India - Second Uttar Pradesh Public Tubewells Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 4167-IN STAFF APPRAISAL REPORT INDIA SECOND UTTAR PRADESH PUBLIC TUBEWELLS PROJECT February 8, 1983 South Asia Projects Department Irrigation II Division This document has a restricted distribution and may be used by recipients only in the 'performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.  CURRENCY EQUIVALENTS US$1.00 = Rupees (Rs) 9.50 1/ WEIGHTS AND MEASURES (METRIC SYSTEM) 2/ 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.62 miles (mi) 1 hectare (ha) = 2.47 acres (ac) I million cubic meters (Mm3) = 810 acre7feet (ac-ft) 1 thousvnd million cubic feet (TMC) = 28.32 Mm I cubit foot per second (cfs or cusec) = 0.028 cubic meters per second (m3/s) 1 kilpgram (kg) = 2.2 pounds (lb) I metiic ton (mt) = 2,205 pounds (lb) FISCAL YEAR GOI; GOUP April 1 - March 31 1/ The US Dollar/Rupee exchange rate is subject to change. Conversions in this report have been made at US$1.00 to Rs 9.5, which represents the projected exchange rate over the disbursement period. 2/ The Metric System has been used in most cases. However, India is still in the process of transition to the metric system; non-metric units are still widely used and have been used in this report where a conversion to the metric system may confuse the reader.  FOR OFFICIAL USE ONLY ABBREVIATIONS AND ACRONYMS AE - Assistant Engineer AO - Agricultural Officer ARDC - Agriculture Refinance and Development Corp. AS - Agricultural Supervisor CADA - Command Area Development Authority CCA - Cultivable Command Area CD - Department of Community Development CE - Chief Engineer CP - Cooperative Program CWC - Central Water Commission DA - Department of Agriculture EE - Executive Engineer ERR - Economic Rate of Return FAO - Food and Agricultural Organization FCF - Foodgrain Conversion Factor GOI - Government of India GOUP - Government of Uttar Pradesh HP - Horse Power HYV - High Yielding Varieties ICB - International Competitive Bidding ID - Irrigation Department IDA - International Development Association IFAD - International Fund for Agricultural Development JE - Junior Engineer LCB - Local Competitive Bidding M&E - Monitoring and Evaluation NPV - Net Present Value O&M - Operation and Maintenance REC - Rural Electrification Corporation SCF - Standard Conversion Factor SGD - State Groundwater Directorate SDV - Supplementary Data Volume TW - Tubewell Wing kV - kilovolt = 1,000 volts kVA - kilovolt-ampere = 1,000 volt-amperes kW - kilowatt = 1,000 watts kWh - kilowatt-hour = 1,000 watt-hours VLW - Village Level Worker GLOSSARY kharif - Wet season (June to October) rabi - Dry season (November to February) zaid - Hot weather season (March to May) This document has a restricted distribution and may be used by recipients only in the performance of their official duties. Its contents may not otherwise be disclosed without World Bank authorization.   INDIA SECOND UTTAR PRADESH PUBLIC TUBEWELLS PROJECT Table of Contents Page No. I. BACKGROUND .................................... 1 Introduction ...... ............... .. ..................... I Agriculture and Irrigation in India .... ........... 2 The State of Uttar Pradesh ............................... 4 - Salient Features ............................. . 4 - The Economy ......................................... 4 - Employment and Rural Poverty ........................ 4 - Public Services ..................... 5 - Agricultural Production Trends ...................... 5 - Irrigation Development .............................. 6 - Power Supply and Demand ............................. 7 II. THE PROJECT AREA AND PRESENT DEVELOPMENT ................. 8 Salient Features .................................. 8 - Location ............................................. 8 - Climate ............................................. 8 - Topography and Regional Division ..................... 8 - Soils .......... 8 - Land Use ............................................. 9 - Population, Land Holdings and Land Tenure ............ 9 Water Resources and Utilization .. 9 - Surface Irrigation ................................... 9 - Groundwater .......................................... 10 Present Agricultural Development . . 11 - Crops and Cropping Patterns .......................... 11 - Crop Yields .......................................... 11 Agricultural Supporting Services . . 11 - Agricultural Research ................................ 11 - Agricultural Extension ............................... 12 - Agricultural Inputs .................................. 12 - Agricultural Credit ........................ 12 - Marketing, Processing and Storage .................... 13 This report is based on the findings of a Bank Mission which visited India in April/May 1982, and comprised of: Messrs. John F. Cunningham, D.D. Taneja and M. Herman (IDA); Messrs. D. Campbell and K.K. Aw Yong (FAO/CP); Messrs. M. Barber and V. Byrappa (Consultants); and Mr. A. Tongul (IFAD). Mr. T. Lohavisavatanich (FAO/CP) participated in the pre-appraisal mission in January 1982. Mrs. P. Waiter assisted with the statistical analysis.  Table of Contents -i i- Page No. III. PERFORMANCE OF PUBLIC TUBEWELLS ........... .. ............ 13 General ......................... ........................ 13 Past Performance ...................... 14 Uttar Pradesh Public Tubewe:Lls (I) Project ....... ....... 14 Project Formulation and Preparation ......... .. .......... 15 IV. THE PROJECT ....................... ...................... 16 Project Concept ..................... .................... 16 Project Components ...... ........... .. ................... 17 Planning Criteria ...... ............ .. ................... 17 - Selection of Tubewell Sites ......................... 18 - Survey and Design ................................... 18 - Tubewell Cluster Planning Reports ................... 18 - Water Requirements ....................... -19 Improved Standard Tubewell Systems (ISTs) ...... .. ....... 19 - The Water Point ..................................... 19 - Wells ............................................... 20 - Pumping Units ....................................... 20 - Pumphouse ........................................... 20 - Distribution Chamber ................................ 20 - Power Supply ........................................ 21 - Buried Pipe Distribution System ..................... 21 - Distribution System Outlets ......................... 22 - Field Channels ...................................... 22 - Access Roads ........................................ 22 Connection of Old Standard Tubewells (OSTs) to Dedicated 11 kV Feeder Lines .......................... 22 Modernization of Old Standard Tubewell Systems .......... 23 - Background ............. 23 - Selection of OSTs for Modernization .... ............. 24 - OST Modernization Criteria .......................... 24 Operation and Maintenance .............. .. ............... 24 Research and Development .................. 24 Training .......,,,.,,.......... 25 Agricultural Development .............. .. ................ 26 GOI Project Preparation Fund ............ .. .............. 27 Project Implementation ............... .. ................. 27 Project Costs ...................... ..................... 28 Financing ........................ ....................... 29 Procurement ....................... ...................... 29 - Civil Works ......................................... 29 - Power Supply ........................................ 30 - Materials, Vehicles and Equipment ................... 31 - Contract Review ..................................... 31 Disbursements ............ 31 Accounts and Audits ....... .......... .. .................. 32  Table of Contents -iii- Page No. V. ORGANIZATION AND MANAGEMENT ............................. 32 General ................................................. 32 The Tubewell Wing (Irrigation Department) .... ........... 33 - Existing Organization ............................... 33 - Present Staffing Norms ............................ -. 34 Proposed Project Organization ........................... 34 - Project Staffing Requirements ....................... 35 Operation and Maintenance ............................... 35 - Water Allocation .................................... 35 - Operation Principles .............................. 36 - Maintenance Criteria ................................ 36 Training ................................................ 37 Design and O&M Manuals .................................. 37 Progress Review and Reporting Requirements .... .......... 38 Uttar Pradesh State Electricity Board (UPSEB) .... ....... 38 - General ............................................. 38 - Public Tubewell Electrification (PTE) Unit .... ...... 38 - Operation and Maintenance (Power Supply) .... ........ 39 Department of Agriculture ............................... 39 - Background .......................................... 39 - Monitoring and Evaluation ........................... 39 - Staffing Requirements ............................... 40 Farmers' Organization Within a Tubewell Command .... ..... 40 VI. AGRICULTURAL PRODUCTION, MARKET PROSPECTS AND PRICES 40 Cropping Patterns ....................................... 40 Crop Yields ............................................. 41 Agricultural Production ................................. 42 Input Requirements ....................................... 42 Market Prospects and Prices ............................. 43 VII. FINANCIAL ANALYSIS ...................................... 43 General ................................................. 43 Farm Incomes ............................................ 44 Impact on Poverty ....................................... 44 Capital and O&M Costs ................................... 46 Repayment Capacity of Farmers ........................... 46 A Practical Approach to Cost Recovery Policy .... ........ 47 - Background ....................................... 47 - Present Water Charges ............................ 47 - Quality of Irrigation Services ................... 48 - 'On Demand' Irrigation ........................... 48 - Pricing of Power Supply .......................... 48 - An Appropriate Water Charge System ............... 49 Projected Level of Cost Recovery ........................ 50  Table of Contents -iv- Page No. VIII. BENEFITS AND JUSTIFICATION . . . 50 - General ................................ .. 50 - Production Benefits ........................... 51 - Employment .......................................... 51 - Beneficiaries ....... ..... 52 Economic Analysis ....................................... 52 - Justification for -Dedicated' Power Lines ........... 53 Sensitivity Analysis . . . . 53 - Improved Standard Tubewell Systems .................. 53 - Project Risk. 54 Environmental Effects .. .. . .. . _ 54 IX. AGREEMENTS AND RECOMMENDATIONS .55 SUPPORTING TABLES AND CHARTS T-1 Agricultural Performance - State of Uttar Pradesh 58 T-2 Irrigable Area and Irrigation Potential Created for Main Project Districts .59 T-3 Climatological Data .60 T-4 Water Balance Summaries for Main Project Districts 61 T-5 Performance of Public Tubewells in UP .62 T-6 Cost Estimates for Improved Standard Public Tubewell Systems .63 T-7 Cost Estimates for Conne!Ction of an Old Standard Public Tubewell System to a Dedicated Power Line .64 T-8 Cost Estimates for Modernizing an Old Standard Public Tubewell System .65 T-9 Schedule of Expenditure - O&M Vehicles and Equipment 66 T-10 Schedule of Expenditure - Other Irrigation Related Items 67 T-ll Agricultural Development - Summary of Costs .68 T-12 Project Estimated Schedule of Expenditures .69 T-13 Part A - Proposed Allocation of IDA and IFAD Credits 70 Part B - Estimated Schediule of IDA and IFAD Disbursements 70 T-14 Organization Schedule (Tubewell Wing, Irrigation Department) .71 T-15 Staffing Schedule (Tubewell Wing, Irrigation Department) 72 T-16 Staffing Schedule (Agricultural Development Wing) 73 T-17 Cropping Patterns and Crop Yields .74 T-18 Annual Project Cost by Ftixed and Variable Components 75 T-19 Rent and Cost Recovery .76 T-20 Project Cost and Benefit Streams for Economic Analysis 77  Table of Contents Page No. CHARTS C-1 Distribution of Irrigated Areas in Command of Old and Improved Standard Tubewell Systems .... .............. 79 C-2 Typical Well Design ................................... 80 C-3 Schematic Layout for a Distribution System for a Typical Improved Standard Public Tubewell Command .... ....... 81 C-4 Project Implementation Schedule ....................... 82 C-5 Existing Tubewell Wing Organization and Proposed Organization for the Project ........................ 83 C-6 Agricultural Development - Proposed Organization ...... 84 ANNEXES Annex 1 - Selected Documents and Data Available with Project File .................................. 85 Annex 2 - Main Assumptions for Financial and Economic Analysis ...................................... 87 Annex 3 - Detailed Cost Estimates and Schedule for Provision of Principal Materials .... .......... 110 LIST OF MAPS IBRD 16540R - Project Districts IBRD 16542 - Soil Types IBRD 16541 - Normal Annual Rainfall Volume II - Supplementary Data Annex 4 - Performance of Public Tubewells under First UP Public Tubewells Project Annex 5 - Groundwater Resources Annex 6 - Agricultural Development Annex 7 - Tubewell Irrigation Systems - Planning and Design Annex 8 - Power Supply and Demand Annex 9 - Cost Recovery Annex 10 - Private and Public Groundwater Development Annex 11 - Part A - Monitoring and Evaluation Part B - Training   INDIA SECOND UTTAR PRADESH PUBLIC TUBEWELLS PROJECT Staff Appraisal Report I. BACKGROUND Introduction 1.01 The State of Uttar Pradesh (UP), located in the northeastern part of India, is well endowed with water resources. However, only about two-fifths of the cropped area is irrigated in spite of the rich water resources, large public investments in surface and tubewell irrigation, as well as rapid private groundwater development. Consequently, the Government of Uttar Pradesh (GOUP) has placed great emphasis on the acceleration of irrigation in recent Five-Year Plans. Since groundwater is the most assured source of irrigation and can be developed in discreet stages of an overall plan, and the present statewide extraction is only about one-half of the total resources, GOUP gives priority to groundwater development. 