India - Andhra Pradesh Agricultural Extension Project

Document of FILE COPY The World Bank FOR OFFICIAL USE ONLY Report No. P-3232-IN REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPMENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO INDIA FOR THE ANDHRA PRADESH AGRICULTURAL EXTENSION PROJECT March 9, 1982 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 (as of March 1, 1982) US$1 = Rs 9.246049 Rs 1 = US$0.108154 Rs 1 million US$108,154 The US Dollar/Rupee exchange rate is subject to change. Conversions in the Staff Appraisal Report were made at US$1.00 to Rs 8.0, which represents the projected average exchange rate over the disbursement period. FISCAL YEAR April 1 - March 31 ABBREVIATIONS AND ACRONYMS AO - Agricultural Officer ADA - Assistant Director of Agriculture Addl. DA - Additional Director of Agriculture APAU - Andhra Pradesh Agricultural University BDO - Block Development Officer DA - Director of Agriculture DDA - Deputy Director of Agriculture DOA - Department of Agriculture GOAP - Government of Andhra Pradesh GOI - Government of India ha - hectare JDA - Joint Director of Agriculture SMS - Subject Matter Specialist T&V - Training and Visit System of Agricultural Extension VDO - Village Development Officer VEO - Village Extension Officer  FOR OFFICIAL USE ONLY INDIA ANDHRA PRADESH AGRICULTURAL EXTENSION PROJECT CREDIT AND PROJECT SUMMARY Borrower: India, acting by its President (GOI). Beneficiary: The State of Andhra Pradesh (GOAP). Amount: SDR 5.3 million (US$6 million equivalent). Terms: Standard. Relending From GOI to GOAP. As part of Central assistance for State Terms: development projects on terms and conditions applicable at the time. Project The project would serve about 5.5 million farm families Description: in 22 districts in Andhra Pradesh by reorganizing and strengthening the agricultural extension services along the lines of the Training and Visit System of extension, which is based on frequent in-service training of exten- sion workers and regular, scheduled visits by extension workers to farmers' fields. The project faces no special risks, although realization of the expected benefits will depend heavily on the State Government's ability to manage the reorganized extension system effectively, maintaining an effective single line of command from extension head- quarters to the field-level workers. This document has a restricted distribution and may be used by recipients only in the performance of | tbei ofriial duties. Its contents may not otherwise be disclosed without World Bank authorization.  - ii. - Estimated Cost: a/ (US$ milliono) Local Foreign Total Incremental Staff 2.0 - 2.0 Incremental Operating Costs 0.9 0.6 1.5 Civil Works 1.2 - 1.2 Vehicles and Equipment 1.6 0.7 2.3 Training 0.6 0.1 0.7 Base Cost Estimate 6.3 1.4 7.7 Physical Contingencies 0.1 - 0.1 Price Contingencies 1.6 0.3 1.9 Total Project Cost 8.0 1.7 9.7 Financing Plan: (US$ millions) Local Foreign Total IDA 4.3 1.7 6.0 GOI/GOAP =3.7 - 3.7 Total 8.0 1.7 9.7 3SW-- ==o-- n=i Estimated (US$ millions) Disbursements: b/ FY82 FY83 FY84 FY85 FY86 FY87 Annual 0.2 0.8 1.1 1.5 1.5 0.9 Cumulative 0.2 1.0 2.1 3.6 5.1 6.0 Rate of Return: At least 50%. Appraisal Report: No. 3615-IN, dated March 9, 1982. a/ Including an estimated US$1.0 million in taxes and duties. b/ According to IDA's fiscal year.  INTERNATIONAL DEVELOPMENT ASSOCIATION REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT TO INDIA FOR THE ANDHRA PRADESH AGRICULTURAL EXTENSION PROJECT 1. I submit the following report and recommendation on a proposed development credit to India for SDR 5.3 million (US$6.0 million equivalent) on standard IDA terms to help finance a project to reorganize and strengthen the agricultural extension service of the State of Andhra Pradesh. The Government of India (GOI) would channel the proceeds of the credit to the Government of Andhra Pradesh (GOAP) in accordance with GOI's standard terms and arrangements for financing State development projects. PART I - THE ECONOMY 1/ 2. An economic report, "Economic Situation and Prospects of India" (3401-IN, dated April 15, 1981), was distributed to the Executive Directors on April 16, 1981. Country data sheets are attached as Annex I. Background 3. India is a large and diverse country with a population of about 688 million (in mid-1981) and an annual per capita income of US$190. Agriculture continues to dominate India's economy, employing over two-thirds of the labor force. However, the land base is not sufficient to provide an adequate livelihood to all those engaged in agricultural activities, especially the landless or nearly landless who have only an insecure grasp on the means of existence. Over the past 30 years, the share of agriculture in GDP at factor cost (measured in 1970/71 prices) has declined from 60% to about 40%, while the share of industry has increased from 15% to about 24%. But industrialization has not been rapid enough to absorb the growing labor force, nor to bring about the economic transformation that has led to significantly higher productivity in some other developing countries. 4. Economic growth has been slow in the past, averaging about 3.5% per annum over the past 30 years. Slow growth of value-added in agriculture -- 2.1% per annum over the three decades -- has constrained overall growth, not only because of the high share of agriculture in GDP but also because scarce foreign exchange has often been required to import food. Industrial value-added has grown more rapidly, at 5.4% per annum between 1950/51 and 1979/80. Over the same period, gross domestic savings more than doubled from 10% of GDP to 21.2%, while gross domestic investment rose from 10% of GDP to just over 21.8%. Foreign savings have never financed a large portion of domestic investment: a peak of about 20% was reached during the early 1960s; by the end of the 1970s, the proportion had returned to below 3%. External 1/ Parts I and II of the report are substantially the same as Parts I and II of the President's Report for the Fourth Agricultural Refinance and Development Corporation Credit Project (No. P-3196-IN), dated February 1, 1982.  -2- assistance has been low both as a percentage of GDP and in per capita terms. Net external assistance has never risen above 3% of GDP, and was less than 1% at the end of the 19709. 5. Over the past 30 years as a whole, India has placed relatively little emphasis on exports and has tended to pursue a strategy of import substitu- tion. The volume growth of exports between 1950/51 and 1979/80 averaged only 3.6% per annum, about the same as the volume growth of imports over the same period. Between 1970 and 1977, however, India's terms of trade, which had remained roughly constant during the 1960s, deteriorated sharply. In response, the Government introduced various policy measures designed to stimulate exports. The volume of India's exports grew on average about 9% per annum between 1971/72 and 1976/77. Although export growth has slowed in recent years, due in large part to domestic supply constraints, this experience demonstrates that sustained rapid growth is possible. While expanding world markets, particularly in the nearby Middle East, contributed to this growth, liberalized access to imported inputs and more effective export incentives played a major role. Recent Trends 6. Over the period 1975/76 to 1978/79, growth in real GDP (at factor cost), agricultural value-added and industrial value-added averaged 5.4%, 3.1% and 7.9% per annum, respectively. These trends represent a substan- tially better growth performance than the historical 30-year trends (paragraph 4). However, GDP declined by about 4.5% in 1979/80 due both to the severe drought which reduced agricultural production and to input con- straints in other sectors. Agricultural output fell by about 16% in 1979/80. Industrial production stagnated, largely due to shortfalls in the production of major inputs such as coal, steel and cement, as well as infrastructural constraints, notably in power and transportation. As a consequence of these developments, the remarkable price stability that India had enjoyed after 1975 came to an abrupt end at the close of fiscal year 1978/79, with prices increasing 21% during 1979/80. 7. In 1980/81, the economy recovered substantially, so that real GDP growth for the year was about 6%-7%. During the summer and fall of 1980 foodgrain prices rose, but more slowly than other prices and more slowly than the drop in production in 1979/80 would have suggested. This was made pos- sible through the drawdown of substantial buffer stocks built up by the Government in years of good harvests. These stocks ensured adequate supplies of grain to low-income groups in urban areas through the public distribution system and also provided resources for a large-scale drought relief employ- ment program for low-income groups in rural areas. Aided by a normal monsoon in the summer of 1980, agricultural production rose by about 17%-19%. The industrial sector recovered more slowly, with production in 1980/81 rising only about 4% above the average for 1979/80, but output increased substan- tially during the year so that production in April 1981 was about 9% higher than in April 1980. The rise in prices slowed during the second half of 1980/81 so that by March 1981 the wholesale price index was 15.7% above its level a year earlier. 8. In agriculture the positive results of large investments and appropriate policies in the past years are becoming increasingly apparent.  The rate of expansion of irrigation has increased significantly from 1.3 mil- lion ha per year in the early 1970s to about 2.3 million ha in 1980/81. Fertilizer use reached about 5.6 million tons of nutrients in 1980/81, more than double 1974/75 levels. Over the decade before 1979/80, foodgrain production grew at about 2.75% per annum -- sufficient to meet consumer demand, to eliminate imports (which had averaged nearly 5 million tons per year for the 15 years preceding 1976), and to reduce real foodgrain prices for consumers. At the same time, India was able to build up substantial foodgrain buffer stocks which made it possible to limit the effects of the 1979/80 drought, and to export a modest amount of grain in 1980. While the management of the foodgrain economy after the drought was a significant achievement, the effect of the drought on production re-emphasized the con- tinued importance of the monsoon in India's agriculture. The normal monsoon of 1980/81 brought foodgrain production back to around 130 million tons. While the performance of the recent past and the probable future trends suggest that on average fooa-rain supplias will e,rcepd diemand. the balance remains delicate and the need for foodgrain imports to maintain consumer supplies or adequate buffer stocks could arise from time to time. For example, some wheat imports are likely in 1981/82 to ensure adequate build up of stocks. Programs to expand irrigation, strengthen extension and encourage the efficient use of other agricultural inputs continue to receive high priority. 9. The Indian economy has shifted back from a situation of resource surplus, which had been a temporary phenomenon of the late 1970s, to one of resource scarcity. Investment has again overtaken domestic savings, and the scope for further increases in the latter appears limited. Marginal savings rates have recently been well above 30% in the household sector. Future increases in savings will depend heavily upon the enhanced profitability of public sector enterprises. Impending resource scarcity is even more apparent in the foreign sector. Between 1975/76 and 1978/79, India's current account deficit had remained comfortably small in relation both to GDP and to a growing pipeline of aid commitments. This was due to favorable terms of trade movements after 1977 and to rapidly growing workers' remittances as wel as to the growth of exports. In 1980/81, however, the balance of pay- ments deteriorated sharply, with the current account deficit rising from US$850 million in 1979/80 to nearly US$3.4 billion in 1980/81. In part this was due to unique events during the year, such as the disruption of oil production in the Northeast, which, though the flows resumed again in February 1981, alone added over US$1 billion to the oil import bill. Com- bined with unprecedented oil price increases, this caused the oil import bill to rise by over 75%, to a level equivalent to three-fourths of India's mer- chandise export earnings. The deficit on current account rose to 2% of GDP. India was able to finance this gap through a substantial drawing on IMF resources (the Trust Fund and the Compensatory Financing Facility), and through an increase in aid disbursements and a modest drawdown in foreign exchange reserves. 10. The trends in the volume and terms of India's trade indicate that significant adjustments will need to be made in the economy to bring India's external accounts into balance at a reasonable level of growth. In an effort to make these adjustments, the Government has developed an investment program for the Sixth Plan period and implemented a number of policy measures which are designed to bring the economy closer to external equilibrium. These  -4- measures recognize the need to increase the growth of exports, to increase production of commodities such as fertilizer, cement and steel which India can produce efficiently in order to reduce imports of these items, to moderate the rise in oil imports through greater domestic production and slower demand growth, and to reduce the constraints in transportation and other infrastructural facilities which are retarding growth in a wide range of activities, including exports. It is encouraging that, in response to the present balance of payments difficulties, the Government has not reacted by placing more stringent controls on imports, but rather has left in place the more liberal policies evolved in the past several years. Recent improvements in the availability of power, a major constraint facing exporters, and the adoption of several new export policy measures have improved the prospects for accelerating export growth. To assist the Government in its adjustment effort, the IMF approved an Extended Fund Facility for India for SDR 5.0 billion on November 9, 1981. Over the next three years, this facility will provide India with a significant share of the external resour- ces required to bring about the necessary changes in the structure of the economy and will substantially increase India's flexibility in dealing with its external account imbalance. Development Prospects 11. The experience of recent years illustrates that India does have the capacity to grow and develop at a more rapid pace. Although the industrial sector is small compared to the size of the economy, it nevertheless is large in absolute terms and has a highly diversified structure, capable of manufac- turing a wide variety of consumer and capital goods. Basic infrastructure -- irrigation, railways, telecommunications, the power grid, roads and ports - is extensive compared to many countries, although there is considerable need for additional capacity as well as improvement in the utilization of existing capacity. India is also well-endowed with human resources and with institu- tional infrastructure for development. Finally, India has an extensive natural resource base in terms of land, water, and minerals (primarily coal and ferrous ores, but also gas and oil). With good economic policies and sufficient access to foreign savings, India has the capability for managing these considerable resources to accelerate its long-term growth. 12. A new Sixth Five-Year Plan (1980-85) was approved in February 1981. The new Plan continues to assign priority to agriculture and power. Further- more, the Plan reflects the Government's efforts to bring about the necessary adjustments in the economy by emphasizing several priority areas. These include: (i) expansion of exports and an investment program to support increased production to replace imports of goods such as fertilizer, cement and steel which India produces competitively; (ii) an investment program and policy framework for more efficient development and use of energy resour- ces; (iii) removal of bottlenecks in infrastructure and related constraints on production of basic industrial inputs; and (iv) continuing emphasis on the development of agriculture. 