India - Madhya Pradesh Medium Irrigation Project

Document of The World Bank FILE COP Y FOR OFFICIAL USE ONLY Report No'. 3260-IN INDIA STAFF APPRAISAL REPORT MADHYA PRADESH MEDIUM IRRIGATION PROJECT February 18, 1981 South Asia Projects Department Agriculture Division C |This document has a restricted distribution and may be used by recipients only in the performance of | their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS US$1.00 Rupees (Rs) 8.40 1/ WEIGHTS AND MEASURES (METRIC SYSTEM) 1 meter (m) 3.28 feet (ft) 1 kilometer (km) = 0.62 miles (mi) 1 hectare (ha) 3= 2.47 acres (ac) 1 million cubic meters (Mm ) = 810 acre-feet (ac-ft) 1 thousand million cubic feet (TMC) = 28.32 Mm3 3 1 cubic foot per second (cusec) 0.028 cubic meters per second (m /s) 1 ton 1,000 kilograms (kg) 1 ton = 2,205 pounds (lb) 1/ Until September 24, 1975, the Rupee was officially valued at a fixed Pound Sterling rate. Since then, it has been fixed againt a "basket" of currencies. As these currencies are floating, the US Dollar/Rupee exchange rate is subject to change. Conversions in this report have been made at US$1.00 to Rs 8.40, which represents the projected exchange rate over the disbursement period.  FOR OFFICIAL USE ONLY PRINCIPAL ABBREVIATIONS AND ACRONYMS AC - Appraisal Committee AD - Agriculture Department AE - Assistant Engineer AG - Accountant General ARDC - Agricultural Refinance and Development Corporation CAD - Command Area Development CADA - Command Area Development Authority CCA - Cultivable Command Area CE - Chief Engineer CWC - Central Water Commission DLDB - District Land Development Bank EE - Executive Engineer ERR - Economic Rate of Return GOI - Government of India GOMP - Government of Madhya Pradesh HYV - High Yielding Variety ICAR - Indian Council of Agricultural Research ICB - International Competitive Bidding ID - Irrigation Department IMD - Indian Meteorological Department IVW - Incremental Value of Water LCB - Local Competitive Bidding MIP - Medium Irrigation Project NMP - Madhya Pradesh M&E - Monitoring and Evaluation OER - Official Exchange Rate PACS - Primary Agricultural Credit Society PMF - Probable Maximum Flood PPM - Project Preparation and Monitoring RWS - Rotational Water Supply SDP - State Domestic Product SE - Superintending Engineer SMS - Subject Matter Specialist T&V - Training and Visit VLW - Village Level Worker WMA - Water Management Area WUC - Water Utilization Committee GLOSSARY Bajra - Pearl millet Chak - Block or irrigation service area below the Government outlet Jowar - Sorghum Nalla - Natural drainage channel FISCAL YEAR Government of Madhya Pradesh and Agencies - April 1 - March 31 ARDC, Cooperatives - July 1 - June 30 Commercial Banks - January 1 - December 31 This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.   INDIA STAFF APPRAISAL REPORT MADHYA PRADESH MEDIUM IRRIGATION PROJECT Table of Contents Page No. I. PROJECT BACKGROUND ........................................... I Introduction ................................................. I Agriculture in India ......................................... 1 Irrigation in India .......................................... 2 II. SECTOR BACKGROUND: THE STATE OF MADHYA PRADESH .............. 3 General ...................................................... 3 The Economy ..................3............ 3 Socio-Economic Conditions ....... ............................. 4 - Population ................................................ 4 - Rural Incomes and Wealth ...... ............................. 5 - Farm Size and Land Tenure ................................. 5 Public Services .............................................. 5 III. SECTOR BACKGROUND: THE AGRICULTURAL SECTOR .................. 6 - Agricultural Performance ...............................f 6 Agricultural Constraints ....... ............................. 7 Crops and Cropping Patterns in the Agro-Ecological Zones ..... 7 Dairying ..................................................... 10 Fisheries ....... 10 Agricultural Supporting Services ............................. 10 - Agricultural Research ..................................... 10 - Agricultural Extension Services ........................... 10 Agricultural Inputs .......................................... 11 Farm Mechanization ........................................... 11 Marketing .................................................... 12 Agricultural Credit ...... ....... ............................. 12 IV. SECTOR BACKGROUND: THE IRRIGATION SECTOR .................... 13 Need for Irrigation .......................................... 13 Irrigation Development ....................................... 14 Irrigation Performance ....................................... 15 Previous Bank Group Operations in Madhya Pradesh .... ......... 16 This report was prepared by Ms. A Duncan, Messrs. C.J.R. Bridge, G.T. Finlinson, Ms. M. Nguyen (Bank) and M-. T. Moir (Consultant), with contribu- tions by Messrs. C. Diewald, R. Vick and M. Herman. Ms. D. Walters assisted with statistical analysis.  Table of Contents (cont.) Page No. V. THE CREDIT ................................................... 17 Project Objectives ........................................... 17 Project Formulation ................................ . 17 Medium Irrigation Projects .18 Criteria for Medium Irrigation Projects .18 - Design Criteria .19 Dam Safety .19 - Implementation Criteria .20 - Operational Criteria .................... 20 - Maintenance and Management of the System .20 - Resettlement .21 - Cost Estimates ............ 21 - Economic Criteria .21 Flow Monitoring .21 Water Management Areas .21 Training .22 Technical Services .22 Demonstration Farms .22 Monitoring and Evaluation .22 Project Costs .23 Financing .24 Procurement .24 Disbursements .24 Accounts and Audits .25 Environmental Effects . 25 VI. ORGANIZATION AND MANAGEMENT .25 The Appraisal Committee of the Central Water Commission 26 Procedures for Medium Irrigation Projects . .27 - Project Identification ............. ..................... 27 - Project Preparation .27 - Submission of Project to W4. .27 - Project Appraisal .27 - Project Approval ..................... 28 - Project Implementation .28 Maintenance and Management of the System . .29 Operation of the System ..29 Training ............................ 29 Progress Review and Reporting Requirements . .30 Cost Recovery ..31 - Capital and O&M Costs .31 - Water and Water Related Charges .31 - Other Agricultural Taxes .32 - Level of Cost Recovery .32 - Farmers' Ability to Pay Water Charges .32  - iii - Table of Contents (cont.) Page No. VII. BENEFITS AND JUSTIFICATION .................................. 33 General ..................................................... 33 Income Effects .............................................. 34 Economic Rate of Return ..................................... 34 Sensitivity Analysis ........................................ 34 Project Risk ................................................ 35 - Project Risk ............................................. 35 VIII. AGREEMENTS REACHED AND RECOMMENDATIONS ...................... 36 LIST OF TABLES Table T-1 : Population by District and Zone (1971) T-2 : Characteristics of the Population (1971) T-3 : Farm Characteristics, by District and Zone (1976/77) T-4 : Trends for Area under Selected Major Crops T-5 : Trends for Yield under Selected Major Crops T-6 Trends for Production under Selected Major Crops T-7 Potential Created and Area Irrigated from Major, Medium and Minor Projects T-8 Mean Monthly Rainfall, by Zone T-9 Present and Projected Zonal Cropping Patterns T-10: Cost Estimates for Training Component T-11: Equipment for Lining and Maintenance T-12: Schedule of Expenditures T-13: Proposed Allocation of the Credit T-14: Estimated Schedule of Disbursements T-15: Crop Budgets T-16: Summary of Prices for Economic and Financial Analysis T-17: Average Farm Budget T-18: Estimate of Project Rent T-19: Cost and Benefit Factors for Evaluating MIPs T-20: Form for Establishing the Economic Viability of MIPs CHART C-1 Organization Chart: Irrigation Department LIST OF ANNEXES ANNEX 1: Criteria for IDA-Financed Medium Irrigation Projects A. Planning Criteria B. Design Criteria C. Implementation Criteria  - iv - Table of Contents (cont.) LIST OF ANNEXES (cont.) D. Operational Criteria E. Maintenance and Management of the System F. Cost Estimates G. Economic Criteria ANNEX 2: Performance Review of Existing Medium Irrigation Projects A. Agricultural Performance B. Irrigation Performance, Design Standards and Management