1.02 The Bank Group has been involved in the financing of both private and public tubewells in UP. Private groundwater development in UP, financed through Uttar Pradesh Agricultural Credit Project (Cr. 392-IN) and the lines of credit to four Agricultural Refinance and Development Corporation Projects (Cr. 540-IN, 1975; Cr. 715-IN, 1977; Cr. 947-IN, 1979; and Cr. 1209-IN, 1982) has consisted mostly of shallow tubewells, each commanding about 2 to 4 ha. Public tubewells, each commanding 100 ha or more, are normally constructed in areas where gravity irrigation is not feasible and where the potential for construction of shallow tubewells is limited due to the depth of the aquifer or because landholdings are too small to allow this type of development. From the equity point of view, public tubewells are desirable to overcome the underutilization of both land and groundwater resources in certain areas where fragmented and small holdings make the cost of private tubewells prohibitively high and thus unattractive to small farmers. 1.03 Results from a Farm Benefit Survey for the Project Completion Report of the Uttar Pradesh Agricultural Credit Project (Cr. 392-IN) showed that only about 66% of the borrowers for private tubewells were small farmers (below 3 ha). For comparison, about 91% of the total holdings in the State are below 3 ha. Furthermore, as private tubewell development is limited to those farmers willing and able to make the necessary investments, it inevitably attracts mainly progressive farmers. This implies that, propor- tionally, more medium and large farmers in the State can afford to borrow for private tubewells than small farmers. Consequently, the weakest elements of the farming population continue to depend on the public sector if their land and groundwater resouces are to be effectively and efficiently utilized. COUP has recognized that there needs to be a continuing and substantial investment in the public groundwater sector in those areas where conditions are appropriate to complement the private sector development.  -2- 1.04 To support these endeavors, the Bank Group financed the construction of about 800 public tubewells in UP between 1961 and 1964 (Cr. 8-IN, US$6 M). While physical implementation of the construction program was satisfactory, the post-project operation has fallen short of expected agricultural and economic benefits. The poor performeance has been caused by (a) incomplete and poorly constructed irrigation distribution systems which resulted in excessive conveyance losses of water; (b) overly large command areas in relation to well capacity; (c) inadequate operation and maintenance; and (d) power supplies which are substantially short both in quantity and quality of that assumed in design. Statewide, the main problems facing existing public tubewells are poor power supply and incomplete planning and design compounded by inadequate management (para 3.01). Nevertheless, for reasons described in para 1.02, public tubewells remain potentially attractive sources of irrigation. Furthermore, in comparison with the surface irriga- tion schemes, they have a shorter gestation period and more flexibility in operation. 1.05 In 1979, the Government of India (GOI) requested IDA assistance to finance the construction of about 500 public tubewells in UP. The Uttar Pradesh Public Tubewells Project (Cr. 1004-IN) was formulated a pilot opera- tion to test and evaluate significant changes in technical design and opera- tional standards used in the construiction and management of public tubewells (see para 3.05). These new standards have improved the uti'lization of groundwater resources which, previous to the improved technology, resulted in returns that were significantly below the potential. The proposed project would follow up the first stage project, introducing the technical improve- ments to some 2,200 new tubewells. In addition, the proposed project would upgrade about 100 existing tubewells throughout the State on a pilot basis and enable about 650 existing tubewells to benefit from greatly improved power supply by being connected to -dedicated' power lines constructed to serve only public tubewells. Agriculture and Irrigation in India 1.06 India has a population of about 700 M (mid-1982) which is growing at an annual rate of about 2.0%. Since 1960, per capita income grew at an annual rate of 1.4% and reached US$240 in 1979/80. Although the average per capita income has increased and access to public services has improved, growth has been too slow to bring about more than a gradual reduction in the incidence of poverty. Accordingly, GOI's development plans give priority to alleviating poverty and creating employment, especially in rural areas. 1.07 Agriculture is the dominant sector of the Indian economy and con- tributes about 40% of GNP. It engages about 70% of the labor force and provides the base for about 55% of India's exports. During the last decade, GOI has devoted considerable attention to agriculture in its development plans. To support agricultural growth, GOI has. (i) accelerated irrigation development through modernization of existing schemes and construction of new schemes; and (ii) improved agricultural supporting services to optimize the use of land and water resources.  -3- 1.08 Irrigation was given the highest priority -r ._-ii1ng of the planning era in 1950. Some 52.6 M ha were developed by 1979/80, about 58% of which is from surface sources and 42% from groundwater. Irrigated areas are almost four times as productive as rainfed areas and they account for about 60% of all agricultural output in India. More significantly, the expansion of irrigation facilities and the productivity growth on irrigated lands have together accounted for at least three-quarters of the agricultural growth since 1960. The potential area developed for irrigation is expected to grow to about 66.2 M ha by the end of 1985/86, of which 56% will be from surface sources and 44% from groundwater sources. With little idle land left for cultivation, limited increase is expected in the net sown area in the future. The main increase in agricultural production will need to come from full utilization of potential area developed for irrigation, from double cropping, and from improvements in agricultural practices, water management and in the use of agricultural inputs. In most completed projects, the actual irrigated areas are less than planned and yields have been much lower than the original forecast. GOI and the State Governments are aware of the challenge and are seeking solutions to the dual problem of low irrigation intensities and poor crop yields. 1.09 Groundwater development has been accelerated in the northwestern part of India and in some States in the Deccan Plateau and in the South (Gujarat, Naharashtra, and Tamil Nadu). The potential created increased from 0.5 M ha per year by the end of the Fourth Plan (1968/69-1973/74) to 1.1 M ha in 1977/78. At present, net groundwater extraction is about one-half of the mean annual recharge. Levels of development vary widely between States from a small portion of recharge in Assam (5%) to as high as 75% in Tamil Nadu. The bulk of future groundwater development will occur in the Eastern Region of India where only about one-third of the ultimate potential has been developed and where demand for tubewells is relatively strong. Of the 3.5 M ha of groundwater developed during the Fifth Plan (1973-78), about 2.2 M ha, or 62%, were in the Eastern Region. The growth rate of area irrigated by groundwater in the Eastern Region during this period was 6.5% per annum compared with 3% in the rest of India. 1.10 Groundwater development through private tubewells is not subject to most of the water distribution and management problems encountered with major and medium surface schemes. Storage is provided naturally; conveyance from well to field is generally over short distances; water can be tapped and delivered to farmers' fields quickly; and irrigation is timely, being under the complete control of individual farmers. Even then, there is considerable scope for improvement, particularly in the design efficiency and implementa- tion standards for pumping equipment (Annex 10, SDV). Public schemes for groundwater development face some of the problems that affect surface irrigation systems with the exception of augmentation tubewells. 1/ However, public tubewells are easier to manage than surface irrigation schemes due to smaller command areas and more flexibility in irrigation delivery. 1/ Augmentation tubewells do not provide a direct irrigation service but supplement water supplies in surface irrigation schemes.  -4- The State of Uttar Pradesh 1.11 Salient Features. The State of Uttar Pradesh (UP) has a population of about ill M (1981); this makes it the most populous State in India, accounting for 16% of total Indian population, whereas its geographical area (298,000 kmi2) covers only 9% of the 5,ountry. The population density is extremely high at 372 persons per km'. About two thirds of all farm holdings in UP are below 1.0 ha, compared to about 50% for the nation. 1.12 The Economy. The economy of UP is predominantly agrarian, with agriculture contributing about 56% of- the State income and employing about 78% of the working force. Between 1960/61 and 1976/77, the rate of growth of the primary sector, including agricu:Lture, forestry and mining was only 1.7% per annum (p.a.) compared to an all-India average of 2.0%. Similar'ly, the secondary sector, including manufacturing, construction, electricity, gas and water supply (15% of the State income), only grew at 2% p.a., which was half the national rate of 4%. The perforrmance of the tertiary sector, including transport, trade, finance and services (30% of the State income), fared better at 4% growth p.a. However, since tertiary sector activities started from a relatively small base and were concentrated mostly in the urban areas, their rapid growth only contributed rmarginally to the well being of the majority of population (82%) living in the rural areas. 1.13 As a result of poor performarnce of the primary and secondary sectors, State income grew at an annual rate of 2.2% p.a., well below the national rate of 3.1%. Per capita income only increased by 0.5% p.a. and was one of the lowest in India (Rs 981 in 1979/80), compared to the national average of Rs 1,267. Since agriculture is the main activity in the State and has close links to other sectors, economic progress is largely dependent on the removal of constraints to further agricultural growth, particularly through the expansion of irrigation. 1.14 Employment and Rural Poverty. The labor force constitutes about 31% of the UP population. Its participation rate is significantly higher in rural areas (31.4%) than in urban areas (27.7%). Cultivators and agricul- tural laborers account for 65% and 22.8% of the rural labor force, respec- tively. Because of the slow growth of agriculture and manufacturing, productive employment has failed to keep pace with population growth. 1.15 The poor performance of the agricultural sector also resulted in a sharp rise in the proportion of rural population living below the poverty line (currently US$90 per capita per annum) from 41.6% in 1960/61 to 63.6% in 1970/71. According to the National Sample Survey in 1973/74, about two-thirds of the rural population in UP lived below the poverty level. Agricultural laborers account for a substantial part of the poor. It is estimated that 90% of the agricultural laborers in Uttar Pradesh lived below this poverty level. 1/ A series of programs have been created to raise 1/ See Anyyar, Rohini. "Wages, Employment and Standard of Living of Agricul- tural Laborers in Uttar Pradesh" in Poverty and Landlessness in Rural Asia, International Labor Organization, Geneva, 1977.  -5- standards of living of this group, including measures to secure tenants' rights, land redistribution and public works programs. These programs so far have been largely unsuccessful due to the intrinsic difficulties of the problem, faulty planning and poor implementation. 1.16 Public Services. By most traditional indicators, UP is one of the least advanced States in India. The literacy rate (27.4%; 1981) is lower than the national average of 36.0%. The number of doctors and health centers per 1,000 persons is among the lowest in India. Although the State is well connected to the rest of India through national highways, railways and air- ways, the intra- State communication is inadequate. The provision of safe, potable drinking water has been slow. At present, water supply schemes are being implemented in about 20% of the villages with no adequate source of drinking water. The Bank Group has supported GOUP in water supply schemes through the on-going Uttar Pradesh Water Supply and Sewerage Project (Cr. 550-IN; US$40 M). 1.17 Agricultural Production Trends (Table T-1). From the commencement of the First Five-Year Plan (1950/51) up to 1977/78, foodgrain production only grew about 2% p.a., barely keeping pace with the population growth. Rice and wheat production accounted for most of this growth while coarse grains remained stagnant and pulse production declined. The performance of non-foodgrain crops such as oilseeds, sugarcane and potato fared better at 3.1%, 3.5% and 5.5% growth p.a., respectively. However, since these crops only occupy a small portion of the total cropped area (para 2.12), their rapid rates of growth do not significantly affect the overall performance of the agricultural sector. 