Document of The World Bank FiLE CoRY FOR OFFICIAL USiE ONLY . C Report No. P-3458-IN REPORT AND RECOMMENDATION OF THE PRESIDENT OF THE INTERNATIONAL DEVELOPM4ENT ASSOCIATION TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT IN AN AMOUNT OF SDR 91.6 MILLION (]EQUIVALENT TO US$101 MILLION) TO INDIA FOR THE SECOND UTTAR PRADESH PUBLIC TUBEWELLS PROJECT February 15, 1983 This document has a restricted distribution and may be ased 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 February 7, 1983) US$1 = Rs 9.971041 Rs 1 = US$0.100290 Rs 1 million = US$100,290 The US Dollar/Rupee exchange rate is subject to change. Conversions in the Staff Appraisal Report were made at US$1.00 = Rs 9.5, which represents the average exchange rate projected over the disbursement period. FISCAL YEAR April 1 - March 31 Abbreviations and Acronyms used in this Report ARDC - Agricultural Refinance and Development Corporation GOI - Government of India GOUP - Government of Uttar Pradesh O&M - Operations and Maintenance PVC - Polyvinylchloride UPSEB - Uttar Pradesh State Electricity Board FOR OFFICIAL USE ONLY INDIA SECOND UTTAR PRADESH PUBLIC TUBEWELLS PROJECT CREDIT AND PROJECT SUMMARY Borrower: India, acting by its President (GOI). Beneficiaries: State of Uttar Pradesh Government of India and various States of India Amount: SDR 91.6 million (US$101 million equivalent). Terms: Standard. Re-Lending Terms: From GOI to lJttar Pradesh and other States as part of Central assistance to States for development projects on terms and conditions applicable a: the time. GOI would bear the foreign exchange risk. Project Description: The project would seek to raise agricultural production aad farm income in the State of Uttar Pradesl through the construction and upgrading of public tubewell irrigation systems. It would support: (i) the construction of 2,200 new tubewell systems, built to an improved design tested under the Uttar Pradesh Public Tubewells Project (Credit 1004-IN); (ii) the upgrading of 750 existing tubewell irrigation systems built to traditional design standards; (iii) agricultural support services to farmers in command areas of project wells; (iv) a research and development program to test further potential advances in tubewell technology; (v) training of irrigation and agriculture staff; and (vi) project monitoring and evaluation. The Credit would also provide funds for the preparation of future irrigation projects in India. The chief potential risks for the pro;ject relate to the adequacy of rural power supply and the prospects for full realization of the agricultural potential of project areas. This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization. ( ii) Estimated Cost: 1/ (US$ Millions) Item Local Foreign Total Land Acquisition 1.3 - 1.3 New Tubewell Systems 103.0 7.3 110.3 Upgrading of Existing Systems 5.9 0.4 6.3 Research and Development 0.8 0.1 0.9 Agricultural Development 6.1 - 6.1 Traininrg 0.1 0.1 0.2 Monitoring and Evaluation 0.1 - 0.1 O&M Equipment 0.4 0.1 0.5 Buildings (Irrigation Department) 3.4 - 3.4 Administration and Engineering 7.1 _ 7.1 Base Cost 128.2 8.0 136.2 Physical Contingencies 6.3 0.4 6.7 Price Contingencies 37.0 2.3 39.3 Total Cost of Uttar Pradesh Project 171.5 10.7 182.2 Preparation of Future Irrigation Projects 9.4 0.6 10.0 Total Financing Requirement 180.9 11.3 192.2 (US$ Millions) Financing Plan: Local Foreign Total IDA 89.7 11.3 101.0 GOUP/GOI 91.2 _ 91.2 Total 180.9 11.3 192.2 Estimated Disbursements: (US$ Millions) FY84 FY85 FY86 FY87 Annual 27.0 30.0 27.0 17.0 Cumulative 27.0 57.0 84.0 101.0 Rate of Return: About 30%. Appraisal Report: No. 4167-IN, dated February 8, 1983. 1/ Net of taxes and duties, with the exception of a few items on which taxes and duties are insignificant. INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT REPORT AND RECOMMENDATION OF THE PRESIDENT TO THE EXECUTIVE DIRECTORS ON A PROPOSED CREDIT IN AN AMOUNT OF SDR 91.6 MILLION (EQUIVALENT TO US*101 MILLION) TO INDIA FOR THE SECOND UTTAR PRADESH PUBLIC TUBEWELLS PROJECT 1. I submit the following report and recommendation on a proposed develop- ment credit to India of SDR 91.6 million (US$101 million equivalent) on stand- ard IDA terms to help finance the construction or upgrading of about 3,000 public tubewells for irrigation in the State of Uttar Pradesh, as well as the preparation of future irrigation projects in India. Of the proceeds of the Credit, US$91 million equivalent would be channelled to the Government of Uttar Pradesh in accordance with the Government of India's standard terms and- arran- gements for financing State development projects. In addition, a portion of the US$10 million equivalent provided for irrigation project preparation would be channelled to State Governments on the same terms. The exchange risk would be borne by the Government of India. PART I - THE ECCONOMY 1/ 2. An economic report, "Economic Situation and Prospects of India" (3872-IN, dated April 7, 1982), was distributed to the Executive Directors on April 19, 1982. Country data sheets are att:ached as Annex I. Background 3. India- is a large and diverse country with a population of about 700 mil- lion (in mid-1982) and an annual per capita income of US$240. Economic growth has been slow in the past, averaging about 3.6% per annum over the past 30 years. The economy is dominated by agriculture which employs more than two-thirds of the labor force. However, the land base is not sufficient to provide an adequate livelihood to everyone engaged in agricultural activities, especially those with little or no land. Consequently the latter have only an insecure grasp on the means of existence. Growth of value-added in agricul- ture -- 2.3% per annum over the past 30 yea:rs -- has been slower than growth of industrial value-added (5.0% per annum). As a result, there has been a gradual decline in the share of agriculture in GDP (at factor cost measured in 1970/71 prices) from 60% to about 40%, while the share of industry rose from 15% to around 24%. But industrialization has not been rapid enough to absorb the growing labor force, or to bring about a rapid economic transformation, with significantly higher productivity and income levels. 1/ Parts I and II of the report are substantially the same as Parts I and II of the President's Report for the South Bassein Gas Development Project (No. P-3457-IN), dated February 2, 1983. -2- 4. Nevertheless, there has been steady progress on several fronts. In the face of a large and rapidly growing population, India has been able to increase agricultural output faster than total population while eliminating persistent dependence on foodgrain imports. Savings and investment have increased markedly since 1950/51: gross domestic savings more than doubled from 10.8% of GDP (at factor cost) to 24.8%, while gross domestic investment rose from 12.5% of GDP :o 26.2%. Foreign savings (balance of payments deficit on current account) have never financed a major portion of domestic investment: a peak of about 20% was reached during the early 1960s; for a few years in the late 1970s, surpluses arose, and at the present time, foreign savings are about 10% of investment. External 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, ancl was less than 1% at the end of the 1970s. 5. Before the 1970s, India placed relatively less emphasis on export promotion and more on import substitution. The volume growth of exports between 1950/51 and 1979/80 averaged only 3.5% per annum, only marginally higher than the volume growth of imports over the same period. In the early to mid-1970s, 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. As a result, the volume of India's exports grew on average about 7.6% per annum for the 1970s as a whole, a performance which demonstrates that sustained rapid growth is pos- sible. 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. 6. Moving into the second half of the 1970s, the Indian economy was buoyed by relatively rapid export growth and an expanding level of foodgrain output, which culminated in a record 132 million tons of foodgrain production in 1978/79. As a result, growth in real GDP, agricultural and industrial value-added, substantially exceeded the historical 30-year trends (paragraph 3). In 1979/80, however, this momentum was broken when the worst drought in recent years, combined with a doubling of international oil prices and domestic supply shortages, led to a sharp fall in foodgrain production, a decline in GDP, and the opening up of a large trade deficit. Severe inflation- ary pressures also emerged after several years of virtual price stability. The impact of these setbacks is still being felt in the Indian economy, par- ticularly in the balance of payments, and adjustments will be needed for some years to come. However, the short-term recovery process is almost completed and the economy has regained its growth momentum. Recent Trends 7. In 1980/81, the economy substantially recovered with real GDP growing by 7.5%. While industrial output expanded by 4%, recovery was particularly robust in agriculture where normal weather helped output to rise by more than 15%. Increased foodgrain production, along with judicious use of Government buffer stocks built up in earlier years, also helped moderate price rises. Inflation remained a serious problem with the annual average wholesale price index rising 18%, although the second half of the year provided clear evidence of a deceleration in inflation. -3- 8. 1981/82 was a year of solid growth after the rebound in 1980/81 and GDP grew by 5.5%. While foodgrain production rose only modestly over its 1980/81 level, other crops including oilseeds and sugarcane performed well and total agricultural output grew by 4%. The availability of power, coal and rail transport, already improved in 1980/81, was even better in 1981/82, recording growth rates of about 10%, 9.4% and 15% respectively. As constraints on the supply of infrastructure and basic commodities continued to ease, industrial output responded with an 8% increase. The downward trend in inflation con- tinued. Wholesale prices rose by about 9% on an average annual basis, while the increase on a March 1981 to March 1982 basis was less than 2%, showing a continued deceleration. Easier supply conditions, combined with a more restrictive monetary policy, contributed to the sharp decline in the rate of inflation. 9. The performance of the agriculture sector in 1981/82 ensured that supply conditions in the country remained quite favorable. It also provided continuing evidence of the positive effects of large investments and appropriate policies in past years. Foodgrain production reached between 132 and 134 million tons, thus matching or perhaps surpassing the previous record. Irrigated area expanded by 2.5 million hectares, while fertilizer consumption improved over its 1980/81 level by more than 7%, despite substantial price increases. Recent performance and probable future trends suggest that on average foodgrain supplies will exceed demand. However, the balance remains delicate with some imports likely to be required from time to time. Indeed, the effects of the severe 1979/80 drought were still being felt in 1981/82 when 2.25 million tons of wheat were imported to rebuild depleted stocks. Neverthe- less, the relatively low import requirement, the ability of the Government to delay imports for as long as two years after the production shortfall, and the decline in foodgrain prices in real terms demonstrate the flexibility and resilience provided by the public foodgrain system. 10. Shortages of basic commodities and infrastructural services were major contributors to industrial stagnation and tae onset of high inflation in 1979/80. This was the culmination of several years of declining capacity utilization in important, interrelated sectars such as power, coal, and rail transport. A major cause of the improved economic climate over the last two years has been a much improved level of output in these sectors, due mainly to greater efficiency and utilization of installed capacity. Expansion of coal output by about 10 million tons for the second successive year and of rail freight traffic to a record level were particularly noteworthy features of the 1981/82 economic performance. The shortfalls in domestic energy production which contributed so heavily to the poor 1979/80 performance have also been reduced. However, even though there remains large scope for improving efficiency, further improvements in capacity utilization will become increas- ingly difficult, and increases in capacity are needed to meet increasing demand. II. Despite a brief phase in the late 1970s, when savings rates exceeded investment rates and foreign exchange reserves actually increased, recent experience shows that the needs of the Indian economy continue to outstrip the availability of resources, both internal and external. Investment exceeds -4- domestic savings. The latter, at nearly 25% of GDP, are already high and further increases, particularly from the household sector, will be increasingly difficult to obtain. However, over the last two years, the Government has taken a number of measures to generate higher savings in the public sector. Principal among these were price and tax increases, and subsidy reductions, on a range of corrmodities produced mainly in the public sector. 12. The shortage of resources is even more apparent in the foreign sector. Problems became serious after 1979/80 when the cost of India's POL imports rose sharply and the terms of trade deteriorated. Coupled with domestic supply shortages and a slowing down in export growth, these factors caused India's current account deficit to rise from only 0.6% of GDP in 1979/80 to 2% of GDP in 1980/81. In 1981/82, the current account deficit rose to US$4.3 billion, representing 2.7% of GDP. Unfavorable movements in export prices and the terms of trade threatened a worse outcome. However, the much improved performance of basic import-substituting industries and a resumption of healthy export volume growth (8.3%) prevented this. To finance this gap in the face of inadequate concessional aid flows, the Government drew down a record US$2.36 billion in foreign exchange reserves, withdrew almost US$700 million under the recently negotiated IMF Extended Fund Facility, and turned increasingly to other non-concessional sources of finance. In 1980/81 and 1981/82 for example, new government guaranteed commitments for commercial borrowing totalling over US$1.3 billion were contracted for major projects. 13. 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 reasonable balance at an acceptable level of growth. In particular, there is a 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 further 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 maintained and extended 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 and industrial policy measures have improved ithe prospects for accelerating export growth. Development Prospects 14. 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, power, roads and ports -- is exten- sive compared to many countries, although there is considerable need for addi- tional capacity as well as improvement in the utilization of existing capacity. India is also well-endowed with human resources and with institutional -5- 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 reasonable access to foreign savings, India has the capability for managing these considerable resources to accelerate its long-term growth. 15. The medium-term framework for advancing India's development objectives is the Sixth Five Year Plan (1980/81-1984/8'i), which is now about halfway completed. The Plan assigns priority to agriculture, energy development, the growth of exports and domestic import substitutes where appropriate, and the removal of infrastructural bottlenecks. Overall performance has so far been encouraging, although the likelihood of con:inued bottlenecks in key sectors such as power and transport is growing. Moreover, fulfillment of the Plan targets will require an acceleration of domestic savings rates. The efforts of the Central Government to raise resources have so far been impressive and are likely to be broadly sufficient to meet the financing requirements of the Central Government's share in plan investment, if inflation can be kept in check. However, a significant shortfall in savings is likely to occur in some states unless further measures are introduced. There will be a need also for continuous efforts to maintain and raise further the already high level of private savings. Recent increases in interest rates and tax concessions on time deposits should stimulate such savings. The further dampening of infla- tionary expectations, the prospects for which look bright, will be an important part of this effort. 16. The higher capital formation rates of the past few years augur well for future income growth. Thus far, however, output growth has not matched the size of India's investment programs. Much of this phenomenon relates to India's stage of development, in which a large and growing proportion of investment has been needed to build up basic infrastructure. These services, such as power, transport and irrigation, have inherently high capital output ratios. However, at least some of the rise in the sectoral capital output ratios has been due to a deterioration in efficiency and is avoidable through better management. Bottlenecks in these basic sectors clearly can prejudice growth in other sectors where large investments have been made. As demon- strated in the last two years, performance in the basic service sectors can be improved through better planning and management, thus leading to higher produc- tivity and capacity utilization, throughout the economy. At the same time, programs to expand domestic capacity are vital. In the case of tradeable commodities like coal, steel and cement, this is justified on the grounds of comparative advantage. For sectors such as power and transportation, expansion of planned capacity in accordance with the requirements of the rest of the economy will be vital to overall medium- arLd long-term prospects. At present rates of development, however, an adequate balance between supply and demand in these sectors will be difficult to sustain. Performance in the power sector to date suggests that India's power deficit will continue into the early 1990s, although more rapid project implementation and efficiency could narrow the size of the gap. For railways, real investment levels may be inadequate to meet demand projections and will need to be mon:Ltored closely and adjusted upward as necessary if serious bottlenecks are to be avoided in the next few years. -6- 17. UJnder the Sixth Plan, India has an ambitious energy production program backed by substantial financial commitment. While the gap between domestic consumption of petroleum and production remains large, the prospects for progressive substitution of domestic petroleum for imports are quite bright. In 1981, resources for exploration were raised by successive price increases for petroleum products. On the production side, scheduled expansion is expected to raise domestic production of crude from the current 46% to about 64% of demand by 1984/85. The rapidly expanding level of exploratory activity, combined with the possibilities for accelerated offtake from known fields offer much encouragement for India's longer term energy prospects. 