13. The higher capital formation rates of the past few years augur well for future income growth. However, there are signs that the past programs and policies have led to relatively low growth in certain crucial sectors, namely power, coal, transport services, steel and cement. Potential output growth in sectors which have benefitted from large investments in the recent  -5- past may not materialize unless these input bottlenecks are alleviated. In the case of coal, steel and cement, domestic production appears to be clearly justified on grounds of comparative advantage, indicating an a priori case for policies to promote further investment. In 1980/81 these commodities were not imported in sufficient amounts to eliminate the shortages; increased short-term reliance on imports may be necessary to alleviate slowdowns and dislocation in user industries. In the case of sectors in which there is little scope to import the final product -- power and transportation -- the planning of capacity expansion becomes even more crucial. Although there is scope for improvement in the short-run performance of these sectors, major investments in balancing and modernization programs as well as in new capacity are essential for adequate growth in the medium term. 14. Despite the relatively large investment programs for the develop- ment of domestic energy resources such as coal and hydroelectricity, and the recent development of offshore petroleum resources, India has not been able to eliminate the gap between its total energy demaaid and domestic production. During the past year, India continued to face power and coal shortages, but the situation improved substantially during the year so that power generation in June 1981 was around 20% higher than a year earlier. India is entering the Sixth Plan period with an ambitious energy production program backed by substantial financial commitment. In the oil sector, GOI is now accelerating its oil exploration capabilities and is opening up prospective areas for exploration by foreign firms. Prices of petroleum products were raised substantially in 1980 and again in July 1981 to bring domestic prices into line with world market prices, to raise resources for further oil and gas development and to encourage efficient use of energy. India is now committed to an expanded power program that emphasizes exploitation of its large hydro potential and development of its transmission and distribution system. In the coal sector, a policy decision in favor of mechanization has been made in order to achieve more rapid growth of coal production. 15. Agricultural policies, development programs and secular trends all seem favorable for sustaining the past agricultural growth during the 1980s. India ended 1980 with grain stocks of about 12 million tons, without having imported foodgrains during the year. This reflects the trends of the last decade which point to an improvement in foodgrain availability in the economy. Growing output, combined with the projected fall in the population growth rate, suggest favorable long-run prospects for foodgrain supply and demand balances. An occasional need to import grains, particularly wheat, could arise, but if the efforts to develop agriculture over the past decade are sustained and intensified, as suggested in the new Plan, persistent shortage seems unlikely. This development could give rise to a range of policy options including a slowly falling real price of foodgrains to increase the affordability of foodgrains to low-income families, foodgrain exports, and diversification to the production of other, higher-value crops. 16. Foreign exchange reserves are providing a cushion that helps the Government of India in short-term supply management. In March 1981, however, gross reserves were $320 million lower than the level of a year earlier and, in terms of import coverage, fell below the six-month level for the first time since 1977. A much larger decline in the reserve level would have been necessary in 1980/81 had IMF Trust Fund and Compensatory Financing Facilities, amounting to over US$1 billion, not been available. India's  -6- reserves provide some limited scope for narrowing the financing gap over the next few years, but successful management of the balance of payments will depend mainly on improved export performance, on import replacement, on the maintenance of aid flows and workers' remittances, and on a moderation in price increases for oil imports. While India's current account balance of payments deficits are not expected to be large relative to the size of the economy (e.g., on the order of two percent of GDP), the absolute amounts are large and will necessitate external borrowing beyond levels expected to be available from normal concessional sources. Accordingly, over the past year India has begun to make judicious use of a mix of sources of external financ- ing, including borrowing from financial markets of about US$1 billion and, most recently, the SDR 5 billion Extended Fund Facility. 17. India's medium-term development prospects are mixed. Considerable progress continues to be made, particularly in agriculture, but the economy faces a period of difficult adjustments in the coming years. Investments required to relieve short-term supply constraints must compete with longer-term programs to accelerate growth and to develop India's considerable physical and human resources. The balancing of these objectives will place a difficult burden on those implementing India's Sixth Five-Year Plan. The primary focus must be on the implementation of appropriate domestic adjust- ment policies, although the aid community can and should play an important role in ensuring that India's efforts do not fail due to inadequate foreign resources. 18. Preliminary results from the March 1, 1981 Census, combined with 1971 Census figures adjusted for under-enumeration, suggest that the popula- tion growth rate declined from 2.3% p.a. in the late 1960s to about 2% at present. The rate of increase of population is expected to continue falling to around 1.8% by the first half of the 1990s. While the growth rate appears to be declining slowly, the 1981 Census population estimate was substantially higher than previous Government projections. The 1981 Census data are still incomplete but preliminary reports indicate that the rise in life expectancy was more than anticipated, suggesting that, on average, Indians can expect to live five years longer than they did a decade ago. This no doubt reflects improved availability of food and health services. This implies, however, an even greater need to reduce the birth rate to bring about the needed reduc- tion in the rate of growth of population. The Census results, therefore, re-emphasize the need for continuing efforts to strengthen a broad range of family planning activities to develop a wider clientele and to provide that clientele with a professional, technically competent advisory service which can provide the full variety of available birth prevention methods. The new Plan continues the high priority given to these efforts in earlier Plans. The ambition of its targets - implying a rise in the proportion of protected couples in the reproductive age group from its present estimated level of about 23% to over 35% by 1984/85 - seems fully justified. Such targets imply a serious long term commitment to moderating the population growth rate through an improved family planning program. 19. Reduction of poverty remains the central goal of Indian economic growth. More than one-third of the world's poor live in India, and more than 80% of the Indian poor belong to the rural households of landless laborers and small farmers. About 51% of the rural population and 38% of the urban population subsist below the poverty line (estimated at about US$114 and  -7- US$132 per capita per year for rural and urban areas, respectively). Improvements in the living standards of the poor will depend to a large extent on the overall growth of the economy; the circumstances require increases in agricultural production and employment, in non-farm rural employment, and also in employment opportunities in urban areas. These developments will have to stem in large part from market forces which, however, must be encouraged and reinforced by appropriate Government policies and the strengthening of basic services and infrastructure. The declining trend in real foodgrain prices between 1970 and 1979 reflects such develop- ments. There is also a role for direct Government action in faster implemen- tation of land reform (though the scope for significant reduction in poverty through land redistribution is quite limited in India), in increasing the supply of credit available to small farmers and rural artisans, and finally in broadening the provision of those services which enhance the human capital of the poor and improve liv'ing standards. Many of the latter are elements of the Minimum Needs Program, which has been an integral part of Indian planning for the past decade. Progress has been slow but steady in the expansion of primary education, the extension of rural health facilities and the provision of secure village water supplies. Innovations such as the community health volunteer program and the national adult literacy campaign provide encourag- ing evidence that well-targetted, relatively low-cost programs can lead to enhanced prospects for India's poor. PART II - BANK GROUP OPERATIONS IN INDIA 20. Since 1949, the Bank Group has made 62 loans and 144 development credits to India totalling US$2,931 million and US$10,283 million (both net of cancellation), respectively. Of these amounts, US$1,188 million had been repaid, and US$4,408 million was still undisbursed as of September 30, 1981. Bank Group disbursements to India in 1980/81 totalled US$962 million, repre- senting an increase of about 32 percent over the previous year. Annex II contains a summary statement of disbursements as of September 30, 1981, and notes on the execution of ongoing projects. 21. Since 1959, IFC has made 24 commitments in India totalling US$148.6 million, of which US$22.6 million has been repaid, US$27.7 million sold and US$7.5 million cancelled. Of the balance of US$90.8 million, US$81.9 million represents loans and US$8.9 million equity. A summary statement of IFC operations as of September 30, 1981, is also included in Annex II (page 4). 22. In recent years, Bank Group lending has emphasized agriculture. The Bank Group has been particularly active in supporting minor irrigation and other on-farm investments through agricultural credit operations and in providing direct support to major and medium irrigation. Marketing, seed development, agricultural extension, dairying, and forestry are other agricultural activities supported by the Bank Group. Also, the Bank Group has been active in financing the expansion of output in the fertilizer sector and, through its sizeable assistance to development finance institutions, in a wide range of geographically scattered medium- and small-scale industrial enterprises. The Bank Group has also been active in supporting infrastruc- ture development for power, telecommunications, and railways. Family plan- ning, water supply development, urban investments and the development of oil and natural gas have also received Bank Group support in recent years.  -8- 23. The direction of assistance under the Bank/IDA program has been consistent with India's needs and the Government's priorities. The emphasis of the program on agriculture, power, water supply and other infrastructure sectors remains highly relevant. Projects designed to foster agricultural production through the provision of essential inputs, particularly water and credit for on-farm investments, will continue to receive emphasis. Improved water management and intensification and streamlining of extension systems form an important institution-building aspect of the Bank Group's program for the next several years. Special emphasis will be given to projects benefitting small farmers. The Bank Group's continuing role in the fer- tilizer sector assists India in the more efficient provision of another key input in the agricultural growth process. Projects supporting water supply, sewerage, urban development and investments in the petroleum sector also form an integral part of the Bank's lending strategy to India for the next several years. Lending in support of infrastructure and industrial investments will focus on those subsectors which have recently emerged as key constraints on India's overall growth, primarily power and transportation. 24. The need for a substantial net transfer of external resources in support of the development of India's economy has been a recurrent theme of Bank economic reports and of the discussions within the India Consortium. Thanks in part to the response of the aid community, India successfully adjusted to the changed world price situation of the mid-1970s. However, there is now a need for increased foreign assistance to adjust to an even greater deterioration in balance of payments anticipated during the 1980s by augmenting domestic resources and stimulating investment. As in the past, Bank Group assistance for projects in India should aim to include the financ- ing of local expenditures. India imports relatively few capital goods because of the capacity and competitiveness of the domestic capital goods industry. Consequently, the foreign exchange component tends to be small in most projects. This is particularly the case in such high-priority sec- tors as agriculture, irrigation, and water supply. 25. India's poverty and needs are such that whenever possible, external capital requirements should be provided on concessionary terms. Accordingly, the bulk of the Bank Group assistance to India has been, and should continue to be, provided from IDA. However, the amount of IDA funds that can reasonably be allocated to India remains small in relation to India's needs for external support. Therefore, India should be eligible and regarded as creditworthy for some supplemental Bank lending. The ratio of India's debt service to the level of exports was about 10% in 1980/81 and is projected to remain below 20% through 1995/96. As of September 30, 1981, outstanding loans to India held by the Bank totalled US$1,828 million, of which US$819 million remain to be disbursed, leaving a net amount outstanding of US$1,009 million. 26. Of the external assistance received by India, the proportion con- tributed by the Bank Group has grown significantly. In 1969/70, the Bank Group accounted for 34% of total commitments, 13% of gross disbursements, and 12% of net disbursements as compared with 49%, 36% and 44%, respectively, in 1980/81. On March 31, 1981, India's outstanding and disbursed external public debt was about US$17 billion, of which the Bank Group's share was US$6.2 billion or 36% (IDA's US$5.3 billion and IBRD's US$0.9 billion). Because Bank Group assistance to India is predominantly in the form of IDA, credits, debt service to the Bank Group will rise slowly. In 1980/81, about 18.0% of India's total debt service payments were to the Bank Group.  -9- PART III - AGRICULTURE AND AGRICULTURAL EXTENSION IN ANDHRA PRADESH 27. The State of Andhra Pradesh, located on the southeast coast of India, is the fifth largest State in IVdia, both in terms of population (53 million) and land area (276,814 km ). About 11.3 million ha are cultivated by 5.5 million farm families. Estimated per capita income in 1977/78 was Rs. 1,002 as compared to an all-India average of Rs. 1,163. Agriculture is the most important sector of the State's economy, contributing about 55% of the net domestic product, and employing about 70% of the labor force. Farm holdings are small, averaging 2.1 ha, with 47% of the total farm holdings being less than one hectare. 28. Andhra Pradesh has three main regions. The Coastal Andhra region, covering eight northeastern districts, is the most fertile, with a good proportion of deltaic alluvial soils, black cotton soils and red soils with a clay base. The Rayalseema region, covering four southern districts, and the Telengana region, covering the remaining 11 western and north-western districts, have either black soils, black cotton or red loamy soils which are less suitable for cultivation. 