1.18 The early years after Independence were characterized by both area expansion and yield increases for most crops. Between 1950/51 and 1960/61, production of foodgrains grew at 1.6% p.a. Both rice and wheat production (major cereals in the State) grew at respectable rates of 5.2% and 4.8% p.a. respectively. In the 1960s, the agricultural scene changed significantly. Increases in production of most crops during this period were largely the result of rising yields. Rice production, however, stagnated while wheat production grew at 9.9% p.a. and maize 9.7% p.a. Whereas oilseeds and sugar- cane production only grew at 3.7% and 1.0% p.a., respectively, the gain in potato production was spectacular at a rate of 10% p.a., resulting from both area expansion (4.3% p.a.) and yield increases (5.6% p.a.). The impressive performance of most crops, except rice and sugarcane, during this period was largely due to the introduction of improved high yielding varieties and accelerated development of private tubewells in the latter part of the 1960s. 1.19 The agricultural transformation in rice crops seemed to lag a few years behind wheat. However, from 1971 to 1978, rice production improved significantly, growing at 4.7% p.a., slightly above wheat production (4.1%). Areas under other major cereal crops such as maize and barley suffered a major setback and their production showed a declining trend. Cash crops still performed well, growing at 4-5% p.a. Production of oilseeds and sugar- cane improved significantly, growing at 4.2% and 4.4% p.a., respectively. Potato production maintained its earlier momentum, growing at 9.5% p.a.  -6- 1.20 Irrigation Development (Table T-2). The State is well endowed with water resources. Nevertheless, only about 8.5 M ha (50%) of the total net cultivated area of 17.0 M ha was irrigated in 1979/80. Between 1950/51 and the onset of the Green Revolution, surface and groundwater development con- tributed equally to the expansion of irrigated areas in UP. However, since 1965/66, groundwater development has accounted for virtually all increases in net irrigated area. In 1979/80, about 5.7 M ha (64%) of the total net irrigated area was supplied with groundwater compared to 2.8 M ha provided by the surface irrigation schemes. The remaining area is served by storage tanks or by pump lift schemes from rivers. Progress of irrigation develop- ment in terms of net irrigated area in the State since 1950/51 is shown below: Increase 1950/80 1950/51 1960/61 1970/71 1979/80 Area % Increase Surface 1.8 2.0 2.5 2.8 +1.0 +56 Irrigation Tubewells 0.3 0.5 2.3 4.8 +4.5 +1,500 Dugwells 1.9 1.8 1.7 0.9 -1.0 -48 Others 0.8 0.7 0.7 0.4 -0.4 -50 Total 4.8 5.0 7.2 8.9 +4.1 +1,300 1.21 The significant increase in areas irrigated by tubewells after 1960/61 was mainly due to private grou-ndwater development. Pumped wells replaced many traditionally operated dugwells. This stemmed from the intro- duction of high yielding crop varieties (HYV) which required more reliable water supply and the increasing availability of rural electrification. However, most of the private groundwater development during the Green Revolu- tiorn period occurred in the western part of the State where farmers were more progressive and familiar with irrigation provided by surface canals. At present, there are about 1.2 M private tubewells and pumpsets and about 18,000 public tubewells in operation in the State. GOUP plans to accelerate the development of both sectors at rates of about 100,000 private tubewells and 1,000 to 1,500 public tubewells per annum. Progress of development of private and public tubewells since 1960/61 is illustrated below: Tubewells 1960/61 1970/71 1979/80 (net irrigated area in '000 ha) Public 733 877 770 Private 48 1,522 4,058 1.22 About 10.4 M ha or 40% of the gross cropped area (25.0 M ha) is presently irrigated with wheat accounting for the largest share of the expan- sion of irrigated area since Independence. The general trend for major crops has been:  -7- 1950/51 1960/61 1970/71 1 979/80 ------------(Area irrigated in iCaI-- - Wheat 1,627 1,780 3,988 6,072 Paddy 409 502 745 LJ 515 Pulses 402 369 433 678 Sugarcane 693 874 905 1,041 Other Crops 138 189 468 626 1.23 Power Supply and Demand (Annex 8, SDV). Uttar Pradesh is well endowed with natural resources for generating power. The Himalayan rivers serving the State have a hydro-power potential of about 20,000 MW and the recently developed Singrauli coal fields in the south offer a thermal power potential of about 10,000 MW. However, due to limited financial resources, the State has only installed about 3,710 MW of which about 30% is provided by hydel schemes and the balance by thermal stations. Under the Sixth Five-Year Plan (1980-85), schemes for generating an additional 2,394 MW are under construction. The energy is transmitted through some 30,970 km of 400 kV to 33 kV lines and an extensive 11 kV network throughout the State. Per capita generation of electricity was about 115 kWh in 1979/80 compared to an all-India average of 164 kWh. Per capita consumption of electricity rose from about 7 kWh at the commencement of the First Five-Year Plan (1951) to 87 kWh by 1979/80. This still lags behind the national average of 130 kWh per capita. The progress of rural electrification has been slow and presently only about one-third of the villages has electric power. The Bank Group has participated in augmenting power supply in UP through the Singrauli Thermal Power Projects (Cr. 685-IN, US$150 M) and (Cr. 1027-IN, US$300M)o In addi- tion, to assist GOUP in its drive to increase rural living standards, the Bank Group is supporting rural electrification in UP through a line of credit to the Rural Electrification Corporation (REC). 1.24 Agriculture accounts for about 34% of the total energy consumption in the State. Public tubewells use about 15% of the energy consumed in the agricultural sector (i.e., 4% of total statewide energy use). Generally, private tubewells are less efficient in power use than public tubewells. With the rapid expansion of private tubewells over the last decade, an ever increasing (and difficult to control) demand on the power transmission capacity in rural areas has resulted. The consequence is that rural power availability now averages about eight hours supply per day with large varia- tions in both the running hours per day and the quality of the supply depend- ing on location within the State. Given historic growth rates and the latent demand for energy, rostering during peak demand periods is likely for years to come. As public and private tubewells are at present connected to the same rural transmission lines, the inadequate power supply has become the main cause for poor performance and low utilization of existing public tubewells (Annex 8, SDV).  -8- II. THE PROJECT AREA AND PRESENT DEVELOPMENT Salient Features 2.01 Location. The tubewell irrigation systems to be constructed under the project would be distributed in all of the 56 administrative districts which comprise the State of Uttar Pradesh. The project area is therefore representative of the range of climate and agronomic conditions found throughout the State. However, nine of these districts have limited oppor- tunities for public tubewell development. The 45 project districts outside the hill areas have been designated the main project districts and are iden- tified on Map 16540R; these districts are all wholly or partly underlain by thick alluvial deposits which contain good aquifers suitable for public groundwater development. 2.02 Climate. Climatological data for the project area is given in Table T-3. Uttar Pradesh has a tropical monsoon climate but there are great varia- tions in temperature in accord with changes in altitude. On the Gangetic Plain, the average temperature ranges from a minimum of 3-40C in January to a maximum of 43-450C in May and June. The mean annual rainfall ranges from about 700 mm in the western part of the plain to about 1,200 mm in the east and exceeds 1,800 mm in the Himalayan foothills (Map No. 16541). About 87% of the rainfall occurs during the monsoon period (June-September) but with considerable annual variations in both amounts and distribution. Variability is directly related to the mean annual precipitation; thus, the eastern part of the Gangetic Plain is subject to the greatest variation (about +30% of mean annual rainfall). The times of onset and end of the monsoon are uncer- tain and long dry spells may occur within the rainy season. Uncertainty regarding amount and distribution of rainfall makes irrigation a prerequisite for successful crop production even during the monsoon season. 2.03 Topography and Regional Division. The State divides naturally in three physical zones; the Himalayas, the Gangetic Plain and the Central Indian Plateau. The Himalayan Zone is of rugged topography with high moun- tains intersected by deep valleys with much of the land unsuitable for agriculture. The Gangetic Plain, an area of subdued topography sloping to the southeast, is the most heavily populated and cultivated part of the State. The southern edge of UP rises on to the Central Indian Plateau. This is an area of low hills and plateau lands with large areas unsuitable for agriculture due to undulating topography and thin soils. For planning pur- poses, the project area is divided into three regions: the Western Region consisting of a small strip of sub-Himalayas and the western part of the Gangetic Plain; the Central Region covering the central Gangetic Plain; and the Eastern Region extending over the eastern part of the Gangetic Plain. 2.04 Soils. A wide variety of soils occurs in different parts of the State (Map 16542). The soils of the Gangetic Plain are alluvial of different ages. The western part of the plain is characterized by shallow loams and sandy loams. The western central plain has thick, heavy loam soils while the central area and eastern plains have loams or sandy loam soils. The soils of the Central Indian Plateau are categorized mainly into black or red varieties. The former are heavy and calcereous occurring mainly on the valley Lloors. The red soils are light and occur on plateau tops and on  -9- upper slopes of hills. Thickness of soil profiles are variable and soils may be absent on steeper slopes. Some areas of saline soils occur on the Gangetic Plain but alkalinity is not a common problem. Fertility levels are low to medium. 2.05 Land Use. About 17.0 M ha (57% of the 29.8 M ha reported as utilized in the State) is under cultivation. The forest area of 5.1 M ha (17%) is less than what is required to maintain a healthy ecological balance. About 3.4 M ha (11%) are either barren, uncultivable or put to non-agricultural uses. Cultivable waste land accounts for 1.2 M ha (4%). The remaining 3.1 M ha (11%) are either fallow or used as permanent pastures and groves. Since 1960/61, the net cultivated area has remained stagnant and there is little scope for increasing it in the future. 2.06 Population, Land Holdings and Land Tenure. Rural population density ranges from 280 to 720 persons per km2, the lowest densities occurring in the northern and western parts of the State and the highest in the east. The average farm size in the main project districts is about 1.1 ha, slightly smaller than the State average of 1.2 ha. Small holdings below 2 ha account for 87% of the number but only about 44% of the total area. More important in terms of groundwater development, about 50% of the holdings in the State are less than 0.5 ha. As shown below, the farm size distribution is largely determined by local agro-climatic conditions: % of Farms in Size Group (ha) Population Average Region Rainfall Density 0-1 1-3 3-5 5-10 10+ Size (mm) (No/km2) ------------%----------- (ha) Western 700-900 479 59 29 8 3 1 1.4 Central 900-1000 430 66 26 5 2 1 1.1 Eastern 1000-1400 484 75 19 3 2 1 0.9 Uttar Pradesh 377 69 23 5 2 1 1.2 2.07 A variety of land tenure arrangements exist. In the early 1950s, an Act was passed abolishing intermediate tenancy and providing security of tenure to erstwhile tenants. In 1961, a second Act imposed a ceiling on rural landholdings with the specific aim of achieving greater equality in the landholdings of individual cultivators. However, the existence of legal loopholes, coupled with ineffective enforcement, inhibited this Act from achieving its objective. In 1971, the land reform issue was reopened but so far has remained unresolved. Water Resources and Utilization 2.08 Surface Irrigation. Uttar Pradesh lies within the catchments of four great tributaries of the Ganga river system. These are, from west to east, the Yamuna, Upper Ganga, Ghagara and Gandak rivers. Most of the streams which feed these rivers have their sources in the Himalayas through right bank tributaries to the Yamuna; those streams joining the Ganga below the confluence with the Yamuna originate on the Central Plateau and are fed by both run-off resulting from monsoon rainfall and by snow-melt during the spring through fall period. The streams originating on the plateau are fed  -10- only by monsoon run-off. The river reaches within the Gangetic Plain are generally deeply incised into the regional water table and function as ^ drainage lines for groundwater. The combination of run-off from snow-melt and groundwater drainage ensures perennial flows in the main river courses. However, there is a marked change of discharge between early spring (before the onset of snow-melt) and the height of the monsoon. Although no proper survey has been undertaken, it is estimated that the total water resources of the Ganga basin average about 510,000 Mm3 per annum. Approximately 70% of this passes through Uttar Pradesh. The ultimate surface irrigation potential in UP is estimated at 12.4 M ha or about double the area presently served by surface irrigation sources. There is therefore ample scope for further development of surface irrigation. 2.09 Groundwater (Annex 5, SDV). The Gangetic Plain is underlain by alluvial deposits which form a single though heterogenous, aquifer system which can exceed 1,000 m in thickness in some parts of the plain. Aquifers are formed by beds of sand which interfinger with beds of silt, clay and kankar. The aquifer system is recharged mainly by infiltration of rain falling on the area or collected by local run-off into pools and lakes. Another important source of recharge is percolation from canals and on-field losses from surface water irrigation systems. Parts of the plain are subject to flooding by the rivers in some years and infiltration of flood water forms an important source of recharge in such areas. Discharge is by seepage to the main natural drains which are deeply incised and form line-sinks for groundwater drainage. The depletion of groundwater also occurs through evaporation from shallow water table<s and by extraction by private and public wells. Underflow beneath the regional hydraulic gradient forms a relatively small part of the water balance. 