18. I'he continuation of India's balance of payments difficulties has been marked by the progressive use of foreign exchange reserves and non-concessional borrowing, to finance the deficit. Use of reserves reached a record level in 1981/82, leaving less than four months of import coverage by the end of the year. At the same time, India also made use of the IMF Extended Fund Facility. Entering this period with a favorable debt service profile, India has so far also been able to tap commercial capital markets at favorable spreads (over, of course, relatively high underlying rates) and in the last two years commercial borrowing has been stepped up. These sources will be important in the future since India's current account deficits, though not large relative to the size of the economy, will nevertheless be large in absolute terms and will neces- sitate external borrowing beyond levels expected to be available from normal concessional sources. 19. India's development prospects over the next few years will hinge on the extent to which the economy can be brought into both internal and external balance, while at the same time maintaining reasonably high growth. In the longer term, income growth represents the best strategy for achieving these needed adjustments, both by generating higher savings for further investment, and by fostering the development of export and import-substituting industry to realign the balance of payments. In the short-term, significant external borrowing, including an increased emphasis on commercial borrowing, will be necessary to cope with the balance of payments consequences of such a growth strategy. However, an important element in providing India with the capacity to adjust flexibly will be adequate flows of concessional assistance. Although India is currently in a position to increase borrowing on commercial terms from the very low levels of the past, there are limits to India's creditworthiness in world markets. Maintaining an adequate rate of growth while adjusting the structure of the Indian economy to a more open and efficient environment as intended by the Government requires foreign resources in addition to the level of commercial borrowing available to India. Indeed, along with increasing exports, higher levels of investment to support an adequate rate of growth is a key eleme:at in maintaining India's recently improved creditworthiness. India is still a very poor country with a large rural sector and enormous investment requiremenlts for human development and basic infrastructure. The fact that India has been able to maintain over the past seven years a rate of growth above the long term trend, despite the severe setbacks of 1979/80, lends sub- stance to the hope that a more open trade policy and concerted efforts to -7- remove constraints on the growth of productive capacity, supported by adequate mobilization of savings both foreign and domestic, can sustain a rate of growth closer to 5.0% per annum than the long run t:rend of 3.6% per annum. Combined with a reduction in the rate of population increase to below 2.0% per annum, a 5.0% growth rate would mean a doubling of the trend rate of growth of per capita income of less than 1.4% per annum. Success in these efforts would make a significant difference to the prospects oi- easing poverty in India. 20. A large and growing population and Severe poverty underline the need for India's development efforts to be protected and accelerated if possible. The 1981 Census placed India's population al 683.4 million, or about 12 million higher than official projections. The fact that there was no decline in inter-census rates of population growth, equivalent to about 2.2% per annum, is a cause for concern. While further analysis may suggest this rate of growth to be slightly overestimated, the expectation of a measurable decline in the population growth rate has not materialized. Until full details of the Census are released, firm judgements about the reasons for this outcome are not pos- sible. However, the results re-emphasize the need for continuing efforts to strengthen the family planning program in a broad range of activities and services. These efforts are given high priority in the Sixth Plan which aims at a rise in the proportion of protected couples in the reproductive age group from its estimated 1979/80 level of about 23% to over 35% by 1984/85. 21. 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 popula- tion subsist below the poverty line. Improvements in the living standards of the poor will depend to a large extent on the overall growth of the economy, particularly on 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 1981 resulting from India's sustained effort to raise agricultural production, reflects such developments. There is also a role for direct Government action in faster implementation 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 living standards. Many of the latl:er 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 educa- tion, the extension of rural health facili:ies and the provision of secure village water supplies. Operations such as the community health volunteer program and the national adult literacy campaign provide encouraging evidence that well-targetted, relatively low-cost programs can lead to enhanced prospects for India's poor. -8- PART II - BANK GROUP OPERATIONS IN INDIA 22. Since 1949, the Bank Group has made 68 loans and 153 development credits to India totalling US$4,095 million and US$10,956 million (both net of cancellation), respectively. Of these amounts, US$1,280 million has been repaid, and US$5,291 million was still undisbursed as of September 30, 1982. Bank Group disbursements to India in the current fiscal year through Septem- ber 30, 1982 totalled US$287 million, representing an increase of about 76 percent over the same period last year. Annex II contains a summary statement of disbursements as of September 30, 1982, and notes on the execution of ongo- ing projects. 23. Since 1959, IFC has made 28 commitments in India totalling US$219.6 million, of which US$26.4 million has been repaid, US$55.6 million sold and US$7.5 million cancelled. Of the balance of US$130.1 million, US$121.9 million represents loans and US$8.2 million equity. A summary statement of IFC opera- tions as of September 30, 1982, is also included in Annex II (page 5). 24. The thrust of Bank Group assistance to India has been consistent with the country's development objectives in its support of agriculture, energy and infrastructure. Of particular importance have been investments in irrigation, extension and on-farm development designed to increase agricultural produc- tivity, and efforts to improve the availability of basic agricultural inputs to farmers through credit, fertilizer, marketing, storage, and seed projects. Major elements of the lending program have also been directed at helping to meet the energy needs of the economy while curbing the growth of oil imports, and to ease the infrastructure bottlenecks which have hampered economic growth in India, particularly through power generation and distribution, and railways and telecommunications projects. The Bank Group has also provided financing for a broad range of medium- and small-scale industrial enterprises, primarily in the private sector, through its support of development finance institutions. Recognizing the importance of improving the ability to satisfy the essential needs of urban and rural populations, the Bank Group has supported nutrition and family planning programs, a rural roads project, as well as water supply and sewerage and other urban infrastructure projects. 25. This pattern of assistance remains highly relevant, and consonant with Government priorities, as reflected in the Sixth Plan. The continued active involvement of the Bank Group in agriculture, energy and infrastructure development will appropriately contribute to India's adjustment and growth prospects. Irrigation will need continuing support, with emphasis on improved efficiency in water conveyance systems to ensure reliable delivery to farmers' fields. In addition, major investments to develop the large Narmada River basin will be vital to India's efforts to increase agricultural production. Important complements to these efforts, such as fertilizer production and distribution, agricultural credit and extension, will continue to receive support. A continued program of investments aimed at rapidly increasing the domestic supply of energy will clearly be necessary if India is to curb the cost of oil imports and alleviate the critical power shortages which constrain output in both the agricultural and industrial sectors. Exploitation of oil -9- and gas resources is a central element of this program, which should be supple- mented by investments in hydro and thermal power generation, and in the expan- sion of the transmission and distribution networks. Industrial projects to increase the domestic production of basic ccmmodities, which have been in short supply and which India has a comparative advantage in producing, should also receive high priority. Finally, raising the efficiency and levels of transpor- tation infrastructure would mitigate a key constraint to achieving higher levels of economic growth so that further support of the railways and for ports development will be particularly appropriate. 26. 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 financing of local expenditures. India imports relatively few capital goods because of the capacity and competitiveness of the domestic capital goods industry. Conse- quently, the foreign exchange component tends to be small in most projects. This is particularly the case in such high-l?riority sectors as agriculture, irrigation, and water supply. 27. 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. This requirement for additional assistance can be met, in part, through Bank lending. Given its development prospects and policies, India is judged credit-worthy for Bank lending to supplement IDA assistance. A con- tinuation of efforts already underway to achieve growth in productive capacity, trade expansion, higher levels of savings, foodgrains self-sufficiency and a reduction in the rate of population growth should result in continued economic growth and improvement in the balance of payments. Despite recent setbacks, India's external payments position is still manageable. The ratio of India's debt service to the level of exports was about 11% in 1981/82 and is projected to remain below 20% through 1995/96. As of September 30, 1982, outstanding loans to India held by the Bank totalled US$2,922 million, of which US$1,308 million remain to be disbursed, leaving a net amount outstanding of US$1,614 million. 28. 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 54%, 42% and 52%, respectively, in 1981/82. On December 31, 1981, India's outstanding and disbursed external public debt was about US$17.4 billion, of which the Bank Group's share was US$6.6 billion or 38% (IDA's US$5.6 billion and IBRD's US!J1.0 billion). In 1981/82, about 16.0% of India's total debt service paymencs were to the Bank Group. -10- PART III - AGRICULTURE AND IRRIGATION IN UTTAR PRADESH -~~~~~~~~~~~~~~~~~~ 29. The State of Uttar Pradesh covers an area of 298,000 km2 in north- eastern India and has a population (1981) of approximately 110 million, 16% of the total population of India. Supported by a primarily agrarian economy, with agriculture contributing 56% of the State's income and employing 78% of the work force, Uttar Pradesh had a per capita income in 1979/80 of Rs 981 (approximately US$120), considerably below the national average of Rs 1,267. Taking a somewhat longer perspective, average per capita income in Uttar Pradesh during the period 1970/71-1976/77 was Rs 648, relative to a national average of Rs 856, placing Uttar Pradesh among the poorest of India's States, ranking above only Orissa and Bihar in terms of per capita income. Between 1970/71 and 1979/80, the State's real per capita income declined by an average of 1.1% per annum, relative to a 1.6% annual increase in real per capita income for the nation as a whole. 30. By most traditional indicators, Uttar Pradesh is one of the least advanced States in India. The literacy rate, at 27.4%, is significantly below the national average of 36%. The infant mortality rate, at 128/1000 live births, is the highest among the sixteen major States and the average life expectancy (43 years in 1971) one of the lowest in the country. Similarly, per capita government expenditure on health in Uttar Pradesh is among the lowest in India, as is the number of doctors and hospital beds per 1,000 population. A large State with a population which exceeds that of most developing countries, Uttar Pradesh clearly faces serious development problems. The Agricultural Sector in Uttar Pradesh 31. The State divides naturally into three physical zones: the Himalayas, the Gangetic Plain and the Central Indian Plateau. The Himalayan region, in the north, is of rugged topography, relatively sparsely populated and largely unsuitable for agriculture. The Gangetic Plain crosses the State from north to southeast and is the most heavily populated and cultivated area of Uttar Pradesh. The southern edge of the State rises onto the Central Indian Plateau, only a portion of which is suitable for cultivation. 32. About 17 million ha of land are under cultivation in Uttar Pradesh, most of this in the Gangetic Plain. Net cultivated area has remained stag- nant in the State since 1960/61, and there is little scope for increasing it in the future. The average farm size in the State is 1.2 ha, although more than two-thirds of all farm holdings are under one hectare in area, and half of all holdings are less than 0.5 ha. Farm holdings are particularly small in the eastern region, where rainfall is relatively high and population dense, with larger holdings prevalent in the Himalayan area and the Central Indian Plateau, where the terrain is rough and the soil infertile. The climate and soils in the State are suitable for growing paddy, maize, bajra, and sorghum in the kharif (summer, rainy) season and wheat and barley in the rabi (winter, dry) season. Approximately 67% of the State's cropped area is -1 1- planted to cereal crops, 11% to pulses, and 22% to non-foodgrain crops, principally oilseeds and sugarcane. 33. Performance in the agricultural sector in Uttar Pradesh in the years since Independence (1948) has been mixed at best. Production of foodgrains grew at an average annual rate of approximately 2% between 1950/51 and 1977/78, barely keeping pace with population growth. Despite this discourag- ing performance in overall foodgrain production, production trends for cer- tain individual crops have been somewhat more encouraging. Increases in cropped area and yields in the 1950s led to rates of growth for rice and wheat production of 5.2% and 4.8% per annum, respectively. While rice production stagnated in the 1960s, wheat production grew at a rate of 9.9% per annum and maize production at a rate oi- 9.7% per annum, due largely to the introduction of improved varieties and the accelerated development of private tubewells during this period. Although the growth in wheat produc- tion slowed to 4.1% per annum in the 1970s, rice production picked up again, growing at an annual rate of 4.7% between :971/72 and 1977/78. Unfor- tunately, however, the rising trends in rice and wheat production have been to a large extent offset by declining production in other major cereal crops, which together with pulses account for about 60% of total foodgrain production. Irrigation in Uttar Pradesh 34. Surface Water Resources and Utiliz-ation. Uttar Pradesh lies within the catchment areas of four major tributaries of the Ganges River system. The rivers within the Gangetic Plain are fed by a combination of run-off from snow-melt in the Himalayas, monsoon run-off, and groundwater drainage, ensur- ing perennial flow in the main river courses, although not in all tributaries. Although no thorough survey has been undertaken, it is estimated that the total amount of surface water available in the Ganges basin is approximately 510,000 Mm per annum. Approximately 70% of the flow passes through Uttar Pradesh. 35. Surface water irrigation in Uttar Pradesh is provided largely through seven major canal systems fed by water diverted from tributaries of the Ganges. Together these systems serve more than four-fifths of the total area irrigated by surface water. They are supplemented by numerous minor canal systems, tanks, and pump lift irrigation from rivers and lakes. In 1977/78, the gross surface irrigation capacity in the State stood at 6.2 million ha, 50% of the total surface irrigation potential of 12.4 million ha. 36. Groundwater Resources and Utilization. The Gangetic Plan is under- lain by a highly productive aquifer systenL formed of alluvial deposits. The State Groundwater Directorate in Uttar Pradesh has conservatively estimated the net recoverable groundwater resources available to the State at 58,000 Mm in the average year. Total groun3dwater extraction through public and private wells was estimated at 23,000 Mm in 1980/81, or about 40% of net recoverable groundwater resources. 37. In 1979/80, groundwater irrigation served 5.7 million ha in the State. Eighty-four percent of this area was served by tubewells (public and private) and the remaining 16% by private dugwells. Much of the groundwater -12- in the State has been privately developed. At present, there are about 1.2 million private tubewells in the State, serving 84% of the area irrigated by tubewells, and about 18,000 public tubewells, serving the remaining 16% of tube!well-irrigated cropland. Private dugwell and tubewell development, then, accounts for over 86% of the area currently irrigated by groundwater in Uttar Pradesh. 38. Trends in Irrigation Development. Between 1950/51 and the mid-1960s, surface and groundwater development contributed equally to the expansion of irrigated area in Uttar Pradesh. However, since 1965/66 groundwater develop- ment, the most quickly exploitable and assured source of irrigation and that which is within the capacity of private as well as public investors, has accounted for virtually all of the increase in net irrigated area in the State. Thus, in 1979/80, about 64% of the total net irrigated area was supplied by groundwater, as against 31% provided with surface irrigation. The remaining 5% was irrigated with water supplied from storage tanks or pump lift schemes of varying scales. 39. Despite the abundant overall water resources available in Uttar Pradesh and the considerable proportion of those resources as yet unex- ploited, only about 50% of the total net cropped area in the State is under irrigation. In view of the generally poor performance of agriculture in the State over the past thirty years, the importance of agricultural growth to the economy of this largely agricultural State, and the potential for sub- stantially increased productivity through irrigation, the State Government has focussed considerable attention in recent Five-Year Plans on the impor- tance of accelerating the development of irrigation. The Government has placed particular emphasis on public and private development of groundwater resources. Expanded rural credit programs and technical assistance are aimed at encouraging the development of approximately 100,000 private tubewells per annum, while the Government's own investment program provides for the con- struction of 1,000-1,500 new public tubewells each year. At the same time, plans are underway for the expansion and modernization of existing surface irrigation schemes in the State. 