 115 575.0 2, 275.0 3eadquarters 1.0 1.0 1.0 1.0 1.0 1.0 5.0 Tratnin /4 2.0 4 8.0 4 8.0 4 8.0 4 8.C 4 8.0 40.C M & E Unit - H.Q.5/ 17.5 30.0 52.5 70.0 70.0 240.0 - District 3.0 5 15.0 10 30.0 15 45.0 15 45.0 15 45.0 180.0 - Subdiviston 1.5 27 40.5 59 88.5 90 135.0 90 135.0 90 135.0 534.0 SUB-TOTAL 857.5 2,423.3 4,517.0 4,534.5 4,534.5 16,866.P Incremental Travel allowance and Expenses VEY 0.6 831 498.6 2,065 1,239.0 7,925 1,755.0 2,925 1,755.0 2,925 7,755.0 ' 00 .6 AO- 2/ 1.02 128 130.7 293 298.9 416 424.3 416 424.3 416 424.3 5,202.5 Subdivisional Staff- 9-68 27 259.2 59 566.4 90 864.0 90 864.0 90 864.0 3,417.6 District 4.8- 8 30.4 16 76.8 25 120.0 25 120.0 25 120.0 475.2 District/Subdivision (support staf 1.8-l 18 32.4 71 127.8 166 798.8 166 298.8 166 298.8 1,056.6 Division Ste 12.0 7 84.0 7 84.0 7 64.0 7 84.0 7 P4.0 420. 0 Headquartera- 6.0 4 24.0 4 24.0 4 24.0 4 Z4.0 4 24.0 120.0 M 6 E Unit - Senior Statistic Assistant 1.02 5 5.1 I0 10.2 15 15.3 15 15.3 15 15.3 61.2 - Junior Statistic Assistant 0.60 27 16.2 59 35.4 90 54.0 90 54.0 90 54.0 213.6 SUB-TOTAL 1,088.6 2,462.5 3,639.4 3,639.4 3,639.4 14,469.3 Rent For SDAU Office 10.6 27 286.2 59 625.4 90 954.0 90 354.0 90 954.0 3,773.6 Vehicle Operating Cost Subdivisional 4-WD dis?el-/ 6.0 39 234.0 89 534.0 142 952.0 142 852.0 142 852.0 3,324.0 District 4-WD1 diesel- 1 10.0 8 80.0 16 160.0 25 250.0 25 250.0 25 250.0 990.0 Headquarters fTry] diesel - 13.2 1 13.2 1 13.2 1 13.2 1 13.2 1 13.2 66.0 Training 4-WD-y 4 10.0 4 40.0 4 40.0 4 40.0 4 40.0 4 40.0 200.0 M & E Unit 4-W3- 13.2 1 13.2 1 13.2 1 13.2 1 13.2 1 13.2 66.0 External Evaluation - 50.0 - - 100.0 150.0 Bs.e Lioe Studies 50.0 - - - - 50.0 SUB-TOTAL 430.4 810.4 1,168.4 1,168.4 1,268.4 4,846.C Total (Excluding costingencies) 2,662.7 6,321.6 10,278.8 10,296.3 10,396.3 39,955.7 Physical contingenctes (57.) 133.1 316.0 513.9 514.8 519.8 1,997.6 GRAND TOTAL 2,795.8 6,637.6 10,792.7 10,811.1 10,916.1 41,953.3 1/ Includes printing of diaries, charts and instructional materials, sample of small implements, seeds, pesticides etc. for field trials and training demonstrations, poster papers and paints for simple visual aids. Taken at 50/. of unit cost in year 1, 75% in year 2 and 100Y thereafter. I includes SMSs, at District subdivision, SDAO and PAO. 3/ Calculated at Rs. 5,000 per annum for each subdivision and district office. 4/ Calculated at Rs. 2,000 per year unit. S/ Running costs are Rs. 10,000, 15,000, 20,000, 35,030 and 35,000 in year 1, 2, 3, 4 and 5 respectively. Computer time at Rs. 2,500, 5,000, 7,500, 10,007 and 16,000 in yeer 1, 2, 3, 4 aod 5. Ad-hoc studies at R8. 5,000, 10,000, 25,000, 25,000 in year 1, 2, 3, 4.and year 5. 6/ Motorc',cle mileage allowance of Rs. 85 per month (about 10 kh/day at RA. 0.43 per kh). 7/ PTA of SDAO at Rs. 300 per month,RTA of SMS at Rs. 300 per month plus PTA for drivet at 200 per nonth. 8/ PTA of SM5 at Rs. 300 per month plus PTA of driver at Rs. 100 per month. 9/ PTA at Rs. 150 per month for Asst. administrative staff and senior clerks. 1O/ PTA of JDA at Divisional level at Rs. 1,000 per mouth (including public traosport allowance. 11/ PTA of SMS at Rs. 500 per month (including public transport allowances. 12/ 15,000km/year at Rs. 0.40/km. 13/ 25,000km/year at Rs. 0.40km. 14/ 53,000km'y-er at Rs. 0.40/kb.  - 32 - ANNEX 1 Table 7 INDIA MAHARASHTRA AGRICULTURAL EXTENSION PROJECT REQUIREMENT OF EXTENSION STAFF BY PROJECT YEAR Year 1 Year 2 Year 3 Year 4 Year 5 VEW (AA) plus (AS) Existing: Yearly 1,120 918 1,037 Cumulative 1,120 2,038 3,075 3,075 3,075 New: Yearly 831 1,234 860 Cumulative 831 2,065 2,925 2,925 2,925 AO Existing: Yearly 115 103 113 Cumulative 115 218 331 331 331 New: Yearly 128 165 123 Cumulative 128 293 416 416 416 SDAO Existing: Yearly 27 30 31 Cumulative 27 57 88 88 88 New: Yearly - 2 - Cumulative - 2 2 2 2 ASDAO (AO) New: Yearly 7 7 4 Cumulative 7 14 18 18 18 SMS (S.Div) Existing: Yearly 17 11 17 Cumulative 17 28 45 45 45 New: Yearly 37 53 45 Cumulative 37 90 135 135 135 PAO Existing: Yearly 8 8 9 Cumulative 8 16 25 25 25 SMS (Dist.) New: Yearly 11 10 11 Cumulative 11 21 32 32 32 JDA (Div.) New: Yearly 7 - - Cumulative 7 7 7 7 7 ADA/JDA (Ext.) Existing: Yearly 1 Cumulative 1 1 1 1 1 SMS (HQ) New: Yearly 4 Cumulative 4 4 4 4 4  -33- 1' - - - A A - - - - - - - A.O - - - - - - - - - -. - - - - o Al  H A ,I,I,,r,I Al AAA AAAA AAAA AAAAA *AAAAA A A A A A - A A A A A A A A A A A - A - A A A A A 2 A A - - A