C. Hydrological Review D. Economic Performance Review ANNEX 3: Agricultural Development under the Project ANNEX 4: Suggested Guidelines for Establishing Water Management Areas ANNEX 5: Flow Monitoring ANNEX 6: Economic Analysis of Medium Irrigation Projects ANNEX 7: Dam Review Panel - Terms of Reference ANNEX 8: Resettlement ANNEX 9: Index to Map IBRD 15146 LIST OF MAPS IBRD 15150 Soil Types and Isohyets IBRD 15151 Agro-ecological Zones and River Basins IBRD 15146 Major and Medium Irrigation Projects VOLUNE II - IMPLEMENTATION REPORT Appendix 1: Preparation Report for Chhirpani MIP Appendix 2: Preparation Report for Dejla Dewada MIP Appendix 3: Preparation Report for Gomukh MIP Appendix 4: Reporting Requirements  INDIA MADHYA PRADESH MEDIUM IRRIGATION PROJECT I. PROJECT BACKGROUND Introduction 1.01 The State of Madhya Pradesh (MP), located in central India, is the largest State in India and covers an area of 44.3 M ha, constituting 13.5% of the total area of the country. There are considerable variations in climate, soils and topography throughout the State. The monsoon rainfall (mid-June to late September) comprises some 90% of the total annual rainfall. The rainfall patterns are erratic and undependable with frequent and extended rainless periods within the monsoon season. As only a low percentage of the sown area is irrigated, production varies considerably from year to year. When the State of MP was reorganized in 1956, only 0.6 M ha were irrigated from all sources; since then development has been rapid and about 2.1 M ha is currently under irrigation, representing about 11% of the net cropped area (compared with the national average of about 26%). Only some 14% of the potential water resources of the State are currently developed (15% of surface water potential and 10% of groundwater potential). The Government of MP (GOMP) gives high priority to the development of irrigation (about 30% of the Sixth Plan expenditure has been allocated to the development of irrigation). 1.02 The Government of India (GOI) has requested IDA assistance to finance the construction of medium irrigation projects (MIPs) in Madhya Pradesh. Utilizing water resources of numerous small rivers located throughout the State, the project would provide irrigation to areas where large scale develop- ment is not feasible. Agriculture in India 1.03 India has a population of about 660 M which is growing at an annual rate of about 1.9%. Since 1960, per capita income grew at an annual rate of 1.4% and reached US$180 in 1979/80. Although the average per capita income has increased and access to public services has improved, in general, there has been little change in the incomes of the vast masses of urban and rural poor, who comprise about 50% of the total population. Accordingly, GOI's development plans give priority to alleviating poverty and creating employ- ment, especially in rural areas. 1.04 Agriculture is the dominant sector of the Indian economy and contri- butes about 45% of GNP. It engages about 70% of the labor force and provides the base for about 55% of India's exports. During the last decade, GOI devel- opment plans have emphasized agriculture and sought to raise food production by increasing the use of fertilizers, plant protection chemicals, and improved seed varieties. In support of this, GOI has modernized and expanded its agricultural credit institutions and accelerated the development of irrigation.  - 2 - 1.05 In the period 1950/51 to 1977/78, the production of foodgrains rose at an annual rate of 2.8% (to about 126 M tons) and population at 2.2%; the average annual increase in per capita production has thus been only 0.6%. Between 1949/50 and 1964/65, production increased by about 3.0% p.a,; about 50% of this was the result of an expansion in the area under foodgrains and the proportion of the area double-cropped. But between 1964/65 and 1976/77, the gross area planted increased by only 5%; 85% of the 50% output growth over the period was the result of a growth in yields per gross hectare. In this second period, there were two concentrations of rapid growth (independent of weather conditions) 1/: (i) 1966/67-1970/71, largely due to the introduction of wheat varieties on irrigated land in the northwestern States; and (ii) 1973/74-1977/78; mainly due to significant increases in rice yields. In all cases, progress was dependent upon the continuing expansion of the gross area irrigated (22.6 M ha in 1950/51 and 49.5 M ha in 1977/78) and the increase in the use of fertilizers (2.23 kg/ha in 1960/61 and 21.11 kg/ha in 1977/78). Irrigation in India 1.06 Irrigation was given the highest priority from the beginning of the planning era in 1950. Some 54.0 M ha are irrigated at present, about 60% of which is from surface sources and 40% from groundwater. Irrigated areas are almost four times as productive as rainfed areas and they account for about 60% of all agricultural output. More significant is the fact that the expan- sion of irrigation facilities and the productivity growth on irrigated lands have together accounted for at least three-quarters of agricultural growth since 1960. 1.07 The irrigation potential is expected to grow to 62.3 M ha by the end of 1982/83 (35% of the cropped area of 180.03 M ha, of which 59% will be from surface sources and the remainder from groundwater sources). 2/ With little idle land left for cultivation, very little increase is expected in the net sown area in the future and the main increases in agricultural production will need to come from double cropping and from improvements in water manage- ment and agricultural inputs. If the expected doubling of the gross irrigated area in the next 20 years is to be achieved, a much greater efficiency in water use will be required. In most completed projects the actual irrigated areas are less than planned and yields have been much lower than originally forecast. GOI and the State Governments are aware of the challenge and are seeking solutions to the dual problem of low irrigation intensities and poor yields. Solutions involve improved efficiency of the physical system, more flexible and imaginative water management practices and improvements in the supply of agricultural inputs (credit, extension, etc.). 1.08 The projects of the early 1960s involved a storage or diversion dam and main canal system only, leaving distribution of water from the project 1/ Source: "Food Trends and Prospects in India", the Brookings Institute, 1979; and "Economic Situation and Prospects of India", IBRD Report No. 2431-IN, p. 178. 2/ Draft Five Year Plan, 1978-1983, GOI Planning Commission.  - 3 - outlets to the farmers. As some of these outlets served areas in excess of 100 ha, conveyance of water to the farmgate necessitated the construction of minor channel networks that were sometimes several kilometers long. In most projects, farmers were unable to finance or organize the construction of the minor channels without outside assistance, which was only rarely available. The very long delays between water availability in the main conveyance system and its use by farmers made these irrigation projects a marginal investment. 1.09 In the early 1970s, the concept of the Command Area Development Authority (CADA) evolved. Its objective was to coordinate the activities of the Irrigation and Agriculture Departments and to assist farmers in obtaining institutional credit for the construction of the minor systems and levelling and bunding of their fields. Undoubtedly, there have been benefits from the creation of the CADA; however, the results have been less than expected. Further analysis of the reasons for the gap between potential created and actually utilized and lower irrigated cropping intensities and yields than forecast indicates that more emphasis should now be placed on improving the efficiency and reliability of the conveyance system, and that the Government should assume responsibility for conveying water much closer to the farmgate. only when the farmer is confident of his water supply will he undertake the necessary investments to make full use of the water supplied. These improve- ments will be incorporated into the proposed project. II. SECTOR BACKGROUND: THE STATE OF MADHYA PRADESH General 2.01 Madhya Pradesh (MP) is India's largest State, covering an area of 44.3 M ha and has a population of about 52 M (1980). Although MP is rich in natural resources (minerals, fuel, timber, iron ore, etc), they are as yet relatively unexploited. The economy is largely dependent on a stagnant, low-productivity