40. Bank Group Lending for Irrigation in Uttar Pradesh. Uttar Pradesh has benefitted from a number of Bank Group-assisted projects in the popula- tion, water supply, power and agricultural sectors. Of these, the most relevant to the proposed credit are the rural electrification and thermal power projects (Credits 572-IN, 911-IN, and Loan 2165-IN for the First, Second and Third Rural Electrification Projects, and Credits 685-IN and 1027-IN for the First and Second Singrauli Thermal Power Projects), which are designed to augment the electric power supply and distribution network in Uttar Pradesh (among other States) and will therefore increase the State's capacity to provide power for irrigation pumps; the Agricultural Refinance and Development Corporation (ARDC) Projects (Credits 540-IN, 715-IN, 947-IN, and Loan 2186-IN/Credit 1269-IN for the First, Second, Third and Fourth ARDC Projects), which provide credit for private tubewell development; and the Uttar Pradesh Tubewell Irrigation and Uttar Pradesh Public Tubewells Projects, which are discussed below. 41. The first Uttar Pradesh Tubewell Irrigation Project (Credit 8-IN, US$6 million, approved September 6, 1961) financed the construction of -13- 800 public tubewells between September 1961 and March 1964. While implemen- tation of the well construction program was satisfactory, a project review mission fielded in early 1966, which examined wells constructed under the project as well as wells constructed by the Government outside of the project, found a number of problems in tubewell operation in Uttar Pradesh, which caused the agricultural and economic benefits realized to fall short of potential. Chief among the operational problems were the following. (a) Brick-lined and earthen channels for conveyance of water from the tubewells to the farmers' fields were incomplete and poorly constructed, resulting in inequitable distribution and excessive water losses. In par- ticular, farmers were expected to construct channels of considerable length from the main distribution system to their fields themselves, without ade- quate design assistance. (b) The average command area of public tubewells (approximately 150-200 ha) was too large, with respect to the capacity of the wells, to permit intensive agriculture. (c) Procedures for water allocaticn were weakly enforced, which led to inequity and unreliability in the supply of water to farmers. (d) Systems for operation and maintenance of the wells were inade- quate, leading to frequent breakdowns, delayed repairs, delays in start-up of wells after power interruptions and interruptions of service due to absence of the well operators. In addition, over the last decade inadequate power supply in certain zones, combined with unscheduled short power outages and voltage drops (which damaged pumps and/or necessitated frequent manual restart), has reduced running hours for many tubewells far below potential. 42. The combined effect of these deficiencies has been to reduce the water supplied from each well substantially and to render that water supply highly unreliable, thus inhibiting most farmers from adopting the more productive, intensive cultivation practices which have been utilized profitably in areas where water supply is adequate and reliable. An indicator of the poor performance of public tubewells in Uttar Pradesh is the fact that, between 1966 and 1980, the average annual hours of utilization per public tubewell declined from 3,432 hours 1lo 1,010 hours, while the average irrigated area per well fell from 150 ha to 46 ha. Thus, although the number of public tubewells increased from 8,385 to 16,862 during the period, the total area irrigated by public tubewells d:ropped from 1.28 million ha to 0.77 million ha, a fall of 40%. 43. The Uttar Pradesh Public Tubewells Project (Credit 1004-IN for US$18 million, approved April 15, 1980) was designed to demonstrate and evaluate the merits of a number of technical and operational improvements to the design of traditional public tubewell irrigation systems in Uttar Pradesh -- improvements aimed specifically at addressing the shortcomings discussed in paragraph 41 above. The project, expected to be completed about April 1983, supports the construction of about 500 public tubewells of the -14- improved design in Uttar Pradesh. The principal design improvements intro- duced in project-financed tubewells are summarized below. (a) Command areas for wells with a discharge of 150 m3/h (the dis- charge of most existing public tubewells in Uttar Pradesh) have been reduced to 75-100 ha, as against a pre-project average of 150-200 ha, to permit a change from the use of irrigation as a simple protection against drought to the use of irrigation for more intensive agricuf ture. Wells designed for increased discharge levels (i.e., 225 and 300 m /h) serve proportionately larger command areas. (b) Pumps are automated to obviate the necessity for a pump operator to be present to start the pump or re-start it after power interruptions. Pumps are also fitted with protective devices to prevent damage to the motors due to voltage fluctuations or power cuts and with electronic meters to permit continual monitoring of pump operation. (c) Wells are fitted with distribution chambers or elevated tanks which permit automatic starting and stopping of the pumps in response to the level of: water in the chamber or tank and, in turn, the off-take of water from the distribution system. This prevents spillage at times when the distribution system operates at less than the full discharge of the well, and means that the tubewell is effectively operated by the individual farmers served by the tubewell system. (d) Finally, water is conveyed from the well to outlets serving about 5 ha each through underground pipes, in order to prevent the excessive water loss occurring in traditional tubewell systems. This feature also eliminates the delay in tubewell construction which typically occurs due to disputes over right-of-way for distribution channels. Individual farmers' plots are no more than 150 m from outlets of the piped system and are con- nected to these outlets by properly designed earthen channels constructed under the project. In addition to testing these technical innovations, the project design incor- porated improved water allocation and well operation and maintenance proce- dures and a program of agricultural support to beneficiary farmers. 44. As of November 30, 1982, about 380 project wells were operational and sufficient data had been collected and evaluated to confirm that the improved wells can be constructed on a wide scale at acceptable cost and can provide timely, reliable and equitable water delivery to all farmers in the command area. As a result of the experience gained through this pilot project, the State Government and IDA feel a large-scale program of construction of improved wells can be supported with acceptable risk. In addition to demon- strating the efficacy of the new technology, the project served to highlight a number of areas in which improvement was necessary. The principal lessons learned from the project, which have been taken into account in designing the proposed follow-up project, were: (a) that the potential benefits of the new wells are severely eroded if reliable power supply cannot be ensured; -15- (b) that management of the public tubewell development program in the State could be further improved, particularly with respect to planning, and operation and maintenance of tubewell systems and provision of an ade- quate agricultural development service in command areas of completed tubewells; and (c) that, given the improved qualiLty of the irrigation service provided by the new wells, the Government needed to review its system of cost recovery in the groundwater sector with an eye to ensuring that charges reflect both the quality (e.g., timeliness and reliability) of the service provided as well as the quantity of water delivered. PART IV - THE PROJECT 45. The proposed project was appraised by missions which visited India in April/May and September 1982. A report entitled "Staff Appraisal Report, Second Uttar Pradesh Public Tubewells Project" (No. 4167-IN, dated February 8, 1983) is being distributed separately to the Executive Directors. Negotiations were held in Washington in January 1983. The Government of India and the Government of Uttar Pradesh were represented by a delegation coordinated by Mr. S.C. Jain, Director, Department of Economic Affairs, Government of India. Project Description 46. The project would seek to raise agricultural production and farm income in Uttar Pradesh through the construction and upgrading of public tubewell irrigation systems. It would support the construction and initial operation and maintenance of approximately 2,200 wells of the improved design tested under the Uttar Pradesh Public Tubewells Project, over a four-year period (1983/84-1986/87), throughout the State. In addition, approximately 750 existing tubewells built to traditiona.l design standards would be upgraded under the project, in order to test the most cost-effective means of modernizing the 18,000 existing public tubewells in the State. The project would also include a research and developnment program to test further poten- tial advancements in public tubewell technology, an agricultural support program for farmers in the command areas of improved public tubewells, a program of monitoring and evaluation of project-financed activities, and training of staff of the Irrigation and Agriculture Departments as required to enable them to effectively carry out their duties under the project. The project would finance the acquisition of vehicles and equipment required for proper operation and maintenance of project wells and construction of build- ings required for the well construction and maintenance and training programs. Finally, the project would provide funds, to be administered by the Government of India, for preparation of future irrigation projects in India for possible Bank Group financing. 47. New Tubewell System Construction. Tubewell systems constructed under the project would incorporate the design features described in paragraph 43 above. Project-financed public tubewell systems would be constructed, -16- operated, and maintained in accordance with planning and design, construction and operation and maintenance criteria and standards established and applied in consultation with IDA (Section 2.02, Project Agreement). A typical tubewell system would consist of a water point with pump house, a distribu- tion chamber or elevated tank to enable water delivery to be automated and controlled by the farmers at field outlet valves, a buried pipe distribution system in the form of closed loops each serving about 50 ha, outlet valves on the pipe system each commanding about 5 ha and operated by farmers, earthen field chlannels below the outlets to serve each farmer's holding, and an access way to the water point for operation and maintenance purposes. 48. Project wells would be constructed in clusters of about 25 wells and would be provided with electrical power through independent or "dedicated" feeder lines (earmarked to serve public tubewell systems) which connect the wells in the cluster to the nearest power sub-station. While this was not initially a feature of the improved well design tested under the on-going project, the importance of providing a system which would enable project wells to operate reliably, protected from the outages due to power rationing and overloading on many rural lines, became clear during project implementa- tion. Ihus, this feature is not only to be introduced in the proposed project, but is also being incorporated in as many as possible of the wells built under the on-going project. The Government of Uttar Pradesh (GOUP) would energize project tubewell systems within two months of their comple- tion, and provide project tubewells with power, via the dedicated transmis- sion lines described above, for about 16 hours per day at peak demand periods and with a voltage fluctuation of not more than 6% (Section 2.10, Project Agreement). The Uttar Pradesh State Electricity Board (UPSEB) would charge the Irrigation Department for electricity provided to project wells on the basis of actual power consumption as recorded by meter, rather than on the basis of the flat-rate system currently in place (Section 3.06, Project Agreement). 49. New tubewell systems constructed under the project would be located in areas where: (a) the construction of private tubewells is difficult because of the drilling depth necessary to achieve a satisfactory yield; and/or (b) the area is economically backward and further private well con- struction would be very slow to develop; (c) project tubewells can be located in clusters of about 25 wells (in order to enhance efficiency of use of dedicated power lines); (d) not more than 20% of the command area of the tubewell cluster would consist of holdings of owners of private irrigation sources (excluding open wells); and (e) the average holding size in the cluster would not exceed 0.65 ha. Once a location which satisfies these criteria has been selected, a tubewell cluster planning report would be prepared in draft by the Tubewell Wing of the Irrigation Department and circulated to all relevant agencies (particularly the UPSEB and the Agricul- ture Department) for comment and, in the case of UPSEB, approval before being finalized by the Irrigation Department. 50. A rotational system of water allocation would govern delivery of water to individual farmers in a tubewell system. Only one outlet per dis- tribution system loop would be open at any one time, thus fixing the rate of water delivery and allowing the quantity delivered to be defined on a time -17- basis. The command area of each distribution loop (2 or 4 loops/well depend- ing on pumping capacity) would be divided into seven sections of about 7 ha each, with each section, or "area day", ent:itled to water on a fixed day of the week. Assisted by the tubewell engineEr and an agricultural officer, farmers within each area-day would form a committee to organize a schedule for water distribution within the command. Water would be allocated to each farmer in proportion to the size of his hoLding. Leaders chosen by each area-day committee would in turn select from among their ranks five repre- sentatives to sit on the Tubewell Committee, which would be responsible for coordination and cooperation among area-day committees, adjudication of disputes, and oversight and adjustment, in concert with the tubewell engineer, of the rotational schedule. The President of each Tubewell Commit- tee would represent the tubewell farmers oni a Tubewell Cluster Committee, which would be consulted by the staff of the Irrigation and Agriculture Departments on issues affecting the entire cluster. 51. Procedures for tubewell system operation and maintenance have tradi- tionally been weak in Uttar Pradesh. The on-going project provided for the separation of the operation and maintenance (O&M) function from the construc- tion function within the Irrigation Department, contrary to past practice under which tubewell construction and O&M had been supervised by the same staff. The objective of this change was to permit the establishment of a specialized, effective O&M service which was not given secondary importance relative to construction activities, and to permit accurate monitoring of O&M costs. While the State Government was slow in accomplishing the required reorganization, the apparent benefits of the change have motivated GOUP to separate (in April 1982) construction from O&M activities at the divisional level for the entire State public tubewell program. The importance of effec- tive operation and maintenance would continue to be stressed under the proposed project, which would provide buildings, vehicles, and equipment to support the O&M divisions, which, as mentioned above (paragraph 47), will operate and maintain project tubewells in accordance with procedures and criteria established in consultation with IDA. In addition, GOUP would ensure that the Irrigation Department keeps separate accounts of O&M expendi- tures on project tubewells, to facilitate close monitoring of O&M costs (Section 3.03, Project Agreement). 52. Upgrading of Existing Tubewells. It is anticipated that dedicated power lines serving clusters of new wells constructed under the project will often pass quite close to existing public tubewells. Connection of existing wells to the dedicated power lines would, at relatively low additional cost, considerably improve the performance of these wells and at the same time enhance the economic viability of the power transmission network. Thus, provision has been made for connection of about 650 existing public tubewells (4-6 per new tubewell cluster) to the dedicated feeder lines to be con- structed under the project, along with related improvements to electrical equipment at these wells. 53. While this program will provide a good deal of information about the costs and benefits of one form of upgrading of existing wells, the project would also include a pilot program to test the physical and economic feasibility of alternative approaches to modernizing existing public tubewells. The program would cover about 100 existing wells and would be -18- designed to provide information about the costs and benefits of various modernization measures as a basis for the possible development of a full-scale modernization program. 54. Research and Development. While the advantages and economic viability of the improved tubewell system design to be incorporated in the project have been demonstrated through the initial pilot project, IDA and GOUP recognize that further improvements in design specifications and operat- ing procedures may be possible. Thus, the project would support a program of studies and pilot projects designed to test improved irrigation techniques which are either untried in Uttar Pradesh or have been attempted only on an experimental scale. A special unit would be established within the Tubewell Wing of the Irrigation Department to prepare and implement the research and development program. The Irrigation Department would furnish a proposed annual research and development program to IDA by July 1 of each year for review aend comment prior to implementation of the program (Section 2.07, Project Agreement). 55. Agricultural Development. The existing agricultural extension program in Uttar Pradesh is not equipped to provide the support necessary to assist beneficiaries of the project in moving from rainfed to irrigated farming. To meet the need for adequate agricultural support to beneficiary farmers, a special unit would be set up in Uttar Pradesh's Department of Agriculture to work exclusively on agricultural development in the command areas of project wells and improved tubewells constructed under the on-going first Uttar Pradesh Public Tubewells Project. An agricultural service center would be provided for each tubewell cluster, to serve as the focal point for the agricultural development program and to provide quarters for field staff. The project would finance staff, civil works, equipment, and operating costs (including training) of the project agricultural unit. Agriculture Depart- ment staff teams would work in a given area until the majority of tubewell systems within a cluster had achieved predicted or near-predicted crop production, and then move on to another cluster, handing over the fully developed area to the State's existing extension service. While working in a cluster, agricultural development staff would carry out regular, scheduled visits to farmers' fields to provide agricultural advice, establish and oversee farm demonstration plots, assist farmers in getting timely supplies of inputs and collect information on farming practices and the manner in which they change. In view of the essentially "pilot" nature of this program, GOUP would (i) by June 30, 1984, furnish IDA, for its review and comment, with terms of reference for a mid-term review of the agricultural development component; (ii) thereafter carry out the review; (iii) submit a report summarizing the results of the mid-term review to IDA for review and comment by June 30, 1985; and (iv) thereafter make any required adjustments in the functioning of the program (Section 2.13, Project Agreement). 