29. The State is served by two major rivers, the Krishna and the Godavari, which irrigate about 36% of the gross area sown. Most of the cultivated area is fed by the southwest monsoon (June-September), but coastal areas also benefit from the northeast monsoon (October-December), the two monsoons bringing a total of about 1,000 mm per year. The driest areas of the State are in the Rayalseema region where sporadic and irregularly distributed rainfall barely averages 550 mm per year. Nearly half the State is classified as a drought-prone area. 30. Andhra Pradesh is a major rice-producing State. Two crops produced 7.4 million tons of rice in 1978/79, but production fell to 6.2 million tons in the drought year of 1979/80. The remaining cropped area produces sorghum, millet, maize, sugarcane, cotton, tobacco and groundnuts. Foodgrain production reached 10.7 million tons in 1978/79, dropping to 9.4 million tons in 1979/80. In an effort to improve agricultural growth, GOAP has focussed on extending irrigation and strengthening agricultural services. 31. The present system of extension is executed through the Panchayati Raj Department, where extension activities revolve around Development Blocks under the supervision of the Panchayat Samiti, or Block Council, which is an elected body of representatives from the Panchayats, or village-level councils. The Block Council's executive officer is the Block Development Officer (BDO), an officer of the State Administrative Service. The BDO is in charge of all development programs. In agricultural matters, he is advised by the Divisional Assistant Director of Agriculture (ADA), and assisted by two or three Agricultural Officers (AO), depending on the intensity of agriculture in the block. Each  -1 0- Panchayat is assigned one or two Village Development Officers (VDO), multi-purpose workers who, though supposed to devote 80% of their time to agriculture, are often diverted to other duties, and devote only about 10% of their time to agricultural work. The VDO reports directly to the BDO. The Agriculture Department is somewhat divorced from the extension program; the Joint and Deputy Directors of Agriculture (JDA/DDA), at the districti/ level, are primarily engaged in operating special schemes, farmers' training centers, adaptive research stations and seed farms in the district, supported by AOs, Sub-Assistant and Field Assistant level staff. The JDA/DDAs report to the District Collector as far as the Panchayat Samiti extension programs are concerned and to the Director of Agriculture (DA) on all other matters. 32. The Department of Agriculture (DOA) has continually added officers to its staff, including Subject Matter Specialists (SMS), on an ad hoc basis as special needs arose, such as the Intensive Agricultural Development Project, the Intensive Agricultural Areas Project and Commodity Development Schemes (e.g. in cotton, tobacco, pulse, cashew and sugarcane development). Most of these schemes have their own field level extension agents and are administered by the Agriculture Department. Until recently, lines of control of these schemes converged only at the State level. With the posting of DDA or JDA to head the district agricultural organization, most of the schemes are now under the supervision of the District JDA or DDA. At the divisional 2/ level, however, lines of control still remain parallel in respect of some of the schemes. The Department of Agriculture has come to possess a sizeable organization comprising supervisory officers, technical experts and field level staff and has progressively found it more expedient to work on its own, outside the purview of the block. Thus, while one line of administrative control passes down from the Panchayati Raj Department through the District Collector to the Panchayat Samiti, the other line passes from the Agriculture Department through the JDA/DDA and ADA to the field level. The DOA, on the one hand, is responsible for advising the Panchayat Samitis in matters relating to agricultural extension and, on the other hand, executes and administers directly a host of technical schemes which fall outside the purview of the Panchayat Samitis. It will be necessary to reorganize the extension service to obviate the current dualism in its operation and control, and to rationalize the administrative lines of control within the DOA. 1/ A district is a larger jurisdictional area, typically containing approximately 15-20 blocks. 2/ There are an average of three divisions in each district.  -1 1- 33. The Government of Andhra Pradesh has, for the last four years, been implementing a reorganized extension system in the command areas of the four irrigation projects covered by the AP Composite Irrigation Project (Ln 1251-IN). Reports on the extension components of these projects have consistently drawn attention to the poor working of the system. The reasons for this appear to be inadequate supervision, isolation of extension staff in the command areas from the rest of the Agriculture Department and from research, and failure to secure the complete release of extension workers from non-extension duties. The project aims to overcome these weaknesses. The Agriculture Department would be made responsible for its execution. Panchayati Raj departmental staff currently engaged in extension work will be transferred to the Agriculture Department. Also, the Andhra Pradesh Agricultural University (APAU), responsible for research, would be strengthened under the project and would integrate and intensify its extension activities to provide sustained support to the DOA extension program. Bank Group Activities in Agricultural Extension 34. Many of the shortcomings in Andhra Pradesh's extension system have been identified in other States. Since 1977, the Bank Group has assisted efforts to reorganize and strengthen agricultural extension in twelve Indian States. Bank Group-supported projects 1/ have introduced the Training and Visit (T & V) System of agricultural extension, a system based on frequent (bi-weekly) in-service training of field extension workers and regular, scheduled visits by field workers to farmers. 35. Introduction of the T&V system has not been easy. The shift from a system based on multi-purpose functionaries to a system of professional extension carried out by single-purpose extension workers involves a major administrative and conceptual reform which inevitably 1/ The Orissa Agricultural Development Project (Cr. 682-IN, April 1, 1977); the Madhya Pradesh Agricultural Extension and Research Project (Cr. 712-IN, June 1, 1977); the West Bengal Agricultural Extension and Research Project (Cr. 690-IN, June 1, 1977); the Assam Agricul- tural Development Project (Cr. 728-IN, June 30, 1977); the Rajasthan Agricultural Extension and Research Project (Cr. 737-IN, November 14, 1977); the Bihar Agricultural Extension and Research Project (Cr. 761-IN, January 6, 1978); the Composite Agricultural Extension Project (Cr. 862-IN, February 16, 1979); the Kerala Agricultural Extension Project (Cr. 1028-IN, June 25, 1980); the Maharashtra Agricultural Extension Project (Cr. 1135-IN, May 7, 1981); the Tamil Nadu Agricultural Extension Project (Cr. 1137-IN, May 7, 1981); and the Second Madhya Pradesh Agricultural Extension Project (Cr. 1138-IN, May 7, 1981).  -12- encounters bureaucratic, political and logistical hurdles. Informed and motivated leadership being of paramount importance during the introduction of the system, senior staff turnover is particularly troublesome. Moreover, even in the best of circumstances, several year. are required for the system, once initiated, to fully mature and become institutionalized. Despite these unavoidable challenges, the system has been very successfully initiated in Orissa, Rajasthan, Karnataka, Haryana, Madhya Pradesh and Assam. Field visits have shown that farmers have responded favorably to extension efforts, adopting recommended practices such as line-transplanting of paddy, seed treatment, inter-cropping with pulses, and basal dressing of fertilizer. In project districts in Madhya Pradesh, for example, there has been a 300X increase in the use of clean and graded seed, a 35X increase in the planting of seed of improved varieties, and a 28% increase in the use of seed dressings. Fertilizer use has increased by 66% between 1976/77 and 1978/79 (as opposed to a 48% increase in non-project areas) and the use of soil testing facilities has increased by 69%. Continued care will be required in all States to see that vacated posts are quickly filled, extension workers are adequately supervised, and extension messages continue to be appropriate. But the basis has been laid for a strong, professional extension system and results are visible in the field. 36. In Gujarat, while the system is in place and operating fairly well, the quality of field work is somewhat uneven. The State Government has been alerted to IDA's concerns by recent supervision missions, and efforts are underway to ensure that extension workers are provided with appropriate messages and understand the messages they are to deliver, that selection of contact farmers is improved, and that farmers are made aware of the visit schedule in their area. 37. In Bihar, West Bengal, and Kerala the effort to introduce the T&V System has encountered more serious delays. A change in the State Government in West Bengal, following the initially very promising introduction of the T&V System, led to a re-evaluation of the system and its merits by the incoming administration. While this resulted in a lengthy period of backsliding in terms of project implementation, which will result in a delay in project completion by about two years, the Government of West Bengal has now reaffirmed its commitment to the T&V System and has taken the critical steps required to expedite project implementation (e.g. recruitment and training of field staff, identification of farmer groups and selection of contact farmers). In the case of Bihar, project implementation was seriously hampered by vacancies in the posts of Director of Agriculture and Additional Director of Agriculture (Extension). These posts have now been filled, funds have been sanctioned for the next year's operations, and a revised implementation schedule is being worked out. In Kerala, project initiation was slowed by staff changeovers at all levels (ministerial and administrative). Field work did begin in mid-1979 in three districts; however, a satisfactory program has yet to be submitted for introduction  -13- of the T&V System in the remaining eight districts. The Department of Agriculture's plans for project implementation are currently before the State Government, which is expected to render its decision shortly. IDA and GOI are following the situation closely. 38. Finally, in Maharashtra and Tamil Nadu, the projects are still in the very early stages of implementation and are proceeding satisfactorily. PART IV - THE PROJECT 39. The project was prepared by the Government of Andhra Pradesh with the assistance of Bank Group staff. It was appraised in May/June 1981. A report entitled "Staff Appraisal Report, Andhra Pradesh Agricultural Extension Project" (No. 3615-IN) is being distributed separately to the Executive Directors. Negotiations were held in Washington, D.C. in February 1982. India and Andhra Pradesh were represented by a delegation coordinated by Mr. G. Ranga Rao, Director, Department of Economic Affairs, GOI. A Supplementary Project Data Sheet is attached as Annex III-. 40. The project seeks to achieve early and sustained increases in agricultural production throughout the State's 22 agricultural districts (excluding the urban district of Hyderabad) through the introduction of the Training and Visit System of agricultural extension. The extension service of the Department of Agriculture would be reorganized and strengthened by: (a) redeployment of staff already available in the Department of Agriculture, the Panchayati Raj Department, the Command Area Development Department and various special crop schemes, and the hiring of new staff to form a single, unified extension service; (b) establishment of a single line of command between the full-time field level extension workers and headquarters; (c) introduction of a systematic and fixed schedule for frequent and regular visits by extension workers to farmers' fields; (d) improvement of linkages between extension operations and agricultural research activities; (e) strengthening of training activities; and (f) regular monitoring and evaluation of extension services. The project would provide incremental staff, training and training facilities, vehicles, equipment, housing and operating funds to achieve these reforms. 41. The proposed project would be based on the deployment at field level of Village Extension Officers (VEO) responsible only for agricultural extension. Each VEO would be assigned to work with a specified number of farm families whose number would vary depending on local conditions, population density, cropping intensity and accessibility. Each VEO would be expected to cover about 800 farm families, on average, although the VEO:farm family ratio could vary. Thus, about 6,800 VEOs would serve Andhra Pradesh's 5.5 million farm families. The Government of Andhra Pradesh would fill incremental staff  -14- positions according to a schedule agreed with IDA (Section 2.07 (a), Project Agreement). 42. In order to reach farmers systematically, the VEO would divide farm families in his jurisdiction into eight similar groups of 80-120 each. He would visit each group regularly on a fixed day of the week on a two-week cycle. During his visit, the VEO would concentrate his efforts on about ten contact farmers selected from each group, involving as many other farmers as possible in the discussions and demonstrations. During his visit, the VEO would concentrate on a few strategically selected recommendations relevant for that particular phase of the crop cycle. The extension messages to be communicated to farmers at the initial stage would be simple and concentrate on the few important crops in the locality and 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. 43. The VEO would be helped, guided and supervised by an Agricultural Officer (AO), who would normally be a graduate in agriculture. One AO would normally be responsible for about eight VEOs and would spend at least four days a week visiting them in the field. Once every two weeks, the VEO would receive a full day of intensive training in the recommendations for that period (relevant to the coming two weeks). The AO would also take part in this training session. Thus, every two weeks the VEOs would spend eight days in visiting each of his eight groups and one day in training. On one day, the AO would meet all his VEOs 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. 44. To provide regular training, continuous technical guidance and supervision of field work, the existing divisional offices under the DOA, of which there are about three in each district, would be strengthened by the establishment in each division of a team of three Subject Matter Specialists (SMS), one being specialized in agronomy, one in plant protection and one in either commercial crops or the most extensively grown crop in the division. The SMS would be of the rank of Assistant Director of Agriculture (ADA). The SMSs would spend one-third of their time in field visits, providing technical support and guidance to VEOs and AOs, 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 participation in zonal monthly training workshops and attending short training courses. The division would be under the supervision of a Divisional Assistant Director of Agriculture. Some divisions are rather large and have as many as twenty AO circles; in cases where a division contains thirteen or more AO circles, a senior special grade AO with at  -15- least 15 years of service would be provided to assist in the supervision of the AO. Twenty-two such positions would be provided. 45. At the district level, three SMSs would also be provided (one specialist each in agronomy, plant protection, and training and communication). These would be of the rank of Deputy Director of Agriculture in the 10 larger districts headed by a Joint Director of Agriculture, and of the rank of Assistant Director in the remaining smaller districts headed by a Deputy Director. They would provide support to the SMSs in the divisions, and would oversee the training programs in the district. The district level SMSs would also divide their time evenly between teaching, field visits and contact with research. 