agricultural sector; the removal of constraints to agricul- tural growth--particularly through the expansion of irrigation and improved water management--is thus a precondition for economic progress. By most indicators, Madhya Pradesh is one of the poorest States in India. The Economy 2.02 The per capita income of MP was Rs 896 in 1977/78 current prices, compared to Rs 1,163 for the country as a whole. The economic growth of MP is largely dependent on agriculture; between 1970/71-1977/78, State income grew at an annual rate of 1.8%, which was much lower than the growth of the Indian economy. However, because of the population increase, the per capita income actually declined in the same period by 0.9% per annum, compared to a 1.1% growth in the national average. The pattern of stagnation of MP economy compared with the rest of India is summarized below:  - 4 - Net Domestic Product Growth Rate 1977/78 1970/71 - 1977/78 MP India MP India --------- %---------- ---- % per annum---- Agriculture and Allied Activities 57,0 43.0 0 3.4 Mining, Manufacturing, Construction, etc. 19.6 23.1 6.2 11.0 Transport, Communica- tions, Trade 12.1 18.1 2.2 10.2 Banking, Insurance, Public Administration and Other Services 11.3 15.8 0.4 0 Total 100 100 1.8 7.2 2.03 The zero growth rate of primary net domestic product is mainly due to the stagnation of foodgrain production, which increased at only 0.2% p.a. over the period; this contrasts with the 3.4% p.a. growth rate of the primary sector in the Indian economy. The low-productivity agricultural sector domin- ates the State's economy, providing about 55% of the State Domestic Product (SDP) and employing about 80% of the working population. While in the period 1968/69-1978/79 total area under foodgrains increased by 1.5 M ha from 16.3 M to 17.8 M, yields remained stagnant and are about 50% below the national average; fertilizer use in MP is about one-third of the national average. 2.04 Production in the industrial sector, which started at a low base, grew rapidly, at 6.2% p.a., although it still contributed only 19.6% of State Domestic Product (SDP). Employment in manufacturing accounts for only 6.6% of the labor force, as compared with 9.4% in all-India. According to various estimates the State possesses 44% of the country's bauxite reserves, 50% of the manganese, 30% of high grade iron ore reserves, 25% of coal reserves and 27% of India's total forest resources. Recently, rich deposits of copper have been discovered. The State is estimated to be endowed with 11% of the coun- try's total hydro-electric power potential, second only to Assam. However, the per capita industrial power consumption in MP is only 80% (49 kwh) of the all-India consumption (61 kwh). Socio-Economic Conditions 2.05 Population. NMP has one of the highest birth rates in India and its estimated population of 52 M (1980) is growing at about 2.6% per annum. The population density of 94 persons per square kilometer is low compared with the national average of 167. The population is predominantly rural (84%) and is scattered in small villages with average population of some 430 persons per village. I.Q6 Just over 20% of the population is tribal, giving MP the largest concentration of tribal peoples in India. Thirty-three percent of the State's inhabitants belong to the so-called "backward classes".  2.07 The labor force constitutes about 37% of the total population. The labor participation rate in rural areas is about 38% and in urban areas 28%. Cultivators and agricultural laborers account for 53% and 27% of the labor force, respectively. 2.08 Rural Incomes and Wealth. In a normal year, about 66% of the population has incomes below the poverty line (US$80). 1/ However, there are large regional variations in the incidence of poverty. In the eastern and southern parts of the State about 90% of the population live below the poverty line, while the proportion in the western region is about one half. 2.09 Farm Size and Land Tenure. The large number of small farmers, com- plex tenancy arrangements and a high percentage of tribal people pose great difficulties for modernizing the agricultural sector. The average farm size in MP has decreased from 4.0 ha in 1970/71 to 3.6 ha in 1976/77, ranging from 1.8 ha in Bilaspur District to 7.0 ha in Vidisha district (Table T-3). 2.10 The Ceiling on Agricultural Holdings Act from 1960 limiting the maximum amount of land owned to 30 ha per landowner was amended in 1974. At present a landowner is entitled to retain a maximum of 7.2 ha of irrigated land and 22 ha of rainfed land. According to the 1970 Agricultural Census, 70% of all holdings were owner-operated. Public Services 2.11 The network of primary and secondary schools is deficient. The literacy rate of 22% in MP is among the lowest in India; the national average is 29% (Table T-2). 2.12 In rural areas, the number of doctors and health centers per 1,000 persons is well below the national average. The provision of safe drinking water is a serious problem. According to GOMP, only about 25% of all villages have been provided with safe drinking water supply. Financial constraints do not allow a large program that would improve this situation. 2.13 The progress of rural electrification has been lagging behind other States and presently only about 17% of the villages have electric power. In the Sixth Plan, GOMP has allocated a major share of investible resources to power sector, which will also improve the electricity supply to agriculture. 2.14 Most systems of communication are deficient in MP. In particular, there are few major highways, and the road network is poor. With a highway density of 10.3 km per 100 sq. km, the State is well below the national average of 30.0 km. The insufficient road network inhibits the exploitation of natural resources and the modernization of agriculture. The railway system is also deficient. 1/ Estimated for 1979/80.  - 6 - III. SECTOR BACKGROUND: THE AGRICULTURAL SECTOR I/ 3.01 Agricultural Performance. The agricultural sector dominates the State economy, yet much potential remains to be developed, and its water resources have yet to be fully exploited (currently only 15% of the poten- tial is utilized). The 1977/78 net area sown amounted to 18.8 M ha, 84% of cultivable area, mostly single-cropped during the monsoon season or in the dry rabi season on stored soil moisture following a monsoon fallow. Only 11% of the total cropped area is at present irrigated. 3.02 Between 1965/66 and 1978/79, the production of foodgrains increased at the rate of 3.8% p.a., while the average Indian rate was 3.4% p.a. for the period 1964/65 to 1978/79. Production levels for other crops in MP have remained almost constant. The foodgrain increases have been due almost entirely to small increases in area sown. Due to the variability in rainfall, yield levels of all crops have fluctuated widely year by year, but with no significant trend upward for any major crop with the exception of wheat, where yields have increased over the same period at a rate of about 2% p.a. 3.03 In the period of ten years from 1968/69 to 1978/79, the total area under foodgrains increased by 1.5 M ha from 16.3 M to 17.8 M. At the same time there have been appreciable changes in the cropping pattern. The rice area increased by 510,000 ha to 4.82 M ha, this increase being mainly on marginal lands brought newly under cultivation, while the area under jowar decreased by 500,000 ha to 1.86 M ha, bajra also declined by 50,000 ha, but maize increased by 100,000 ha. Among the rabi crops, the wheat area increased by nearly 800,000 ha to 3.8 M ha, much of this increase resulting from an increase of 560,000 ha in the irrigated areas. The area under pulses increased by 740,000 ha, accounted for mainly by an increase in gram (240,000 ha), urad (black gram), mung (green gram), teora (vetch) and the introduction of soya- bean on 200,000 ha. Oilseeds increased by 200,000 ha, with increases in rabi oilseeds (linseed, mustard), but decreases in groundnuts and sesame. The area under cotton has remained substantially unchanged. In general, an increase in irrigated cropping, other than paddy, of some 740,000 ha has resulted in farmers switching from coarse grains (jowar and bajra) to rabi crops. Quick maturing high yielding varieties of jowar which can be readily followed by a second crop have so far been introduced on 20% of the jowar area. 3.04 Yields of most major food crops in MP are significantly below India's already low average. The discrepancy is most marked in the two major food- grains, rice and wheat. For both rice and wheat, the Indian average is roughly 50% higher than the MP yields. This reflects the relatively high proportion of rainfed and unimproved varieties of wheat and rice, and the low consumption of fertilizers, at one-third the national average. The yields of coarse grains (jowar, maize, bajra and barley) are more in line with all-India averages, but oilseed yields are very low, at 60% of the India average, and MP's yields of cash crops have grown relatively slowly. Cotton yields grew at 1.7% in India, but remained stagnant in MP. 1/ See also Annex 3.  - 7 - 3.05 Fertilizer use in MP, although it has recently accelerated, presently averages less than 7 kg nutrient per ha, about one-third of the national ave- rage. From 1968 to 1972, during a period of relatively rapid growth in irri- gated area accompanied by increased use of HYV seed, fertilizer use increased at a rate exceeding 50% per year. The increases occurred entirely for rabi season use, and even now more than 70% of annual consumption is distributed for that season. However, the combined use of fertilizers, HYV seed, and irrigation, is still very limited. 3.06 In spite of low yields and largely traditional methods of agricul- ture, and because of the low population density, production of foodgrains per capita in a normal year is 25% higher than the all-India average and the State normally has a surplus of 1 M t for export. MP contributes 17% of India's production of pulses. Agricultural Constraints 3.07 In spite of the fact that MP has a relatively high rainfall compared with many other parts of the semi-arid regions of India, marked year to year variations in the amount and timing of rainfall jeopardize production and make farmers reluctant to invest in fertilizers, pesticides and improved seed. Long breaks in and an early withdrawal of the monsoon can cause severe plant stress and are particularly damaging in the case of the rice crop. Yields of rainfed rabi crops are constrained by the limited availability of soil mois- ture at the beginning of the growing season, and thus show a poor response to fertilizer. The low cropping intensity reflects the fact that except with irrigation only one crop can normally be grown. The State is therefore giving high priority to the extension of irrigation, both from surface and underground sources, and to increasing the effectiveness of existing irrigation projects, through the provision of a more timely and reliable water supply. Agricultural programs proposed under the Sixth Plan lay emphasis on assistance to the smaller farmers to help them switch from production of cereals for their own subsistence to higher value crops and to increase yields sufficiently to obtain a marketable surplus. Emphasis is also placed on utilization during kharif of large areas now left fallow because of difficult workability of the soils during the monsoon season. Here, drainage and land shaping, as well as irrigation, will play an important part. Soyabean has proved a most promising crop under these conditions and it is proposed to try and extend the area of this crop to 1 M ha by the end of the Sixth Plan. Crops and Cropping Patterns in the Agroecological Zones 1/ (Map IBRD 15151) 3.08 Wide variations in climate, soil and topography create varying con- ditions for agriculture in different parts of the State. Seven major agro- ecological zones are distinguished on the basis of climate--especially rainfall and winter temperatures--topography and prevailing soil type. Rainfall varies from less than 800 mm in the west and northwest to over 1,600 mm in the north- east and southeast. Winter temperatures are affected both by latitude and 1/ Details of crops and cropping patterns expected under the project are given in Annex 3.  - 8 - altitude; warm winters adversely affect the performance of rabi crops, espe- cially wheat. The different zones can be classified as having warm, mild or cool winters, with average minimum temperatures in December and January of over 130 C, 100 - 130 C, and below 100 C, respectively. Frosts are recorded in some northern areas. Present cropping patterns for the different zones are shown in Table T-9 and mainly reflect rainfed cropping practice. The present areas of crops irrigated in each zone and the proportion of the total crop area that is irrigated is shown in Annex 3, Table 1. Present cover by high yielding varieties is shown in Annex 3, Table 3. 3.09 The Rice Zone (Zone 1) in the eastern part of the State includes the Chhatisgarh Plain, the Wainganga Valley (Zone la) and neighboring plateau areas of Bastar (Zone lb) and Sarguja (Zone lc). Rainfall averages from 1,200 mm in the Chhatisgarh Plain (marginal for production of rainfed rice) to 1,600 mm in the plateau areas. Winters in the Chhatisgarh plain are warm, but mild to cool in the plateau areas. Except in the plateau areas where soils are mainly shallow and light in texture, soils vary from sandy claim loams on moderate slopes to clays in the lower lying areas. Rice occupies over 50% of the net cropped area and this zone accounts for nearly 70% of the MP rice area and 80% of the State's production. About 20% of the rice in this zone is irrigated; the irrigated areas are concentrated in the Chhatisgarh Plain and Wainganga Valley where modern varieties account for 50% of the cropped area. Pulses and linseed sown direct into the standing paddy before harvest account for the relatively high cropping intensity of 129% in this subzone. The neighboring plateau areas have a high proportion of tribal population (58% in Surgaja, 68% in Bastar) growing rice and minor millets on what are mainly marginal soils. The average size of holdings is 2.75 ha, with 29% of land in holdings of more than 10 ha. 3.10 The Rice/Wheat Zone (Zone 2) adjoins the Rice Zone to the west and includes the Kymore Plateau and upper Narmada Valley. Rainfall varies from 1,000 mm to 1,400 mm. Winters are cool to mild. The Kymore Plateau itself has shallow skeletal soils covered mainly with poor forest and scrub, but is deeply incised by wide flat valleys which together with the upper Narmada Valley account for nearly all the good agricultural land. The main crops are rice and wheat, each accounting for 25% to 40% of the cropped area. Other important crops include minor millets in kharif on shallow soils and gram (chick pea) in rabi. There has been relatively little development of irrigation in this zone. The zone also has a high proportion of tribals concentrated mainly on marginal agricultural lands, on the plateau and in Mandla district which has shallow gravelly soils. The average size of hold- ings is 3.1 ha with 36% of land in holdings of more than 10 ha. 3.11 The Wheat Zone (Zone 3) occupies the central part of the State and includes the Vindhya Plateau and central parts of the Narmada Valley. Winters are cool to mild. With a relatively high rainfall of from 1,200 mm to 1,400 mm, deep or medium deep clay soils and relatively flat topography, poor drain- age and waterlogging pose problems for cultivation of kharif crops which occupy only 10% to 25% of the net cropped area (mainly sorghum) on better drained sites. The remainder of the land is sown with rabi crops after a kharif fallow and yields depend on stored soil moisture. Only 5% of crops are irrigated. Wheat occupies up to 50% of the cropped area and this zone accounts for 35% of  - 9 - the MP wheat area and 34% of the production. Only 20% of the wheat crop is sown with modern varieties. Apart from the Tawa Project, there has been little development of irrigation in the zone. Other important rabi crops are gram (chick pea), lentil and linseed. Holdings are large, averaging 5 ha and nearly half the agricultural land is in holdings of more than 10 ha. The prevalence of large holdings has proved a distinct hindrance to the intensification of production in Tawa Project and in existing medium projects in the zone. 3.12 The Jowar/Wheat Zone (Zone 4) in the southern part of the State covers the Satpura Plateau. This is primarily a kharif cropping area with jowar (sorghum), minor millets and pulses occupying about 60% of the cropped area while about 25% to 30% is sown with wheat and gram during rabi. Soils are mainly shallow and rainfall averages 1,000 mm to 1,200 mm; two tehsils at the south of Betul district are classified as drought prone areas. Irrigated crops account for 8% of the cropped area. This zone also has a fairly high tribal population (33%). The average size of holdings is 4.25 ha with 38% of land in holdings of more than 10 ha. 