56. Training. In order to ensure proper construction and operation of the improved tubewell systems, the project would support in-service training for relevant construction and O&M staff of the Irrigation Department's Tubewell Wing. Courses would cover planning and design of improved tubewell systems, with special attention to the layout of the piped distribution system; water allocation and land acquisition procedures and legal parameters affecting public tubewells; the operation and maintenance of completed -19- tubewell systems; and cultivator organization and basic cultivation practices for principal crops likely to be grown in tubewell command areas. 57. As an important resource for the training program, the Irrigation Department would prepare (i) a comprehensive Design Manual which would record planning principles, design criteria, specifications, and construction methods for improved tubewell systems; and (ii) an O&M Manual covering all aspects of management of public groundwater systems. Drafts of these manuals would be prepared and furnished to IDA for review and comment by December 31, 1984, and the manuals subsequently finalize!d for use by the Irrigation Department (Section 2.08, Project Agreement). The project would fund the preparation and printing of these manuals as well as the equipment, civil works and study tour costs associated with the training programs. 58. Monitoring and Evaluation. The project would support monitoring and evaluation programs in both the Irrigation and Agriculture Departments which would include the collection and analysis of information on the following broad topics: (a) project implementation (,physical and fiscal performance compared with project targets and planning, cost, and quality assumptions); (b) water supply and demand at the water point and at field level; (c) farmers' response to irrigation and agricultural development service provided under the project; (d) crop yield and production performance in the command areas of project wells. 59. Preparation of Future Irrigation Projects. The Second Gujarat Irrigation Project (Credit 1011-IN, approved May 1, 1980) included US$10 million equivalent to finance preparation of future irrigation projects in India, in support of the Central and State Governments' efforts to sub- stantially expand their investment programs for irrigation. The purpose of this project component was to promote the use of new planning techniques and encourage the kind of detailed data collection and project preparation effort required to match India's needs and potential. The funds provided under Credit 1011-IN, now nearly fully disbursed or committed, have been put to very productive use, financing such activities as the establishment of plan- ning agencies for the development of the Narmada Basin, design and feasibility studies by foreign and domestic consultants, advisory services for the design of several major dams, pilc,t irrigation operations and pur- chase of specialized equipment. In view of the very favorable experience with the project preparation component under the Second Gujarat Irrigation Project, the present project would include an additional US$10 million equiv- alent to finance technical assistance, pi-Lot works, training, and equipment requirements related to future irrigation project preparation and support existing or new project preparation cells at the Central and State levels. Project Implementation 60. With the exception of the project preparation component, which would be administered by GOI's Ministry of Irrigation, overall responsibility for project implementation would rest with GO1JP's Secretary for Irrigation and Power. Two agencies under his jurisdictiDn would handle construction and operation and maintenance of project wells -- the Tubewell Wing of the Irrigation Department and the Uttar Pradesh State Electricity Board. Respon- sibility for the agricultural development component would rest with the -20- Agriculture Department. The Chief Engineer of the Tubewell Wing would act as Project Coordinator. He would be assisted by a Project Coordinating Unit which has been established in the Tubewell Wing. GOUP would maintain this unit, with adequate staff, including inter alia a suitably qualified officer to head the unit, throughout the project period (Section 2.05, Project Agree- ment). 61. In order to assist it in carrying out its duties under the project, a new circle would be added to the headquarters of the Tubewell Wing. Desig- nated the Investigation, Planning and Design, and Procurement Circle, it would have divisions responsible for (i) planning and design (in particular, preparation and clearance of tubewell cluster planning reports, implementa- tion of the research and development component, and preparation of the Design and O&M Manuals); (ii) training and monitoring and evaluation; (iii) all aspects of quality control during well construction and commissioning; and (iv) procurement and project accounts and audits. Power supply to project wells would be handled by a special Public Tubewells Electrification Unit, which has been established and would be maintained within the UPSEB (Sec- tion 2.09, Project Agreement). With a view to enabling the Agriculture and Irrigation Departments to carry out their construction, O&M, monitoring and evaluation, and agricultural development functions as efficiently and effec- tively as possible, GOUP would deploy and train staff in these departments in accordance with staffing schedules and organization plans established in consultation with IDA (Section 2.06, Project Agreement). Project Costs and Financing 62. Total project costs are estimated at US$192 million equivalent, net of taxes; and duties with the exclusion of a few minor items where taxes and duties are insignificant. Foreign exchange costs are estimated at US$11.3 million, or about 6% of total project cost. Physical contingencies of 5% have been applied to the base cost of civil works. Price contingen- cies, amounting in total to 29% of base cost, have been applied as follows: 8.5% in 1982/83, 8.0% in 1983/84, 7.5% in 1984/85, 7.0% in 1985/86, and 6% thereafter. The principal components of project cost, net of contingencies and of engineering and administration, are: new tubewell system construction (US$110.3 million), upgrading of existing tubewells (US$6.3 million), agricultural development (US$6.1 million), and future irrigation project preparation (US$10 million). The balance of project cost covers construction of buildings required by the Irrigation Department for implementation of the construction, monitoring, O&M and training programs (US$3.4 million), land acquisition (US$1.3 million), O&M equipment and vehicles (US$0.5 million), research and development (US$0.9 million), training (US$0.2 million), monitoring and evaluation (US$0.1 million), administration and engineering (US$7.1 million), and contingencies (US$46.0 million). 63. The proposed credit of US$101 million would finance about 53% of project cost, 1/ net of taxes and duties, including all foreign exchange 1/ That is, 50% of the Uttar Pradesh project cost (see page (ii) above) and the full cost of the project preparation component. -21- costs and about 50% of local costs. The balance of the funds required for the project would come from State and Central Government sources. The Government of India and the International Fund for Agricultural Develop- ment (IFAD) have recently held negotiations for an IFAD loan of US$35.3 million equivalent in support of the project. If approved and signed by IFAD and GOI, this loan would be applied to the GOI/GOUP portion of project cost. In any event, however, GOI/GOUP would make available the resources required to carry out the project: as scheduled. In order to allow GOUP to take advantage of the current dry season to begin the construction program, retroactive financing of up to US$;2.5 million would be provided for approved expenditures made after September 15, 1982 for well construction, acquisition of vehicles and equipment required for field operations, and procurement of PVC and steel pipes, casings, and fittings. Procurement and Disbursement 64. Civil works to be financed under the project would cost approximately US$59.8 million, 1/ and would consist of d.illing of bore holes; construction of well distribution systems, access roads, and buildings (e.g., pump houses, workshops, office and storage facilities, -raining facilities and staff quarters); and civil works related to powe^- transformation and transmission. These works would be individually small and widely dispersed, geographically and over time, and would thus be unsuitablea for international competitive bidding. Drilling (US$15.0 million) would be carried out departmentally by the Tubewell Wing, which has an established, technically competent staff capable of drilling about 1,200 wells per year, of which IDA-financed wells would form only a part. This arrangement is justified since there are at present no local contractors capable of or equipped to carry out deep drill- ing of the sort required for project wells; moreover, the Tubewell Wing's considerable drilling capacity could not be easily dismantled and would thus lie partially idle if drilling were put out to contract. Installation of power transformation and transmission systems (US$8.7 million) would be carried out directly by UPSEB, in accordance with standard practice in India; UPSEB is adequately staffed and competent to handle such works. Of the remaining civil works (US$36.1 million), 2/ works totalling approximately US$25.2 million would be carried out by local contractors selected on the basis of competitive bidding advertised locally in accordance with procedures satisfactory to IDA. Materials under these contracts would generally be provided by the State Government; these materials, with the exception of PVC and steel pipes, casings, and fittings (see paragraph 65 below), would be procured in accordance with GOUP's standard practices, which are acceptable to IDA. The remaining civil works (US$10.9 million) would be very small and scattered (e.g., earthen distribution channels), and their implementation highly dependent on weather and agricultural conditions. These works would 1/ All figures in paragraphs 64 and 65 are net of engineering and administration. 2/ Including the cost of basic construct:ion materials (e.g., brick, con- crete, timber, gravel, cement), but excluding PVC pipes and fittings and steel casings and fittings. -22- be executed departmentally (about US$0.9 million) or through rate or piece-work contracts (about US$10.0 million), let on the basis of procedures satisfactory to IDA. 65. Materials, 1/ equipment and vehicles to be financed under the project would total approximately US$103.1 million. Steel casings and fittings (USS13.1 million) and PVC pipes and fittings (US$56.9 million) would be procured under international competitive bidding in accordance with Bank/IDA guidelines. Pumpsets and related spare parts (US$7.7 million), ancillary pumpset equipment (US$6.1 million), alfalfa valves (US$1.5 million), and vehicles and remaining miscellaneous small items of equipment or quantities of materials (totalling US$5.8 million) would be procured after local com- petitive bidding. Adequate and timely maintenance of widely dispersed pumpsets and accessories, valves, and vehicles requires a well-established network of service and parts supply facilities of the sort available for locally procured goods, which are both technically and economically competi- tive. Power supply materials and equipment -- i.e., conductors (US$7.8 million), distribution transformers (US$3.2 million) and high tension insulators (US$1.0 million) -- would be procured by the UPSEB in accordance with local competitive bidding procedures acceptable to IDA. Contracts for these items would not be suitable for ICB, as they would of necessity be comparatively small, these items being required in small amounts at locations (not yet determined) spread across the entire State and on a delivery schedule spanning four years. 66. The proceeds of the Credit would be disbursed against: (i) 55% of expenditures incurred on construction and/or electrification of new or upgraded tubewell systems; (ii) 55% of expenditures on steel and PVC pipes, casings, and fittings; (iii) 100% of the ex-factory price or 70% of the cost (where ex-factory price is not available) of vehicles and equipment for research and development, operations and maintenance, agricultural develop- ment, and monitoring and evaluation; (iv) 60% of remaining expenditures on research and development, monitoring and evaluation, training and agricul- tural development; and (v) 100% of expenditures on project preparation. Disbursements against tubewell system construction and electrification costs would be made on the basis of statements of expenditure, itemized by major component and accompanied by a certification by the Superintending Engineer in charge that the tubewell system has been completed and electrified in accordance with agreed planning and design criteria, and that the well is operating at not less than 70% of design discharge with a command area proportional to its discharge. Disbursements against payments of less than Rs 150,000 for equipment and vehicles, and against other expenditures for monitoring and evaluation, research and development, training, agricultural development, and project preparation would also be made on the basis of statements of expenditure. Statements of expenditure would be audited annually, by independent auditors, in order to verify that funds withdrawn were used for the purpose indicated and that payments have been made. Documentation related to these expenditures would be retained by the State 1/ In addition to those basic construction materials included in civil works costs set out in paragraph 64 above. -23- and Central Governments for inspection in the course of project review mis- sions. Disbursements against all other expenditures would be fully docu- mented. The Credit is expected to be fully disbursed by March 31, 1988. Cost Recovery 67. The State of Uttar Pradesh has been generally quite progressive with respect to cost recovery for public groundwater development. Public groundwater is allocated and priced on a vo!Lumetric basis, with water charged at a different rate in the kharif (wet) and rabi (dry) seasons in order to encourage full utilization of the irrigatioa service. GOUP regularly reviews and adjusts water charges; in July 1981, public tubewell water charges were raised by 20% for the rabi season and 60% fDr kharif, with a further increase planned in 1982/83. If the power supply were sufficiently reliable to permit efficient tubewell operation, the current charges would cover all O&M costs, with the present power tariff structure. Water charge revenues are supple- mented by an agricultural sales tax and by land taxes, which differentiate between irrigated and unirrigated land. These land and sales tax revenues would, of course, be enhanced as a result of the project, as area irrigated and crop production increase. 68. Although the State's approach to cost recovery is reasonably progres- sive, it would not be appropriate to apply it directly to project wells and charge for water supplied from improved public tubewells on the same basis as for water supplied from existing wells of traditional design. Tubewell systems built to the improved design provide farmers with a much more reli- able irrigation service than traditional systems. Moreover, the buried pipe distribution system, which reduces conveyance losses to negligible levels, is a significant advantage to farmers in commands of improved tubewell systems, since water charges are levied on the basis of the volume of water pumped as measured at the well-head. The enhanced quantity and quality of the irriga- tion service provided by the improved wells offer farmers the opportunity to adopt more intensive, and remunerative, cultivation practices. It is the confidence engendered by a reliable irrigation source that permits farmers to make the associated investments in cash inputs and time required to realize a fuller measure of the agricultural potential of their holdings. 69. Against this background, it is reasonable to assess beneficiaries of the irrigation service provided by project wells (which are, of course, more costly than old standard tubewells) a charge which reflects the enhanced quality of the service they receive. Therefore, GOUP would, not later than December 31, 1983, prepare and furnish to 1he Association for review and comment, a proposal for establishing a new system of water charges for improved tubewell systems which would reflect the efficiency and reliability of the irrigation service as well as the quantity of water pumped at the well-head (Section 3.04(a), Project Agreement). GOUP would implement the new system, having taken into account the Association's comments on the initial proposal, in accordance with a timetable wnlich would also be furnished to IDA for review and adjusted to reflect IDA's comments, if any (Section 3.04(b), Project Agreement). Water charges under the new system would be set so as to ensure that by July 31, 1988, water charges would cover the average cost of operation and maintenance of tubewell irrigation systems and a reasonable portion of tubewell system capital costs, taking into account the repayment -24- capacity of beneficiary farmers (Section 3.04(c), Project Agreement). During the period preceding implementation of the new system in any given tubewell command area, GOUP would continue to apply the current volumetric water charge system, setting water charges on the basis of regular reviews of the capital and O&M costs of public tubewell irrigation systems (Section 3.05, Project Agreement). 70. With respect to the appropriate degree of capital cost recovery under the new system, it is important that water charges be kept at a level which retains an incentive for farmers to utilize irrigation water, not merely for protective irrigation in the event of drought but for the sort of intensive agriculture which will result in considerably enhanced production and yields. In order to achieve this, the system must also protect the farmers' capacity to purchase the other inputs necessary to generate the incremental crop production possible with reliable irrigation. This aspect of the water charge system is particularly important in view of the high proportion (roughly 95%) of project beneficiaries who will be small and marginal farmers currently existing at or below the poverty level. In the interest of provid- ing the information necessary to set water charges at appropriate levels, GOUP would carry out a socio-economic study of project beneficiaries, under terms of reference established in consultation with IDA, and furnish the results and recommendations of the study to IDA by July 31, 1986 (Section 2.11, Project Agreement). Benefits and Risks 71. The proposed project would expand the irrigated area in Uttar Pradesh by approximately 235,000 ha, bringing irrigation to about 440,000 farm families currently not served by public irrigation systems. The economic rate of return for the typical cluster of 25 project wells is estimated at about 30%. 