46. The senior agricultural officer of the district (a Joint Director in some districts, in others a Deputy Director) would be in overall charge of the effective implementation of the extension program in the district. Other regulatory functions, input arrangements, coordination of schemes like the Small Farmers Development Agency, etc., would be looked after by his deputy, either a Deputy Director or an Assistant Director, so that the principal officer is free to undertake the frequent field visits necessary to review the extension system's operation and to guide the field staff in effective implementation. 47. At the headquarters of DOA, overall responsibility for agricultural development in the State would continue to rest with the Director of Agriculture. An Additional Director of Agriculture (Extension) (Addl. DA) has been appointed for effective management and technical support of the extension service. This full-time officer will be exclusively responsible for the day-to-day operations and management of the extension service, both technically and administratively, including the training of extension personnel. He would visit the field frequently and check on the effectiveness of extension operations. 48. The Addl. DA would have a technical support staff of three SMSs at headquarters (one each for extension, farm trials and training). These SMSs 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 APAU and elsewhere in the country, organize training programs and serve as a clearing house of technical information. In the DOA headquarters, there are also three more SMSs with rank of JDA who would provide technical support to the extension service when required. 49. In those districts where cashew units have been established to promote cashewnut development, the units will remain intact to perform certain specialized functions -- such as selection of land and participants, orchard laying, assistance with credit operations and  -16- provision of cashew nursery services -- but extension work will be undertaken by the new extension service (Section 2.09, Project Agreement). 50. The project would provide: (a) Staff. The major part of the staff required to implement the reorganized extension system will be redeployed within the DOA, and from the Panchayati Raj Department and the Command Area Development Department. Incremental staff requirements are for one Assistant Director of Agriculture, 36 SMSs at district level and 38 SMSs at divisional level, and 69 out of 75 staff for a monitoring and evaluation cell. The orders transferring staff have been issued and the budget for additional staff sanctioned. All required VEO posts would be retained in DOA and used exclusively for agricultural extension, and it would be ensured that incumbents' salaries and benefits will not be adversely affected by the reassignment (Section 2.07, Project Agreement). (b) Staff Training. The project would provide funds for pre-season training (3 days) for VEOs, AOs and SMSs, special short courses for VEOs and SMSs, orientation courses for other staff, monthly district workshops for SMSs with research staff, and fellowships for prospective SMSs to take M.Sc. degree courses in agriculture. The APAU would be responsible for most of these courses, utilizing existing facilities such as Farmers' Training Centres and Gram Sevak 1/ Training Centres. (c) Housing. Under the reorganized extension system, extension workers would be required to make regular and frequent visits to farmer groups. It would, therefore, be desirable for them to live in or near their areas of work. The Government of Andhra Pradesh would ensure in accordance with its existing policy that all VEOs live in or near their assigned areas of work, either by providing new housing (financed under the project), encouraging and assisting in obtaining adequate rental accommodation where permanent housing is available, providing rental allowances or, in certain cases, providing house construction loans. The houses constructed under the project would be constructed through the Public Works Department using standard designs for particular categories of staff. In addition to about 200 housing units for field staff, the project would provide for the construction of about four hostels in training centers to accommodate extension staff participating in the training program. (d) Transport. Mobility is essential for effective extension, both to enable field extension staff to meet farmers easily and frequently, and to enable technical and supervisory staff to make frequent 1/ General purpose agricultural workers.  -17- field visits. The project would provide additional motor vehicles at each division (elsewhere transport facilities are adequate) and funds for their operation and maintenance. In addition, loans would be provided to VEOs for the purchase of bicycles and to AOs and SMSs for the purchase of motorcycles. Loans and travel allowances would be sufficient to encourage the purchase and use of transport (Section 2.08, Project Agreement). (e) Equipment. The project would provide funds for extension aids, including audio-visual aids, for VEOs and AOs and for each divisional office, as well as required office equipment and furniture. Miscellaneous extension materials such as diaries, charts, instructional materials, samples of small implements, seeds and pesticides for farm trials are also included. (f) Operating Costs. Incremental travel allowances and expenses for extension staff and incremental vehicle operating costs are included in the project. (g) Monitoring and Evaluation. The project would provide staff and equipment for the establishment and operation of a monitoring and evaluation system specifically to provide project management with current information on the effectiveness of the extension system. The methodology used will be similar to that currently used in on-going extension projects, and would supplement direct personal supervision by each level of project management. GOAP would ensure that monitoring and evaluation would be undertaken in a form satisfactory to IDA and that results would be forwarded to IDA annually (Section 2.10, Project Agreement). Project Implementation 51. The extension system would be implemented by DOA in accordance with the organizational arrangements and methods outlined above in paragraphs 41-49. The Addl. DA (Extension) would be responsible for day-to-day operations under the overall direction of the Director of Agriculture. The DOA headquarters would be reorganized to provide effective management and technical support to the extension service as a whole, and for training and management of extension personnel. 52. Coordination at the State level between extension and allied agencies would be ensured through the establishment of a Project Coordination Committee. The Committee would be chaired by the Secretary for Agriculture and would include the Vice-Chancellor of the APAU or his nominee, the Director of Agriculture and representatives of relevant government departments and agencies (i.e., Finance, Irrigation and various input supply agencies). The Addl. DA (Extension) would act as secretary to the Committee. The Committee would be established and would have held its first meeting by September 30, 1982 and thereafter would meet at least  -18- twice a year to review project implementation and resolve any problems that may arise (Section 2.03, Project Agreement). 53. For the extension system to function successfully, close linkages are required between extension and research staff. The APAU is responsible for the development of suitable new technology, while the Department of Agriculture will assume responsibility for its dissemination to farmers, including widespread testing of research recommendations on farmers' fields. A satisfactory memorandum setting out their respective responsibilities has been concluded between DOA and APAU. The key link between them would be the monthly district workshops which would have three functions, viz., (i) to train SMSs; (ii) to review recommendations forwarded by State-level workshops and, on the basis of observations and experience, to adapt them for transmission to VEOs and AOs; and (iii) to suggest modifications to the farm trial program for consideration by the pre-season zonal workshop (see para 54 below). The district DDA/JDA and the Extension Agronomist at the Research Stations would jointly organize these sessions with the SMSs from the district and division levels. The Extension Agronomist will organize participation of the university research staff. These workshops would be held at one of the research stations or demonstration farms. 54. Coordination of extension and research would be promoted further through regional and State committees and workshops. Farm-trial programs would initially be planned in the district monthly workshop on the basis of different farm situations in the district and would be executed by the district or divisional SMS, AO and selected VEO. The pre-season zonal workshops, would continue to: (a) review and evaluate the farm trials and formulate a program for the following season; (b) discuss the program for applied research and location of trials; and (c) screen farm trial results for determination of the extension recommendations of farm practices for the zone. Zonal recommendations would be considered at a State-level workshop to be held before each season. Project Costs and Financing 55. The estimated cost of the proposed project is US$9.7 million, including about US$1.0 million in taxes and duties and US$1.7 million in foreign exchange costs. Physical contingencies of 5% have been applied to civil works. Price contingencies of 11% for 1982, 8.5% for 1983, and 7.5% for 1984-86 have been applied. 56. The proposed IDA credit of US$6.0 million would finance about 70% of project costs, net of taxes and duties, and would cover all foreign exchange costs and about 54% of local costs. The balance of the funds required for the project would be made available from State Government sources and GOI.  -19- Procurement and Disbursement 57. Civil works contracts (US$1.2 million)l/ would be small and dispersed, both geographically and over time, and would therefore not be suitable for international competitive bidding. Contracts would be awarded on the basis of competitive bidding following local advertisement. About 80 motor vehicles (US$0./ millLion) ot varlouS Lypeb WUU ut: required under the project. They would be purchased in small quantities over five years and would be widely dispersed in rural areas. In the interest of ensuring adequate maintenance and spare parts supply, they would be procured under existing government procedures, which are based on local competitive bidding and are satisfactory to IDA. Motorcycles and bicycles (US$1.4 million) would be purchased by individual staff according to their preference from loan funds provided by GOAP. Orders for purchase of minor equipment and furniture (US$0.2 million) would be 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 commercial channels. The balance of project costs (US$4.2 million) would consist of training and fellowships (US$0.7 million), incremental salaries and allowances (US$2.0 million), and incremental operating expenditures for offices and vehicles (US$1.5 million). 58. The proceeds of the credit would be disbursed over five years against: 100% of the cost of training; 50% of the cost of civil works; 80% of the cost of vehicles, equipment, furniture and materials, and of amounts disbursed for loans for motorcycles and bicycles; and 70% of eligible incremental staff costs.2/ Disbursements against staff costs, vehicle loans, training, payments less than Rs 300,000 under civil works contracts, and payments under Rs 150,000 for locally-procured vehicles and equipment, would be made against certified statements of expenditure. Supporting documentation for these expenditures would be retained by the State Government for inspection in the course of project review missions. Disbursements against expenditures for all other items would be fully documented. It is recommended that IDA retroactively finance up to US$0.2 million of eligible expenditures incurred after January 1, 1982 for incremental staff costs, vehicles, and equipment. These expenditures were necessary to avoid delays in project execution. 1/ All figures in this paragraph are net of contingencies, which amount to US$ 2.0 million. 2/ Incremental staff costs eligible for reimbursement are those required to upgrade 1,000 VEOs to ensure uniformity of pay and the additional costs of 75 incremental ADAs, one upgraded Addl DA, and the incremen- tal staff of the monitoring and evaluation unit.  -20- Benefits and Risks 59. The principal benefit of the proposed project would be to increase crop production and thus farm incomes as a result of providing improved extension services to farm families. Approximately 5.5 million farm families living in the State would be served by the reformed extension system. Total project costs over the five-year development period, excluding contingencies, amount to US$7.7 million, approximately US$1.40 per farm family served and US$0.68 per hectare of cropped land. Recurring incremental costs after the project development period, whlch would be met from GOI/State budget sources, would be approximately US$1.5 million per annum, less than US$0.30 per farm family per annum. These recurring costs would be partially recovered through market levies on agricultural goods entering commercial markets. 60. Attributing a precise level of economic benefits to this type of project is difficult, since it is impossible to determine precisely what proportion of the benefits expected from improved agricultural practices is due to extension alone and what is due to past research efforts, additional purchased inputs, or more work by the farmer. In practice, it is often the combination of all these, with extension acting as the catalyst, that brings the desired benefits. However, since the incremental cost of the project is low per hectare and per farm family, even small and slow production increases generate a high rate of return. The proposed project, for example, would generate a 50% rate of return if, by 1989, yields of foodgrains increase by only about 1% over current yield levels. In areas where the new extension system has already been applied, yield increases have far exceeded these levels. Moreover, the messages initially stressed by the extension service usually focus on improved agricultural practices (timely operations, good land preparation, proper seed rates, weeding, line sowing) which involve additional labor but require little incremental cash outlay. They are thus particularly well suited to the needs of the small cultivator. 61. The establishment of a single, unified, professional agricultural extension service, through the transfer and training of staff from a number of formerly separate programs, marks a major departure from past practice in India. The fact that such a significant reform is already underway in large parts of India reflects a willingness to develop an extension system capable of serving all farmers well. Nevertheless, it is not easy for governments to carry out such major reforms. The principal risk, therefore, is that the State Government will find it difficult to integrate staff from various sources under an effective single line of command from extension headquarters to full-time VEOs who work exclusively on agriculture. To reduce this risk, substantial efforts were made during project preparation and appraisal to re-emphasize, in discussions with the State Government, the importance of an integrated and  -21- unified extension service fully under DOA control. In addition, it has been agreed that the extension posts assigned to and created in DOA under the project would be retained by the Department throughout the project execution period, would be utilized solely for agricultural extension, and incumbents would have their emoluments and other benefits protected (para 50(a)). While this obligation extends only through the project implementation period, it is clearly the Government's intention that the -rn3ion zcform -7'i1 ve a las+-ing one. Moreover, the merits of the system should be sufficiently apparent to the Government and to client farmers to ensure its continuation. Staff changes in the upper ranks of government are frequent, and thus there is the additional risk of a lack of sustained, informed and motivated leadership, so crucial during the initial stages of the extension reform. The importance of continuity at the management level has been impressed upon State officials. In this connection, the key post of Addl. DA with exclusive responsibility for executing the new extension system will be maintained. 