3.13 The Cotton/Jowar Zone (Zone 5) occupies the western part of MP and includes the Malwa Plateau (Zone 5a), Nimar Plain (Zone 5b) and Jhabua Hills (Zone 5c). This zone has low rainfall, varying from less than 800 mm to 1,100 mm. Twenty out of a total of 31 tehsils 1/ in the zone are classified as drought prone areas. Irrigation, mainly from wells, covers 10% of the cropped area. The soils are medium to shallow black cotton soils, except in the Jhabua Hills which have sandy soils, and cropping is mainly in kharif with jowar and cotton the principal crops. The Nimar Plain, with mild to warm winters, forms the main cotton growing area; the Malwa Plateau and Jhabua Hills have cool winters. Pulses, normally intercropped with jowar, are also grown on a large scale and the area of soyabean is increasingly important. In spite of the fact that holdings are fairly large, averaging 4.9 ha with 37% of the land in holdings of more than 10 ha, many of the most successful existing medium irrigation projects are found in this zone. The main irrigated crops are Mexican wheat, cotton, sugarcane and gram. This zone also has a fairly large tribal population concentrated especially in Jhabua (85%), Dhar (53%) and Khargone (40%) districts in the southwestern part of the State and in the lowest rainfall areas. 3.14 The Wheat/Jowar Zone (Zone 6) in the northern part of the State includes the Bundelkand region bordering UP and part of the Gird Region. Rainfall averages from 800 mm to 1,000 mm, one tehsil in Dhatia district being classified as a drought prone area. Winters are cool. Soils are of light to medium texture. Irrigation is fairly well developed with 27% of the net cropped area under irrigation. The most important crops are wheat, of which a high proportion (60%) is irrigated and gram in rabi, and jowar, minor millets, pulses and sesamum in kharif. Holdings are relatively small, averaging 3.3 ha, with only 28% of the land in holdings of more than 10 ha. Uptake of irrigation on medium projects has been satisfactory with HYV wheat, barley and gram the main irrigated crops. 1/ Taluka, or sub-division of a district.  - 10 - 3.15 The Wheat/Bajra Zone (Zone 7) in the northern most part of the State includes Bhind and Morena districts. Rainfall is low, being less than 800 mm but irrigation is well developed, covering 37% of the net sown area, provided largely by the Chambal system. Winters are cool. Soils are deep alluviums. The main crops are wheat, gram and mustard in the rabi season. Seventy percent of the wheat crop is irrigated. During kharif, bajra (pearl millet) and jowar are the most important crops. This zone has the lowest average farm size in MP at 2.7 ha with only 15% of the land in holdings of more than 10 ha. Dairying 3.16 The State has an acute deficit of milk with total production esti- mated at only 4.5 M liters. During 1975, the MP Dairy Development Corporation was set up to implement the MP Dairy Development Project (Credit 522-IN, see para 4.08). This involved a program of upgrading local cattle, leguminous fodder production, demonstration farms and extension. Progress is satisfac- tory on this program, which envisages the establishment of 1,200 village cooperative societies and three Milk Producers Cooperative Unions, one each at Bhopal, Indore and Ujjain on the "Amul" pattern. Fisheries 3.17 The State has considerable potential for development of fisheries with 263,000 ha of water at present available and a further 137,000 ha likely to be produced by irrigation projects contemplated in various river basins. During the Sixth Plan, investment of Rs 73 M is proposed and a program for intensive development of inland fisheries is envisaged. Agricultural Supporting Services 3.18 Agricultural Research. The Jawaharlal Nehru Krishni Vishwa Vidyalaya (JNKVV) has been responsible for agricultural research since 1964. The uni- versity's six campuses and research stations--Jabalpur, Gwalior, Rewa, Sehore, Indore and Raipur cover the main agricultural zones. There is also a main research center at Powarkheda serving the Tawa command and 13 smaller research farms. Limited research on irrigated agriculture is conducted at all the main research centers. The university recently took over the MP Rice Research Station, Raipur, which is also a center for the ICAR All-India Coordinated Rice Research Program. 3.19 Research on irrigated agriculture has focussed mainly on deter- mination of water requirements in relation to critical stages of crop growth, climate and soil type. Relatively little attention has been given to irriga- tion practices and land development for irrigation. 3.20 Agricultural Extension Services. Following the success in neigh- boring Rajasthan of the T & V system of extension, GOMP first introduced it in the Chambal Command area in 1976; it is at present in operation in 15 dis- tricts. Strengthening extension in these districts has given good results and it is now intended under the Sixth Plan, with IDA support (Cr. 712-IN, see para 4.08), to complete the cover of the State by 1982-83. An additional  - 11 - five districts will be covered in 1980/81, ten in 1981/82, and 15 in 1982/83. A VLW will be provided for every 600-800 families and an Agricultural Exten- sion Officer will supervise 8 VLW. A Subdivisional Agricultural Officer covers two to three development blocks and is assisted by Subject Matter Specialists in Plant Protection, Agronomy and Water Management and in Train- ing, Information and Publicity. In each district, a Deputy Director of Agriculture will be assisted by four SMS in Plant Protection, Agronomy, Water Management and Training. In each block, there will be one Senior Extension Officer, assisted by three VLW to coordinate supply functions. Agricultural Inputs 3.21 Until now provision of improved seed has been mainly through 121 government agricultural farms with a cultivated area of 3,800 ha. These have been unable to meet the requirement. A State Seed and Farm Corporation is currently being set up with an authorized share capital of Rs 100 M. This corporation will gradually take over the farms from the AD and contract with farmers to produce quality seed. Major crops in the different agricultural zones will be given priority. An independent Seed Certification Agency has also been set up. Existing seed testing laboratories at Jabalpur and Gwalior will be strengthened and an additional laboratory will be set up at Indore. Fertilizers are distributed through cooperative and private channels. In 1978/79 the share of the cooperatives was 58%. Cooperatives have 3,158 dis- tribution points and private traders 2,616 points. In spite of this wide distribution network, farmers in many districts have some difficulty in obtaining timely supplies. One of the major constraints in popularizing use of fertilizers has been reluctance of cooperatives to lift stocks from sup- pliers in advance of the sowing season for fear of losses due to uncertain sales and long storage. It is proposed to subsidize transport and storage of fertilizers with provision of Rs 22.5 M during the Sixth Plan. 3.22 Marketing of pest control chemicals is handled by the Agro Industries Development Corporation. During the Sixth Plan it is proposed to subsidize interest, and storage charges on agrochemicals purchased at the behest of the AD and to strengthen the stock of equipment held by the Department. Farm Mechanization 3.23 Madhya Pradesh has about 22,000 tractors. On a per ha basis, this is below the national average; most are owned by large farmers. The MP Agro Industries Development Corporation has a program for establishing agro-service centers of which 85 have been set up for custom hiring of tractors. Reliance for farm power is therefore still very largely on animal power. There are some 10 M working cattle or approximately one pair per 4 ha of cultivated land, though availability differs widely in different agricultural zones, ranging from 1 pair per 2.7 ha in Zones 1 and 2 to one pair per 5 ha to 6 ha in Zones 3 and 5.  - 12 - Marketing 3.24 Marketing of agricultural produce is less developed in MP than in many other Indian states. Only half of all markets which accept notified pro- duce are regulated and of these only 15-20% are improved markets with modern handling facilities. So far, 250 regulated markets and 69 submarkets have been established. Out of the 459 community development blocks that cover the State, 356 are within reach of regulated markets or submarkets. During the Sixth Plan period it has been decided to have a regulated market or at least a market yard in every block by establishment of an additional 50 markets and 100 submarkets. Agricultural Credit 3.25 The organization of institutional credit to farmers follows the usual pattern in India. The cooperative banks which provide short (up to one year) and medium term credit to farmers through the primary cooperative socie- ties at an interest rate of 12-12 1/2% are organized on a three tier basis with the MP State Cooperative Bank at State level, 44 central cooperative banks at district level (Bhopal and Sehore districts have one bank) and 6,525 primary credit societies with 29 M members. About 44% of farmers are coopera- tive members; 411 development blocks out of 459 in the State have branches of the central cooperative banks. The remaining blocks and other important centers are to be covered in the Sixth Plan period by opening a further 100 branches. Loans advanced increased from Rs 556 M in 1973/74 to Rs 891 M in 1978/79. At the end of 1979 a total of Rs 1,341 M of loans were outstanding, of which 41% were overdue. Repayment rates, though lower than in earlier years, still permit extending loans. Rescheduling procedures exist and are practiced. 3.26 The Madhya Pradesh State Cooperative Land Development Bank disburses long term loans to farmers and has 45 affiliated District Land Development Banks with 260 branches all over the State. Loans are advanced mainly for dug wells, tubewells and pumping equipment. Lending increased from Rs 1.25 M in 1961/62 to Rs 227 M in 1976/77, but declined to Rs 117 M in 1978/79 due to inability of DLDBs to improve their debt recovery performance. The proportion of overdues has increased steadily in recent years and reached 56% at the end of 1978/79. These loans are refinanced through the Agricultural Refinance and Development Corporation (ARDC). 3.27 The commercial banks have been steadily increasing their lending to agriculture and now have over 1,200 branches in rural and semi-urban areas. Under the RBIs program for financing of PACS by commercial banks, 204 socie- ties were transferred to them in 1978/79 of which 150 were financed. Total agricultural loans outstanding at the end of 1978/79 amounted to Rs 1,081 M. The commercial banks also have a serious problem of recoveries, but are better able than the cooperative banks to absorb overdues. 3.28 Financing of small and marginal farmers is available from 13 Small Farmer Development Agency Projects and from Regional Rural Banks covering nine districts.  - 13 - IV. SECTOR BACKGROUND: THE IRRIGATION SECTOR Need for Irrigation (see Table T-8 for mean monthly rainfall in each zone) 4.01 Rainfall in the State of Madhya Pradesh as well as throughout the Deccan Plateau (Central India) comes almost entirely from the southwest mon- soon wind movements. Moist cold air advancing from the Arabian Sea moves along the western coast of India and then pushes over the Ghats into the interior of the Indian continent. Studies by the India Meteorological Department for the State of Maharashtra show that for seventy monsoon seasons (1901-1970) the mean date for commencement of sowing rains (CSR) is earliest (June 2) at Goa and by June 8 has progressed northward to Colaba (Bombay) and to the southern coast of Saurashtra in the State of Gujarat by June 20. The CSR movement inland and eastward of the _-. of the ghats is much later and much more variable. Some areas do not benefit from the monsoon rains until well into July (July 4-6, for example, at Aurangabad in Maharashtra). Studies at Labhandi Research Farm near Raipur for a 29-year period places the average date at June 21 but with beginning dates ranging between June 1 and July 16. 4.02 Of even more significance in determining the need for and value of irrigation is the length of the interval between the commencement of sowing rains (CSR) and the next realization of a significant rain. This interval is as long as 32-34 days in parts of Maharashtra. Nagpur, for example, shows that on a percentage distribution, 66% of the observations showed rainfall reoccurring in 10 days or less; 317 showed an 11-20 day break in rains; and 3% showed over 20 days elapsing without rain. A similar pattern can be derived by analysis of the daily rainfall for climatic stations in MP. The wide variability in start of sowing rains and the difficulty in establish- ing a consistent rainfall pattern places plants frequently under stress at time of germination and initial crop growth when water is especially critical. With irrigation the planting can be done on schedule without guess work and in amounts sufficient to establish a good seed bed, and to ensure good seed germination and initial growth. 4.03 The short duration of the monsoon season or an earlier than normal receding of the monsoon rains further aggravates the problems of equating moisture with plant needs. The total annual or monsoon rainfall amount can be misleading. Rainfall in the month of August is consistently 40% or more of total rainfall so that rainfall occurring towards the end of the crop's growing season is generally insufficient. The studies at Labhandi show the monsoon receding between September 7 and October 11 dates with an average date of September 28. The interval between onset and receding has been as short as 60 days and has averaged only 100 days--much less than the 120 days or more needed to mature most kharif crops. In summary, therefore, irrigation is needed at the time of sowing to ensure good germination, to reduce the stress (particularly to rice) caused by the variability in interval between the CSR and the next significant rain; and toward the end of the growing season when yields can be reduced drastically by stress at the critical flowering and fruiting stages.  - 14 - Irrigation Development 4.04 A major part of the irrigation potential of MP is yet to be exploited. Despite the fact that within MP are the catchments of all eleven of the major rivers 1/ of central India, only 11% of the net cropped area (about 2.2 M ha) in the State is irrigated, compared to the national average of about 26%. At present, only about 15% of the groundwater and the surface water potential is utilized (18% in the Ganga Yamuna Basin, 17% in the Mahanadi Godavari Basin, and 8% in the Narmada Tapti Basin). Potential Water Resources Presently Developed (1976/77) % of Ground Surface Ground Surface Poten- Area Water /a Water /b Total Water /a Water /b Total tial kmZ ----------------------- ------------------- Ganga- Yamuna 225,900 26,107 67,840 93,947 3,120 11,800 14,920 16 Mahanadi- Godavari 144,000 21,285 75,240 96,525 1,400 14,000 15,400 16 Narmada- Tapti 73,100 11,261 41,940 53,201 1,400 2,600 4,000 8 Total 443,000 58,653 185,020 243,773 5,920 28,400 34,320 14 Sources: /a C. E. Groundwater Survey, Irrigation Department, Madhya Pradesh 7W Irrigation at a Glance, Engineer-in-Chief Office, Irrigation Department, Madhya Pradesh of the 2.2 M ha of net irrigated area, about half is from canals (Government schemes) and half from wells (largely private): Net Area Irrigated (M ha) (x) Canals 0.97 45.0 Wells 0.86 40.0 Tanks 0.14 6.6 Other 0.18 8.4 Total 2.15 100.0 About one-third of the canal irrigation is under major schemes (over 10,000 ha), about one-third under medium schemes (2,000-10,000 ha), and about one- third under minor schemes (below 2,000 ha). Irrigation is almost exclusively limited to one season; less than 5% of the irrigated area receives irrigation 1/ The Mahanadi, the Mahi, the Narmada, the Tapti, the Chambal and Betwa, major tributaries of the Yamuna; the Sone, major tributary of the Ganga; and the Wainganga, Indravati, Sabari, and Pench, major tributaries of the Godavari.  - 15 - in both seasons. Details of irrigation by district and source are given in Table T-3. 