1/ The project is expected to result in increased production of about 300,000 tons per year in foodgrains (an increase of 150% over projected production without the project), 371,200 tons per year in sugarcane, and 9,900 tons per year in oilseeds. The value added to the local economy due to these production increases is estimated at Rs 320 million (US$33.7 million equivalent) per year. Incremental farm employment generated by the project is expected to amount to the equivalent of 80,600 jobs. In addition, about 30,000 seasonal jobs for unskilled labor would be created annually for con- struction of tubewell systems under the project, and about 2,800 permanent jobs would be created for tubewell operators and agricultural development staff. Most project beneficiaries are expected to be small or marginal farmers who cannot afford a private irrigation source, a high proportion of whom are living at present at or below the absolute poverty threshold. Even at full project development, it is anticipated that up to 75% of the farming population cultivating 50% of the land within a typical project tubewell 1/ Thus, this can be taken as the rate of return for the project, with the exclusion of the monitoring and evaluation, research and development, training, and project preparation components. (Please see Staff Appraisal Report, Section VIII for details.) -25- command area will, despite the increased income generated by the project, still live under poverty conditions. 72. In addition to the direct production benefits referred to above, the project would facilitate more efficient utilization and management of groundwater resources, would test means of increasing the efficiency of existing tubewells in Uttar Pradesh built to the old technology (via the pilot upgrading program), and would explore further technical advances which may be made in public tubewell system technology. Finally, the improved tubewell technology would permit greater equity in water allocation throughout the area served by project tubewells. 73. Economic analysis indicates that only substantial deviations from the appraisal assumptions regarding costs, average number of running hours per well, and net incremental crop production would threaten the project's economic viability. In the case of construction and O&M costs, significant variance from the assumed figures is unlikely, as these are based on actual, recent experience under the on-going project, with appropriate allowances for contingencies. As for average tubewell operating hours, while there is a residual risk of irregularities in power supply, technical and administrative innovations introduced under the project (e.g., automatic pumps specially fitted to guard against electrical breakdown, dedicated power lines, improved maintenance procedures) have been designed specifically to protect against interrupted service due to mechanical breakdown or overloading and power rationing on the rural power grid. Proper organization of farmers within tubewell commands would provide further prctection against interrupted service, by ensuring the existence of an organized pressure group to identify operational problems and press for their resolution. Finally, the apparent lack of demand for tubewell service which is seen in the command areas of many old, unimproved tubewell systems is unlikely to affect project wells, from which a reliable, timely, and equitable service will be available. With respect to net incremental production, crop yields assumed at full develop- ment are conservative relative both to what can be achieved with a full and reliable irrigation service and to what has been achieved under the on-going project, even in the absence of an adequate agricultural support service. Moreover, the project supports a comprehensive agricultural development program, which is designed to assist farmers in achieving full agricultural benefits and which will be closely monitored throughout project implementa- tion to ensure that adequate service is provided. 74. The project's economic rate of return is somewhat more sensitive to the output price assumptions made in the analysis. The economic prices assumed for project outputs have been based on IBRD agricultural commodity price forecasts. As it is judged unlikely that these forecasts overestimate prices to the extent required to render the project inviable, the related risk associated with the project is considered acceptable. 75. With respect to the risk of weaknesses in project implementation, IDA and GOUP have learned a good deal from the implementation of the on-going project. A number of potential institutioial weaknesses (e.g., poor coor- dination among Government departments, inadequate quality control, and low standards of operation and maintenance) have been identified and corrective arrangements incorporated in the proposed ?roject. -26- PART V - LEGAL INSTRUMENTS AND AUTHORITY 76. The draft Development Credit Agreement between India and the Associa- tion, the draft Project Agreement between the Association and the State of Uttar Pradesh, and the Recommendation of the Committee provided for in Article V, Section l(d) of the Articles of Association are being distributed to the Executive Directors separately. 77. Special conditions of the Project are listed in Section III of Annex III. 78. I am satisfied that the proposed credit would comply with the Articles of Agreement of the Association. PART VI - RECOMMENDATION 79. I recommend that the Executive Directors approve the proposed credit. A.W. Clausen President February 15, 1983. ANNEX I INDIA - SOCIAL INDICATORS DAt'A SHEET Page 1 of 5 INDIA R]!FERENCE GROUPS (WEIGHTED AVIRAGES AREA (THOUSAND SQ. KM.) MOST RECENT ESTIMATE- TOTAL 3287.6 MOST RECENT LOW INCOME MIDDLE INCOME AGRICULTURAL 1818.2 1960 lb 1970 /b ESTIMATE lb ASIA & PACIFIC ASIA & PACIFIC GNP PER CAPITA (US$) 70.0 110.0 240.0 261.4 890.1 ENERGY CONSUMPTION PER CAPITA (KILOGRAMS OF COAL EQUIVALENT) 111.2 152.5 194.4 448.7 701.7 POPULATION AND VITAL STATISTICS POPULATION, MID-YEAR (THOUS.) 434850.0 547569.0 673207.0 URBAN POPULATION (PERCENT OF TOTAL) 17.9 19.7 22.3 17.3 32.4 POPULATION PROJECTIONS POPULATION IN YEAR 2000 (MILLIONS) 994.1 STATIONARY POPULATION (MILLIONS) 1694.4 YEAR STATIONARY POPULATION IS REACHED 2115 POPULATION DENSITY PER SQ. KM. 132.3 166.6 200.6 158.1 255.9 PER SQ. RM. AGRICULTURAL LAND 247.0 307.8 362.8 355.9 1748.0 POPULATION AGE STRUCTURE (PERCENT) 0-14 YRS. 40.9 42.7 40.2 36.8 39.9 15-64 YRS. 54.5 54.2 56.8 59.7 56.8 65 YRS. AND ABOVE 4.6 3.1 3.0 3.5 3.3 POPULATION GROWTH RATE (PERCENT) TOTAL 1.8 2.3 2.1 2.0 2.3 URBAN 2.5 3.3 3.3 3.3 3.9 CRUDE BIRTH RATE (PER THOUSAND) 43.7 40.0 35.6 29.3 31.8 CRUDE DEATH RATE (PER THOUSAND) 21.8 16.7 13.6 11.0 9.8 GROSS REPRODUCTION RATE 2.9 2.7 2.4 2.0 2.0 FAMILY PLANNING ACCEPTORS, ANNUAL (THOUSANDS) 64.0 3782.0 5619.0 USERS (PERCENT OF MARRIED WOMEN) .. 12.0 22.6 19.3 36.3 FOOD AND NUTRITION INDEX OP FOOD PRODUCTION PER CAPITA (1969-71=100) 98.0 102.0 99.0 108.1 115.6 PER CAPITA SUPPLY OF CALORIES (PERCENT OF REQUIREMENTS) 95.6 90.4 88.8/c 97.3 106.4 PROTEINS (GRAMS PER DAY) 53.6 49.7 48.4/Z 56.9 54.4 OF WHICH ANIMAL AND PULSE 17.2 14.8 13.1/c 20.0 13.9 CHILD (AGES 1-4) MORTALITY RATE 26.2 20.7 17.4 10.9 6.7 REALTH LIFE EXPECTANCY AT BIRTH (YEARS) 43.2 48.1 51.8 57.8 59.8 INFANT MORTALITY RATE (PER THOUSAND) 165.0 139.0 123.4 89.1 63.7 ACCESS TO SAFE WATER (PERCENT OF POPULATION) TOTAL .. 17.0 33.0 32.9 32.0 URBAN 60.0 83.0 70.7 51.9 RURAL .. 6.0 20.0 22.2 20.5 ACCESS TO EXCRETA DISPOSAL (PERCENT OF POPULATION) TOTAL .. 18.0 20.0 18.1 37.7 URBAN .. 85.0 87.0 72.7 65.7 RURAL .. 1.0 2.0 4.7 24.0 POPULATION PER PHYSICIAN 4850.4 4889.0 3630.6 3297.8 8540.4 POPULATION PER NURSING PERSON 10975.3/d 8296.5 5696.1 4929.3 4829.4 POPULATION PER HOSPITAL BED TOTAL 2178.7 1612.9 1311.0/e 1100.4 1047.5 URBAN .. .. 362.3/f 301.3 651.6 RURAL .. .. 10432.8/e 5815.7 2597.6 ADMISSIONS PER HOSPITAL BED .. .. .. .. 27.0 HOUSING AVERAGE SIZE OF HOUSEHOLD TOTAL 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 INDIA-TSOCIAL INDICATORS DATA SKEET INDIA REFERENCE GROUPS (WEIGHTED AVEWES - MOST RECENT ESTIMATE)- MOST RECENT LOW INCOME MIDDLE INCOME 1960 /b 1970 /b ESTIMATE /b ASIA & PACIFIC ASIA & PACIFIC EDUCATION ADJUSTED ENROLLMENT RATIOS PRIMARY: TOTAL 61.0 73.0 78.0/c 97.4 96.2 MALE 80.0 90.0 92.0/? 101.0 99.8 FEMALE 40.0 56.0 63.0/?i 87.8 92.1 SECONDARY: TOTAL 20.0 26.0 27.0/c 53.0 37.6 MALE 30.0 36.0 36.0/7 63.8 41.1 FEMALE 10.0 15.0 17.0/' 41.3 34.1 VOCATIONAL ENROL. (X OF SECONDARY) 8.0 1.0 0.7/f 1.7 20.8 PU'PIL-TEACHER RATIO PRIMARY 46.1 41.5 51.8/c 37.7 35.5 SECONDARY 16.0 20.9 ,, 20.2 25.0 ADULT LITERACY RATE (PERCENT) 28.0 33.4 36.0 52.1 73.1 CONSUMPTION PASSENGER CARS PER THOUSAND POPULATION 0.6 1.1 1.3/c 1.5 9.8 RADIO RECEIVERS PER THOUSAND POPULATION 4,9 21.5 33.6 35.4 116.5 TV RECEIVERS PER THOUSAND POPULATION 0.0 0.0 1.0 3.2 37.6 NEWSPAPER ("DAILY GENERAL INTEREST") CIRCULATION PER THOUSAND POPULATION 10.6 16.0 19.8 16.4 53.7 CINEMA ANNUAL ATTENDANCE PER CAPITA 4.1 4.1 3.7 3.6 2.8 LABOR FORCE TOTAL LABOR FORCE (THOUSANDS) 185951.1 219194.2 264204.4 FEMALE (PERCENT) 30.7 32.5 31.8 29.5 33.6 AGRICULTURE (PERCENT) 74.0 74.0 69.3 70.0 52.2 INDUSTRY (PERCENT) 11.0 11.0 13.2 15.0 17.9 PARTICIPATION RATE (PERCENT) TOTAL 42.8 40.0 39.2 40.0 38.5 MALE 57.0 52.4 51.8 51.8 50.5 FE4ALE 27.3 26.9 25.9 23.8 26.6 ECONOMIC DEPENDENCY RATIO 1.1 1.1 1.1 1.0 1.1 INCOME DISTRIBUTION PERCENT OF PRIVATE INCOME RECEIVED BY HIIGHEST 5 PERCENT OF HOUSEHOLDS 26.7 26.3/S 22.2/f HIGHEST 20 PERCENT OF HOUSEHOLDS 51.7 48.9/g 49.4/i LOWEST 20 PERCENT OF HOUSEHOLDS 4.1 6.7j 7.0/- LOWEST 40 PERCENT OF HOUSEHOLDS 13.6 17.2A 16.2/ POVERTY TARGET GROUPS ESTIMATED ABSOLUTE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. .. 132.0 133.8 194.7 RURAL .. .. 114.0 111.1 155.1 ESTIMATED RELATIVE POVERTY INCOME LEVEL (US$ PER CAPITA) URBAN .. .. .. .. 178.2 RURAL .. .. .. .. 164.9 ESTIMATED POPULATION BELOW ABSOLUTE POVERTY INCOME LEVEL (PERCENT) URBAN . ' 40.3 43.8 24.4 RURAL .. .. 50.7 51.7 41.1 Not available Not applicable. NOTES /a The group averages for each indicator are population-weighted arithmetic means. Coverage of countries among the indicators depends on availability of data and is not uniform. /b 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 1978 and 1980. /c 1977; /d 1962; /I 1976; /f 1975; /I 1964-65. May, 1982 Page 3 of 5 DEFINITIONS OF SOCIAL INlDICArORS Notes: Although the data are deavo flen soueces generally judged the st eh-it-te ed rliable, it hould alo e note ad that they soy not be Inter- nationally comparable because of the luck of ata dardied defiuitions and coonepti used b" different tenancies ih eollctiag the data. The dote are, sno.. -helesa, atefUl ro describe erders of magnitude. ind lctao treads, and rhareterlie aceoral1t saJo differences beseea countries. The refarence groups oar (1) the osae countra group ef the sibjert nountry and (2) an ounr:y getup vich aotehat high- eanerage lnroae than the nousiry ge.up of the sabject c-anery (escapetar "High I cusi a _ Oi fxporrerx" grap ehe-e "'iddle 7mao= North Afriet and Middle Efot" do uhoeen hecu-se of ecroager socio-cultural affinitieu). tnrho reference groua data the -ceu.ges ore population weigLted oribhsotic m;ans for tach iedi-cato and ahbus enly when sajocity nf the cou.ties n Ia. roup has dua for than indieator. tinee thacoeerags of auntries atwng the indicators depends on the a. ttlnbliity at data atd is not uniform. cantion =uet he enercised in relaonig uavragen of our indilctorto on,ther. The..e averges are only utetal io uotpaclug the eahie ef one .sdi--tnr at a tisa aong the country ond reference groups. AREA (ehosand s,k.s. 'oplaLiot per Hospial. tad - total, uehau, aod aural - Population (total, Total - Tuta- s-ai-ce ara c-=priinlg laod area end inland ee-ern; 1979 data. urban, and rurnl) dieided by theIr ro.perrivenumher of h-spital beds Agricultural - Etaia-te of agri-ltura. areI used ce"porardly cc per-aneotly aeailable in public and prieate general and specdalioed hospital and re- fdo ceups, pasture:, -eacket and kitchea gaedecs or to lie falluw; 1979 data. hbillitatlionac ters. Hoepitals ore entahlithatets persanently sttffed by at laast one physician. Establihshents prociding prtncipalIy tssti- GNP PiE CAPITA (1S9) - GNP per capita e-cipat-s at carrent naelk price, cal- dial cane are sot included. Rural hospitals., _oseer. include health clulted hy sa.e co. .eLsion nethod us korld Bank Atlan (197i8d- bhuis); 1960, und nedical ceaters not per-naenl' staffed by a physician (but by a 1970, and 1980 dnat. medicoi annistant. nurse, midwife., ec-) which offer i-patient acct - d-aio had pr-ide o Iineded ra-ge If modical faciltiaa. Per sauna- ENERGiY CONSUMPTION PER CAPITA - onna1 consusption ot romeereial anergy (ceal datican p..p.e .rh-n ahopital incllude WiHOs pelneipalgeee.e. a hospitals, und lignite, petealans. natural gus and hcdro-. nuclear aod geothermal elec- and rueal hospinaln, hocal ur rarai hospitals and pedicai and sateinity trinity) in kilegeant of coal equicale-t par capita; 1960. 1970. and 1979 centers. Spenioli-ed hospials are included only under tonal. data. Adniom tperi d' itvi ted - total eusber at admissi.os ts ar discharges frol hsini diIe y the uu-bae If beds. POPULATION AND VITAL STATISTICS Total P Mpularion, Mid-Year (,hgus.ads) - A. of July 1; 1960, 1970, and 19iO hIUSiNg data. Averoge Sier of Rousehold (persons per honsehald) - sotal, urhbn, and rurai- ehuaf Porularieu (oercena ot t-ral) - Ratio of urba- ttotol populatien; A heusehold consiste of o group of indicidoals vho share livitg qnarlers ditgerent deticitions of urhbn areassay affact cowarability of dens and their sai steals. A boarder or lodger psy LI say cot be included Ia among countrirs; 1960, 197i. ond 19ff data, the houkehold tar ntatistiral purposes. Popalotian Projenuleas Average nshee af persons per rue - total, urban, aed coral - average no Populationifnear 200 - Current popurion projertina ure bated on 19i0 her of persons per rann in all urhat, and rual occupied cosesteonal iceal populatiot by age and en ao.d their -ortality and fertility rates. dvellings, respe-tively. Oeellt_gsRneilde eon-peesaenencructraeaad Projection patu.rtees (or mo-tolity rates -omprine of there lecels issue aneopled parts. ing lafe enpertaury at birth inc_rasiug vith country' per capita Lfopem Accesato iElectr`lity (percent t If delligs) - toeal, urhbn, and rural - lrel, and fesale life o,pec_a_cys ruhbiolog at "7.15 Para. The para- tonv.enional d.ellln airh elececiriry In lietog qu-rters aa pereco age motors for Iertl-ity cate also have three levels Jssumini declinr in of total. urhan, aod rural dvrliings renpertlualy. fertility according ta incopg level and past family planning peforsauce. t9ch crunt- c Is then oauig-ed one of thes ni- combinatio.s of ec-alftfy lUtUCAfiOi sd fertility trends for prujeci-c Purpossa. Adjusetd Enuill-ont Ratia Stationary population -In a urationry popolatiun there is ha grovthsicce Primary school - total, mole and fexsle - GIros total, sale and fele the birth rote is ecoul no the death rate. ad alto the age structure re- enrolisent of all ages at the prisary level nt per.enrages of respecrive salon constant. Thia is achieved only after featti.ly eaten decline to primary school-age populatiuns; nrsIaly ianludes childret aged 6-11 the replacenent level of unit net reproduction rLate. hen each generat.io peas bht adjasted for differeet lengths of peisary edua.tion; foe of vppen repiacas iroelf et-ctly. The oraIaoaery popalariocnI ie was tountriese i- h uneiersl edu.anion enroll-Int =y ruceed 100 pFreene asti-tmed on tho hosis uf the prujected rharactoristics of the populaenon niece nsa pupils ara below or aboce the official school age. to the year ZOOO, osd the -ate of decline of feltility rate to eplare- Secondary -cha-l - total, sal and female I- tpted as above; secondsry sane Ioel aducat. ion .eqires at least fuao pears of appro-d primary instrtias; Yearlstatioeary pupula iB reaed - The year when stat-onney population provides general, nocatiotol, or tea her tra inig instructions tar pupils stia ill be re-ched. us.ally of i2 to 17 yearn of age; ca.reepoed ence courses are genrslly Fopul.ai-n Density excluded. Per sq. kI. - Mid-year pupuluti-r pee square kilocater (100 h-ntares) ef Vocational enrolimont (percenr at sfeendory) - VocanioslI ins-tiltios. total area; 1960, 1970 ond 1979 data. in-lude thlical, industrial, or other progrcas whinh opeatle i.depend- Per sq. kh. agricultural land - Cooputed as above Ir ugeirulturol land ently or an deparemeros cf secondary insrtitotins. Oly; 19h0, 1970 and 1979 data. Pspil-reaaherretio - primTary asd seeoedacy - Ttotl stodests enrolled in YPealanian Age grructure fercent) - Children (0-14 yearl), eorking-age (15- prlmorp and nocdary levela dfilded by aaeber of tacehelr ia the 64 years), and retired (65 yearn and -or) an percecangen of mid-your pcpu- correspoading leels. untion; 1961, i9ch, and 191O data. Adult literacy rote (parcent) - Litertet adults (able to read and write) Porulation Iraw h Rate (perceni) - total - Annual gruvth raes af total eid- as a perceesage of total adult populanion aged 15 years and oer. year populario.-f-r 195060, 196D-07D a:d 1970-ha. Populatio- Grovth Rate (percena) - urbac - Annuol grovth elts of urban popu- CONSUMPTION lations Ior 1950-60, 1960-70. and 1970-80. Passenger Cars (pee thousand popnlation) - Passenger curt cotpriea -arD _rude tirth Raer (per thousand) - Annul lie birthn pee thousand If =id-ysr cars -eating less thau eight persons; excladen acbula .es, heaases and population; 19h0. 1970, aed 1961 dana. military vehicles. Crade Dearh date (par thousand) - Annual deaths per thoueand of oid-year Nadia Receirers (per thouanad ppoAlaton) - All typae of re-otdera far radio popalatian; 1960, 1970, and 1960 data. broad asts to general public per thIusand of popolation; enmoudns an- Iross RePruducti.n Raie n-Averagr anhrer oi dasghiers osa nwolll bear In lirensed eeivers in counteiri and it yea_s vh.. registranion at radio hoe noieal reproduntivc period if oh experiences present age-spec-ific fee- sets .s an effect; data foe recen years may sno be opanable sinte tility races; usually fice-year a-eoagen ending ic 1960, 1970, aed 19O. east countries aboliched licensing. Fa-ily Planning - Aeptern, Annual (nhounands) - Annanl cu=ber of ancaptoas Tv Roeeiers (p"r rhossand population) - PP reneiners for brosdnast to of birth-enetrol deoice- under anspices of national fa=ily p INalug peugeo=. general public par ehoussnd populotion; encludes unlitensed Tv recteYrs Pasily Planing - aLers (percens of married wosn) - Percentege of married in nounnries and ie years vhes registration of TV sets wan is eftect. vonte at child-bearing age (15-44 years) sho use birth-coutrol dteices to Nosvpaper tirculatioa (per thousand pepulation) - Sh-es the aera6ecir- all mrried rosen is -umo age group. culaueor of "daily g .eral interese oropaulr", defiaed at a periadical FOOD AND NUTRITION fpblicaton devoted peisarily st rcording general saw.k In is cnesidered Iden Ifood Prodnction per t t i - lden If pea capiea annual Cicfmo Acnuol Antend.ane pee Capita pee tear - Based on the nombre af prod-ceion of all food oscdities. Praductioc encludes seed aod foed and tickets sold daring the Year. iacluding adsiasionstodrive-liniesa is on calendar ye-t bhani. Consaditirn cocoa pri=ory goods (e.g. s-garncae _nd _abilInits. instead of sugar) whiuh ace edible and Ctcaiun ntrients (e.g. toffee and tea are excluded). Aggregaee productiec of each c.ontry is based on FAOR POnCE national average producer price weIghts; 1961-65. 