62. Experience with the T&V extension system in other States has shown other potential risks to be minimal. Farmer responsiveness to recommendations has been excellent wherever visits are made systematically. The ability of the service to develop and disseminate recommendations leading to yield increases well above that needed to generate a 50% rate of return has also been demonstrated. Initially, at least in most situations, technology has not been a major constraint as there is a backlog of research findings not widely adopted as yet at the farm level. Simply spreading already-available technology brings major yield increases. In order to further reduce the possibility of declining benefits due to stagnation in crop research or inadequate dissemination of research findings, the project supports programs of field trials (executed by VEOs in cooperation with researchers) and promotes a close relationship between the extension service and the State Agricultural University. Moreover, Andhra Pradesh is qualified for assistance under a separate IDA-supported National Agricultural Research Project (Cr 855-IN), which is directed at strengthening research capabilities to ensure a continuous flow of research results adapted to specific regional requirements. PART V - LEGAL INSTRUMENTS AND AUTHORITY 63. The draft Development Credit Agreement between India and the Association, the draft Project Agreement between the Association and the State of Andhra Pradesh, and the Recommendations of the Committee provided for in Article V, Section l(d) of the Articles of Agreement are being distributed to the Executive Directors separately. 64. Special conditions of the Project are listed in Section III of Annex III.  -22- 65. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association. PART VI - RECOMMENDATION 66. I recommend that the Executive Directors approve the proposed credit. A.W. Clausen President By Moeen A. Qureshi March 9, 1982  ANNEX I Page 1 of 5 TABU, 3A IDIA - SOCIAL INDICATORS DATA SNZZT INDIA REVERNCE p GROUPS (WEIGHTED AVISRAGES LAND ARUA (THOUSAND SO. KM.) MOST RECENT ESTIMATEa TOTAL 3258.6 HOST RECEbT LOW INCHIR MIDDLE INCOHF AGRICULTURAL 1809.5 1960 /b 1970 lb ESTIMATE /b ASIA A PACIrIC ASIA A PACIFIC GNP PER CAPITA (USU) 60.0 100.0 190.0 232.3 1136.1 ENERGY CONSUMPTION PER CAPITA (XILODCZMS OP COAL EQUIVALENT) 111.1 152.5 241.8 499.4 1150.6 POPULATION AND VITAL STATISTICS POPULATION, MID-TEAR (TlDUSO. 434850.0 547569.0 659217.0 UgliAN POPULATION (PERCENT OF TOTAL) 17.9 19.7 22.0 17.3 40.8 POPULATION PROJECTIONS POPULATION IN YEAR 2000 (MILLIONS) 974.7 STATIONARY POPULATION (MILLIONS) 1621.0 YEAR STATIONARY POPULATION IS REACHED 2115 POPULATION DENSITY PER SQ. IM. 132.3 166.6 200.5 153.6 373.1 PER SQ. EM. AGRICULTURAL LAND 246.7 308.0 335.8 360.3 2382.8 POPULATION ArE STRUCiTUE (PERCENT) 0-14 YRS. 40.1 42.4 41.1 37.4 39.8 15-64 YES. 56.8 54.7 56.0 59.2 56.7 65 YRS. AND ABOVE 3.1 2.9 2.9 3.5 3.5 POPULATION GROWTH RATE (PERCENT) TOTAL 1.8 2.3 2.1 2.1 2.3 URBAN 2.5 3.3 3.3 3.4 3.8 CRUDE BIRTH rATE (PER THOUSAND) 44.2 40.3 34.0 27.7 29.7 CRUDE DEATH RATE (PER THOUSAND) 22.7 17.4 13.5 10.2 7.5 GROSS REPRODUCTION RATE 3.1 2.8 2.3 2.5 1.9 FAMILY PLANNING ACCEP70RS, ANINUAL (THOUSANDS) 64.0 3782.0 5619.0 USERS (PERCENT OF MARRIED WOMEN) .. 12.0 22.6 20.4 44.1 FOOD AND NUTRIIION INDEX OF FOOD PRODUCTION PER CAPITA (1969-71-100) 98.0 102.0 93.0 107.1 123.7 PER CAPITA SUPPLY OF CALORIES (PERCENT OF REQUIREMENTS) 93.0 92.0 91.0 98.6 112.6 PROTEINS (GRAMS PER DAY) 52.0 51.0 50.0 56.9 62.5 OF WHICH ANIHAL AND PULSE 17.0 15.0 13.0 14.2 19.7 CHILD (AGES 1-4) NDRTALITY RATE 27.1 20.4 14.8 14.6 4.8 HEALTH LIFE EXPECTANCY AT BIRTH (YEARS) 42.2 47.5 51.9 57.7 64.0 INFANT ORTALITY RATE (PER THOUSAND) * 134.0 125.0 89.1 50.2 ACCESS TO SAFE WATER (PERCENT OF POPULATION) TOTAL .. 17.0 33.0 30.1 45.9 URBAN .. 60.0 63.0 65.8 68.0 RURAL . 6.0 20.0 20.1 34.4 ACCESS TO EXCRETA DISPOSAL (PERCEST OF POPULATION) TOTAL .. 18.0 20.0 17.6 53.4 URBAN . 85.0 87.0 71.0 71.0 RURAL - 1.0 2.0 4.8 42.4 POPULATION PER PHYSICIAN 4850.4/c 4889.0 3617.4 3857.7 4428.7 POPULATION PER NURSING PERSON 9630.07T 8296.5 6429.4 6411.8 2229.7 POPULATION PER HOSPITAL BED TOTAL 2149.0/d 1612.9 1311.1 1132.8 588.5 URAN .. .. 363.5 322.3 579.6 RURAL - *- 10429.1 5600.5 1138.5 ADMISSIONS PER HOSPITAL BED .. .. HOUSING AVERAGE SIZE OF HOUSEHOLD TTAL 5.2 5.6 5.2 URBAN 5.2 5.6 4.8 RURAL 5.2 5.6 5.3 AVERAGE NUMBER OF PERSONS PER ROOM TOTAL 2.6 2.8 URBAN 2.6 2.8 RURAL 2.6 2.8 ACCESS TO ELECTRICITY (PERCENT OF DWELLINGS) TOTAL .. .. URBAN .. .. RURAL .. ..  ANNEX I Page 2 of 5 TABLE 3A INDIA - WCIAL INDICATORS DATA SUiT INDIA REIEURNCE COUPS (WEImlID AlEW"jS - MOST RECENT ESTIMATE S MOST RICENT LOIW INCOII MIDDLE INClOM 1960 Lb 1970 Lb ESTDIATZ b Ab IA & PACIFIC A8IA & PACIFIC EDUCATION ADUJusn ENIIOLIENT RATIOS RIMARY; TOTAL 61.0 73.0 79.0 85.9 99.8 MALI 50.0 90.0 94.0 94.4 100.6 I MALE 40.0 56.0 63.0 64.5 98.8 SECONDARY: TOTAL 20. 26.0 28.0 38.Oj" 33.3 KALE 30.0 36.0 37.0 34. 67 58.4 DIEALE 10.0 15.0 18.0 18.0 a 48.6 VOCATIONAL ENROL. (X OF SECONDARY) 8.0 1.0 1.0 3.8 21.1 PUPIL-TEACHER PATIO PRDIARY 29.0 41.0 41.0 32.S 34.2 SECONDARY 16.0 21.0 .. 19.9 31.7 ADULT LITERACY RATE (PERCENT) 28.0 33.4 36.0 52.8 86.5 CONSUMPTION PA !UI CUS PER THOUSAND POPULATION 0.7 1.1 1.3 1.7 12.7 iMAD10 RCIVERS PER THOUSAND POPULATION 4.9 21.5 32.5 35.3 174.1 TV RBCZIVZRS PER THOUSAND POPULATION 0.0 0.0 1.0 3.7 50.6 NEWSPAPER ("DAILY GENERAL INTERZbT') CIRCULATION PIR THOUSAND POPULATION 11.0 16.0 16.9 14.6 106.8 CIMA ANNUAL ATTENDANCE PER CAPITA 4.0 6.3 3.8 3.4 4.3 LABOII FORCE ALLIUOR FORCE (THOUSANDS) 189761.4 220670.5 256699.4 IDEAL! (PERCENT) 31.2 32.4 31.9 29.3 37.4 ACRICULTURE (PERCENT) 74.0 74.0 71.0 69.8 50.2 INOSTRY (PERCENT) 11.0 11.0 11.0 14.1 21.9 PARTICIPATION RATE (PERCENT) TOTAL 43.6 40.3 38.9 39.7 40.2 MALE 58.0 52.6 51.3 51.5 49.8 FEMALE 28.2 27.1 25.7 23.3 31.1 ECONOMIC DEPENDENCY RATIO 1.0 1.1 1.1 1.1 1.1 INCOMZ DISTRIBUTION Ph;RCENT OF PRIVATE INCOME RECEIVED bY HIGHEST 5 PERCENT OF HOUSEHOLDS 26.7 26.3/e 22.2 HIGHEST 20 PERCENT OF HOUSEHOLDS 51.7 48.97;. 49.4 LOWEST 20 PERCENT OF HOUSEHOLDS 4.1 6.77 7.0 LOWEST 40 PERCENT OF HOUSEHOLDS 13.6 17.27T 16.2 POVERTY TARGET GROUPS ESTI1ATED ABSOLUTE POVERTY INCOME LEVEL (USS PER CAPITA) URBAN .. .. 132.0 134.1 248.6 RURAL .. .. 114.0 111.6 193.7 ESTIMATED RELATIVE POVERTY INCOME LEVEL (USs PER CAPITA) URbiAN .. .. .. .. 249.8 RURAL .. .. .. .. 234.3 ESTIMATELI POPULATION BELOW ABSOLUTE POVERTY INCOME LEVEL (PERCENT) URBAN .. .. 40.3 41.7 21.2 RURAL .. .. 50.7 51.7 32.2 Not available Not applicable. NOTES /a The group averages for each indicator are population-weighted arithmetic mnans. Coverage .of countries among the indicators depends on availability of data and is not uniform. /a China included in total only. L Unless otherwise noted, data for 1960 refer to any year between 1959 and 1961; for 1970. between 1969 and 1971; and for Most Recent Estimate between 1976 and 1979. /c 1962; /d 1958; /e 1964-65. May, 1981  A31 I Page 3 of 5 DEFINITIONS OF SOCIAL.1 ! Notes: Although the data are draw ErIsur eeo Iy ugd the eo . suthoitsti- it reliable, It bha1i else be se.I Ibat be, - eat be atr nautunolly comparable b-cae of telc of st,cdecdlssd defaittneno concep. uSby tternettee ssete abte Thda nse.- chl.e I. fo to. dtcrh Id dera of tgiod,ldlnst trends, * sd ch-r-ctei.e corteg -Jaj dttffesas hnsaaaile Thn reference groups are Ill the as conr gopo the subject co-try ad (21 a noree grst with eaesntt hklbe -neV iag s t tba ne.se gnat eaco-oiurl ffoicel.Inthe referenc grou.p done the t-argee ap"pI aeto -labtat -artotit -ee fee sek i.mtiaeeaa aos~.amy lo eajority of the c..untrim in groop hoe data for rha indic-cor inre the __rgg of orwtrios sn-g the tadiretarm tpAtea the astl~ula i of tate and ie o nfr,cuinse eeece i rL ltiiuerge of one todloetor toeath-r Thes -vsege ar neW .am.t in rt gata the raise of oneindcaor t atis an the ca-ntry sad r-fermereI grooup. LAND AOEA (thuitan d eq.kn.l anoiwncfoein e oi etr a um FpwPI.ist (tatel To-u - TuttsrfcI cn.1preo lan re ndIld ...ate ,ehse ma etrul thrust_ by remeree oelo et bee Aeot hate forcrps,peon, sat r hthe udeos o to lie fali1-; 1978 date. hbitesa ntr.Npdaeag mfiletpegi msEd by at Isaa nag pkyafaia. Emf"lukgte prea,dieg psimedaly estee- lOP PER CAPITA (tS$) - loPpe cap toei as -1tertmacoet rk pie,a dial caer -ns- isaiata. hani Iep.ai. boosmar toejei halib rolaned by tame9 ronv-reir ethod em nn W- nk Atam 11977-79 hasil 1960. eat eaitm uere sa 5~ IF ufoS by a pbrafeist (bet: by 1970, ed179dte. mediu seeteotam.are sitets Rate.) Sale eSe lgads1aem d.tOr, met penelt g ilmiegm"e at iSiaml ten' Sega pe nat rNEtGY CONSUMtPTION POt CAPITA - Aertual --sapni-oo oarileeg ca tical parpama soba bopietla ieelai pt-IIegqlSrel bnegttaia, end lignite, P-"r'-a, ntrigee dhyr-,.nut.; so60d gertersa eler a -te.Ia h-pitmi% lana - ete hemptkal. St iietl aio ltnifty ticiy) intloru ofca qiaetparcyiu it.90.ad 1979 astene, gpertliieS bePit'ls sea iSelettsiyetrdae dstu. dA~~~~~~~~~~~~isaa ero Sineettl Net - Int- .ar gEe.eaeto - dganboogms Fee he-pitale dti-aiedh the erd ad beta. POPULATiOn ANl PITAL. STATlSTICS Total Porolation. Kid-Yea (rhou....ide) - Ae of July 1; 19h0, 1970, and 1979 fNN dste. Aaeaagie d aisaai lsess rebeeh! f-tem"Me~e a "Oal Orhbr Population lorrt tofc 1e) -Ratio of urhan to torI1 populetico; A bseal aait t ne ator ~ leseSn fea~t different defnrreo reana a fn ceasfiit f ae gete emir meal. A bea"Rta aa ietm flyn fy sa4t be slated" is ..naro tnine ; 1960, 1970,ad 17 date th ertbedfe tiatigmi peewem. FPoplru in pee 2000 - Corrau popuation projactiona ars buse.d or 16heofP.esspr.n.sa...a,atese espa Oneta to lppuainb ant-an In and nhel srtality and f-rtilityranIeI. tailisge, rspeottineIy. Dallieg -Idta me-panMeoo aisseere - log life soPnois_Y ef birth i-rnai-g with ourtre Par cPita Lnroe A.us.e tn slenanIatar lerst aoelieao sgl es. " aa -a lee, adfnr.al life erpot.niy atabiliaiog af 77.5 y.eare. 7he pare- C-soteiasldeslee dl 4lentafatey IshleImeg qaartse am Pseastegs wetarn fur f-rillty rats also hare three1- laels -uiog dultra in of ltntl. arhan, nod rs.eIafesllega -apeottisly. farIli,ty tooding to iocos lanai and poet Easily plannIng perIrstn I Lhconryi then eaigned.oreIof Obeeh L -birtnioni- of noctaity OUAI and fertility i_end for projeonion purpome. Aiaa eoiatKt btatononroolaio-Insrtlct duot popo,InLIn thane1:: lngronthelc 'rsn aso Iagt. sae etEael -Nlas oatl lso -d famed. tha birt.h reI I qual t h An at,ad alan ohr Ieroror- -ornf-ee of oil egge tepian,ee ne P..e.stseofrespett emins c tn ttn.i ThisI II achinred only afte f-rtililop rann declineI noPrIasy ahnlesP.pltrn;eeelyitlderfleugt6l the replace..n.i lee o. f unt ne repraduotior atn, eh.. each yaertanpnr hot sdjoated forp differet lZEaghe of prisany dtueetioe; for of -oe rnpls.ea ifaelf w-utly. The stati-oay populattineisrs couer.. wt oiars aoato -wr -Ise, may ejered 100 perneot e-isatd cn the bumit of the prnjeoted chraterietice of the populnoirnanaes pp r aieo hn the ofiria1 auhol ag. - inthe per l, aud the rtne of da-tso etl ityrt vrpine-..o.er aohonl - oa.ml edfml Cosputd we ahev; eatoonder sent level. ~~~~~~~~~~~~~~education require. en 1_me four peer af rpprord priotyaLp tIetroi-s; vaerator lnuo roruintlcis. L.Ia..hnd - Th. yea het ttatioary populatIon Pr..vidm mnn-i vorstin .-o lteaher truiwig i-et-otln Oar pwpiLk nine h.. abhea -ahnd. ..Ue lly uf 12co1 ysar of aSel.; nsprdscacorsesI. are .ganerlp Per mo. Mn id-year upolacion par aqure hilneet-r (120 h-ct-a) of Ioaielariletlorn f eaoasterr Vansti-ea itetiouti..e totl ara 91,1970 Id0 1975 data. inolode n-nbir1, industria. or ther P-oge- ntihb nperaO irdePast- Per en. :ce, anri-ulct-al 1n- - cosutd! Iaohote for ngnti-alt.r. load tatly or as dnpertmett of eaoway Itesttwiats. only; 1961. 197 1co 197 data. Putrli-taha rati - rrear .as nsrv- Toa- taet enrolle in Pooano fu Orruntor (.Ite -ea - CMildrn 10-l0 ..ra. oolcwgag (5 priwar an smondop- Irele dIvided by tReherm of teanher in the 64 Yee,a), and retired ts pnara a ad -ce) am p-rce-tae of eid-r..r papa- ora -win evl.. lto;1960, 1970, aud 1979 data. Adult liteayre(ncnt- Liwaert adults (ehia an read and mite) 'ncaio rwh Rate Irerceui - 2toa 1- Arnau grouc-h ratee of Itota sid- awP.roInag of tona aul papelttaw agd 15 py.ae. w.d arer. yer platuooeY fo1950-61, 1 960-7D, and 1970-79. PoruatuI _rat Ratelotrenn -orhat - AnnuaIl-goth reen of urban pop- COtliOt5TfdlS laclwe ur 951hO,191-77. endi 1970-79. Pa.-uanCane (n- tho.....dPr..ato) oiaeageo c-ce -oPrl-n -1- Crude Biirth Rate re oh._and ) - Anua 11cr bitrha per houeand of aid-ya-a -ar -etiw lame ohen might Penau; monidas aebolencee hasreem med popcls.tihon; 16.1970, ard 1979 dor. silt tar _ahilie.. CrdeDethDaa En ihceed) - Annual deatba Per thu ...tde of aid-year Rdto . tni-era lRrr_nhruead wproletiw) - All types of rn eefor radio Populaniot; 1960, 1970, end 1979 data. hr..sdoa- t o g -Ira publif per thoneedIof poputisto; nniudes n-- CrossDrcos-i.n tat.AVheca noe Iof daughteresocs- itll heritlcnsdr.enr in Louweta e in perml when rgartof n radl her ..r-a r-y-nuti-e pecd if a ee Pe-r-soren see-apcii fer scs-a In sfft; d It.fo reese yewr -Y me banerrshaern tiltop ates; mualipf irr-yar aneates eding it19 191 1970,an 1ii"979.. erioutie othdlotm_iug. Pasylr lanoaaAocrroe Anul(bomnm)-Aaalwse of arreygo.e TV ecI...s IFst Ihor d Ponalpttol- Vrosnr for honadoast of birth-ootrl eoe- ud1 topae o nnotal ftly Plann porw.gnna uil a thoumud Ppuplitiow ;j erludom unlirawed TY.recire"e 'Jsi .. Plnine -_(aa orer-fmare os - Perr..nIEge of earned itcuwrtead LA yan- nhn regi-aatloo af DVetee It ffeott. unm hcid-b-rrae (15-clyase n.. us I urc-con-t- darce oaweeirfroloo lrer f-oa-nd roolettoe h- tretearrnc oil irrtd -e 1I eae.ag goP. ruiwof "daily generalo" WIeaeeappr sfla eproia publication darottd primmeily at ea-ariag serI=ns It as r.-idt.re FOOD ANDo oRTaItON to he "dully' tf it epp..re at .est Poo tIIe e asek. Idea of FondPrdctiope Capita (69-71-100) - Laden of per capita anea Citrs coA-al Atteadece -s aeta tea Tsar - Na..d Os tba obr of pedn o f sifn ceoile rdotiwn nocludee tead wad feed nod richer, mid daring the yea. feladieg atelatom t drt-i.st cien ito aOrYear .ee... C:ooodirtoe. coeI riaygo eg eugaosran erbile .nIn.. ireteed of ana) ohich are adible sod cnn-Irntntne(..cfe r tee ac ea_ludd,l .hAgretoon prndactaon of eac h oanvrly is hated onABOR FORCf national Pcra pndue IItIe neinht; 1961-65, 1970, and 1979 dare. TtL Labo forc (thousad.) - aawae.lciy entire P..--e.laitg Pan narta aupic of clorlee(rerrat n reccswt) - CoPord oe d f. Id im en smplayed ho aldn urssle,avdne t. mare equie let of et fod suplls Uriebl in coutry s ..Pita cnoeing population of all sg... Definlti-w 1enro. orwre r per_daY. OA-ileble suppline roaprise do-esti , pduior, isporne lea nt onpr-ble; 19b0 1970 eat 1979 data. ro re nod rhangen In anok. NatIL l e n loeanml ed, aaede, Pe-al leret) b-a ao force as p--nsnge of rte.. Labor tie;. q=anitiwe used in fund PIro...eing. end beset. ur distribution.Ilequle eiutua( ) - Laoro force in faaia.6 hwtr, -ewiwg aed e Icnresiardh 60hwdcopyionie needI fornna anti- fIehn as - pretegn of traal labor frr; 1960 1970 sat 1979 data. ctanhrlth conidering ..vro. uoolotep-ntu-, hdy oaighns, aeI ar aran L.heI foc In:1 minion earur, I--afatrg adeadtruticn of p-p ti"to - I.1 an llwn 10 E prc -O or Iset end eettiy n nsd ge.w perneneane of tonal labor forc; 1960, bor.a.hold ln-ei; 1961-65, 1970, and 1977 data 1970 end 1979 dana. Per c"P"t soUrly of crum (aneP., dan) - Protei. cntc of Per capita Psrttctnat loa aeIanei-ttl al .dea feale - Pnrriitpatlw or net euppiy uf food per dn.. Net no.P"l of fund is dafioodase bc.