2.10 The State Groundwater Directorate (SGD) of UP has estimated a mean annual net recharge available to the State at about 58,000 Mm . Net extrac- tion by various types of tubewells and dugwells amounted to about 23,000 Mm3 in 1980/81 or some 40% of the groundwater resources. Thus, the prospect for further groundwater development in UP is good and demands for well water appear to be strong. In the main project districts, the aquifers are formed by sand beds contained within the alLuvial sequence of the Gangetic Plain. Groundwater balances based on data provided by the SGD are summarized in Table T-4. The balances, which are ;regarded as conservative estimates, indicate that water consumption by the project expressed as a proportion of the unexploited groundwater resources in each district ranges from only 1 to 18%. Thus the project requirements of groundwater resources at district level would be ensured. 2.11 Most of the water contained by the alluvial aquifer system has less than 1,000 parts per million (ppm) d.Lssolved solids. There are considerable areas of better quality water with dissolved solids falling as low as 250 ppm. A few pockets of water with high chloride concentrations (in excess of 250 ppm C1) occur in some districts but their localities are well defined and would be avoided for project tubewel:Ls.  -1 1- Present Agricultural Development (Annex 6, SDV) 2.12 Crops and Cropping Patterns. Cereals--paddy, maize, bajra and sorghum in the kharif season and wheat and barley in the rabi season--account for about 67% of the cropped area. Pulse crops (11%) include pigeon peas (arhar), moong and moth in the kharif and gram, peas and masur in the rabi. Non-food crops account for 22% of the cropped area and include various types of oilseeds (15%) followed by sugarcane (6%) with the remaining 1% under miscellaneous crops such as fruits, vegetables, fiber crops, green manure and condiments. Cropping patterns vary with the changing conditions of physical and social ecology in different parts of the State. In the Western Region, particularly in the upper Ganga-Yamuna Doab, sugarcane and forage crops are the important crops in the kharif season. Bajra, maize and rice are more dominant in the Central Region. Further east, with the increase in precipitation, rice becomes the main crop. During the rabi season, wheat occupies most of the land in all regions, followed by gram and barley. The average cropping intensity is about 133%, varying from 129% in the Eastern Region to 131% and 140% in the Central and Western Regions, respectively. There is a wide variation in irrigation intensity. About 60% of the total cropped area is irrigated in the Western Region whereas only one-third is under irrigation in the Central and Eastern Regions. 2.13 Crop Yields. Crop yields also differ by districts. In general, for most major crops such as wheat, rice, maize, barley and sugarcane, yields are much higher in the Western Region as illustrated below: Average Yield (t/ha) Region Wheat Rice Maize Barley Sugarcane Western 1.58 1.11 0.84 1.24 43.64 Central 1.30 0.94 0.72 1.09 33.62 Eastern 1.23 0.82 0.52 1.13 35.18 UP State 1.36 0.93 0.73 1.14 40.50 Agricultural Supporting Services 2.14 Agricultural Research. The State has three Agricultural Universities which have been assigned responsibility for basic and applied research within their operational areas. These are: G.P. Pant University of Agriculture and Technology at Pantnagar, C.S. Azad University of Agriculture and Technology at Kanpur and N. Deo University of Agriculture and Technology at Faizabad. Present research programs cover all branches of agriculture including Agricultural Economics. Adaptive research remains the responsibility of the Department of Agriculture (DA) which at present has ten regional agricultural testing and demonstration stations. The State also maintains an Irrigation Research Institute at Roorke and a Horticultural Research Station at Saharanpur. Central Government Research Institutes for sugarcane, grasslands and soil conservation are located at Lucknow, Jhansi and Dehra Dun, respec- tively. Since existing research facilities are adequate for project pur- poses, no provision would be necessary under the project.  -12- 2.15 Agricultural Extension. Technically, agricultural extension is the responsibility of the DA. However, the primary contact with the farmers--the multipurpose village level worker (V].W)--belongs to the Department of Com- munity Development (CD). He works under the adminstrative control of the Block Development Officer of the CD. On technical matters, he receives guidance from the Assistant Development Officer and agricultural staff from the District Agriculture Office who are employees of the DA. In general, there are about 10 VLWs per block covering about 25,000 to 30,000 ha (or one VLW for every 3,000 farm families). In some blocks, covered under special schemes such as Small Farmers Development, Command Area Development and Drought Prone Area Development, attempts have been made to improve agricul- tural services by intensifying the staffing strength. 2.16 The present extension system is inadequate, as: (a) extension services are poorly planned and supervised; (b) VLWs have too many respon- sibilities and are assigned to cover too large an area; (c) linkages with research and training are weak; and (d) VLWs suffer from restricted mobility and inadequate housing. In particular, no regular provision is made for special agricultural development services to areas of intensive irrigation development such as a public tubewel:l project. GOUP has recognized the problem and it is attempting to improve services on a trial basis in the command areas of surface irrigation systems. These improvements include a more intensive staffing pattern, frequent training, better linkages with research, and the use of contact farmers to deliver relevant messages. The results of this experiment should assist GOUP to formulate improvements for its statewide extension services. However, because existing facilities are inadequate, an agricultural development component would be supported under the project (para 4.38). 2.17 Agricultural Inputs. There iis a well developed system for distribu- tion and sale of seeds, fertilizers and pesticides throughout the State. The requirements of HYV seeds are met: by the Uttar Pradesh Seed Corporation, Terai Development Corporation (TDC) and by the State Multiplication Farms. Seeds produced by these agencies, particularly by TDC are distributed, not only to UP, but also to Bihar, West Bengal and Assam. Fertilizer distribu- tion is shared equally between private and public sectors including coopera- tives; of the 50% under the public sector cooperatives, about 10% is handled by sugarcane cooperatives, 30% by the Provincial Cooperative Federation and the rest by the Agro-Industries Corporation. 2.18 Agricultural Credit. Institutional credit organization follows the normal pattern for India. The cooperative banks, which provide short and medium term loans mainly for agricultural inputs at an annual rate of about 12-13%, are organized on a three tier basis with the State Cooperative Bank at the State level and 55 branch banks at the district level. There are a large number of primary cooperative credit societies located in some 112,000 villages in the State. Overdues of cooperative banks are presently about one-quarter of the demand. The State Cooperative Land Development Bank is handling long term credit (up to 15 years) at an annual interest rate of about 9.5% through 226 branches in the whole State. The recovery performance in 1981-82 was about 66%. Commercial banks, with about 2,800 branches throughout the State, also have a major role in agricultural lending (about 15%).  -13- 2.19 Marketing, Processing and Storage. Marketing in UP is regulated under the Agricultural Produce Market Act (1964). At present, marketable surplus is traded in about 250 main wholesale markets and some 365 sub-yards. About 40 new market yards are under construction. In general, the provision of marketing facilities has responded to the increasing crop production. Most processing facilities in UP are privately owned. Some cooperatives (about 60) have also been involved in processing, particularly oilseeds. Sugar factories are numerous but about half of them need modernization. In general, there are no serious constraints to the present system of processing. 2.20 At present, UP has an agricultural storage capacity of about 2.8 M tons. This capacity is provided by three main agencies: the State Warehous- ing Corporation; the Central Warehousing Corporation; and the State Marketing Federation. In addition, some cooperatives also have go-downs. In response to the increasing potato production in recent years, about 50 cold storages with capacity of 85,000 tons have been established. The Bank Group is presently financing a storage development project (Cr. 747-IN, US$107 M) in UP (among other States in India) and another storage project is being financed by the European Economic Community. III. PERFORMANCE OF PUBLIC TUBEWELLS General 3.01 The public tubewells program in UP was initiated in 1931/32. At the beginning of the First Five-Year Plan (1950), some 2,000 public tubewells were in service, increasing to 10,000 by 1970. At present, about 18,000 public tubewells are in operation distributed in all administrative divisions on the Gangetic plain. During the Sixth Five-Year Plan (1980-85), GOUP plans to construct about 1,000 to 1,500 new tubewells per year. In general, public tubewells are installed in areas (i) not commanded by surface irrigation schemes; or (ii) where the water table is too deep for the centrifugal pumps commonly used for private wells; or (iii) in backward areas where substantial private development is unlikely to take place within a reasonable time. Although investments in public tubewells are socially attractive and generally viable, poor utilization of these facilities in recent years has become and continues to be a matter of concern. 3.02 The main reasons for poor performance of existing public tubewell systems of unimproved design are that the power supply has not met increasing demand in quantity or quality of service; the water conveyance system in open channels is incomplete and inefficient; and water allocation procedures are not effective. In addition, repair of unserviceable pumping units is inade- quate and often delayed and generally management of public sector tubewells has been poor. Finally, the tubewell operator must be present to start the pump but it is difficult to coordinate his presence with the availability of power and irrigation demand from the cultivators.  -14- Past Performance 3.03 The number of operating hours and irrigated areas s e as indicators of public tubewell performance. Statistics on the statewide performance of public tubewells are summarized for the years 1966/67 through 1980/81 in Table T-5. Though there have been some fluctuations in annual utilization related to high or low rainfall years, the general trend has been for a decrease both in hours of operation and area irrigated per tubewell. Between 1966 and 1980, the average annual hours of utilization per well have shown a general decline from 3,432 hours to 1,010 hours and average irrigated area fell from 150 ha to 46 ha. Thus, though the number of tubewelis increased from 8,385 to 16,862 during the tabulated record period, the total area irrigated decreased from 1.28 M ha to 0.77 M ha (a fall of 4L0%) The main cause for this decline in performance is the unreliable power- supply. 3.04 While annual operating hours are a useful indicator of- tubewell utilization, they do not reflect the quality of irrigation service. Other factors, such as excessive losses irL the water distribution system, overly large command areas (upto 600 acres) related to well capacity (1 to 5 cusecs), and unreliable delivery, particularly to cultivators distant from well points, contribute to lack of confidence in water supply from public tubewells. The result has been that cultivators are unwilling to risk the level of inputs necessary for satisfactory crop yields. Uttar Pradesh Public Tubewells (I) Project (Annex 4, SDV) 3.05 To assist the State overcome} the basic shortcomings in their public tubewell program, IDA supported the Uttar Pradesh Public Tubewells Project (Cr. 1004-IN; US$18 M) due to be completed about April 1983. The project (designated UP Public Tubewells I Project in this report) was formulated as a two year program to test and demonstrate improved tubewell techianology through construction of about 500 public tubewells. 1/ The main improvements under UP Public Tubewells I Project were: (a) reduction of water losses by conveying water in underground plastic pipes to outlet valves commanding about 5 ha; (b) provision of facilities for automatic operation of the system thus obviating the need for a pump attendant; (c) provision of facilities to protect pumps and motors from frequent electrical breakdowns; (d) improvement in water allocation procedures to ensure reliable water supply to each individual cultivator; (e) better facilities for preventive maintenance and emergency repairs of the well points; and 1/ The program was increased to about 570 public tubewells during the project period.  -15- (f) speedy construction of each tubewell system made feasible by minimizing land acquisition problems since the distribution system is a buried pipe network. During the project period, GOUP agreed that project tubewells would be provided with independent power lines since without adequate and reliable power supply, the project benefits could not be realized. 