1970. mod 19dO data. Tonal Labor Force (thousands) - lgcos=i-ally attive persona. iscludiag Par copina supply at caluries (patient of oncuire eots) - tonpuied frcm arsgd foeces and nnelpoyed hat e-cluding housevies, students, eec. energy equinalent of net fond supplies available in caoury per capi-- rceriag populstioe of all ages. Definitioas it vcrious countriea are per day. Available supplies roaprise dosestic producticn, isparas lest ooticwoea-bln; 1960. 197c ond 1980 data. e Iports, and changes it stock. iet supplies excIude anisal feed, seed., Fe=la (ereceet) - Pe=lt labor force as percnrage of tpeal labor Scene. quacti lta uned ic find pruc_essig, and lostes in distribution. Riquire- Agriculture (percent) - Labor force it faamitg. forestry, h-nting and xsnts -ere entilsand by FAO bhed an physiological needs for uormal arti- fishing as Percentage af total labor fare; 1960, 1970 and 1980 data. lily and health .onIdern.g geviroasaneal tenpeau-ire, body onighea, age Industry (percent) - Labhr forte in siting., onstructian, mnufactualog and see diarrietro of populantit, and allowing la percean for surr an aed elecarittiy, stee and goa us peenentoge of total lahbr foeie; househald Ieveli 19h1-65, 1970 and 1977 data. 1960, 1970 and 1960 face. Pe capita supply if platein (gra= pen day) - Proteiu rot-e-t of pee capita Prrtciipaion Rate (pIercenl) - tIral. gale. and feFgle - Purticipuin or aet supply of food par day. Net tupply of ford in defined as abo. Re- a misity rstes are co=psted as totai, male, and foa=le lshor tome as qairemanee for all couerioes entablithod hy UoDA procide for tniPii. perceoragee of coral, sale aed female populaei.n of all oge.r.oapecfe. ly. allovacces if 60 gVama of I otal prrcIin per day ard 20 grat f sni-al and 19h0, 19c., and 1960 data. These are based o1. ILO's p lrthnipstou rates pasle protein, of vhich 10 graFg thould be animal pro ei. These stand- retlecting agr-sex structure of the popilstion, and lag rise trend. A ords are vear rhan those of 75 gra-s oft totl protein and 23 groa= of fan ontinucen ace fto ..a.inal sources. anisal prut-ie an an aeerage or the vorld priponed by PAO in tha Third E oha-it lependency datio - dario of population under 15 and 65 and oera World Food Survey; 1961-61, 1990 lad 1977 data. no the total lahor force. Pee copiXt protein nupply f-on anunl and pulse-Pr-tein supply If ford de- rived from animals and pIIser in grass per day, 1961-65, 1970 and 1977 data. 1NCCMf D tISRIiUTION huld laces 1-4) Leach date (pe housand) - hAcual denrhn per lho-ta.d in Perintage of Prlia-e Incotp (btlh in cash and kind) - Rdceleed by richest se Stroup 1 I 4ea, to children in thin agr group, fnr =osr de-oIrping roan- 0 ptrcect. ritheno 20 percent. poirest 20 percaen, and perar 4i percatr tries dato derived iron life Lablet; 1960, 1970 and 1961 data. of households. tdLia. atP et-OfP ...t. Ph. or HEALTH fOVFERT TAEGET GROUPS Life Expectancy an girth (yeoos) - hveA-age nter of years of life rexaining The foll owing est iaes are carp ypprunsane _asunres of poerepy leaeis, at birth; 1960, 1970 and 1980 data, and should bh lcterprsted vith cnsdershle cation. Isfant Itbrtality Rate (p-r lh.inand) - Accu-l deaths of ifantt under cne year Esnited Abatlute Poverty TacoFm Level (US$ per capita) - nrban sod enrol - of age per thousand lice birtha; 1960, 1970 and 19Sf data. _btoinne pocerty inmoLL ievel in that acomi lecel babel which a misi-o Access to hafe Water (pencect of populanion) - total, u-han, aud enrol - Nti- nutritionally adequate diet plus essential con-ford equireen s is act her of people (tonal, nrbhn, and rual) with reasonable a cest o safe affordable. cante supply (inclldes treated turface -acern o untreated bho uIcrocaminated Intisated Relalte- Povery Incoe Level (ii9 per capito) - urban tad -rual - ea er sict an that from protected boneholes. nprings, and aanitary vells) an aural re lative poverny incose local is roe-third of average Par capia percnentges of their respective populations. Inacurhanseo a pubifc personal irte of thercoutry. Urban lecal is deemed trot the ural fountain or ssundpnnr located erot=ore thee 200 Peters from a hotse =y he leul with adjusemot for higher cat of lining in irban areas. considered as bring vithli reas-nahle aress of that house. II rural areas Istisaned Populacion lelov hasolnae Poversy lnroge Level (percent) - urban reasonable artessavould impli that the honteattte or mothers of the household and minil - Paerent of pupulacton (urhan and rural) vhc are "absolute do aot bane to spend a dinprnyorttunae camI of trhe day II feuching the purr. family' .ttar needs. A ccess to lt_rna Disposal (percent ci pipulation) - teal., urbuD, and rical - Yucbsr of people (tol, unhac. sed rural) t.rced hy e.e-ta dlspotal an per eetafen It theie reaprcire populatio-n. Ercrrca dilposal =sy Inc lde the Inleirtuco and disposal. t.rh or - itsot ucatmeet, if h-n exreta and oaoee-ourne oycnatec-horreasysre=s ore thane usofplCrpriviesnndosixv.- Inc insral laic ions . Population par Physician - Populstion divided by nu=be if p-rattiio pghyi- Eono=ic and Social Data Dieirn cisnt qualified from a tedical school at -nicersity local. t_onomic Analysis and Prrj,tionn Dep-tr -nt Populaiaon per Nursing Person- Poynlaru-u divaded by nu=ber of practisiog iay 1982 ale and female graduatonicses, assisoar unuet, prsclical Iusene and eursingaauilisries. ANNEX I Page 4 of 5 ECONDMIC DEVELOPMENT DATA Al GNP PER CAPITA IN 19 80 US$ 248 GROSS NATIONAL PRODUCT IN 1980/81- ANNUA. NATE OF GROs d 1.. consitant prices) / USS Bln. 7 1955156-1959/60 196061-1964165 1965/66-1969/70 1970/71-1974/75 1975/76-197980 GNP at larket Prices 159.37 100.0 3.7 3.6 3.6 2.9 4.1 Gross Domestic Invest,.ent 38.46 24.1 Cross National Saving 35.30 22.1 Current Account Balance -3.16 -2.0 OUTPUT, LABOR FORCE AND PRODUCTIVITY IN 1978 Value Added (at factor cost) Labor Force i/ V.A. Per Worker US$ Bin 7. Ml. 7. US$ 7. of National Average Agric-lture 39.8 39.6 180.6 70.7 220 56 Industry 25.2 25.1 32.2 12.6 783 199 Services 35.5 35.3 42.6 16.7 833 211 Total/Average 100.5 1 0.0 255.4 77 3 GOVERNMENT FINANCE General Government e/ Central Government Rs. Bin. 7. of GDP Rs. Bln. . of GDP 1980/81 1980/81 1976/77-1980/81 L980/81 1980/81 1976/77-1980/81 Corrent Receipts 238.19 19.0 19.1 125.41 10.0 10.6 Corrent Expenditures 238.93 19.0 18.0 133.29 10.6 10.6 Correot Sorplos/Deficit -0.74 -0.1 1.1 - 7.88 - 0.6 N.S. Capital Expenditures f/ 107.35 8.5 7.6 79.99 6.4 5.4 External Assistance (net) d/ 12.86 1.0 1.0 MONEY, CREDIT AND PRICES 1970/71 1974/75 1975/76 1976/77 1977/78 1978/79 1979/80 1980/81 Fehruary 1981 February 1982 (Rs Billion outstanding at end of period) Money and Quasi Money 109.8 194.6 223.2 273.2 329.1 398.6 467.9 553.1 536.13 615.53 Bank Credit to Gover-ssnt (net) 54.6 95.3 97.9 118.5 137.3 162.4 201.0 258.1 238.22 292.18 Bank Credit to Coss-ercLal Sector 64.6 126.5 153.7 185.1 212.2 253.5 306.3 363.2 349.03 422.15 (Percentage or Index Nuasbers) April-Feb 1980/81 April-F.1o 1981/82 Money and Quasi Money as % of GDP 27.3 28.0 30.1 33.9 40.8 40.9 44.1 44.0 Wholesale Price Index (1970/71 - 100) 100.0 174.9 173.0 176.6 185.8 185.8 217.6 251.0 255.9 280.5 Annual percentage changes in: Wholesale Price Index 7.7 25.2 -1.1 2.1 5.2 - 17.1 18.1 18.4 9.6 Bank Credit to Government (net) 15.0 9.2 2.7 21.0 15.9 18.3 23.8 28.4 28.6 g/ 02.7 h/ Bank Credit to Commercial Sector 19.4 18.2 21.5 20.4 14.6 19.5 20.8 18.6 16.6 g/ 20.9 h/ a/ The per capita GNP estimaate is at market prices, calculated by the conversion technique used in the World Bank Atlas, 81. All other conversions to dollars in this table are at the average exchange rate prevailing during the period covered. b/ Quick Estimates, Central StatisticaI Organication. c/ Coeputed from trend line of GNP at factor cost series, including one observation before first year and one observation after last year of listed period. d/ World Bank estimatea; not necessarily consistent vith official figures. e/ Transfers between Centre and States have been netted out. f/ All loans and advanc:es to third parties hove-been netted out. E/ Percentage change f rom end-February, 1980 to eod-February 1981. h/ Percentage change from end-February, 1981 to end-February 1982. I Total Labor Force asnd percentage breakdown frot Sixth Five Year Plan, Table 2.6 ond Annexure Table 13.8. ANNEX I Page 5 of 5 BALANCE OF PAYMENTS 1978/79 1979/80 1980/81 1981/82 i MERCiANDISE EXPORTS (AVERAGE 1977/78 - 1980/81) (US $ Mln.) US$ Mln. % Exports of Goods 6,978 7,998 8,504 8,700 Engiaeering Goods 908 12 Imports of Goods -8,519 -11,302 -15,838 -16,000 Tea 506 7 Trade Balance -1,541 -3,304 - 7,334 - 7,300 Gems 403 5 NFS (net) 717 1,100 722 915 Clothing 501 7 Leather and Leather Resource Balance - 824 -2,204 - 6,612 - 6,385 Products 457 6 Jute Manufactures 303 4 Isterest Income (net) k/ 14 196 370 212 Iror Ore 321 4 Net Transfers 1 / 1,185 1,577 3,079 1,840 Cotton Textiles 316 4 Sugsr 102 Balance on Current Account 375 - 431 -3.163 -4,333 Other 3,541 48 Official Aid Tottl 7.448 100 Disbursements 1,695 1,738 2,337 2,724 o/ EXTERNAL DEBT, MARCH 31, 1981 Amortization - 702 - 608 - 707 - 659 US$ billion Transactions with IMF - 158 - 1,035 690 Outstanding and Disbursed 17.2 All Other Items 265 - 475 147 - 797 Undiabursed 7.5 Outstanding, including 24.7 Increase in Reserves (-) -1,475 - 224 351 2,375 Undisbursed Gross Reserves (end year)fp/ 7,357 7,579 7,228 4,853 Net Reserves (end year) m / 7,357 7,579 6,901 3,876 DEBT SERVICE RATIO FOR 1980/81 3t/ n/ 11.2 per cent Fuel and Related Materials IBED/IDA LENDING. DECEMBER 31. 1981 Imports (Petroleum) 2,043 4,045 6,657 6,075 US$ million IBRD IDA Exports 24 26 33 ol.a Outstanding and Disbursed 984 5646 Unciisbursed 880 4634 Oul:standing, including Undisbursed 1864 10280 RATE OF EXCHANGE June 1966 to mid-December 1971 : US1,00 - Rs 7.5 Re 1.00 - U8$0.13333 Mid-December 1971 to end-June 1972 US$1.00 - Res 7.27927 Re 1.00 - US$0.137376 After end-June 1972 Floating Rate Spot Rate end-December 1980 US$1.00 - Rs 7.930 Re 1.00 - USS0.126 Spot Rate end-December 1981 US$1.00 - Res 9,099 Re 1.00 - US0.110 1/ Estimated. / Figures given cover all investment income (net). Major payments are interest: on foreign loans and charges paid to IMF, and major receipt is interest earned on foreign assets. 1/ Figures given include workers' remittances but exclude official grant assistance, which is included within official aid disbursements. m/ Excludes net use of IMF credit. 04 Amortization and interest payments on foreign loans as a percentage of exports of goods and services. o / Includes $ 234 million of commercial borrowings. I/ Including gold. I ANNEX II Page 1 of 23 THE STATUS OF BANK GROUP OPERATIONS IN INDIA A. STATEMENT OF BANK LOANS AND II)A CREDITS (As of September 30, 198.) US$ million (Net of Cancellations) Loan or Fiscal Credit Year of No. Approval Purpose Bank IDA 1/ Undisbursed 2/ 46 Loans/ 1,568.0 - 75 Credits fully disbursed - 4,352.4 - 342-IN 1973 Education - 12.0 0.79 482-IN 1974 Karnataka Dairy - 30.0 13.36 502-IN 1975 Rajasthan Canal CAD - 83.0 21.60 521-IN 1975 Rajasthan Dairy - 27.7 9.78 522-IN 1975 Madhya Pradesh Dairy - 16.4 1.24 585-IN 1976 Uttar Pradesh Water Supply - 40.0 10.98 598-IN 1976 Fertilizer Industry - 105.0 5.95 604-IN 1976 Power Transmission IV - 150.0 27.19 609-IN 1976 Madhya Pradesh Forestry T.A. - 4.0 1.19 610-IN 1976 Integrated Cotton Development - 18.0 8.02 1251-IN 1976 Andhra Pradesh Irrigation L45.0 - 57.10 1260-IN 1976 IDBI II 40.0 - 4.34 1273-IN 1976 National Seeds I 25.0 - 19.47 1313-IN 1977 Telecommunications VI 80.0 - 7.07 1335-IN 1977 Bombay Urban Transport 25.0 - 6.31 680-IN 1977 Kerala Agric. Development - 30.0 17.07 682-IN 1977 Orissa Agric. Development - 20.0 4.48 685-IN 1977 Singrauli Thermal Power - 150.0 14.13 690-IN 1977 WB Agric. Extension & Research - 12.0 11.80 1394-IN 1977 Gujarat Fisheries 14.0 - 5.86 712-IN 1977 M.P. Agric. Development - 10.0 2.71 720-IN 1977 Periyar Vaigai Irrigation - 23.0 11.81 ANNEX II -'age 2 of 23 US$ million (Net of Cancellations) Loan or Fiscal Credit Year of No. Lnproval Purpose Bank IDA 1/ Undisbursed 2/ 728-IN 1977 Assam Agricultural Development - 8.0 4.86 736-IN 1978 Maharashtra Irrigation - 70.0 14.19 737-IN 1978 Rajasthan Agric. Extension - 13.0 2.47 740-IN 1978 Orissa Irrigation - 58.0 7.30 1475-IN 1978 Industry DFC XII 78.5 - 4.00 747-IN 1978 Second Foodgrain Storage - 107.0 71.45 756-IN 1978 Calcutta Urban Development II - 87.0 10.06 761-IN 1978 Bihar Agric. Extension & Research - 8.0 6.67 1511-IN 1978 IDBI Joint/Public Sector 25.0 - 7.17 1549-IN 1978 Third Trombay Thermal Power 105.0 - 22.25 788-IN 1978 Karnataka Irrigation - 117.6 64.06 793-IN [978 Korba Thermal Power - 200.0 71.61 806-IN 1978 Jammu-Kashmir Horticulture - 14.0 11.74 808-IN 1978 Gujarat Irrigation - 85.0 48.21 815-IN 1978 Andhra Pradesh Fisheries - 17.5 11.20 816-IN 1978 National Seeds II - 16.0 12.69 1592-IN 1]978 Telecommunications VII 120.0 - 37.00 824-IN 1978 National Dairy - 150.0 103.36 842-IN 1979 Bombay Water Supply II - 196.0 174.69 843-IN 1979 Haryana Irrigation - 111.0 13.07 844-IN 1979 Railway Modernization & Maintenance - 190.0 97.94 848-IN 1979 Punjab Water Supply & Sewerage - 38.0 13.19 855-IN 1979 National Agricultural Research - 27.0 22.28 862-IN 1979 Composite Agricultural Extension - 25.0 12.16 871-IN 1979 NCDC 30.0 10.16 1648-IN 1979 Ramagundam Thermal Power 50.0 - 50.00 874-IN 1979 Ramagundam Thermal Power - 200.0 101.84 889-IN 1979 Punjab Irrigation - 129.0 80.38 899-IN 1979 Maharashtra Water Supply - 48.0 24.15 911-IN 1979 Rural Electrification Corp. II - 175.0 39.07 925-IN 19379 Uttar Pradesh Social Forestry - 23.0 12.79 954-IN 1980 Maharashtra Irrigation II - 210.0 123.37 961-IN 1980 Gujarat Community Forestry 37.0 22.55 963-IN 1980 Inland Fisheries - 20.0 18.90 981-IN 1980 Population II - 46.0 42.20 1003-IN 1980 Tamil Nadu Nutrition - 32.0 27.07 1004-IN 1980 U.P. Tubewells - 18.0 10.59 1011-IN 1980 Gujarat Irrigation II - 175.0 150.89 ANNEX II Page 3 of 23 US$ million (Net of Cancellations) Loan or Fiscal Credit Year of No. Approval Purpose Bank IDA 1/ Undisbursed 2/ 1012-IN 1980 Cashewnut - 22.0 19.90 1027-IN 1980 Singrauli Thermal II - 300.0 239.39 1028-IN 1980 Kerala Agricultural Extension - 10.0 9.58 1033-IN 1980 Calcutta Urban Transport - 56.0 45.91 1034-IN 1980 Karnataka Sericulture - 54.0 50.16 1046-IN 1980 Rajasthan Water Supply and Sewerage - 80.0 69.47 1843-IN 1980 Industry DFC XIII 100.0 - 20.35 1887-IN 1980 Farakka Thermal Power 25.0 - 25.00 1053-IN 1980 Farakka Thermal Power - 225.0 194.24 1897-IN 1981 Kandi Watershed and Area Development 30.0 - 26.67 1925-IN 1981 Bombay High Offshore Development 400.0 - 82.69 1072-IN 1981 Bihar Rural Roads - 35.0 24.25 1078-IN 1981 Mahanadi Barrages - 83.0 63.01 1082-IN 1981 Madras Urban Development II - 42.0 29.53 1108-IN 1981 M.P. Medium Irrigation - 140.0 117.07 1112-IN 1981 Telecommunications VIII - 314.0 193.52 1116-IN 1981 Karnataka Tank Irrigation - 54.0 46.49 1125-IN 1981 Hazira Fertilizer Project - 400.0 314.42 1135-IN 1981 Maharashtra Agricultural Ext. - 23.0 19.60 1137-IN 1981 Tamil Nadu Agricultural Ext. - 28.0 23.28 1138-IN 1981 M.P. Agricultural Ext. II - 37.0 31.98 1146-IN 1981 National Cooperative Development Corp. II - 125.0 101.29 1172-IN 1982 Korba Thermal Power Project - ]I - 400.0 400.00 1177-IN 1982 Madhya Pradesh Major Irrigatior - 220.0 206.02 2050-IN 1982 Tamil Nadu Newsprint 100.0 - 81.29 1178-IN 1982 West Bengal Social Forestry - 29.0 26.94 1185-IN 1982 Kanpur Urban Development - 25.0 25.00 2051-IN 1982 ICICI XIV 150.0 - 141.49 2076-IN 1982 Ramagundam Thermal Power II 300.0 - 300.00 2095-IN 1982 ARDC IV 190.0 - 190.00 1209-IN 1982 ARDC IV - 160.0 66.36 1219-IN 1982 Andhra Pradesh Agricultural Extension - 6.0 6.00 2123-IN 1982 Refineries Rationalization 200.0 200.00 2165-IN 1982 Rural Electrification III* 304.5 304.50 2186-IN 1982 Kallada Irrigation 20.3 20.00 ANNEX II Page 4 of 23 US$ million (Net of Cancellations) Loan or Fiscial Credit Year of No. Approval Purpose Bank IDA 1/ Undisbursed 2/ 1269-IN 1982 Kallada Irrigation 60.0 60.00 1280-IN 1983 Gujarat Water Supply+* 72.0 72.00 1286-IN 1983 Jammu/Kashmir and Haryana Social Forestry* 33.0 33.00 1288-IN 1983 Chambal Madhya Pradesh II 31.0 31.00 Irrigation* 1289-IN 1983 Subernarekha Irrigation+* 127.0 127.00 Total 4,095.3 10,955.6 of which has been repaid 1,173.0 106.7 Total now outstanding 2,922.3 10,848.9 Amount Sold 133.8 of which has been repaid 133.8 - - l'otal now held by Bank and IDA 3/ 2,922.3 10,848.9 lTotal undisbursed (excluding *) 1,308.1 3,982.7 1/ IDA Credit amounts for SDR-denominated Credits are expressed in terms of their US dollar equivalents, as established at the time of Credit negotiations and as subsequently presented to the Board. 2/ Undisbursed amounts for SDR-denominated IDA Credits are derived from cumulative disbursements converted to their US dollar equivalents on the basis of the SDR/US dollar exchange rate (1 SDR = US$1.07234) in effect on September 30, 1982. 3/ Prior to exchange adjustment. * Not yet effective. + Not yet signed. ANNEX II Page 5 of 23 B. STATEMENT OF IFC INVESTMENTS (As of September 30, 1982) Amount (US$ 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 1.2 8.7 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 1.7 1982 Ashok Leyland Limited 28.0 - 28.0 1982 The Bombay Dyeing and Manufacturing Co. Ltd. 18.8 - 18.8 1982 Bharat Forge Company Ltd. 15.9 - 15.9 1982 The Indian Rayon Corp. Ltd. 8.1 - 8.1 TOTAL GROSS COMMITMENTS 207.5 12.1 219.6 Less: Sold 53.0 2.6 55.6 Repaid 26.4 - 26.4 Cancelled 6.2 1.3 7.5 Now Held 121.9 8.2 130.1 Undisbursed 103.0 0.5 103.5 ANNEX II Page 6 of 23 C. PROJECTS IN EXECUTION 1/ (As of September 30, 1982) 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$1,245 million in FY82, compared to US$962 million in the previous year. Disbursements in the current fiscal year through September 30, 1982 total US$287 million, representing an increase of about 76% over the same period last year. The undisbursed pipeline as of September 30, 1982, is US$5,291 million. Ln. No. 1475 Twelfth Industrial Credit and Investment Corporation of India Project; US$80 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 million loan of May 16, 1980; Effective Date: June 27, 1980; Closing Date: December 31, 1985 Ln. No. 2051 Fourteenth Industrial Credit and Investment Corporation of India Project; US$150 million loan of October 8, 1981; Effective Date: December 3, 1981; Closing Date: March 31, 1988 These loans are supporting industrial development in India through a we]Ll-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, often in the high technology fields and are also mostly export-oriented. Disbursements are on schedule for the twelfth loan and aheacd of schedule for the thirteenth and fourteenth loans. Ln. No. 1260 Second Industrial Development Bank of India Project; US$40 million loan of June 10, 1976; Effective Date: August 10, 1976; Closing Date: March 31, 1983 Ln. No. 1511 IDBI Joint/Public Sector Project; US$25 million loan of March 1, 1978; Effective Date: May 31, 1978; Closing Date: March 31, 1983 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 7 of 23 Loan 1260 is designed to assist thie Industrial Development Bank of India in promoting small- and medium-scale industries and in strengthening the State Financial Corporations involved. Loan funds were fully committed in December 1981, but close supervision has been necessary to ensure timely implementation of sub-projects and full disbursement of the loan by the closing date. 