- he- acrily rate arermata as namiomle. aat fsa1e leh fnree quiree= s o all ou1 rrin established by 15D0 pnn-ide fototo n- p-ar.ent.aae of noul I ale an -d fI"ea pernIieti of eli a8 sea eeprti_ey; alissoa I 60 gran of Inte poocain prr day ad' F_ pn of anlgI od 1960, 1970, and 1979 dane. Tbse.arehead ow fILOsJ ;tartireo rates Pulee Plowot, of nhioh 10 gran nhould be aclsa prorei. Th..n. ad-reIece iwaaesn tutr of the pnpwlattne, and len I-m red ard ore lone thao thoan of 75 grawa of cotl poteuad 13 rs -of1I fe i .m en ape .fro eatloi- snns aIslpreraarsraafrnrwrdpryed by P L0Iu the hr icroi leedrn R Pact - Ratio of popolti-n uader 15 end 65 urd pe oR.Id Pood nurne; 1961 -lu. 1970 and 1977 date..t the -un1 lohcr forc. Pa itf rtIneri "c nslad ruee- Protein suPPly offod de Child (anne 1-07 Pornllin Date tn h--ouau) - Annua deatha per thnumoed in Perce-t- of Pricaco Inc... (both io Isah ood Clod) - ORolur-d bhycirhesi age group l-4 ...a to. chIldre IIv th. age r...p; fun -acdevloping coon- 5pI percet, riches 20pret poores 2D percent, and Poua 40 percet- toiaa date derIved Ifu ilatble;1960, 1970 and 1979 dana. of ho.eeholda. tonecourst mItlra,s u...a. nober of -r-r of lofe re-irot ThvONYf!I TA-lOinly si bith; 196 1970 anf 1909 dat. nodenid he iuterprnedotn coneidreIe cautIon. Dutt ntlctne Ipr chuad - Aunu..l denihe of infants under one yea fetae brooPrro ie ee 09nrcnIe ra n ua ofaell hrsn lv hithn.. Abslolte povery iLose lana t rhI Inca- lanai ba1- wIchi a minisi Acoeeioiaf Oatp (rorrr of oo' aiu(ti o l. - uban, and rura N- u- n :1i1oaiYadrnat diet I pl - ns .ta wo-Pro.d requireets La Oot he f pri lnIr t- urha, and rral) nub..... beeoalescatncef ff-rdwl.2P- no prenly (nldsrrodnnaeaewo noae funcroIaodetd tnletad Rnlali- Pnet -Ocm Lonal (US rcnnl- ra andrua- natrnobe la fospoorto hceotr -opina,an noiaroala a tR-irean p-nery irroe leve is onethird of enaePer cpine f.ountain orendocloar u ne c20wtr ironooumesay hblerl rlh adjeneat fo hlahar cost of -l. I Lon d.indefban ucete. :i~~~ d--blI~~~~~~:,I- of th., h..run...Pacen ofpoplatoai-raaEndtura( hodreLheoot do pot ho on cc ryrdocItp..o.yoriio... yar o.If ldr dsp Ic fetchIng the pour'. ILo ...io(b.- I .l. ..sberoIy-aop-,-no --a ..u..... nruo i wr_roedcacre-t dsoelas- percentages l -I- ufter-e-riepplior.-.fobyen . dIapa any'.Includ Pcar_IPEstaipl.Iiota.d ciere ounifld focea edu- l shoo a11 ~ilhno- rit l-E-neD-.Si1 I. ii Prrlsio pr_ ..ur ...na Pnro . opulation diolded by ..eber of pra-nici sgesderlerduanct rre.pc-nri-Ianu ..eae.  Annex I Pam 4 of 5 ECOAIC D3WIOllT DIIA GlP PU CAPITA IU 1979 U55190 a0go$ UTIOXAL PrWCS IN 1979/S0 UT. OF 01RITN f. constant or mesS UB SIR 7 1955/56-1959/60 1960/61-1964/65 1965166-1969/70 1970/71-1974/75 1975/76-1978/79 GNP at mark t Prices 134.16 100.0 3.7 3.6 3.6 2.8 4.5 Gres DoesetiLe lvestmnt 29.24 21.8 Gross National Saving 28.55 21.3 Currant Account Balance -0.85 - 0.6 OUTPUT. LUOh 108Cg AID PODUCTVITY Il 1978 V-lu ede(at factor cost) Labor Farces Worxe US9 81n.M7 Hil % %fi 7 of lational Averase Agriculture 39.8 39.6 181.3 71 220 56 Industry 25.5 25.3 28.1 11 906 230 Srvtee 35.3 35.1 46.0 18 767 195 Total/average 100.6 100.0 255.4 100 394 100 COVIUS1" F1ImCi Conaral Oernt C-ntraCvq_t JE W 1972180 1975176- 1979/80 19791BO 1975176 1979/50 Current Receipts 208.18 19.2 18.9 108.96 10.0 10.6 Current 8raendituree 0 117267 i l O Current gurplue/Daficit 1.74 0.2 1.2 - 8.71 - 0.8 Capital gspendlturee / 81.81 7.5 7.4 56.93 5.2 5.1 Internal Assietanc (net) j/ 7.97 0.7 0.9 7.97 0.7 0.9 ItOIIY OM1 AIID PRIC8 1970/71 1971/74 1974/7l 1975/76 1976177 1977/171 197t/79 1Zi7im DnbeT 1979 DRember tIO (Rs Sillion outtatnding at end of period) ontey and Quasi Money 109.6 175,7 194.6 222.9 272.8 329.1 398.9 448 2 448.1 521.7 lank Cr dit to Govarnent (net) 52,6 87.3 95 3 101.1 110.2 134 7 153.9 192.2 176.4 231.4 lank Credit to Cinrcial S ctor 646 107 0 126.7 151.9 185.0 212.2 253.5 306.5 294.7 335.9 (Percentage or Index Numbere) ApiZU 1979 Aeril-e D 19tO Money and Quesi Komney as of GDP 27.2 29.8 27.9 30.2 34.0 36.5 40.8 43.1 Wholsoale Pric Ind (1970/71 - 10) 100.0 139.7 174.9 173.0 176.6 185.8 15.8 217.6 212.2 253.5 Annual percencage changes in; Wholesale Price ladez 7.7 20.2 25.2 - 1.1 2.1 5.2 17 1 14.6 19.5 Saak Credit to Goverrnnt (net) 10.8 12.3 9.2 6.1 9.0 22.2 14.3 24.9 24.9 / 31.2 I/ S"ek Credit te Cmemrcial Sector 19.4 22.6 18.4 21.5 20.2 14.7 19.5 20.9 17. 5 j 14.0 IL/ J/ The per capita G0P estimte is at market prices, calculated by the conversion technique used in the World aank Atlas, 1979. All other converions to dollars in this table ar, at the average excbange rate prevailing during the period covered. k/ Quick Estimates. S/ Ce_ted fhon trend line of 03?r at fector coat series, including one observation before first year and one observation after last year of listed period. IL/ orld lank estimates; not necessarily consistent with official fig4rs. S/ Transfers betem Contre and States ha bees netted mt. LI All loans sd advances to third parties have been tted mt. A/ Percentage cbhge from end-Dec_mber 1978 to end-December 1979. L/ Percentage change from end-Dec_er 1979 to nd-December 1980.  Annex I Page 5 of 5 BALANCE OF PAYKUTS 1977/71 1978/79 1979/80 J WO/81 cHADUSll sEa Amu 197677-_19 Exports of Goods 6,315 6,978 7,958 8,998 Engineering Goods 766 I/ 11 Imports of Goods -7,188 -8,519 -11,249 -15,624 Tea 462 7 Trade Balance - 873 _1,541 - 3,291 - 6,626 Ge 605 9 NFS (net) 691 773 633 463 Clothing 460 7 Leather end Leather Resource Balance - 182 - 768 - 2658 - 6.163 Products 425 6 Jute manufactures 284 4 Interest Paymnts (net) J - 89 - 35 350 303 Iron Ore 298 5 Other Factor Parents (net) - - - - Cotton Textiles 289 4 Met Transfers |/ 1,077 1,216 1,458 2,462 Sugar 132 2 Others 3,028 45 Balance on Current Account 806 413 - 850 -3.398 Total AIM 175 Official Aid Disbursmnts 1,628 1,695 1,891 2,389 ZESIAL DiBT. MARCI 31. 1980 Amortization - 645 - 702 - 676 - 707 USS billion Transactions with 1IF - 330 - 158 - 1,035 Outstanding and Disbursed 15.6 All Other Ite 617 286 - 143 133 Undisbursed 5.7 Outstnding, including 21.3 Increase in Reserves () -,076 -1,534 - 222 548 Undisbursed Gross Reserves (end year) 5,823 7,357 7,579 7,031 Net Reserves (eand year) J 5,668 7,357 7,579 6,691 DEBT SERVIC RATIO FOR 1979/80 WS/J 10.4 per cent Fuel and Related Materials ISKD/IVA LuDDI DECOOEt 31. 1980 Imports 1,811 2,043 3,977 7,012 USS million of whicht Petrolem 1,811 2,043 3,977 7,012 D ID Exports 32 24 26 n.O. Outstading snd Disbursed 806 4,895 Undisbursed 572 3,547 Outstandiug, including 1,378 8,442 Undisbureed RATE OF EXCIUHGE June 1966 to *id-Decedber 1971 US$1.00 - Re 7.5 Re 1.00 - US$0.133333 )id-December 1971 to end-June 1972 US$1.00 - Re 7.27927 Re 1.00 - US$0.137376 After end-June 1972 Floating Rate Spot Rate end-December 1979 US$1.00 - Rs 7.907 Re 1.00 - US$0.126 Spot Rate end-December 1980 . US$1.00 - Re 7.930 Re 1.00 - USS0.126 Ji Netiuted. J/ Figures given cower all investenet inces (nt). Major payments rer interest on foreign loans and charges paid to mr, end major receipt is interest earned on foreign assets. Lt Figures given include workers r_itt_an but aclud official grnt ssistace, which is included within official aid disbursemets. / Excludes net use of Dl credit. / Figure for 1979/80 is estimated. a/ Amrtisatiom and interest payments on foreign loans as a percntage of exports of goods and services. ApriL 1981  ANNEX II Page 1 of 17 THE STATUS OF BANK GROUP OPERATIONS IN INDIA A. STATEMENT OF BANK LOANS AND IDA CREDITS (As of September 30, 1981) 1/ US$ million (Net of Cancellations) Loan or Fiscal IDA IDA Credit Year of (US$ (SDR No. Approval Purpose Bank Credits) Credits) Undisbursed 45 Loans/ 1,515.98 - 72 Credits fully disbursed - 4,065.4 342-IN 1973 Education - 12.0 2.42 456-IN 1974 HP Apple Processing & Marketing - 13.0 5.01 1011-IN 1974 Chambal (Rajasthan) CAD 52.0 - 9.15 482-IN 1974 Karnataka Dairy - 30.0 15.80 502-IN 1975 Rajasthan Canal CAD - 83.0 28.16 521-IN 1975 Rajasthan Dairy - 27.7 12.37 522-IN 1975 Madhya Pradesh Dairy - 16.4 4.70 585-IN 1976 Uttar Pradesh Water Supply - 40.0 13.47 598-IN 1976 Fertilizer Industry - 105.0 17.09 604-IN 1976 Power Transmission IV - 150.0 40.11 609-IN 1976 Madhya Pradesh Forestry T.A. - 4.0 1.46 610-IN 1976 Integrated Cotton Development - 18.0 10.23 1251-IN 1976 Andhra Pradesh Irrigation 145.0 - 74.58 1260-IN 1976 IDBI II 40.0 - 10.77 1273-IN 1976 National Seeds I 25.0 - 21.59 1313-IN 1977 Telecommunications VI 80.0 - 16.09 1335-IN 1977 Bombay Urban Transport 25.0 - 7.36 680-IN 1977 Kerala Agric. Development - 30.0 22.06 682-IN 1977 Orissa Agric. Development - 20.0 6.98 685-IN 1977 Singrauli Thermal Power - 150.0 36.81 687-IN 1977 Madras Urban Development , - 24.0 4.08 690-IN 1977 WB Agric. Extension & Research - 12.0 12.00 1394-IN 1977 Gujarat Fisheries 14.0 - 7.23 712-IN 1977 M.P. Agric. Development - 10.0 5.10 720-IN 1977 Periyar Vaigai Irrigation - 23.0 13.49 728-IN 1977 Assam Agricultural Development - 8.0 5.46 736-IN 1978 Maharashtra Irrigation - 70.0 28.83 737-IN 1978 Rajasthan Agric. Extension - 13.0 6.84 740-IN 1978 Orissa Irrigation - 58.0 25.71 1475-IN 1978 Industry DFC XII 79.2 - 7.81 747-IN 1978 Second Foodgrain Storage - 107.0 77.58 756-IN 1978 Calcutta Urban Development II - 87.0 19.11  ANNEX II Page 2 of 17 US$ million (Net of Cancellations) Loan or Fiscal IDA IDA Credit Year of (US$ (SDR No. Approval Purpose Bank Credits) Credits) Undisbursed 761-IN 1978 Bihar Agric. Extension & Research - 8.0 6.81 1511-IN 1978 IDBI Joint/Public Sector 25.0 - 12.87 1549-IN 1978 Third Trombay Thermal Power 105.0 - 53.99 788-IN 1978 Karnataka Irrigation - 117.6 76.35 793-IN 1978 Korba Thermal Power - 200.0 126.45 806-IN 1978 Jammu-Kashmir Horticulture - 14.0 13.75 808-IN 1978 Gujarat Irrigation - 85.0 62.96 815-IN 1978 Andhra Pradesh Fisheries - 17.5 13.97 816-IN 1978 National Seeds II - 16.0 14.97 1592-IN 1978 Telecommunications VII 120.0 - 46.76 824-IN 1978 National Dairy - 150.0 130.60 842-IN 1979 Bombay Water Supply II - 196.0 182.09 843-IN 1979 Haryana Irrigation - 111.0 39.98 844-IN 1979 Railway Modernization & Maintenance - 190.0 145.84 848-IN 1979 Punjab Water Supply & Sewerage - 38.0 20.17 855-IN 1979 National Agricultural Research - 27.0 24.82 862-IN 1979 Composite Agricultural Extension - 25.0 15.86 871-IN 1979 NCDC - 30.0 15.55 1648-IN 1979 Ramagundam Thermal Power 50.0 - 50.00 874-IN 1979 Ramagundam Thermal Power - 200.0 170.31 889-IN 1979 Punjab Irrigation - 129.0 98.57 899-IN 1979 Maharashtra Water Supply - 48.0 44.06 911-IN 1979 Rural Electrification Corp. II - 175.0 95.54 925-IN 1979 Uttar Pradesh Social Forestry - 23.0 18.39 947-IN 1980 ARDC III - 250.0 23.24 963-IN 1980 Inland Fisheries - 20.0 19.52 954-IN 1980 Maharashtra Irrigation II - 210.0 170.70 961-IN 1980 Gujarat Community Forestry - 37.0 29.62 981-IN 1980 Population II - 46.0 45.22 1003-IN 1980 Tamil Nadu Nutrition - 32.0 30.44 1004-IN 1980 U.P. Tubewells - 18.0 16.56 1011-IN 1980 Gujarat Irrigation II - 175.0 164.42 1027-IN 1980 Singrauli Thermal II - 300.0 278.36 1012-IN 1980 Cashewnut - 22.0 21.65 1028-IN 1980 Kerala Agricultural Extension - 10.0 9.81 1033-IN 1980 Calcutta Urban Transport - 56.0 53.71 1034-IN 1980 Karnataka Sericulture - 54.0 52.38  ANNEX II Page 3 of 17 US$ million (Net of Cancellations) Loan or Fiscal IDA IDA Credit Year of (US$ (SDR No. Approval Purpose Bank Credits) Credits) Undisbursed 1046-IN 1980 Rajasthan Water Supply and Sewerage - 80.0 76.65 1843-IN 1980 Industry DFC XIII 100.0 - 66.71 1887-IN 1980 Farakka Thermal Power 25.0 - 25.00 1053-IN 1980 Farakka Thermal Power - 225.0 201.16 1897-IN 1981 Kandi Watershed and Area Development 30.0 - 28.92 1925-IN 1981 Bombay High Offshore Development 400.0 - 379.77 2050-IN* 1982 Tamil Nadu Newsprint 100.0 - 100.0 1072-IN 1981 Bihar Rural Roads - - 30.6 29.8 1078-IN 1981 Mahanadi Barrages - - 72.4 72.4 1082-IN 1981 Madras Urban Development II - - 37.3 37.3 1108-IN 1981 M.P. Medium Irrigation - - 128.9 128.9 1112-IN 1981 Telecommunications VIII - - 288.9 263.6 1116-IN 1981 Karnataka Tank Irrigation - - 49.8 49.8 1125-IN*+ 1981 Hazira Fertilizer Project - - 368.0 368.0 1135-IN 1981 Maharashtra Agricultural Ext. - - 21.6 21.6 1137-IN 1981 Tamil Nadu Agricultural Ext. - - 26.2 26.2 1138-IN 1981 M.P. Agricultural Ext. II - - 34.7 34.7 1146-IN* 1981 National Cooperative Development Corp. II - - 116.5 116.5 1172-IN*+ 1982 Korba Thermal Power Project - II - - 372.7 372.7 1177-IN*+ 1982 Madhya Pradesh Major Irrigation - - 223.4 223.4 Total 2,931.2 8,511.6 1,771.0 of which has been repaid 1 103.4 84.6 - Total now outstanding 1,827.8 T,277 T,771. Amount Sold 133.8 of which has been repaid 133.3 0.5 - - Total now held by Bank and IDA 1/ 1,827.4 8,427.0 1,771.0 Total undisbursed (excluding *) 818.6 2,925.3 664.3 1/ Prior to exchange adjustment. * Not yet effective. + Net yet signed.  ANNEX II Page 4 of 17 B. STATEMENT OF IFC INVESTMENTS (As of September 30, 1981) Amount (US$ million) Year Company Loan Equity Total 1959 Republic Forge Company Ltd. 1.5 - 1.5 1959 Kirloskar Oil Engines Ltd. 0.9 - 0.9 1960 Assam Sillimanite Ltd. 1.4 - 1.4 1961 K.S.B. Pumps Ltd. 0.2 - 0.2 1963-66 Precision Bearings India Ltd. 0.6 0.4 1.0 1964 Fort Gloster Industries Ltd. 0.8 0.4 1.2 1964-75-79 Mahindra Ugine Steel Co. Ltd. 11.8 1.3 13.1 1964 Lakshmi Machine Works Ltd. 1.0 0.3 1.3 1967 Jayshree Chemicals Ltd. 1.1 0.1 1.2 1967 Indian Explosives Ltd. 8.6 2.9 11.5 1969-70 Zuari Agro-Chemicals Ltd. 15.1 3.8 18.9 1976 Escorts Limited 6.6 - 6.6 1978 Housing Development Finance Corporation 4.0 1.2 5.2 1980 Deepak Fertilizer and Petrochemicals Corporation Ltd. 7.5 1.0 8.6 1981 Coromandel Fertilizers Limited 15.9 15.9 1981 Tata Iron and Steel Company Ltd. 38.0 - 38.0 1981 Mahindra, Mahindra Limited 15.0 - 15.0 1981 Nagarjuna Coated Tubes Ltd. 2.9 0.3 3.2 1981 Nagarjuna Signode Limited 2.3 - 2.3 1981 Nagarjuna Steels Limited 1.5 0.2 1.8 TOTAL GROSS COMMITMENTS 136.7 11.9 148.6 Less: Sold 26.0 1.7 27.7 Repaid 22.6 - 22.6 Cancelled - 1.3 7.5 Now Held 81.9 8.9 90.8 Undisbursed 66.1 1.5 67.6  ANNEX II Page 5 of 17 C. PROJECTS IN EXECUTION l/ (As of September 30, 1981) Generally, the implementation of projects has been proceeding reasonably well. Brief notes on the execution of individual projects are below. The level of disbursements was US$962 million in FY81, compared to US$729 million in the previous year. Disbursements in the current fiscal year through September 30, 1981 totalled US$164 million, representing an increase of about 6% over the same period last year. The undisbursed pipeline of US$4,408 million as of September 30, 1981, reflects the lead time which would be expected given the mix of fast- and slow-disbursing projects in the India program. Ln. No. 1475 Twelfth Industrial Credit and Investment Corporation of India Project; US$80.0 million loan of July 22, 1977; Effective Date: October 4, 1977; Closing Date: March 31, 1983 Ln. No. 1843 Thirteenth Industrial Credit and Investment Corporation of India Project; US$100.0 million loan of May 16, 1980; Effective Date: June 27. 1980; Closing Date: December 31, 1985 These loans are supporting industrial development in India through a well-established development finance company and are designed to finance the foreign exchange cost of industrial projects. ICICI continues to be a well-managed and efficient development bank financing medium- and large-scale industries, which often employ high technology and are export-oriented. Disbursements under both loans 1475 and 1843 are ahead of schedule. Loan No. 1260 Second Industrial Development Bank of India Project; US$40.0 million loan of June 10, 1976; Effective Date: August 10, 1976; Closing Date: March 31, 1983 Loan No. 1511 IDBI Joint/Public Sector Project; US$25.0 million loan of March 1, 1978; Effective Date: May 31, 1978; Closing Date: March 31, 1983 Loan 1260 is designed to assist the Industrial Development Bank of India in promoting small- and medium-scale industries and in strengthening the State Financial Corporations involved. Loan 1511 is designed to encourage the pooling of private and public capital in medium-scale joint ventures. The project also assists IDBI in carrying out industrial sector 1/ These notes are designed to inform the Executive Directors regarding the progress of projects in execution, and in particular to report any problems which are being encountered and the action being taken to remedy them. They should be read in this sense and with the understanding that they do not purport to present a balanced evaluation of strengths and weaknesses in project execution.  