3.06 The primary objective of the first stage project was to test and evaluate technical and organizational improvements over the old standard public tubewell design on a pilot basis before GOUP undertook a major invest- ment in the new tubewell concept. The first stage project has substantially fulfilled this objective and sufficient data has been collected and evaluated to enable a full scale program to be supported with acceptable risk. For the first time, the technology used enables a public tubewell system to provide an irrigation service of predictable quality and sufficient quantity to all farmers in the command area. In particular, it enables equitable distribu- tion to all parts of the tubewell command unlike old standard tubewell sys- tems (see Chart C-1). Furthermore, the average farm holding size in project tubewell command areas is 0.6 ha which is substantially smaller than the State average of 1.2 ha (para 2.06). This indicates that the majority of project beneficiaries are small and marginal farmers. 3.07 The main lessons learned from (and the consequences of) UP Public Tubewells I Project, which have been included in the formulation of the follow-up project, have been: (a) The full project benefits can only be realized if public tubewells in the State are provided with a power supply that enables design objectives to be achieved (para 4.01). (b) Management and organization for public tubewell development in the State can be improved with respect to: (i) planning and operation and maintenance of the tubewell irrigation systems; (ii) energization of the wells; and (iii) provision of an agricultural development service for completed tubewell commands. (c) Government needs to give more attention to the principles of cost recovery as well as tariff levels in the public tubewell sector to reflect the quality as well as quantity of the irrigation service provided. Project Formulation and Preparation 3.08 The preparation of the Second UP Public Tubewells Project has been carried out by technical departments of GOUP with the support of IDA. A draft preparation report and various technical notes have been prepared through 1981. This work has been updated as performance data from the first stage project has become available and after discussions with GOUP during a preparation mission which visited the State in January 1982. The scope of the proposed project has been cleared by GOI and reflects the annual funding available for public sector groundwater development. Consideration has been  -16- given to transition requirements from the UP Public Tubewells I Project so that the existing implementation momentum is maintained by the Irrigation Department and other agencies involved. IV. THE PROJECT Project Concept 4.01 The project concept for new public tubewells would be the same as the first stage project. This has confirmed that reliable, timely and equi- table irrigation service can only be provided from a public tubewell if conveyance losses from the well to the farmgate are minimized and the power supply is able to match design assumptions. At present, power supply in most rural areas of the State is inadequate both in terms of quantity and quality of service. Consequently, GOUP has agreed that each group or 'cluster- of new tubewells would be connected by a separate or -dedicated- feeder line to the nearest 33 kV sub-station with the power transmission network serving only public tubewells. As the power supply problem affects all public tubewells, GOUP has also agreed that any spare transmission capacity in dedicated feeder lines would be used to connect existing tubewells which are located within reasonable proximity of a cluster of new tubewells to be constructed under the project. 4.02 The proposed project would also test and evaluate on a pilot basis the best way to improve performance of the 18,000 existing tubewells con- structed to the old design standards. These existing tubewells constitute a major underutilized investment in the irrigation sector. The proposed project would evaluate two levels of improvements to existing tubewells. The first level would provide a reliable and assured power supply only; the second level would also modernize the old standard systems to the improved performance standards of the new project tubewells. 4.03 In addition, the project would support a general research and development component to test (i) modifications to the design to improve the cost effectiveness of the improved tubewell technology; (ii) alternative siting criteria; (iii) advanced technologies particularly with respect to automatic regulation; and (iv) ways to further improve the technical reliability of the systems. The nature of the main project components is such that during project implementation, designs can be reviewed on a con- tinuous basis and improvements introduced where necessary. 4.04 The first stage project was primarily concerned with implementation of new tubewell technology, but also identified what was needed to improve tubewell system management and utilization of completed wells. A sound basis for O&M has been established and would be supported under the proposed project together with an agricultural development component. Under the first stage project, agricultural extension was undertaken by staff seconded from the Department of Agriculture to the Irrigation Department and was not effec- tive. Under the proposed project, a separate Agricultural Development Com- ponent would include support services and facilities and other provisions to encourage farmers- participation and increase crop production.  -17- Project Components 4.05 The proposed project would finance a four year (1983/84-1986/87) program incorporating the following elements of the GOUP development program in the public groundwater sector: (a) construction of about 2,000 improved tubewell irrigation systems, each of about 150 m3/h capacity and net command area of 100 ha, and about 200 systems of about 300 m3/h capacity and net command area of about 200 ha; the wells would be located in clusters of about 25 units and connected to the power supply system by separate 11 kV feeder lines serving only public tubewells; (b) connection to the separate 11 kV feeder lines of about 650 old standard tubewell systems located in the proximity of the new clusters of improved tubewells; (c) modernization of about 100 old standard tubewells located in the proximity of the new clusters by (i) upgrading the pumps, motors and switch gear; (ii) provision of a regulating tank and a buried pipe distribution system, and (iii) connection of the pump unit to a separate 11 kV feeder line; (d) vehicles, workshop equipment, earth moving equipment, office and survey equipment and buildings to be used by project construction and operation and maintenance staff; (e) research and development to test advanced technologies for public tubewells; (f) project monitoring and evaluation; (g) training of project staff; and (h) staff, vehicles, farm demonstration plots and buildings for agricultural development in the command areas of project tubewells. In addition, the project would support the GOI Project Preparation Fund for financing of consultants, incremental staff, equipment and special studies for the planning and preparation of irrigation and multi-purpose water resources projects in UP and other States. Planning Criteria 4.06 The general planning performance of the Tubewell Wing of the Irriga- tion Department under the first stage project can be improved upon. The shortcomings were partly due to the innovative nature of the project and also because the IDA supported program was small compared to the overall State tubewell program. The lessons learned have been used to formulate an organization structure suited to the new technologies (para 5.04). In addi- tion, two technical planning criteria need to be given special attention:  -18- the siting of individual tubewell irrigation systems and a systematic plan- ning of tubewell clusters given that each cluster of wells constitutes a mini-irrigation scheme (serving about 2,500 ha). 4.07 Selection of Tubewell Sites. For new tubewell sirrigation systems, well sites will be located where (i) sufficient unirrigated land is available for clusters of about 25 wells such that an independent 11 kV feeder line can serve all the wells in the cluster, and (ii) the impact area of the cluster is such that it can be effectively managed by the O&M staff provided (see para 5.10). The groundwater availability and soils at the well sites would be of suitable quality and the command area would not be subject to submer- gence during heavy floods. In addition, there would be no other public source of irrigation water in the areas selected and priority for well siting would be given to locations where land consolidation has been carried out. Thus, new tubewell command areas under the project would DE\ selected where: (a) the construction of private tubewells is difficult because of the drilling depth necessary to achieve a satisfactory yield; and/or the area is economically backward and further private well construction will be very slow to develop; (b) within the command area of any project tubewell cluster: (i) not more than 20% of the area would consist of holdings of owners of private irrigation sources (excluding open wells); and (ii) the average holding size would not exceed 0.65 ha; and (c) project tubewells can be located in clusters of about 25 tubewell units such that a cluster would be served effectively and efficiently by an independent power line. Once the location of a project tubewell has been selected, the command area of the well would be fixed to enclave out farmers who own and wish to retain electric powered private wells. 4.08 Survey and Design. The preliminary works for the design and con- struction of a tubewell irrigation system would include preparation of a map with 30 cm contour intervals which would be superimposed on the 1:4,000 scale village cadastral maps. A reconnaissance soil survey of the proposed command area would be undertaken to establis!h the irrigability class, and then detailed layout and design for each tubewell irrigation system would be prepared. 4.09 Tubewell Cluster Planning Reports. Once a suitable location has been selected which satisfies the siting czriteria for a cluster and the individual tubewells in the cluster, a planning report would be prepared so that agen- cies involved or associated with the development can be informed of the plan. The report would include a general layout plan of the cluster; salient fea- tures of the proposed works, the number and areas of private irrigation sources within each well command; and, in particular, the proposed layout of the power supply network to serve the new wells. The layout plans would also locate existing public tubewells to be connected to the dedicated power supply and indicate which of these wells would be modernized under the  -19- project. The report would contain a cost estimate, a list of materials and equipment required together with an implementation schedule for the individual tubewells within the cluster scheme. Draft reports would be approved by the CE (Tubewell Wing of the ID) and responsible staff in UPSEB. Once the cluster scheme has been approved, the report would be distributed to all other agencies involved in project implementation and development. 4.10 Water Requirements (Annex 7, SDV). The weighted mean water applica- tion at the field boundary has been taken as 3,000 m3/ha and 3,236 m3/ha for the rabi and kharif seasons respectively. These figures reflect the fact that with water rather than land as a limiting factor, the common cultural practice in UP is to under irrigate to about 70% of computed seasonal water requirements. The design water requirements take into account (i) residual soil moisture storage; (ii) an average field efficiency of 80%; and (iii) that farmers use irrigation to maximize crop production rather than yield per unit volume of water supplied. With a net service area of 100 ha, irrigated crop intensities would average about 60% in rabi, 28% in kharif and 6% perennial crops on a weighted statewide basis. With a well discharge of 150 m3/ha, cropping intensities and water requirements would equate in average rainfall years to a low tubewell utilization of about 16 hours per day of pumping in the peak irrigation period. With 22 hours per day utiliza- tion, rabi intensity would increase substantially with greater water applica- tions than currently assumed and still be able to provide reliable irrigation even in low rainfall years. The design characteristics of the tubewell distribution systems would enable the command area to be changed should either (i) irrigation utilization in the original command area be less than the reliable capacity of the tubewell system; or (ii) at some future date, there is a change in cropping patterns which enable the water supply from a tubewell to be spread over a larger area. Modifications to the tubewell command area can be made on a well by well basis once the performance trend of a well has stabilized and may result in tubewell commands not being con- tiguous areas. Improved Standard Tubewell Systems (IST) 4.11 The concept and design of an improved standard tubewell system (IST) follow the technical principles developed and successfully tested under the first stage project. A typical IST system would consist of a water point with pump house; a distribution chamber 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 channels below the outlets to serve each farmers holding; and an access road to the water point for operation and maintenance purposes. The various parts of a typical improved tubewell system are described below with detailed design principles given in Annex 7, SDV; the estimated costs of typical improved tubewell systems are given in Table T-6. 4.12 The Water Point. The water point would consist of the well, pump, prime mover, switch gear, starter and protection relays and electrical power supply. The unit would be placed in a brick-built pumphouse. The wells would be fitted with submersible electric turbine pumps. All pumps would  -20- have foot valves to prevent reverse flows from causing motors to spin back- ward when power is cut. The switch gear, starter relays and ancillary elec- trical equipment would have the following special characteristics. Level operated probes fitted at the distribution chamber would permit automation of the controls of the prime mover which obviates the necessity for a pump operator to be present to start the pump. The electrical system would be provided with a capacitor to protect the motor against voltage fluctuations and a single phase preventer in the starter relay to protect the motor. Electronic hour meters would be fitted on all pumping units to facilitate monitoring of the pumps and the electrical energy consumption. 