4.05 Since much of the surface area of the State is over hard rock, the potential for groundwater development is fairly limited, compared with the potential for surface water; the unexploited groundwater potential has been estimated at 1.7 M ha of irrigation, compared with about 9.0 M ha from surface water. Thus, most of the increase in irrigation in the State will have to come from surface water resources. Irrigation Performance 4.06 The State accords a high priority to irrigation as a means of rais- ing both agricultural production and the incomes of the rural poor. Since the first Five Year Plan, this sector has continued to receive a large share of Plan allocation, currently about 30%. Investments in irrigation are also made under the "Tribal Sub-Plan", designed to cater specifically to the needs of the tribal population (para 2.06). Share of Plan Expen- ditures for Irrigation Real Growth Development (including in Plan Minor Irrigation and Plan Period Expenditures Flood Control) /b (Plan II = 100) -----------%---------- II (1956/57-60/61) 100.0 18.8 III (1961/62-65/66) 155.6 16.7 Annual: (1966/67-68/69) 163.6 Ia 17.3 IV (1969/70-73/74) 169.4 24.0 V (1974/75-77/78) 242.2 28.9 /a Adjusted to Five Year equivalent. /b Excludes expenditures on Minor Irrigation by the Agriculture Department. The development of irrigation potential 1/ and utilization are shown in Table T-7 between 1956/57 and 1978/79, the increase in potential created was about 6% p.a. The percentage utilization has ranged from 59% to 76% of potential since the First Plan. 4.07 A review of the performance of existing MIPs in the State was carried out as part of the appraisal (see Annex 2). Given the priority in 1/ This terminology is commonly used in India but is misleading in that it is the construction of the dam and main canal that is the measure of potential whether or not the distribution network is in place and ope- rating. The "utilization" figures are recorded as the sum of the area in each season for which farmers have applied for irrigation (the "agree- mented" area), whether or not water is actually supplied.  - 16 - Plan allocations, and the apparent rate of utilization, the growth in the benefits from irrigation could have been much higher. The two principal constraints to the development of irrigation in MP have been: (a) long construction periods for major and medium projects; and (b) slow and uneven uptake of irrigation once the facilities have been created. In many cases, dams have been built and water stored, but distribution systems left incomplete, with outlet command areas (chaks) ranging from 40 ha to over 100 ha. Because of this lag in the construction of the distribution systems, the water has been preempted at the head of the system; this, combined with the ability of influential groups to monopolize water, has resulted in large areas--especially at the tail-end of the commands--being left unirrigated. Other factors contributing to the slow and uneven uptake of irrigation have been: (a) the low level of technology adopted in the planning, design, construction, operation and maintenance of the irrigation system; and (b) over-optimistic design assumptions about crop water requirements and irrigation losses, which have not been monitored under actual field conditions; this has led to a significant overestimation of the area that can be irrigated with the water available. Previous Bank Group Operations in Madhya Pradesh 4.08 The Bank Group has directly contributed to the development of MP's agricultural sector through five previous IDA credits, but its involvement in irrigation has been small compared with the Bank Group contribution to irriga- tion in some other states in India. The MP Agricultural Credit Project (US$33.0 M credit of June 8, 1973, Cr. 391-IN) was designed to expand and improve the credit facilities available to farmers throughout the State. The MP Dairy Project (US$16.4 M credit of December 18, 1974, Cr. 522-IN) is sup- porting dairy development organized along the lines of the successful Amul dairy cooperative set up in neighboring Gujarat. Farmer response has been excellent and the Government is under considerable producer pressure to speed up the establishment of dairy cooperatives throughout the State. The Chambal (MP) Command Area Development Project (US$24.0 M credit of June 20, 1975, Cr. 562-IN) is designed to improve the efficiency of water utilization in the command area of the Chambal Project in MP and bring additional areas under irrigation. This project started slowly, but is now about to be completed. The major constraint was the slow acceptance by the farmers, of on-farm development which was meant to be carried out, and paid for, by the farmers themselves with agricultural credit available to them from the proceeds of the credit (the reduction of the outlet command size from some 40 ha to about 8 ha in MP, as is now the policy elsewhere in India also, has meanwhile eliminated this problem). The NP Forestry Technical Assistance Project (US$4.0 M credit of February 26, 1976, Cr. 609-IN) provided the funds for a feasibility study, completed in November 1979, for the establishment of a saw-wood mill and a  - 17 - pulp factory based on the forest resources of southeastern MP. The MP Agricul- tural Extension and Research Project (US$10.0 M credit of June 1, 1977, Cr. 712-IN) is designed to strengthen agricultural supporting services, particu- larly extension and research in MP. Staff shortages, especially in super- visory and managerial posts, have delayed implementation of the extension component, but results in areas where regular extension visits are being made attest to the effectiveness of the extension system under the project. MP is also benefitting from two India-wide projects, the ARDC II and III Projects (Credits 715-IN and 947-IN, respectively). V. THE PROJECT Project Objectives 5.01 The objectives of the project are to improve the performance of investments in MIPs in the State, through the introduction of new planning, design, construction and operational criteria. These citeria are aimed at increasing the reliability and timeliness of water deliveries to the farm- gate, a prerequisite for successful irrigated agriculture. Experience in MP and other States has shown that without the confidence that they will receive irrigation in accordance with plant requirements, farmers are unlikely to make the necessary complementary investments in on-farm development, improved inputs, and better management to justify the planned investments in irrigation infrastructure. Project Formulation 5.02 The project was identified by GOMP and IDA, and has been prepared in cooperation with the Central Water Commission (CWC) of GOI. Similar to the Orissa and Gujarat Sector Credits (Credit Nos. 740-IN and 808-IN, respec- tively), the proposed project would consist of a five-year line of credit made available to GOMP for financing MIPs throughout the State. The credit would finance all or part of the construction, over a five-year period, of medium irrigation projects throughout the State, with a combined service area of about 107,000 ha; 1/ in addition it would include: (a) Provision of equipment to improve the hydrological data base for the planning of future major and medium projects; (b) Monitoring and evaluation studies; (c) A water management component which would experiment with selective improvements in the infrastructure and manage- ment of four existing MIPs; 1/ Expressed in terms of fully-financed areas; however, the number partially financed will be higher, as some projects are already under construction, and others will be completed after the five-year period.  - 18 - (d) Training of management staff; (e) Technical services for the planning layout and design of the distribution system; and (f) Demonstration farms for irrigated agriculture. Medium Irrigation Projects 5.03 Under the proposed project, medium irrigation projects (MIPs) would encompass cultivable command areas of 2,000 to 15,000 ha. Each MIP would be composed of: (a) a storage dam with spillway; (b) a fully lined canal network which would deliver water to outlets serving 5-8 ha blocks; (c) unlined field channels to the 2 ha operating unit; and (d) a drainage network connecting to natural drains. Typically, in non-paddy projects in an average year, about 50%-80% of the command area would be irrigated in kharif and 50%-80% in rabi. Paddy projects would be 100% irrigated in kharif and 30%-40% in rabi. The average cost would be about Rs 14,000 (US$1,670) per ha of net cultivable command area (net CCA). Typically, the dam accounts for about 60% of the cost of an MIP and the con- veyance and drainage networks together for about 40%. The cost of MIPs are somewhat higher than the cost per ha for major irrigation schemes designed to similar standards, 1/ however, MIPs have shorter gestation periods and, thus, yield quicker benefits. The salient features and the cost breakdown for three typical MIPs are given in Volume II, Appendices 1-3. Criteria for Medium Irrigation Projects 5.04 Basic data requirements, specific criteria for planning, design and construction, and a minimum level of economic viability have been esta- blished for MIPs eligible for disbursement under the credit. An agreement has been reached with GOI and GOMP that MIPs financed under the IDA credit would be designed, constructed and completed in accordance with requirements and criteria detailed in Annex 1. 