ANNEX II Page 6 of 17 investment studies and in strengthening the financial institutions dealing with the state joint/public sector. Cr. No. 747 Second Foodgrain Storage Project; US$107.0 million credit of January 6, 1978; Effective Date: May 17, 1978; Closing Date: June 30, 1982 Satisfactory progress is being made in the construction of bag storage warehouses, despite problems of land acquisition at some sites. However, construction of flat bulk warehouses and port silos is not expected to be completed until 1984, as a result of delays in the employment of con- sultants and the longer time required for the preparation of technical specifications and tenders and the construction itself. In view of the high increases in bulk storage construction costs, the Government is proposing to reduce the bulk storage component of the project in favor of additional bag storage capacity; this proposal is currently under consideration by the Association. Cr. No. 806 Jammu-Kashmir Horticulture Project; US$14.0 million credit of July 17, 1978; Effective Date: January 16, 1979; Closing Date: June 30, 1984 The principal executing agency, J&K Horticulture Produce Marketing and Processing Corporation, is making good progress, but project facilities will have to be reduced due to cost escalations. The project's research activities, however, are behind the original schedule due to difficulties in obtaining technical assistance. Ln. No. 1313 Telecommunications VI Project; US$80.0 million loan of July 22, 1976; Effective Date: September 14, 19/b Closing Date: March 31, 1983 Ln. No. 1592 Telecommunications VII Project; US$120.0 million loan of June 19, 1978; Effective Date: October 30, 1978; Closing Date: December 31, 1983 Cr. No. 1112 Telecommunications VIII Project; US$314 million credit of March 26, 1981; Effective Date: June 24, 1981; Closing Date: December 31, 1984 Loans 1313 and 1592 are progressing satisfactorily, although as of June 1981, when they were last reviewed, imports of electronic switching equipment for the projects were behind schedule, resulting in a reduced growth rate for the installation of direct exchange lines. Institutional improvements envisaged under the projects have been achieved, and the finan- cial situation of the Posts and Telegraphs Department remains sound. Credit 1112, which became effective in June 1981, provides for the continued expansion, over a three-year period, of the Indian telecommunications net- work, particularly in rural areas. It also provides for the modernization and upgrading of three existing telecommunications equipment factories, and the establishment of three additional ones. Initial implementation and procurement actions are proceeding on schedule.  ANNEX II Page 7 of 17 Cr. No. 598 Fertilizer Industry ProJect; US$105.0 million credit of December 31, 1975' Effective Date: March 1, 1976; Closing Date: June 30, 19U2 Cr. No. 1125 Hazira Fertilizer ProJec US$400.0 million credit of October 28, 1981; Effective Date: January 21, 1982; Closing Date: June 30, 1986 Credit 598 is designed to increase the utilization of existing fer- tilizer production capacity. The project has encountered delays in sub-project preparation and investment approvals by the Government. Further, some of the sub-projects identified earlier have not materialized because of reconsideration by the Central and State governments. IDA has agreed to a list of sub-projects to replace the ones that have been dropped. Because of the above, the project completion date has been delayed. Credit 1125 is proceeding satisfactorily with initial implementation and procurement actions proceeding to schedule. Cr. No. 342 Agricultural Universities Project; US$12.0 million credit of November 10, 1972; Effective Date: June 8, 1973; Closing Date: December_31, 1982 The project involves the development of the agricultural universities in Assam and Bihar. The primary aim of the AUs project is to improve the quality and practical training of undergraduates and so the spectrum of their employment opportunities; and to strengthen university structure to enable it to give an impetus to agricultural and rural development. Considerable progress has been made in achieving the latter objective; but achieving educational objectives is more slowly attainable, constrained by traditional attitudes and structures where consistent effective leadership falters. Changes to a more functional orientation are now planned. The Project Direc- tor and others responsible are aware of the constraints and are supporting efforts to remove them. Cr. No. 842 Second Bombay Water Supply and Sewerage Project' US$196.0 million credit of November 13, 197,; Effective hate: June 12, 1979; Closing Date: March 31, 1985 Cr. No. 848 Punjab Water Supply and Sewerage Project; US$38.0 million credit of October 27, 1978; Effective Date: January 25, 1979; Closing Date: March 31, 1983 Cr. No. 899 Maharashtra Water Supply and Sewerage Project; US$48.0 million credit of June 21, 1979; Effective Date: November 9, 1979; Closing Date: June 30, 1984 Cr. No. 1046 Rajasthan Water Supply and Sewerage Project; US$80 million credit of June 25, 1980; Effective Date: August 5, 1980; Closing Date: September 31, 1985 Implementation of Credit 842, a second stage of the recently com- pleted first Bombay Water Supply and Sewerage Project (Credit 390), is proceeding to schedule. Preliminary work in connection with implementation  ANNEX II Page 8 of 17 of Credit 848 has been completed but subsequent procurement delays and slow release of construction funds are likely to delay the project by about 12 months and result in cost increases. Physical progress under Credit 899 is satisfactory. Initial delays in implementation of institutional arrangements and tariff measures proposed for the project are now being overcome. Project progress in this area is being closely monitored. Implementation of Credit 1046 is proceeding satisfactorily. Detailed construction programs have been prepared for rural schemes, and preparation of tender documents for urban schemes have been completed. Cr. No. 585 Uttar Pradesh Water Supply and Sewerage Project; US$40.0 million credit of September 25, 1975; Effective Date: February 6, 197b; Closing Date: December 31, 1982 The Project has had a slow start due to delays in the preparation of technical reports for regional and local water authorities and in the engage- ment of consultants. While improvements have been made in the physical execution, other aspects of project implementation continue to lag so that disbursements under the Credit have fallen short of estimates at the time of appraisal. In order to improve the situation, arrangements have been made to closely supervise and coordinate implementation. Cr. No. 756 Second Calcutta Urban Development Project; US$87.0 million credit of January 6, 1978; Effective Date: April 7, 1978; Closing Date: March 31, 1983 The project is proceeding quite well in most sectors, in spite of country-wide materials shortages and serious Statewide electric power shortages. Procurement is generally on schedule for equipment and consult- ants' services, though somewhat behind for larger civil works contracts. Staff shortages in some of the implementing agencies continue, although more extensive use of consultants has to a great degree alleviated this problem. Cr. No. 687 Madras Urban Development Project; US$24.0 million credit of April 1, 1977; Effective Date: June 30, 1977; Closing Date: September 30, 1981 With respect to the first Madras project, physical progress is generally satisfactory and costs are within appraisal estimates on most components. However, land acquisition problems and consequent delays in construction on one of the three sites and service areas will result in about 15 months delay in the completion of the final sections of these areas. Increased attention should be turned to the financial analysis and marketing strategies required to ensure that anticipated cost recovery in the sites and services and slum upgrading components and thus replicability is actually achieved. Technical assistance is being sought to strengthen financial management and analysis. Cr. No. 1082 Second Madras Urban Development Project; US$42.0 credit of January 14, 1981; Effectiveness Date: March 2, 1981, Closing Date: March 31, 1986.  ANNEX II Page 9 of 17 With respect to the second project, early project implementa- tion is proceeding satisfactorily, with evidence that the lessons learned under the first project are being heeded. Cr. No. 482 Karnataka Dairy Development ProJect: US$30.0 million credit of June 19, 1974; Effective Date: December 23, 1974; Closing Date: September 30, 1982 Cr. No. 521 Rajasthan Dairy Development Project; US$27.7 million credit of December 18. 1974; Effective Date: August 8, 1975; Closing Date: December 31, 1982 Cr. No. 522 Madhya Pradesh Dairy Development Project; US$16.4 million credit of December 18, 1974; Effective Date: July 23, 1975; Closins Date: June 30, 1982 Cr. No. 824 National Dairy ProJect; US$150.0 million credit of June 19, 1978; Effective Date: December 20, 1978; Closing Date: December 31, 1985 These four credits, totalling US$224.1 million, support dairy development projects organized along the lines of the successful AMUL dairy cooperative scheme in Gujarat State. More than 2,100 dairy cooperative societies (DCS) have been established under the three state projects (Kar- nataka-923, Rajasthan-926, Madhya Pradesh-272). Farmer response has been excellent and project authorities are under considerable producer pressure to speed up the establishment of DCS. Profitability in almost all DCS is good and construction of dairy and feed plants is now proceeding at a satisfactory pace. Limited milk processing capacity has been the major constraint to DCS formation in all three projects. Under the National Dairy Project, thirteen subprojects have been appraised by the Indian Dairy Cor- poration and a further five subprojects are in various stages of preparation and appraisal. Advance procurement of dairy equipment is well underway though disbursements have been slow, mainly as a result in the start of project operations. Ln. No. 1011 Chambal (Rajasthan) Command Area Development Project; US$52.0 million loan of June 19, 1974; Effective Date: December 12. 1974; Closing Date: June 30, 1982 Cr. No. 502 Rajasthan Canal Command Area Development Project; US$83.0 million credit of July 31, 1974i Effective Date: December 12, 1974; Closing Date: June 30, 1982 Ln. No. 1251 Andhra Pradesh Irrigation and Command Area Development (TW) Composite Project; *S$145.0 million loan (Trd Window) of June 10, 1976; Effective Date: September 7, 1976; Closing Date: December 31, 1982 Cr. No. 720 Periyar Vaigai Irrigation Project; US$23.0 million credit of June 30, 1977; Effective Date: September 30, 1977; Closing Date: March 31, 1983  ANNEX II Page 10 of 17 Cr. No. 736 Maharashtra Irrigation Project; US$70.0 million credit of October 11, 1977; Effective Date: January 13, 1978; Closing Date: March 31, 1983 Cr. No. 740 Orissa Irrigation Project; US$58.0 million of October 11 1977; Effective Date: January 16, 1978; Closing date: October 31, 1983 Cr. No. 788 Karnataka Irrigation Project; US$126.0 million credit of May 12, 197; Effective Date: August 10, 1978; Closing Date: March 31, 1984 Cr. No. 808 Gujarat Irri.gation Project; US$85.0 million credit of July 17, 1978; Effective Date: October 31, 1978; Closing Date: June 30, 1984 Cr. No. 843 Haryana Irrigation Project; US$111.0 million credit of August 16, 1978; Effective Date: December 14, 1978; Closing Date: August 31, 1983 Cr. No. 889 Punjab Irrigation Project; US$120.0 million credit of March 30, 1979; Effective Date: June 20, 1979; Closing Date: June 30, 1985 Cr. No. 954 Second Maharashtra Irrigation Project; US$210 million credit of April 14, 1980; Effective Date: June 6, 1980; Closing Date: December 31, 1985 Cr. No. 1011 Second Gujarat Irrigation Project; US$175 million credit of May 12, 1980; Effective Date: June 27, 1980; Closing Date: Aril 30, 1986 Cr. No. 1078 Mahanadi Barrages Project; US$83 million credit of December 5, 1980; Effective Date: February 11, 1981; Closing Date: March 31, 1987 Cr. No. 1108 Madhya Pradesh Medium Irrigation Project; US$140 million credit of March 26, 1981; Effective Date: May 13, 1981; Closing Date: March 31, 1987 These projects, based on existing large irrigation systems, are designed to improve the efficiency of water utilization and, where possible, to use water savings for bringing additional areas under irrigation. Canal lining and other irrigation infrastructure, drainage, and land shaping are prominent components of these projects. In addition, provisions have been made to increase agricultural production and marketing by reforming and upgrading agricultural extension services and by providing processing and storage facilities and village access roads. Progress of these projects is generally satisfactory. Cr. No. 682 Orissa Agricultural Development Project; US$20.0 million credit of April 1, 1977; Effective Date: June 28, 1977; Closing Date: December 31, 1983  ANNEX II Page 11 of 17 Cr. No. 690 West Bengal Agricultural Extension and Research Project; US$12.0 million credit of June 1, 1977; Effective Date: August 30, 1977; 9Closing te: September JU, lYZ Cr. No. 712 Madhya Pradesh Agricultural Extension and Research Project; US$10.0 million credit of June 1, 1977; Effective Date: September 2, 1977; Closing Date: September 30, 1983 Cr. No. 728 Assam Agricultural Development Project; US$8.0 million credit of June 30, 1977i Effective Date: September 30, 1977; Closing Date: March 31, 1983 Cr. No. 737 RaJasthan Agricultural Extension and Research Project; US$13.0 million credit of November 14, 1977; Effective Date: February 6, 1978; Closing Date: June 30, 1983 Cr. No. 761 Bihar Agricultural Extension and Research Project; US$8.0 million credit of January 6, 1978; Effective Date: May 2, 1978; Closing Date: October 31, 1983 Cr. No. 862 Composite Agricultural Extension Project, US$25.0 million credit of February 16. 1979; Effective Date: December 14, 1979; Closing Date: December 31, 1984 Cr. No. 1028 Kerala Agricultural Extension Project; US$10 million credit of June 25, 1980; Effective Date: August 18, 1980; Closing Date: June 30, 1986 Cr. No. 1137 Tamil Nadu Agricultural Extension ProJect; US$28 million credit of May 7. 