4.13 Wells (Chart C-2). The wells would be drilled using either direct rotary or reverse circulation drilling rigs. Drilling diameters would be 450-675 mm and total depths of wells would be in the range of 100 to 250 m according to the design discharge. Well casing and screen would be of mild steel. The pump chamber casing would be of 350 mm outer diameter (OD) for wells with a design discharge of 150 m3/h and 450 mm OD for wells with a design discharge of 300 m3/h. The average length of the pump chamber would be about 40 m. The production screen would be of 200 mm diameter and would consist of slotted pipe in aquifer material layers of the soil profile and blank pipe covering non-productive layers. Average lengths of production screen would be about 40 m for 150 m3/h wells and 80 m for 300 m3/h wells. The well would be gravel packed. 4.14 The wells would be initially developed using a compressor and finally developed with a diesel driven pumping unit consisting of a vertical shaft turbine with a capacity at least 50% higher than design discharge. The wells would be test pumped for 24 hours, the first half of the period being in the form of a drawdown test; the final discharge rate would then be maintained for the balance of the test pumping period. The general formula to estimate materials and costs of wells delivering 150 m3/h and 300 m3/h discharges are given in Annex 3, Table 1. 4.15 Pumping Units. The pumps would be electric submersible type. The starter relay would be of Star Delta type for motors of less than 30 HP capacity and of Auto Transformer Starter (ATS) type for motors of 30 HP or greater. The unit cost for pumping units and ancillary equipment is given in Annex 3, Table 2. 4.16 Pumphouse. The pumphouse would be a brick-built structure fitted with a girder support for chain pulleys to facilitate removal of the pump unit for maintenance. The pumphouse would be provided with a lockable steel door for security and electrical equipment within a pump house would be built into the walls of the structure to minimize theft. 4.17 Distribution Chamber. An essential feature of the system is the distribution chamber which maintains the operating head in the piped dis- tribution system and enables automaticz operation of the pumping unit. This is achieved by means of level operate,d probes which activate power supply according to the water level in the chamber and in response to irrigation demand. The water level operated probes also enable water distribution at less than the discharge rate of the pump without spillage. The design of the distribution chamber ensures equal division of the water supply from the well  -21- into two or four streams depending on whether the design capacity of the water point is 150 or 300 m3/h. The operation of a distribution chamber is described in detail in Annex 7, SDV. 4.18 A distribution chamber would be of reinforced brickwork and would have an inflow and two outflow chambers 1/ which would provide about ten minutes of storage against the pump discharge. At the top of the inflow chamber are two V-notch weirs dividing the pump discharge equally among the two outflow chambers and enabling the well discharge to be measured. The inflow chamber would be equipped with an upper electrical probe which shuts down the pump once the water level rises above a set operating level. The lower probes starts the pump if the level falls below a set level. 4.19 An alternate design to the distribution chamber which achieves similar operational features is the elevated tank (successfully tested under the first stage project). Unlike the distribution chamber where the chamber base is at ground level, the elevated tank is built on a reinforced concrete slab raised on four brick pillars with steel inflow and outflow pipes. Either design could be used under the project depending on which is the most cost effective at time of construction, the main variables being the cost of brickwork, steel pipe and reinforced concrete. 4.20 Power Supply (Annex 8, SDV). All new tubewell systems under the project would be provided with an electrical power supply through separate or 'dedicated' 11 kV feeder lines which connect wells in a cluster to the nearest 33/11 kV sub-station. The -dedicated' feeder network to each cluster would consist of 11 kV main lines aligned to give a least cost layout with spur lines connecting each project well. The 'dedicated' power lines would be designed so that voltage regulation at any supply point is within 6% of the declared low tension voltage level. The dedicated 11 kV lines would be mounted on reinforced concrete posts with provision for special crossings at main roads and railways. An 11/0.4 kVA transformer of appropriate capacity would be provided for each new tubewell. Independent switch gear would be provided for each dedicated feeder line at the 33/11 kV sub-station and a provision has been made under the project to increase sub-station capacity where significant additional load is due to demand of project wells. Unit cost for power transmission and transformation for typical project tubewells is given in Annex 3, Table 8. An agreement has been reached with GOUP that through UPSEB, it would (i) provide independent electric feeders from 33/11 kV or 132/11 kV sub-stations and connect all public tubewells within a cluster to this feeder which would be earmarked for public tubewells; (ii) provide project tubewells with 16 hours of power supply per day at peak demand periods with a voltage fluctuation of not greater than +6%; and (iii) energize each project tubewell system within two months of its completion. 4.21 Buried Pipe Distribution System. A typical layout of a tubewell distribution system is given in Chart C-3. The buried conveyance system 1/ 300 m3/h water point would have four outflow chambers each serving separate loops of the buried pipe distribution systems.  -22- would consist of PVC feeder pipes from t:he distribution chamber/elevated tank to connect with closed loops of PVC pipe which constitute the main distribu- tion system. The distribution chamber would ensure equal division of the pump discharge to each pipe loop such that the discharge at any outlet would be about 75 m3/h. The loop design ensures that any outlet on a loop can be simultaneously supplied from two directions which reduces flow velocities and head losses in the pipelines. Each loop would serve about 50 ha so that a 150 m3/h tubewell system would have two loops and a 300 m3/h system, four loops. The average lengths of buried PVC pipes for water points of the various discharge capacities would be about 3 mr/ha and 37 m/ha for feeder pipe and distribution loops respectively. 4.22 PVC feeder pipes would be of 200 mm O.D. and 160 mm 0.D for the buried PVC pipes of the loops. Both PVC pipes would be 2.5 kg/cm2 pressure rating. The depth of cover of the pipe loop would be not less than 0.8 meter. The actual layout of any distribution system and the area served by the individual loops would depend on topographic and cadastral factors. The water allocation procedures (para 5.14) enable an individual farmer to use whatever outlet valve is most convenient when he irrigates his fields. Unit costs for typical buried pipe distribution systems are estimated in Annex 3, Table 3. 4.23 Distribution System Outlets. Alfalfa type valves would be provided as outlets along the buried distribution pipes to command areas of about 5 ha. Thus, each loop of the system would have about 10 outlets and each outlet would typically serve 5-10 farmers. The Alfalfa valve would be designed to deliver 75 m3/h under the prevailing head at any point in the distribution loop; only one outlet on each loop would be operated at any time. The valve would be set in a distribution box constructed of brickwork which would be designed to dissipate the energy when the valve is opened. The distribution boxes would have an arrangement to deliver water in several directions as required. A single 200 mmi surge riser would be provided on each loop at a point farthest from the diistribution chamber. The top eleva- tion of the riser would be about 0.5 m aLbove the top water level of the chamber. 4.24 Field Channels. The most distant field in an outlet command would generally not be greater than about 150 m from the outlet valve. Common field channels would be aligned along property boundaries such that water can be delivered from the outlet distribution boxes to the individual farmers' plots within the outlet command. Average length of earth channel for typical tubewell command areas would be about 6.5 km for 150 m3/h systems and 13 km for 300 m3/h systems. 4.25 Access Roads. A low cost, unsurfaced track suitable for fQur-wheel drive vehicles would be constructed from the nearest government road to provide access to the water point. Connection of Old Standard Tubewells (OSTs) to Dedicated 11 kV Feeder Lines 4.26 The clusters of improved standard tubewell (IST) systems clusters of about 25 (para 4.07), would usually be distributed between existing OST systems. The dedicated 11 kV feeder lines provided for the clusters would  -23- therefore pass close to a number of OSTs. Connection of an OST system to a dedicated 11 kV feeder line would improve the power security to the system in both quality and quantity and would thus result in improved performance. The cost of connection of an OST is given in Table T-7. This constitutes a relatively small additional investment to that of the dedicated power line and would improve the overall economic viability and power factor of the power transmission network. 4.27 The project would connect about 650 OSTs located up to about 1.5 km from dedicated feeder lines to be constructed under the project. Thus about 4 to 6 OSTs would be connected to the feeder line serving a new cluster of 25 tubewells with an average connection of about one km of spur line from the main 11 kV line to each OST. As the OST are already connected to the rural power grid, it would generally not be necessary to provide another 11/0.4 kVA transformer. 4.28 Other improvements proposed for all OSTs connected to dedicated power lines would include upgrading switch gear, starter relays and pump motor protection equipment (capacitor and single phase prevention devices). In addition, defective pumps and electric motors would be replaced as necessary with provision made under the project to replace about 50% of the pump units. The replaced pumps and abandoned feeder lines would have a scrap value allowed for in cost estimates since repaired pumps and prime movers could be used as spares for other existing tubewells throughout the State. Modernization of Old Standard Tubewell Systems 4.29 Background. Poor performance of existing public tubewells lends urgency (para 3.03) to the upgrading of these systems so that they can provide an acceptable irrigation service. Experience from the first stage project indicates that a complete upgrading would entail bringing existing public tubewells to the standard of new improved tubewell systems to be constructed under the project. Apart from the financial consequences of this proposal, there could be practical difficulties because most OSTs have notional command areas of 120-200 ha against a well discharge of about 150 m3/h; this compares to a typical IST command of 100 ha with the same well discharge. It might not be possible to install a larger pump unit in the OST well so that a discharge is obtained that matches the command area. Moreover, location of existing private water points within an OST command area may present difficulties in sub-dividing the command area to match siting and design criteria of new project tubewells. In some cases, it may be advantageous to replace the old tubewell with two improved tubewell systems to provide the required discharge for the existing or an expanded command area. 4.30 Consequently, the project component would be a pilot operation to test and evaluate the most appropriate way of modernizing existing tubewells. Each OST to be modernized would be treated as a special case as there will be many site specific variables affecting modernization. The objectives of the project component would be to (i) define the problems of modernizing an OST to IST performance potential; (ii) decide the appropriate degree of modern- ization given the number of OSTs throughout the State to be modernized and the finances available; and (iii) measure farmer response to provision of an  -24- improved system and to establish if incremental benefits are commensurate with the investment required. It is proposed to upgrade about 100 OST sys- tems under the project which should provide sufficient data to formulate a full scale program at some later date. 4.31 Selection of OSTs for Modernization. OSTs to be modernized would be selected within the impact area of a cluster of new tubewell systems and have access to a dedicated 11 kV feeder line. The OST system would have a par- ticularly poor performance record but would have a well point that would not require replacement. 