5.05 Feasibility investigations for appraisal would be based on: (a) a soil survey and land irrigability classification; (b) a socio-economic 1/ The distribution networks are slightly costlier in major projects, but this is more than offset by the economies of scale in dam construction; the per ha cost of dams is significantly lower than in MIPs. Generally, the dam accounts for one-third and the distribution network for two- thirds of the cost in major projects.  - 19 - survey to provide a basis for future agriculLural, social and ecornomic plan- ning; (c) an agricultural development plan to project likely future crop- ping patterns and future input requirements; and (d) estimates of monthly runoff based on stream gauging records and rainfall/runoff correlations used in a reservoir operation study. Crop water requirements for the projected cropping pattern would be calculated according to FAO Irrigation and Drainage Paper No. 24 (using the modified Penman method of calculating ETOs). A fortnightly irrigation water requirement would be developed using actual recorded rainfall in the project command area or nearby stations for a period of at least 20 years. Water requirements for paddy would include allowance for land preparation and percolation. Maximum field irrigation and canal conveyance efficiencies to be used are shown in Annex 1, Table 1. Maximum overall efficiencies 1/ for the proposed design, construction and operational standards are 55% and 42% for kharif paddy and non-paddy crops, respectively, and 58% for rabi crops. The size of the command area and the live storage capacity of the reservoir would be such that full kharif irrigation require- ments would be met in at least three years out of four. The average area to be irrigated in the rabi season would be established through a 20-year reser- voir operation study. Summaries of three sample reservoir operation studies are given in Volume II, Appendices 1-3. Sediment accumulation throughout the reservoir over 50 years would be provided for in setting the canal diversion elevation from the reservoir. 5.06 Design Criteria: (a) Surveys: The ID's standard procedures and methods, which are acceptable to IDA, should be followed for the reservoir, damsite and main conveyance system. Detailed surveys should be made on sample areas in order to plan and cost typical layouts of the minor distribution system; (b) Drainage: A full drainage system would be planned; and (c) Irrigation System. The ID would layout, design and construct a lined distri- bution system from the dam to 5-8 ha outlets, and unlined field channels to individual farm or 2 ha operating units if the farm size under the outlet requires it. The distribution system would be designed to deliver at least one cusec of water at the 8 ha outlet on a rotational basis. The main canal system would be designed with the necessary structures to permit full irriga- tion deliveries at offtakes when flowing at 50% design capacity. Measurement devices would be 'provided at the head of the main supply channels, at the offtaking channel and at each one cusec outlet. Public access should be provided to the project and throughoutl the command area and a modern communi- cation system provided. (d) Dams would be constructed according to standards which would meet basic requirements for: (i) safety against overtopping; (ii) stability; (iii) safety against internal erosion; and (iv) safety against surface erosion. Dam Safety 5.07 To ensure the safety of the dams of MIPs submitted for financing under the Credit, a panel of experts would be constituted by GOMP to under- take periodic and comprehensive reviews of plans, designs and construction of the dams and associated structures as well as to review the operation, main- tenance and safety procedures to be used after their construction. An agree- ment has been reached with GOMP that it would establish a Dam Review Panel with terms of reference (Annex 7) and qualifications acceptable to IDA. 1/ Between the dam and the plant.  - A0 - 5.08 The Panel's role should not be viewed as one of assisting or guiding the ID, since responsibility for proper design and construction, including quality control, rests with GOMP. Rather it should be considered as a review body of technical experts whose judgement and opinions on particular technical matters would carry considerable weight in the evaluation of proposed actions by the project administration. The Panel would submit a written report con- taining their review, comments, and recommendations within 60 days following each convening of the Panel by GOMPo Te report should be made available to IDA for review and to such bodies within the Government of India which may be assigned safety-of-dam responsibilities, 5.09 After construction, GOMP would undertake periodic inspection of the dams and associated structures to review their conditions as well as the ade- quacy of operation and maintenance. An agreement has been reached with GOMP that it would make arrangements acceptable to the Association to ensure dam safety after construction period. 5.10 Implementation Criteria: (a) Construction practices would follow sound engineering practices and adequate quality control would follow laid down procedures and standards. "b) Construction of an MIP would be scheduled for completion within five years or less. The irrigation, drainage system and road network would be constructed concurrently with the dam. A commissioning period of at least one year would be introduced, to facilitate an efficient transition from the construction phase to the operational phase. Implementa- tion schedules for 3 sample MIPs are given in Volume II, Appendices 1-3. 5.11 Operational Criteria: (a) Water deliveries to the farmers would be on a rotational basis initially, in accordance with seasonal schedules established for the rabi season. Rotational water supply (RWS) would be introduced in the kharif season taking into account the variable rainfall. (b) A farmer would be notified of his allocation of water at the start of the rabi season, taking into account cropping pattern demand, size of holding and soil conditions. (c) The canal system would be closed each year for an appropriate period for maintenance. (d) Adequate financial provisions would be made for efficient operation, maintenance and operation of each sub-project. (e) Adequate provision would be made for the supply of inputs, marketing and processing of production. and agricultural supporting services. 5.12 Maintenance and Management of the System (paras 6.14-6.17). The responsibility for the physical maintenance of the whole system down to the last Government turnout (approximately 8 ha) would rest with the Irrigation Department (ID). The operation of the entire system down to 8 ha turnout would also rest with ID until the -hole MIP is fully comissioned and developed. This period would take a minimum of two years following completion of construc- tion. The ID would appoint a project manager to maintain and manage each MIP; after the two-year commissioning period, the Project Manager could be appointed from appropriately qualified staff of the AD. However, responsibility for physical maintenance of the system would remain with the ID. Project Managers would also be responsible for preparing and submitting full reports relating to water consumption and agricultural production.  - 21 - 5.13 Resettlement. Prior to the appraisal of each MIP, GOMP would pro- vide a comprehensive resettlement plan (including an implementation schedule) for the relocation of residents in the reservoir area. In addition, GOMP is currently formulating comprehensive legislation to safeguard the interests of the affected residents, and is in the process of establishing an appropriate organizational framework to execute its relocation pn'icies. The legislation would ensure that landholders from the submergence area would be provided with irrigated land in or near the command area, or with land immediately adjacent to the reservoir (if they prefer to stay near their previous residence); they would be compensated at replacement value for the loss of household and community assets where these are not already provided in the new location. Also, those owning land but not living in the submergence area, would be similarly compensated. 5.14 Cost Estimates. uost es, .aces for each MIP would be based on bid prices prevailing in the region in which the project