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 investmtent studies and in strengthening the financial institutions dealing with the state joint/public sector. Progress is satisfactory. 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 Project progress is good. Land acquisition has been completed and construction began in July 1982. Basic engineering work was completed on schedule at the end of August. Procurement is proceeding as planned. Cr. No. 598 Fertilizer Industry Project; US$105 million credit of December 31, 1975; Effective Date: March 1, 1976; Closing Date: December 31, 1982 Cr. No. 1125 Hazira Fertilizer Project; US$400 million credit of October 28, 1981; Effective Date: January 21, 1982; Closing Date: June 30, 1986 As of June 1982, 31 of the 37 fertilizer sub-projects being funded by Credit 598 have been completed and are in operation. IDA has agreed to a six-month extension of the closing date to December 31, 1982, by which date the remaining six sub-projects will be completed and the credit fully disbursed. Credit 1125 is proceeding satisfactorily. Site preparation is well advanced. All major design and critical procurement work is essentially complete, and detailed engineering is now being carried out. Disbursements are ahead of schedule. Ln. No. 2123 Refineries Rationalization Project; US$200 million loan of May 5, 1982; Effective Date: June 29, 1982; Closing Date: September 30, 1986 Project implementation is satisfactory. The conversion component is making very good progress. Preparation work and investment approvals for the energy efficiency and pollution control components are expected to be completed on schedule. Attention is now being turned to the construction programs under the project. ANNEX II Page 8 of 23 Ln. No. 1925 Second Bombay High Offshore Development Project; US$400 million loan of December 11, 1980; Effective Date: February 24, 1981; Closing Date: March 31, 1984 The project is progressing well. All platforms and subsea pipelines have been installed essentially on schedule. ONGC reached its targetted production level of 240,000 Bbl/day in May 1982, and is presently producing 250,000 Bbl/day, 44% of which comes from project wells. 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. 685 Singrauli Thermal Power Project; US$150 nillion credit of April 1, 1977; Effective Date: June 28, 1977; Closing Date: December 31, 1983 Cr. No. 793 Korba Thermal Power Project; US$200 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 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 million loan and and US$200 million credit of February 2, 1979; Effective Date: Cr. No. 874 May 22, 1979; Closing Date: December 31, 1985 Cr. No. 1027 Second Singrauli Thermal Power Project; 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 Ln. No. 2076 Second Ramagundam Thermal Power Project; US$300 million loan of January 6, 1982; Effective Date: March 16, 1982; Closing Date: June 30, 1988 Cr. No. 1172 Second Korba Thermal Power Project; US$400 million credit of February 4, 1982; Effective Date: March 16, 1982; Closing Date: December 31, 1989 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, together with Credit 1172, which became effective March 16, 1982, support the construction of the 2100 MW development, consisting of three 200 MW and three 500 MW generating units, at the second such station, at Korba, together with related facilities and associated transmission. Loan 1648/Credit 874, together with Loan 2076, ANNEX II Page 9 of 23 which also became effective MIarch 16, 19E2, support sinilar investments at Ramagundam. Loan 1887/Credit 1053 assists in financing the first three 200 MW generating units at the Farakka station. The National Thermal Power Corporation (NTPC) has been carrying out construction and operation of these power stations. Loan 1549 supports the construction of a 500 MW extension of the Tata Electric Companies' station at l'rombay, designed to help meet the forecast load growth in the Bombay area. All these large-scale thermal power projects are progressing satisfactorily. Construction works for the Singrauli, Korba, and Farakka stations are on or ahead of schedule, although some slippage has occurred in the implementation schedule for the Ramagundam project. The first unit at the Singraul:L station was commissioned on schedule in February 1982, and the second unit in October 1982. The first unit at the Korba station is scheduled to be commissioned in January 1983. In the Third Trombay project, design modifications for plant equipment, price increases for materials, and increases in customs duties have resulted in an increase in the total cost of the project. The Governnent of India is raising additional funds from internal sources to meet the additional cost. Cr. No. 911 Second Rural Electrification Corporation Project; US$175 million credit of June 21, 1979; Effective Date: October 17, 1979; Closing Date: March 31, 1984 Ln. No. 2165 Third Rural Electrification Corporation Project; US$304.5 million loan of June 22, 1982; Effective Date: October 21, 1982; Closing Date: June 30, 1986 Under Credit 911, project implenentation is progressing approximately on schedule without major problems. Procurement of materials and equipment is well advanced. Disbursements of the credit proceeds are ahead of appraisal projections. Under Loan 2165, initial project progress is satisfactory. Procurement is approximately on schedule, with the State Electricity Boards (SEBs) now proceeding with bid invitations. REC is reorganizing its capability to monitor financial performance of the individual SEBs, which is likely to havE a beneficial effect on this project as well as on Credit 911. Ln. No. 1313 Telecommunications VI Project; US$80 million loan of July 22, 1976; Effective Date: September 14, 1976 Closing Date: March 31, 1983 Ln. No. 1592 Telecommunications VII Project; US$120 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. They are overcoming initial delays caused by procurement problems and a five-month labor strike against one of the indigenous suppliers. All funds from Loan 1313 have been committed and procurement action under Loan 1592 is well advanced. Disbursements are expected to accelerate as work progresses. The ANNEX II Page 10 of 23 Posts and Telegraphs Department remains a financially sound and efficiently-managed organization. Credit 1112 provides for the continued expansion of the Indian telecommunications network, particularly in rural areaLs, the establishment of three new telecommunication equipment factories and the modernization and upgrading of three existing ones. Bid evaluation is progressing satisfactorily and it is expected that the project and its individual sub-projects will proceed according to schedule. Cr. No. 844 Railway Modernization and Maintenance Project; US$190 million credit of November 13, 1978; Effective Date: January 10, 1979; Closing Date: December 31, 1984 Credit 844 was designed to help the Indian Railways reduce manufacturing and maintenance costs of locomotives and rolling stock and to improve their performance and availability. Physical execution of the project is proceeding satisfactorily. The wheel and axle plant is expected to be operational by December 1982, and Indian Railways financial and traffic performance continues to improve. Cr. No. 1072 Bihar Rural Roads Project; US$35 million credit of December 5, 1980; Effective Date: January 15, 1981; Closing Date: June 30, 1986 The project aims to construct or rehabilitate 700 km of rural roads and to improve maintenance of the rural road network in Bihar. It is proceeding on schedule. The majority of the equipment required for the project has been delivered. Contracts have been awarded for civil works totalling to about US$13 million and work began last March. Ln. No. 1335 Bombay Urban Transport Project; US$25 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 nillion credit of October 27, 1980; Effective Date: December 18, 1980; Closing Date: December 31, 1984 Implementation of the Bombay project is satisfactory, with over 70% of the loan disbursed. Construction of new workshop facilities began in January 1982, but to allow for completion the loan closing date may have to be extended one year. A bus fare revision on April 1, 1982 increased revenues by 20% and will enable the project authority to achieve its targeted operating ratio. There has been good progress in meeting the physical investments under Credit 1033. Delivery of more than 600 buses and trams required for the project should be completed by March 1983. However, management performance of the project authorities must be improved if they are to achieve the operational and financial performance targets agreed to. IDA is engaged in detailed discussions with the Government of West Bengal of measures required to alleviate existing and possible future problems. ANNEX II Page 11 of 23 Cr. No. 687 Madras Urban Development Project; US$24 nillion credit of April 11, 1977; Effective Eate: June 30, 1977; Closing Date: December 31, 1982 Cr. No. 756 Second Calcutta Urban Development Project; US$87 million credit of January 6, 1978; Effective Date: April 7, 1978; Closing Date: March 31, 19E3 Cr. No. 1082 Second Madras Urban Development Project; US$42 credit of January 14, 1981; Effective Date: March 2, 1981; Closing Date: March 31, 1986 Cr. No. 1185 Kanpur Urban Development Project; US$25 nillion credit of February 4, 1982; Effective! Date: April 22, 1982; Closing Date: June 30, 1986- Madras Urban Development I, Credit 687, is fully disbursed and scheduled to close on December 31, 1982. The project was implemented satisfactorily and met its basic objectivles, introducing low-cost design standards to provide slum improvements to over 25,000 households, sites and services development on 14,000 plots, and improved water supplies; introducing improved urban management systems; and augmenting the city's bus fleet and the operational management capabilities of the bus company. The second project, Credit 1082, is proceeding satisfactorily, with the exception of the sites and services component, where legal challenges are causing delays in land acquisition. The Government of Tamil Nadu (GOTN) is actively pursuing the resolution of these court cases so that land acquisition can be completed by October 1982 and the sites and services works finished by the project closing date. Under both credits, the financial performance of the Pallavan Transport Corporation (PTC), the project implementing agency, is unsatisfactory. It is not generating funds sufficient to meet its financial targets. An action plan to cut operating costs, reduce new investment, and raise revenues has recently been formulated and, subject to the agreement of GOTN, will enable PTC to achieve the required targets by 1983/84 and maintain them thereafter. Physical performance in the Calcutta project is generally good. All sub-projects presently under implementation are scheduled to be completed by March 31, 1983. Following a review of the overall program for Calcutta's further development, the Government of West Bengal shifted its investment priorities somewhat and consequently reqaested a revision of some components of this project. IDA agreed to the suggested changes, and the closing date has been extended by nine months to allow for completion of the redefined project. Credit 1185, which became effective in April 1982, is aimed at providing shelter and urban services in Kanpur, the largest city in Uttar Pradesh. Initial progress has been mixed. The project authority is hampered by lack of adequate staff with proper management expertise, and land acquisition disputes are causing delays in civil works. Iowever, there has been good progress in the slum-upgrading component, where improvements benefitting about 3,700 households are nearing completion, and the institution-strengthening aspects of the project are proceeding well. ANNEX II Page 12 of 23 Cr. No. 585 Uttar Pradesh Water Supply and Sewerage Project; US$40 million credit of September 25, 1975; Effective Date: February 6, 1976; Closing Date: December 31, 1982 Physical works under the project are approximately 90% complete. However, financial performance of the implementing agencies has been generally poor, and it is likely that many of them may not be able to meet the financial performance targets agreed with IDA. Cr. No. 842 Second Bombay Water Supply and Sewerage Project; US$196 million credit of November 13, 1978; Effective Date: June 12, 1979; Closing Date: March 31, 1985 Cr. No. 848 Punjab Water Supply and Sewerage Project; US$38 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 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: December 31, 1985 Under Credit 842, construction is in progress on the Panjrapur Treatment Plant, on several reservoirs, and on major water mains; and procurement contracts are well advanced for the remaining project works. Revised cost estimates have been prepared because of the delay in the start of construction. The financial performance of the project authority has been good. Implementation under Credit 848 is satisfactory, and the overall financial performance of the project authorities has improved considerably. Recent progress under Credit 899 is encouraging. Land acquisition and construction are proceeding according to the revised implementation schedule. Following a recent tariff revision, the project entities- financial performance should improve in FY83. Under the Rajasthan project, Credit 1046, the rural water supply schemes are well advanced and engineering designs for the urban schemes are nearly finalized. The financial performance of the Rajasthan Water Supply and Sewerage Board has been good. A recent Cabinet decision has deferred the construction of the planned Hemawas/Kuri Pipeline to provide water to the city of Jodhpur, in order to consider the possibility of accessing water from the Rajasthan Canal instead. A consultant has been hired to analyze the engineering and cost alternatives which would be fully assessed when the alternative proposals are received in about one year-s time. ANNEX II Page 13 of 23 Cr. No. 502 Rajasthan Canal Command Area Development Project; US$83 million credit of July 31, 1974; Effective Date: December 12, 1974; Closing Date: June 30, 1983 Ln. No. 1251 Andhra Pradesh Irrigation and Command Area Development (TW) Composite Project; US$145 million loan (Third Window) of June 10, 1976; Effective Date: September 7, 1976; Closing Date: December 31, 1982 Cr. No. 720 Periyar Vaigai Irrigation Project; US$23 million credit of June 30, 1977; Effective Date: September 30, 1977; Closing Date: March 31, 1983 Cr. No. 736 Maharashtra Irrigation Project.; US$70 million credit of October 11, 1977; Effective Date: January 13, 1978; Closing Date: March 31, 1983 Cr. No. 740 Orissa Irrigation Project; US$,58 million of October 11, 1977; Effective Date: January 16, 1978; Closing Date: October 31, 1983 Cr. No. 788 Karnataka Irrigation Project; US$126 million credit of May 12, 1978; Effective Date: August 10, 1978; Closing -Date: March 31, 1984 Cr. No. 808 Gujarat Medium Irrigation Project; US$85 million credit of July 17, 1978; Effective Date: October 31, 1978; Closing Date: June 30, 1984 Cr. No. 843 Haryana Irrigation Project; U',$111 million credit of August 16, 1978; Effective Date: December 14, 1978; Closing Date: August 31, 1983 Cr. No. 889 Punjab Irrigation Project; US$129 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: April 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 ANNEX II Page 14 of 23 Cr. No. 1177 Madhya Pradesh Major Irrigation Project; US$220 million credit of February 24, 1982; Effective Date: April 16, 1982; Closing Date: June 30, 1987 Ln. No. 2186 Kallada Irrigation Project; US$20.3 million loan and US$60 million and credit of July 6, 1982; Effective Date: September 21, 1982; Cr. 'No. 1269 Closing Date: March 31, 1987 Cr. No. 1288 Second Chambal Madhya Pradesh Irrigation Project; US$31 million credit of September 7, 1982; Effective Date: Expected November 1982; 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. Delays in construction caused by initial shortages of cement caused the Maharashtra I project to fall considerably behind schedule. For the future, cement will be allotted to the project on a priority basis. In both Maharashtra projects, increased attention is needed to improve the quality of construction work in accordance with agreed and appropriate technical standards, and to correcting the deficiencies which are now present in the systems. The Karnataka project is experiencing serious delays in command area development and completion of construction of the distribution system, due mainly to lack of proper support from the State Governnent and inadequate staff'ing of the project entity. The urgent attention of the State Government must be devoted to the early resolution of these implementation problems. The Gujarat Medium project is substantially behind schedule, but performance is expected to improve with the recent resolution of technical design problems. A detailed review of the project in July established a revised implementation schedule for the duration of the project. Lack of proper management and planning in the Gujarat II project have contributed to serious delays, which may contribute to considerable cost overruns. Due to unresolved political problems, the Reran component (16% of project costs) has been deleted. In March 1982, the Government of Gujarat sanctioned nearly 300 new staff positions in the Irrigation Department to be assigned exclusively to the implementation of World Bank projects. This is expected to help improve progress in both Gujarat projects, although the project authorities and State Government officials will need to devote considerable time and effort if the problems are to be overcome and momentum re-established. Progress in canal and watercourse lining is behind schedule in the Punjab project due to shortages of cement and inadequate provision of budgetary resources. The Government of Punjab has recently completed a ANNEX II Page 15 of 23 review of the project and a revised implementation plan for the duration of the project is to be presented to IDA in November 1982. The Madhya Pradesh Medium Irriga':ion Project got off to a slow start due to delays in selecting the sub-projects to be included. Eleven sub-projects have now been appraised, ani tendering is underway. The pace of implementation, and the rate of disbursemnents, are therefore expected to accelerate. Initial progress under the ]4adhya Pradesh Major Irrigation Project was delayed by serious start-up problems--among them, considerable staffing vacancies in the project entity, use of inefficient and cumbersome procurement procedures, delays in the appointment of consultants, and deficiencies in technical designs of the irrigation works. The Government of Madhya Pradesh is keely aware of these problems and is taking steps to correct them. Project progress is expected to improve soon. Progress of the remaining projects is generally satisfactory. 