4.32 OST Modernization Criteria. The elements of an improved standard tubewell system (see para 4.11) to be! provided under modernization of an OST (where applicable to the individual well) would include the following: (a) power supply from a dedicated 11 kV feeder line; (b) new pump switch gear, starter relays and motor protection and other ancillary equipment, together with replacement of pump unit and prime mover as required; (c) a distribution chamber/elevated tank and provision of adequate security arrangements to the existing pumphouse; and (d) a buried pipe distribution system with valve outlets and field channels. The cost estimate for modernizing a typical OST system is given in Table T-8. With the above improvements, a modernized OST system would be operated and maintained as for improved standard tubewells in a cluster. Operation and Maintenance 4.33 The operation and maintenance (O&M) criteria for project tubewells are described in para 5.13. An important shortcoming with the first stage project was the inadequate attention given to operation and maintenance (para 3.08). This was partly due to the limited scale of the first pilot project and the time needed to formulate and enact organizational and staffing chan- ges. A special difficulty with respect to improved public tubewells was that any changes had to take into consideration procedures and norms established for management of the 18,000 existing public tubewells in the State. GOUP is now making the operational and staffing changes to enable effective and efficient O&M (para 5.05). The project would provide support services and facilities including buildings (Annex 3, Table 5) and vehicles and equipment (Table T-9). Research and Development 4.34 The design concept and criteria of improved standard tubewell systems under the project are acceptable to IDA. However, the nature of the project components are such that design standards and specifications can be reviewed on a continuous basis and improvements introduced where necessary. There may  -25- be more progressive and advanced technologies which could improve the effec- tiveness and efficiency of public groundwater development even further as more State resources become available. To assist GOUP in planning for future developments, the project would undertake studies and test improved irriga- tion technologies and techniques which are either untried in UP or have only been attempted on an experimental scale. 4.35 The main activities to be tested and evaluated have been provision- ally identified in conjunction with GOUP and are as follows: (a) further technical improvements to public tubewell systems including the water point, distribution chamber/elevated tank, water distribution systems, and energization. Special attention would be given to the cost effectiveness of present planning and design standards; (b) planning, siting and technical criteria to accelerate the full utilization of individual wells; (c) the objectives and technical criteria for modernizing old standard tubewell systems; (d) procedures to minimize the cost and/or improve the O&M standards of public tubewell management; (e) review of procedures for recovery of power and water charges for public tubewell systems such as equipment to enable a pay-as-you-use service at the water point; (f) improvement of surface irrigation techniques and facilities beyond the outlet and on the farm (in conjunction with Department of Agriculture staff); and (g) review of the project concept in terms of social, legal, staff- ing and organizational parameters before introducing any policy changes resulting from the project on a statewide basis. 4.36 A special unit would be established in the existing Tubewell Wing of the Irrigation Department (para 5.11) to prepare and implement the R & D activities. Project support would include the cost of experimental civil works and innovative infrastructure, and assistance in the preparation of Design and O&M Manuals (para 5.18) as detailed in Table T-10. An agreement has been reached with GOUP that an annual R&D program would be prepared by the ID and submitted to the Association by July 1 each year for review and comments prior to carrying out the program. Training 4.37 The project greatly expands the State program of constructing improved standard tubewell systems which involve planning, design and implementation concepts which are novel to most of the Irrigation Department staff. Consequently, the Government would have to undertake substantial training to correspond with the staffing required to achieve the project  -26- implementation schedule. Staff training (detailed in para 5.17) would be required in two respects: (i) training in design and layout of new tubewell irrigation systems with special attention to water point innovations, automated regulation and buried pipe distribution systems, and (ii) training in management of new tubewell systems and their associated command areas. The project provides for training equipment, visiting local specialists to assist the ID staff in the various training programs and also for visits to enable project staff to widen their experience (Table T-lO). Agricultural Development (Annex 6, SDV) 4.38 At present, there is no formal arrangement within the State to deal with the special requirements of the post construction stage of new public tubewells. The existing extension program is not structured to provide the necessary services required to fully develop new public tubewells primarily because the works are randomly spread over most the State. A pilot agricul- tural development component has been provided under the project to fulfill this essential need. Through the component, farmers would be provided with up to date advice on farming practices to assist them in the transformation from rainfed to irrigated agriculture. The objectives are to minimize the period required for a new public tubewell to achieve full development and to assist farmers achieve the incremental crop production and thus farm income predicted under the project. This would be achieved through establishment of a unit in the Department of Agriculture to work exclusively on agricultural development in the command areas of project tubewells (para 5.23). The project would provide for vehicles, travel allowances and vehicle operating costs to enable the staff of the unit to function effectively. An agricul- tural service center would be provided for each tubewell cluster to serve as the focal point for agricultural development of the cluster together with housing for workers. Farm demonstrations would be undertaken within each tubewell command area. The project staff would be trained to undertake agricultural development activities related to public tubewells; monitor and evaluate project performance; and design programs to improve farmers motiva- tion and participation. 4.39 The project would support the above items as they affect all new and modernized tubewell systems to be constructed under the project and also provide for about 570 improved standard tubewells constructed under the first phase project (para 3.05). Agricultural development would be the respon- sibility of the Department of Agriculture. Once the majority of the project tubewells within a cluster have achieved predicted crop production, the AD service would be withdraw to another new project cluster and the fully developed cluster would be handed over to regular extension services in the State. The list of components and schedule of costs for the agricultural development activities are given in Table T-ll. 4.40 An agreement has been reached with GOUP that (i) it would furnish to IDA for its review and comments, by June 30, 1984, terms of reference for a mid-term review of the agricultural development component and taking into account IDA's comments, carry out the mid-term review; (ii) submit a report summarizing the results of the mid-term review to IDA by June 30, 1985, and (iii) thereafter, taking into account IDA's comments, carry out necessary adjustments to such component.  -27- GOI Project Preparation Fund 4.41 In order to encourage a more detailed data collection and project preparation effort by the States and to promote the introduction of new planning techniques, a Project Preparation (PP) Fund was established under the Second Gujarat Irrigation Project (Cr. lOll-IN, 1980, US$175.0 M). This credit provided US$10.0 M -- for a two year period -- for preparation of irrigation projects for Bank Group financing. With support from the PP Fund, high level planning agencies for the Narmada Basin Development have been created in the States of Gujarat and Madhya Pradesh. In addition, project preparation and monitoring (PPM) cells have been established in five States, in the Central Water Commission (to assist the States in preparing medium sized irrigation schemes), and in GOI s Ministry of Irrigation (for coordina- tion and support of selected planning studies for Narmada Basin Development). Extensive use has been made of Indian consultants. Foreign consultants, in joint ventures with local firms, have studied navigation on the Narmada River and have carried out a comprehensive drainage investigation. Furthermore, a panel of Indian and foreign experts has advised State design organizations on the design of several major dams. Funds have also been provided for equipment and pilot operations. The PP Fund has been instrumental in gradually strengthening the States- ability to plan and prepare irrigation and multi-purpose water resources projects. It has also helped to build-up the domestic consulting industry and to introduce modern planning techniques such as systems analysis. In short, the PP Fund has made an important contribu- tion to the modernization of India's irrigation sector. 4.42 By December 1982, disbursements from the PP Fund totaled US$8.5 M. It is expected that the US$10 M will be fully disbursed by the end of June 1983. In order to consolidate the institution building efforts started under the first PP Fund, an additional U$10 M would be provided to continue the improvement in the preparation of irrigation projects in India and the Indian States. The present approach of tailoring the support to the individual requirements of the States -- based on programs mutually agreed with the Bank and GOI -- would be maintained and, thus, no detailed break-up of the expected expenditures can be given at present. However, it is expected that the second PP Fund would be utilized for the following purposes: (i) continued support of the Narmada planning agencies and the existing PPM cells and for the establishment of two to three new PPM cells in other States; (ii) purchase of equipment (such as calculators, mini-computers, office and other technical equipment including survey instruments), vehicles and other non-recurring expenditures; (iii) studies, data collection, other project preparation activities and pilot works; and (iv) technical assistance (including consultancies, training and study trips for specified components under Bank-assisted projects in India). Project Implementation 4.43 The implementation schedule for UP project components is shown in Chart C-4. The project would start about April 1983 and continue until April 1987. The main construction season is from September through April although certain activities such as field channel construction can continue  -28- through the monsoon season at selected sites. The construction work would be undertaken by tubewell clusters impliemented extensively throughout the State. This approach will enable benefits to be distributed as widely as possible and also reduce the concentration of local demand on scarce resources. All components have established construction techniques which are cost effective and relate to local conditions. Much of the works are suited for small contracts and sufficient labor contractors are available throughout the State to ensure satisfactory progress and good quality work. 4.44 An agreement has been reached with GOUP that it would locate tubewell command areas and clusters of tubewells and implement the project works in accordance with siting, planning and design criteria, and construction stand- ards established in consultation with IDA. Project Costs 4.45 Total project costs are estimated to be US$192.2 million equivalent net of taxes and duties except for minor items where taxes and duties are insignificant. The foreign exchange cost would be US$11.3 million, or about 6% of the total project cost. Cost estimates are based on price levels prevailing in April 1982. Physical contingencies on civil works have been provided to allow for variations in the depth of the wells and layout of the distribution systems which depend on local aquifer conditions and topography. The physical contingency reflects experience gained in the first stage project and averages about 5% of the base cost. Price contingencies, which account for about 29% of the base cost, reflect expected inflation rates (same rates for local and foreign expenditures) of 8.5% in 1982/83, 8.0% in 1983/84, 7.5% in 1984/85, 7.0% in 1984/85 and 6% thereafter. Detailed cost estimates are given in Table T-12 and summarized below: PROJECT COST SUMMARY % of Local Foreign Total Local Foreign Total Base Cost ---(Rupees Million)-- ----(US$ Million)---- 1. Land Aquisition 12.5 - 12.5 1.3 - 1.3 1.0 2. New Tubewells 150 m3Ih units 836.2 59.2 895.4 88.1 6.2 94.3 69.1 300 m3/h units 141.4 10.5 151.9 14.9 1.1 16.0 11.8 3. Modernization of old tubewells 29.5 2.3 31.8 3.1 0.2 3.3 2.5 4. Connecting of old tubewells to dedi- cated feeders 26.8 1.6 28.4 2.8 0.2 3.0 2.2 5. Buildings 32.7 - 32.7 3.4 - 3.4 2.5 6. 0 & M Equipment 4.3 0.7 5.0 0.4 0.1 0.5 0.4 7. Research & Development 8.3 0.6 8.9 0.8 0.1 0.9 0.7 8. Monitoring & Evaluation 0.6 - 0.6 0.1 - 0.1 0.0 9. Training, Studies and Visits 1.1 0.9 2.0 0.1 0.1 0.2 0.1 10. Agricultural Development 57.4 - 57.4 6.1 - 6.1 4.4 Sub-Total 1,150.8 75.8 1,226.6 121.1 8.0 129.1 95.0 11. Administration and Engineering 67.8 - 67.8 7.1 - 7.1 5.0 Base Cost 1,218.6 75.8 1,294.4 128.2 8.0 136.2 100.0 Physical Contingencies 59.7 3.7 63.4 6.3 0.4 6.7 4.9 Sub-total 1,278.3 79.5 1,357.8 134.5 W- 142. 10. Price Contingencies 350.3 22.5 372.8 37.0 2.3 39.3 28.8 UP Project Cost 1,628.6 102.0 1,730.6 171.5 10.7 182.2 133.7 Project Preparation Fund 89.3 _5.7 95.0 9.4 0.6 10.0 Total Project Cost 1,707.9 107.7 1,825.6 180.9 11.3 192.2  -29- Financing 4.46 The proposed credit of US$101 M would finance the GOI Project Preparation Fund and about 50% of the UP Project Cost net of taxes and duties. Of the balance, IFAD proposes to finance US$35.3 M equivalent of the UP Project Cost with the remaining US$55.9 provided by GOUP which would include a GOI contribution. The IDA and IFAD credits together would finance all the foreign exchange costs and about 70% of local costs. An agreement has been reached with GOI that (i) it would make the proceeds of the credit, except disbursements for project preparation undertaken by GOI and other States, available to GOUP on GOI's standard terms and arrangements for development assistance to the States, and (ii) channel disbursements for project preparation expenditures in other States, to these States in accord- ance with GOIs standard procedures for development assistance to the States. An agreement has also been reached with GOUP that it would promptly provide resources and funds to execute the project in accordance with the implementa- tion schedule (Chart C-4) and the expenditure schedule for the project period (Table T-12). 