1981; Effective Date: July 22, 1981; Closing Date: June 30, 1987 Cr. No. 1135 Maharashtra Agricultural Extension Project; US$23 million credit of May 7, 1981; Effective Date: July 22, 1981; Closing Date: June 30, 1987 Cr. No. 1138 Second Madhya Pradesh Agricultural Extension Project; US$23 million credit of May 7, 1981; Effective Date: July 22, 1981; Closing Date: June 30, 1987 These eleven credits finance the reorganization and strengthening of agricultural extension services and the development of adaptive research capabilities in twelve States in India. In areas where the reformed exten- sion system is in operation, field results have been very good, both in terms of adoption of new agricultural techniques and of increased crop yields. In Rajasthan, Assam, Madhya Pradesh and Orissa, in particular, significant gains have been made under the projects. In West Bengal, where a change in govern- ment brought a review of the organizational principles underlying the new extension system and an accompanying hiatus in project implementation, a Cabinet decision has reaffirmed the State Government's commitment to the project, revised implementation plans have been prepared, and project activities are resuming. In Bihar, staff shortages, particularly in key  ANNEX II Page 12 of 17 supervisory and managerial posts, are severely hampering project implementa- tion; a review is underway to reassess whether the project can be implemented as intended. In Gujarat, Haryana and Karnataka, all covered under the Com- posite Agricultural Extension Project, field work is off to a good start. In Kerala, project implementation began in three of eleven districts after some initial start-up delays. Early progress on civil works and initiation of the program in the remaining eight districts will be required to regain the initial implementation schedule. In Tamil Nadu and Maharashtra, project implementation is encouraging. Project review missions are helping sustain project momentum. Cr. No. 855 National Agriculture Research Project; US$27.0 million credit of December 7, 1978; Effective Date: January 22, 1979; Closing Date: September 30, 1983 While the initial sanctioning of research subprojects under this project was somewhat slower than expected, due to staff shortages in the Project Unit, the pace has picked up considerably in recent months. Commit- ment of funds to research subprojects is proceeding satisfactorily, although corresponding disbursements may lag somewhat behind the original estimates. Additions to the staff of the Project Unit have been made to expedite further progress under the project. Cr. No. 680 Kerala Agricultural Development Project; US$30.0 million credit of April 1, 1977; Effective Date: June 29, 1977; Closing Date: March 31, 1985 Project implementation started slowly due to initial staffing and funding delays. The project has now gained momentum and the planting opera- tions, which were one season behind original schedule, have been rephased to make up for lost time. Some of the coconut rehabilitation areas are being changed based on the demand of credit from the farmers. Cr. No. 871 National Cooperative Development Corporation (NCDC) Project; US$30.0 million credit of February 2, 1979; Effective Date: May 3, 1979; Closing date: December 31, 1984 Cr. No. 1146 Second National Cooperative Development Corporation (NCDC) Project; US$125 million credit of July 21, 1981; Effective Date: November 11, 1981; Closing Date: June 30, 1987 As of December 1981, when Credit 871 was last reviewed, the construc- tion program has progressed slightly more slowly than anticipated due to shortages in supplies of steel and cement. Disbursements have been progress- ing well and are ahead of the appraisal targets. Credit 1146, which was signed in July 1981, provides credit for the construction of cooperative godowns and cold-storage and marketing facilities to support the pre- and post-harvest supply and marketing requirements in nine States; promote the development of cooperative institutions in these States; and expand coopera- tive subproject preparation and appraisal activities within the cooperative sector. Project implementation has been slower than anticipated, and disbur- sements as of December 1981 are considerably less than projected at  ANNEX II Page 13 of 17 appraisal. NCDC is taking steps to ensure that adequate preparatory work is done in all nine participating States. Cr. No. 844 Railway Modernization and Maintenance Project' US$190.0 million credit of November 13, 1978; Effective Date: J~anuary 10. ,_L97Y Closing Date: December 31, 1984 Credit 844 was designed to help the Indian Railways reduce manufac- turing and maintenance costs of locomotives and rolling stock and to improve their performance and availability. Project implementation is satisfactory. Cr. No. 609 Madhya Pradesh Forestry Technical Assistance Project; US$4.0 million credit of February 26, 1976; Effective Date: May 17, 1976; Closing Date: December 31, 1982 A study financed under this Credit and completed in November 1979 established the technical feasibility of setting up two mills, one for sawnwood and one for pulp, as the basis of the development of a forest-based industry in Bastar district. Further studies are underway to assess the socio-economic impact of such investments. Cr. No. 925 Uttar Pradesh Social Forestry ProJect; US$23.0 million credit of June 21, 1979; Effective Date: January 3, 1980; Closing Date: December 31, 1984 Cr. No. 961 Gujarat Community Forestry Project; US$37 million credit of April 14, 1980; Effective Date: June 24, 1980; Closing Date: December 31, 1985 These projects, designed to expand the social forestry program in Uttar Pradesh and Gujarat, to provide a source of energy to the villages, and to supply raw materials to cottage industries, are proceeding well. The projects provide for large-scale tree plantations on public lands, primarily along roads, rails and canals, on village common lands and on degraded forest reserves. Cr. No. 610 Integrated Cotton Development Project; US$18.0 million credit of February 26, 1976; Effective Date: November 30, 1976; Closing Date: December 31, 1981 The project's progress remained very disappointing in all areas until the 1978 season, resulting in negligible disbursements. Due to renewed interests from GOI and the States, the project has now started to progress well. Short-term credits are increasing significantly, new processing units are being established in Haryana and Maharashtra, and plant protection activities are progressing well. Ln. No. 1273 National Seed Project; US$25.0 million loan of June 10, 1976; Effective Date: October 8, 1976; Closing Date: June 30, 1984 Cr. No. 816 Second National Seed Project; US$16.0 million credit of July 17, 1978; Effective Date: December 20, 1978; Closing Date: December 31, 1984  ANNEX II Page 14 of 17 These projects were designed to increase the availability of high quality agricultural seed, and cover nine States (four by Ln. 1273-IN and five by Cr. 816-IN). Project implementation has been slow because of initial problems in coordination and monitoring particularly at the national level. Although the projects are generally about three years behind appraisal tar- gets, their implementation has gained greater momentum since 1980 and the stage is now set for all infrastructure and investments planned under the projects to be completed by June 1984. Ln. No. 1335 Bombay Urban Transport Project; US$25.0 million loan of December 20, 1976; Effective Date: March 10, 1977; Closing Date: June 30, 1983 Cr. No. 1033 Calcutta Urban Transport Project; US$56 million credit of October 27, 1980; Effective Date: December 18, 1980; Closing Date: December 31, 1984 The bus procurement program supported by the Bombay project (Ln. 1335) has proceeded on schedule, with all 700 bus chassis and bodies financed and delivered in service. Total fleet strength has increased from 1,530 buses at the inception of the project to nearly 2,000 buses, in accord- ance with appraisal estimates. Depot capacity expansion has lagged somewhat behind fleet expansion, but caught up in November 1980. However, delays in construction of new workshop facilities have been more substantial and will not be fully recoverable. As a result, the loan closing date has been extended by three years. Traffic management civil works are also somewhat behind schedule, although now proceeding satisfactorily. Implementation of works under Cr. 1033 is proceeding satisfactorily, a good start having been made on the important early procurement steps. However, financial and managerial performance is lagging behind expectations and must now receive project authorities' full attention if physical and financial performance targets are to be achieved. Cr. No. 1072 Bihar Rural Roads Project; US$35.0 million credit of December 5, 1980; Effective Date: January 15, 1981; Closing Date: June 30, 1986. The first year program of rural road construction is underway. The whole project aims to construct or rehabilitate 700 km of rural roads and to improve maintenance of the rural road network in Bihar as part of the State's overall rural development efforts. Equipment has been ordered and is being delivered. Ln. No. 1394 Gujarat Fisheries Project; US$14.0 million loan and US$4.0 (TW) and million credit of April 22, 1977; Effective date: July 19, 1977; Cr. No. 695 Closing Date: June 30, 1983 Cr. No. 815 Andhra Pradesh Fisheries Project; US$17.5 million credit of June 19, 1978; Effective Date: October 31, 1978; Closing Date: September 30, 1984  ANNEX II Page 15 of 17 As of July 1981 when the first of these projects was last reviewed, the harbor construction works at Mangrol and Veraval in Gujarat had encountered delays, although the problem with shortages of cement supplies had been overcome. In Andhra Pradesh, the harbor works at Visakhapatnam, Kakinada and Nizampatnam are progressing satisfactorily following the resolu- tion of design problems. The road component is also progressing satisfac- torily. Cr. No. 963 Inland Fisheries ProJect; US$20 million credit of January 18, 1980; Effective Date: May 5, 1980; Closing Date: September 30, 1985 This project, which is the first of its kind in India, is designed to increase carp production in five states--West Bengal, Bihar, Orissa, Madhya Pradesh, and Uttar Pradesh--through the construction of hatcheries, improvements to fish ponds, strengthening of extension services, and the establishment of training centers. The project became effective in May 1980. The initial implementation tasks, primarily involving the establishment of State Fish Seed Development Corporations and Central and State project monitoring units, are progressing satisfactorily. However, hatchery planning has been delayed as a result of a delay in the establishment of the engineer- ing cell within the Central Project Unit. Cr. No. 685 Singrauli Thermal Power Project; US$150.0 million credit of April 1, 1977; Effective Date: June 28, 1977; Closing Date: December 31, 1983 Cr. No. 793 Korba Thermal Power Project; US$200.0 million credit of May 12, 1978; Effective Date: August 14, 1978; Closing Date: March 31, 1985 Ln. No. 1549 Third Trombay Thermal Power Project; US$105.0 million loan of June 19, 1978; Effective Date: February 8, 1979; Closing Date: March 31, 1984 Ln. No. 1648 Ramagundam Thermal Power Project; US$50.0 million loan and and Cr. 874 US$200 million credit of February 2, 1979; Effective Date: May 22, 1979; Closing Date: December 31, 1985 Cr. No. 604 Power Transmission IV Project; US$150 million credit of January 22, 1976; Effective Date: October 22, 1976; Closing Date: December 31, 1982 Cr. No. 1027 Second Singrauli Thermal Power Projt; US$300 million credit of June 5, 1980; Effective Date: July 30, 1980; Closing Date: March 31, 1988 Ln. No. 1887 Farakka Thermal Power Project; US$25 million loan and and US$225 million credit of July 11, 1980; Effective Date: Cr. No. 1053 December 10, 1980; Closing Date: March 31, 1987  ANNEX II Page 16 of 17 Ln. No. 2076 Second Ramagundam Thermal Power Project; US$300 million loan of January 6, 1982; Effective Date (expected): April 6, 1982; Closing Date: June 30, 1988 Credits 685 and 1027 assist in financing the 2,000 MW Singrauli development, which is the first of four power stations in the Government's program for the development of large central thermal power stations feeding power into an interconnected grid. Credit 793 supports the construction of the first three 200 MW generating units at the second such station, at Korba, together with related facilities and associated transmission. Loan 1648/ Credit 874 support similar investments at Ramagundam, and Loan 1887/ Credit 1053, at Farakka. Loan 2076 supports the development of the second stage of the Ramagundam plant, involving the construction of three 500 MW generating units. The National Thermal Power Corporation (NTPC) has been carrying out construction and operation of these power stations. Loan 1549 is supporting the construction of a 500 MW extension of the Tata Electric Companies' station at Trombay, in order to help meet the forecast load growth in the Bombay area. All these large-scale thermal power projects are progressing satisfactorily. For Singrauli and Korba, construction works are on or ahead of schedule, although some slippage has occurred in the implemen- tation schedule for the Ramagundam project. Cr. No. 911 Rural Electrification Corporation II Project; US$175.0 million credit of June 21, 1979; Effective Date: October 17, 1979; Closing Date: March 31, 1984 The project is progressing satisfactorily. Ln. No. 1925 Second Bombay High Offshore Development Project; US$400.0 million loan of December 11, 1980; Effective Date: February 24, 1981 Closing Date: March 31, 1984 The project is progressing satisfactorily. Cr. No. 981 Second Population Project; US$46 million credit of April 14, 180; Effective Date: June 26, 1980; Closing Date: December 31, 1985 The project has as its major objectives the lowering of infant and child mortality and morbidity, the improvement in the health status of mothers and children and the lowering of fertility. Implementation proceed- ing satisfactorily in both project States--Andhra Pradesh and Uttar Pradesh--in all major components except construction activities which remain about 18 months behind appraisal targets. Cr. No. 1012 Cashewnut Project; US$22 million credit of June 10, 1980; Effective Date: September 3, 1980; Closing Date: September 30, 1985 This project is designed to expand cashewnut production in the States of Kerala, Karnataka, Andhra Pradesh and Orissa. The progress in cashew plantations as well as other components is satisfactory.  ANNEX II Page 17 of 17 Cr. No. 1003 Tamil Nadu Nutrition ProJect; US$32 million credit of May 12, 1980; Effective Date: August 5, 1980; Closing Date: March 31, 1987 First year's implementation in one test block is proceeding according to schedule. Cr. No. 1004 Uttar Pradesh Public Tubewells Project; US$18 million credit of May 12, 1980; Effective Date: June 27, 1980; Closing Date: March 31, 1983 Initial procurement delays having now been overcome, implementation is proceeding satisfactorily on this project. However, project completion will likely be delayed by approximately six months due to the initial delays. Ln. No. 1897 Kandi Watershed and Area Development Project; US$30.0 million loa-n of September 12, 1980 Effective Date: November 18. 1980; Closing Date: March 31, 1986. Contract for the construction of Dholbaha dam has been awarded, and consultants are preparing feasibility reports of other watershed schemes. Progress in other components are satisfactory. Cr. No. 1034 Karnataka Sericulture Project; US$54 million credit of October 27, 1980; Effective Date: December 18, 1980 Closing Date: December 31, 1985 Overall progress in project implementation is satisfactory. Minor start up delays in staffing are being corrected. Cr. No. 1116 Karnataka Tank Irrigation Project; US$54 million credit of March 26, 1981; Effective Date: May 5, 1981; Closing Date: March 31, 1986 The project is designed to finance the construction, over a four-year period, of about 160 tank irrigation schemes throughout the State of Kar- nataka. Start-up activities have commenced. Ln. No. 2050 Tamil Nadu Newsprint Project; US$100 million loan of September 23, 1981; Effective Date: March 22, 1982; Closing Date: August 31, 1985 Loan not yet effective. Tendering for major equipment is underway.  ANNEX III page 1 of 2 INDIA ANDHRA PRADESH AGRICULTURAL EXTENSION PROJECT SUPPLEMENTARY PROJECT DATA SHEET Section I: Timetable of Key Events (a) Time taken by the country to prepare the project About six months. (b) The agency which has prepared the project The Government of Andhra Pradesh assisted by Bank Group staff. (c) Date of first presentation to the Association and date of first mission to consider the project January 1981. (d) Date of departure of appraisal mission May 1981. (e) Date of completion of negotiations March 1, 1982. (f) Planned date of effectiveness May 15, 1982. Section II: Special IDA Implementation Actions None. Section III: Special Conditions (a) GOAP to fill staff positions in accordance with an agreed schedule (para 41). (b) GOAP to transfer cashewnut extension to the new extension service while maintaining other special services to cashew growers (para 49).  ANNEX III page 2 of 2 (c) GOAP to ensure that agreed extension staff positions would be retained and utilized only for extension throughout the project period, and to ensure that the emoluments and housing benefits of extension staff would not be adversely affected by reason of the reorganization (para 50(a)). (d) GOAP to ensure that loans and travel allowances are sufficient to encourage the purchase and use of transport (para 50(d)). (e) GOAP to set up Project Coordination Committee by September 30, 1982, this committee to meet at least twice annually thereafter (para 52).  | w ) at.oov ~~~~~AOO ANDHRA PRADESH AGRICULTU RAL EXTENSION PROJEC --- Al #'2 AIA3D -JAGRICULTURAL RESEARCH FACILITIES AND TRAINING CENTERSV-+ i,~~~~~~/ KARMNGA ~~ } HY D E R~~~~N AMAB AD / NA LGO ND A0 (f SODVRIKAKU t S X^s~~~~~~~~~~~~~~~~-A 0 0 c, 'o 0 0 s@> '!r$ s~~~~~~~~~~~~A VIAHPTA ISKURNO- RKSA tMx iho J t OCI .Cnt Z < / < t . o f . DierrieA. .,pet 000s = S- =/ -tx <- 1_ J ~ _ : -*6-SIKHAMMAM EASs ] > < 0 ttL ............. , < IAII6I, | 0 \ /A,S..d, P., 77- t 78- 79- ot 80- 1 8}- 82' 1y3- '. . <1 64~~~~~Dve* wt d DmwwtimF.