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 of about 160 tank irrigation schemes throughout the State of Karnataka. As of February 1982, six of these schemes had been sanctioned for implementation, and another 28 were in various stages of preparation. Initial progress with project preparation has been slow due to staff constraints and unfamiliarity of local engineers with the design criteria agreed under the project. Cr. No. 1004 Uttar Pradesh Public Tubewells Project; IUS$18 million credit of May 12, 1980; Effective Date: June 27, 1980; Closing Date: March 31, 1983 Physical progress is proceeding satisfactorily, with approximately 40% of planned tubewells completed. The operation and maintenance units to be set up in the Irrigation Department are not yet established. The Government of Uttar Pradesh has been ur2ed to fulfill this requirement expeditiously. Project completion may le delayed by six months due to initial procurement delays. Cr. No. 682 Orissa Agricultural Development Project; US$20 million credit of April 1, 1977; Effective Date: June 28, 1977; Closing Date: December 31, 1983 Cr. No. 690 West Bengal Agricultural Extension and Research Project; US$12 million credit of June 1, 1977; Effective Date: August 30, 1977; Closing Date: September 30, 1983 Cr. No. 712 Madhya Pradesh Agricultural Extension and Research Project; US$10 million credit of June 1, 1977; Effective Date: September 2, 1977; Closing Date: September 30, 1983 ANNEX II Page 16 of 23 Cr. No. 728 Assam Agricultural Development Project; ITS$8 million credit of June 30, 1977; Effective Date: September 30, 1977; Closing Date: March 31, 1983 Cr. No. 737 Rajasthan Agricultural Extension and Research Project; US$13 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 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 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$37 million credit of May 7, 1981; Effective Date: Jtuly 22, 1981; Closing Date: June 30, 1987 Cr. No. 1219 Andhra Pradesh Agricultural Extension and Research Project; US$6 million credit of May 5, 1982; Effective Date: July 27, 1982; Closing Date: March 31, 1988 These twelve credits finance the reorganization and strengthening of agricultural extension services and the development of adaptive research capabilities in thirteen States in India. In areas where the reformed extension system is in operation, field results have been most encouraging, both in terms of adoption of new agricultural techniques and of increased crop yields. In Rajasthan, Madhya Pradesh I and Orissa, in particular, significant gains have been made under the projects. In Assam, after some delays field work continues to improve, the field research stations are focussing their activities on local requirements, and the agricultural university is providing good support to extension training and research. In West Bengal, a change in government brought a two-year hiatus in project implementation, but the new State Government has reaffirmed its ANNEX II Page 17 of 23 support, and project activities have resumed. There has been considerable progress in all project components. However, completion of the project in accordance with its original objectives has required an extension of the closing date. Following the decision by the Government of Bihar (GOB) in January 1982 to provide necessary funds for the project and fill key posts there has been considerable improvement. The project is being extended to a further 11 districts, bringing the total under implementation to 16 out of a possible 31. GOB has made provision for adequate budgetary resources for 1982-83, and all extension and research staff required have been appointed, except among village extension workers where some vacancies persist. GOB plans to consolidate the extension system in the current 16 districts before extending it to the entire State. In Gujarat, Haryana and Karnataka, all covered under the Composite Agricultural Extension Project, the basic extension system has been established and attention now needs to focus on the quality of extension recommendations and the filling of remaining staff vacancies. In Kerala, project implementation has begun in three of eleven districts and is operating satisfactorily. Further progress on the project will require an early decision by the State Government to extend the T & V system to the remaining eight districts. I-n Tamil Nadu and Maharashtra, project implementation is going extremely well. Field activities by extension staff are generally well organized and conducted. Recommendations are widely accepted by farmers. Initial implementation of the Madhya Pradesh II project has been slow due to the Government's delay in sanctioning necessary budget resources, and transferring of Department of Agriculture staff to work in the extension service. Field activities are being carried out in only two of the four Year I districts, and have not yet begun in the seven Year II districts. Considerable orientation in the objectives and procedures of the reformed extension service is required by staff at all levels. Early steps are being taken in the Andhra Pradesh project for the commencement of training, monitoring and evaluation, and civil works activities, and the procurement of equipment and vehicles. Field work has yet to begin, pending the issuance of recuired governmental orders for the transfer of staff to the reformed extension service. Cr. No. 680 Kerala Agricultural Development Project; US$30 million credit of April 1, 1977; Effective Date: June 29, 1977; Closing Date: March 31, 1985 Project progress continue satisfactorily. Implementation of the small-holder component, the project's largest, is gaining momentum. The banking program is functioning well, witlh the volume of loans sanctioned up 35% over the previous year. The three crumb rubber factories included in the project are in operation and the cashewnlt plantations are 85% complete. ANNEX II Page 18 of 23 Ln. No. 2095 Agricultural Refinance and Development Corporation IV Project; and, US$190 million loan and US$160 million credit of February 24, Cr. No. 1209 1982; Effective Date: May 25, 1982; Closing Date: June 30, 1984 The project, which is a continuation of ARDC III, consists of a two-year time slice of ARDC-s lending program to farmers, mainly for minor irrigation, and including amounts for diversified lending and for the support of training programs for the staff of participating banks. Implementation is proceeding satisfactorily. Cr. No. 855 National Agriculture Research Project; US$27 million credit of December 7, 1978; Effective Date: January 22, 1979; Closing Date: September 30, 1983 The project requires improvement in several areas. Civil works and procurement are both somewhat behind schedule, the Project Unit needs additional staff and there are technical deficiencies in the experimental agricultural activities being carried out under the project. However, the pace of sub-project approval during 1981-82 has been satisfactory and implementation of the sub-projects in the States of Gujarat and Andhra Pradesh is good. Cr. No. 342 Agricultural Universities Project; US$12 million credit of November 10, 1972; Effective Date: June 8, 1973; Closing Date: December 31, 1982 The primary aim of this project is to assist in the development of the agricultural universities in Bihar and Assam, improve the quality of practical training provided to students and enhance their employment opportuLnities. Implementation of the civil works component of this project was initially delayed at both locations on account of frequent top management changes, shortages in raw materials and political unrest (in Assam). Project implementation has accelerated recently and disbursements are expected to be completed by the closing date. Cr. No. 747 Second Foodgrain Storage Project; US$107 million credit of January 6, 1978; Effective Date: May 17, 1978; Closing Date June 30, 1983 Construction of storage capacity of 1.5 million tons has been completed, with another 300,000 tons in progress. GOI's proposals to delete the bulk storage component and provide additional bag storage capacity have been accepted by IDA. A one-year extension of the closing date has been granted with the possibility of a further extension on the basis of progress achieved during this fiscal year. Cr. No. 871 National Cooperative Development Corporation (NCDC) Project; US$30 million credit of February 2, 1979; Effective Date: May 3, 1979; Closing date: December 31, 1984 ANNEX II Page 19 of 23 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 These credits provide funds to rural cooperatives in various States for the construction and operation of godowns (warehouses) and cold storage and marketing facilities. Major emphasis is placed on institution building in order to make NCDC grow into a more effective development institution to serve India's rural cooperative sector. Implementation of Credit 871 has slowed down over the last six months due to shortages in cement supplies and inadequate project coordination at the State level. Implementation of Credit 1146 was initially slow due to poor preparation in most States in the pre-project year. However, since December 1981 the project has gained some momentum with about 1300 godowns and 40 cold storage units now sanctioned for construction. Under both projects, the shortage of cement presents a serious bottleneck; and construction costs have risen considerably, which may necessitate a reduction in the total number of storage units to be constructed. NCDC and the State agencies concerned have resolved to do what is required to speed up implementation of these projects. Cr. No. 482 Karnataka Dairy Development Project; US$30 million credit of June 19, 1974; Effective Date: December 23, 1974; Closing Date: September 30, 1983 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; Closing Date: March 31, 1983 Cr. No. 824 National Dairy Project; US$150 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. Farmer response has been excellent. About 18,000 dairy cooperative societies (DCS) have been established, with over two million members. Profitability of most DCSs is good and construction of dairy and feed plants is proceeding well. In Credit 482, construction of the mother dairy at Bangalore, the key processing facility, was delayed by litigation. Construction by an experienced civil works contractor has now begun. To allow for near completion of this dairy, and for the Government of Karnataka to implement improvements in their management support of the dairy producers unions as required under the project, the closing date has been extended by one year. Credit 522 project has proceeded well and is excellently managed. The processing facilities have been completed and are operational. However, ANNEX II Page 20 of 23 the project authorities postponed formation of the DCSs until the processing facilities and marketing studies were completed. Extension work is now underway (550 DCSs are already established), but the credit closing date has been extended by nine months to allow for creation of the total 1200 DCSs planned, together with their complementary extension and training services. Under Credit 824, the Operation Flood II Agreements, which allow for the establishment of federations of DCSs, have now been signed by most of the participating States. The major obstacle to the project at the moment is the delay in providing loans to States due to their reluctance to issue the guarantees required by the IDC for commitment of funds. This is currently under review by the project authorities. Ln. No. 1273 National Seed Project; US$25 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 million credit of July 17, 1978; Effective Date: December 20, 1978; Closing Date: December 31, 1984 These projects were designed to increase the availability of high quality agricultural seed, and cover nine States. Although they are two to three years behind schedule because of initial problems in coordination and monitoring mainly at the national level, there has been significant progress over the last year. Plans for the 24 seed development farms are complete and producltion has commenced. Procurement is satisfactory, with six of ten ICB tenders awarded and two more in process. Most of the seed processing plants have been sanctioned for construction, and hence disbursements are expected to improve with the inception of civil works. It is expected that all works under both projects will be completed by June 1984. 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 helps to finance cashew planting and plantation improvement programs in the States of Andhra Pradesh, E'arnataka, Kerala and Orissa. The planting and improvement programs have made very good progress and the area covered is ahead of appraisal estimates. There is every expectation that the project will fulfill its objective of significantly increasing cashew production and improving the incomes of the farmers. In Orissa there is already evidence of a significant improvement in the farmers welfare as a result of participation in the project. Cr. No. 610 Integrated Cotton Development Project; US$18 million credit of February 26, 1976; Effective Date: November 30, 1976; Closing Date: December 31, 1983 Project implementation continues to improve. The area to be covered by the project (183,000 ha) has been attained, and yields are increasing. Major processing facilities in Maharashtra and Haryana are under contract and bid evaluation. The link between university research and project activity is excellent. However, because of poor performance in the ANNEX II Page 21 of 23 early stages, the project closing date has been extended by two years to December 31, 1983, to allow for completion of the project works and full utilization of the credit proceeds. Cr. No. 1034 Karnataka Sericulture Projeat; US$54 million credit of October 27, 1980; Effective Date: December 18, 1980 Closing Date: December 31, 1985 Serious staff shortages in the Department of Sericulture have caused inadequate research and extenslon work and prevented increases in the production of bivoltine silk, one of the project's principal objectives. This situation is expected to improve soon, as the Chief Secretary, Government of Karnataka, is endeavoring to streamline the cumbersome recruitment procedures to permit more rapid hiring of staff. All other project components are progressing satisfactorily. Cr. No. 806 Jammu-Kashmir Horticulture Project; US$14 million credit of July 17, 1978; Effective Date: January 16, 1979; Cflosing Date: June 30, 1984 There has been sufficient progress in civil works and the acquisition of equipment to enable 11 of the 17 apple packing houses and all seven walnut processing centers to become operational by October 1982. Therefore, it is most urgent that the project implementing agency fill their positions of financial and marketing directors in order to formulate appropriate financial and marketing strategies for their first operating season with the new facilities. The training program under the project is progressing well, but research activities are behind schedule due to delays in the appointment of consultants. Cr. No. 609 Madhya Pradesh Forestry Technical Assistance Project; US$4 million credit of February 26, 1976; Effective Date: May 17, 1976; Closing Date: December 31, 1982 A study completed in November 1979 established the feasibility of developing a forest-based industry in Bastar district. However, following a GOI review of the study, it was decided that conversion of the natural forest to pine plantations, as proposed, would not be compatible with the Government-s social, economic, and environmental policies for the area. Further project activities have therefore ceased. The project is expected to close on schedule in December 1982. Cr. No. 925 Uttar Pradesh Social Foresl:ry Project; US$23 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 D)ate: June 24, 1980; Closing Date: December 31, 1985 ANNEX II Page 22 of 23 Cr. No. 1178 West Bengal Social Forestry Project; US$29 million credit of February 24, 1982; Effective Date: April 9, 1982; Closing Date: December 31, 1987 Cr. No. 1286 Jammu-Kashmir and Haryana Social Forestry Project; US$33 million credit of September 7, 1982; Effective Date: Expected December 1982; Closing Date: March 31, 1988 Under the Uttar Pradesh and Gujarat projects very impressive results have been achieved in the tree plantation programs. However, both projects suffer from serious understaffing, especially among forestry extension workers, and inefficiences in the management and organization of the social forestry programs. A special review to be carried out jointly by GOI and IDA in November 1982, is designed to address these problems. Initial implementation of the West Bengal project, which became effective in April 1982, has been satisfactory. Most senior staff are in position, the monitoring and evaluation unit has been established, and physical planting so far has exceeded appraisal report targets. Initial project activities are underway on Credit 1286, signed on September 7, 1982. Ln. No. 1897 Kandi Watershed and Area Development Project; US$30 million loan of September 12, 1980; Effective Date: November 18, 1980; Closing Date: March 31, 1986 There has been considerable progress in project implementation since the last review in June 1981. In the upper catchment, cattle grazing has decreased and afforestation increased, with a consequent improvement in the vegetative cover to reduce erosion and floods--a main project objective. Construction of the Dholbaha dam has started, and feasibility studies of other watershed schemes to be financed by the project are well in hand. Ln. No. 1394 Gujarat Fisheries Project; US$14 million loan and US$4 (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 In Gujarat, the construction of harbor and shore facilities has been delayed by a contractual dispute. This has now been resolved, and harbor works should be finished by mid-1984. Village roads and water supply components of the project are proceeding satisfactorily. In Andhra Pradesh, the project harbor at Visakhapatnam was officially opened in February 1982; harbor works at Kakinada and Nizampatnam are progressing satisfactorily following the resolution of design problems. ANNEX II Page 23 of 23 Cr. No. 963 Inland Fisheries Project; US$20 million credit of January 18, 1980; Effective Date: May 5, 1980; Closing Date: September 30, 1985 Project implementation is satisfactory. The Central and State Project Units are functioning efficiently. Detailed designs for the first two fish seed hatcheries in each of the five project States have been completed. The pond improvement schemes are progressing rapidly, with large numbers of loan applications having been submitted to the participating banks for approval of financing. Cr. No. 981 Second Population Project; UJS$46 million credit of April 14, 1980; Effective Date: June 26, 1980; Closing Date: December 31, 1985 The project has as its major objectives the lowering of infant and child morbidity and mortality, the improvement in the health status of mothers and children and the lowering of fertility in three districts in Andhra Pradesh and in six districts in Uttar Pradesh. Implementation of the project is proceeding well. Marked improvement has occurred in several components especially construction, now that cement is being allocated to the project on a priority basis. As a consequence, disbursements are accelerating. The Director of the Population Centre in Uttar Pradesh has been appointed and the training program is well underway. 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 Following an impressive start in one test block where malnourishment rates fell by 50% during the test period, the nutrition program is being expanded to the other 32 blocks in Madurai District. Progress in civil works is now satisfactory despite early shortages of cement and the construction work for the training facilities is to be completed this year. l ANNEX III Pagne I''o'
Группа Всемирного банка · Memorandum & Recommendation of the President
India - Second Uttar Pradesh Public Tubewells Project
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