4.47 The construction of tubewells would be seasonal (para 4.43) as it would be advantageous to drill tubewells and to install the pipe distribution systems during the dry season. To maintain the momentum of the ongoing program of tubewell construction, retroactive financing would be provided from September 15, 1982 which is after the date of appraisal but prior to the date of credit signing for (i) works completed in the construction of tubewells; (ii) vehicles and equipment required to carry out field opera- tions; and (iii) the procurement of steel and PVC pipes. The amount of retroactive financing would not exceed US$2.5 million. Procurement 4.48 Civil Works. Civil works to be financed under the project would cost approximately US$51.1 M excluding engineering and administration. Of this, about US$15.0 M 1/ would consist of drilling of bore holes which would be carried out by the Tubewell Wing which has established competent staff capable of drilling about 1,200 wells per year, of which IDA-financed wells would form only a part. The well construction would be undertaken departmen- tally for the following reasons: (i) the extensive project area related to the four year implementation schedule would make the work unsuitable for ICB; (ii) at present, there are no competent local contractors with either trained staff or equipment to carry out deep drilling of the specifications required for public wells; (iii) with the limited drilling programs undertaken by local contractors elsewhere in India (and Nepal), there have been con- siderable difficulties in maintaining adequate quality control particularly as the sub-surface works cannot be easily checked; (iv) the departmental establishment has undertaken public tubewell drilling in GOUP since the 1930s 1/ Including US$4.5 M for rent of plant and equipment available with the Tubewell Wing and US$2.7 M for pea gravel filter material supplied departmentally.  -30- and are competitive in price; and (v) if the drilling was put out to con- tract, UP would be left with a cons:iderable drilling capacity which would be idle. Nonetheless, the departmental drilling would be carefully monitored to ensure that cost of the works remain competitive and should a local con- structing capacity develop in UP during the project period, a portion of the project drilling program could be let through LCB procedures. 4.49 Of the remaining US$36.1 M, about US$25.2 M would be let through Local Competitive Bidding (LCB), about US$10.0 M would be let under piecework or unit price contracts, and about US$0.9 M would be carried out by GOUP's departmental forces. All LCB contracts would be let on the basis of stand- ardized documents and procedures recently developed by GOI's Central Water Commission (CWC) and approved by the Bank Group. (a) LCB Contracts (US$25.2 M). These works would include construction of pipe distribution systems, access roads, and buildings (i.e. pump houses, workshops and storage facilities and office build- ings). Generally materials under these contracts would be supplied by the State Government. (b) Non-ICB/LCB Works (US$10.9 M). These works would be individually small and scattered and their implementation would be governed by weather and agricultural conditions. Because of these and other technical constraints, there would be a general lack of interest from contractors located outside the districts covered by the project. These works would therefore be impractical for ICB or LCB tendering; most would be carried out under small piece- work or rate contracts. When required by safety or qual- ity considerations or when the quantities of work are difficult to estimate in advance, small works may be implemented by GOUP's departmental forces. Works executed departmentally or on the basis of piece-work or rate contracts would be limited to an aggregate of 30% of the civil works included in the project. 4.50 Power Supply. Power transmission and transformation works to be financed under the project would cost approximately US$24.3 M, excluding engineering and administration. Of this, about US$8.7 M would consist of installation costs and US$15.6 M would be for materials and equipment. As with IDA credits for rural electrification, UPSEB would be responsible for the works including procurement of its own project materials, using Rural Electrification Corporation (REC) standard specifications and standard General Conditions of Contract approved by IDA. UPSEB would invite tenders, using Local Competitive Bidding (LCB) procedures satisfactory to IDA, for the procurement of conductors (US$7.8 M), distribution transformers (US$3.2 M) and HT insulators (US$0.8 M) for project financed schemes. Generally the UPSEB would not procure materials arid equipment for project works as separate contracts but include the project items as part of their general procurement for the statewide rural electrification programs. In view of the expected large number of small contracts and the present smooth functioning of the procurement process, only contracts exceeding US$0.5 M equivalent would require prior IDA approval to contraict awards. The UPSEB procurement proce- dures for materials procured without using Credit proceeds are satisfactory.  -31- 4.51 Materials, Vehicles and Equipment to be financed under the project would cost approximately US$87.5 M, excluding engineering and administration. Steel casing and fittings (US$13.1 M) and PVC pipes and fittings (US$56.9 M) would be procured through ICB procedures. A preference limited to 15%, or the prevailing customs duty if lower, would be extended to local manufac- turers in the evaluation of bids. The equipment and materials would be grouped to promote efficiency and attract competition; however, bids will also be accepted on individual schedules to attract small manufacturers and also reflect the scattered nature of the project works. Pumpsets and spares (US$7.7 M), ancillary pumpset equipment (US$6.1 M), alfalfa valves (US$1.5 M) and general small equipment including vehicles (US$2.2 M) would be procured locally to benefit from existing servicing and supply facilities for spare parts which need to be available throughout the project area. There is adequate domestic competition and prices are highly competitive. Standardized procedures and bidding documents developed by CWC and approved by IDA would be used for procurement of materials, equipment and vehicles. 4.52 Contract Review. All bidding packages for works estimated to cost US$0.5 M equivalent or more and for goods costing US$100,000 equivalent or more would be subject to IDA prior review. These will account for at least 80% of the procurement value of works. The remaining contracts would be subject to IDA post-review. Disbursements 4.53 Disbursements under the IDA credit would be made against (i) 60% of approved expenditures on the categories of agricultural development; research and development; monitoring and evaluation; training; (ii) 100% of ex-factory price on vehicles and equipment (excluding construction equipment) or 70% of cost where ex-factory price is not available; (iii) 55% of eligible expendi- tures incurred on completed tubewells; PVC and steel pipes, casings and fittings; and connection of old standard tubewells to dedicated 11 kV feeder lines; and (iv) 100% of expenditures for project preparation. Disbursement for completed tubewells would be made against certificates of expenditure submitted by GOUP, itemized by major components. The disbursement request for complete tubewells would also include a certified statement by the Superin- tending Engineer in charge that: (i) all works on the tubewell have been completed in accordance with the agreed siting, planning and design criteria; (ii) the command area of each tubewell is proportional to the discharge during the yield test; (iii) the discharge of each tubewell is not less than 70% of the design discharge; and (iv) the tubewell has been electrified with a connection to a dedicated feeder line. Disbursement for the power trans- mission network serving clusters of wells would be made in stages as tubewells in a cluster are energized. The procedure would be to charge the cost of completed works on the main 11 kV line serving the cluster once the first tubewell in the cluster is energized; the disbursement for the remain- ing electrical connection costs would be in stages as sections of the 11 kV main and spur lines are brought into operation. 4.54 Disbursement against payments of less than Rs 150,000 for equipment and vehicles and against expenditures under the categories of research and  -32- development, monitoring and evaluation, agricultural development, training, and project preparation would also be made against certificates of expendi- ture. Documentation of these expenditures would be retained by GOI and GOUP and made available for inspection by IDA during project review missions. The estimated schedule of expenditure is given in Table T-12. The proposed allocation of the proceeds of the IDA and IFAD credits and the estimated schedule of disbursements are presented in Table T-13. It is expected that disbursements would be completed by April, 1988. Accounts and Audits 4.55 The project would be subject to normal Government control and audit- ing procedures. A resident Audit Officer, representing the State Accountant General (AG) would audit the project accounts. Although continuous and annual audits are carried out in a timely manner, the finalization is a lengthy process during which the Statutory Audit Report is presented to the State Legislature. It would be essential therefore to have interim state- ments of account certified as to accuracy and authenticity by an independent competent auditor. Such statements certified by the AG or his designee, supported by an itemized account and a summary of the expenditures, would be submitted to IDA as soon as possible after the end of each fiscal year. Thus, agreements have been obtained from GOUP that the ID, UPSEB and AD would: (i) maintain separate accounts on project expenditures kept in accord- ance with sound accounting principles and procedures; (ii) have these accounts certified as to their accuracy and authenticity annually by inde- pendent auditors acceptable to IDA and make the resulting interim statements of account available to IDA as soon as possible but not later than nine months after the end of each fiscal year; (iii) have the project accounts audited annually in accordance with sound auditing principles and submit the audit report to IDA as soon as available; (iv) maintain separate accounts for the O&M expenditures on public tubewells such that the O&M costs of tubewells constructed under the project can be identified; and (v) make available complete accounts and financial statements to IDA for inspection during project review. An agreement has also been reached with GOI that GOI and the States benefitting from the project preparation facilities would maintain accounts and be audited in accordance with same procedures agreed for GOUP. V. ORGANIZATION AND MANAGEMENT General 5.01 Uttar Pradesh has a well structured administrative organization. Under the project, GOUP would (i) strengthen the agencies responsible for execution and management of the project works; (ii) establish units to enable effective agricultural development in the command areas of completed works; and (iii) establish procedures to monitor progress of project implementation and realization of project benefits. 5.02 Overall responsibility for project implementation would rest with the Secretary for Irrigation and Power (SI). Two agencies under his jurisdiction  -33- would implement the project: the Tubewell Wing of the Irrigation Department constructs, operates and maintains public tubewells in the State and the UP State Electricity Board is responsible for construction, operation and main- tenance of power transmission and transformation under the project. In addition to the construction agencies, the Department of Agriculture would be responsible for the agricultural development activities to be provided once the project tubewells are commissioned. 5.03 The CE (Tubewell Wing) would act as the Project Coordinator (PC), reporting directly to the SI. He would be responsible for the day to day coordination at the working level between the participating agencies. The PC would be assisted by a Project Coordinating Unit (PCU) which has been set up in the Tubewell Wing of the Irrigation Department. The PCU would draw up annual implementation and development programs; requests for the necessary financial provisions for the program; collate expenditures for reimbursement from IDA; prepare project reports and summaries of monitoring and evaluation studies; formulate and maintain an information link to project beneficiaries concerning all aspects of the project including the proposed implementation schedule. An agreement has been reached with GOUP that it would maintain the Project Coordinating Unit within the ID with a suitably qualified and experienced officer appointed to head the unit. The Tubewell Wing (Irrigation Department) 5.04 Existing Organization. The Tubewell Wing of the Irrigation Depart- ment (TW) in UP is responsible for construction, 1/ operation and maintenance (O&M) of public tubewells. The present organization (see Chart C-5) com- prises three Chief Engineers (Level II) reporting to one Senior Chief Engineer (Level I). Each CE has a regional responsibility which is sub-divided between 6 Superintending Engineers (SE) each responsible for a circle; the SE oversees 4 to 6 Executive Engineers (EE). Each EE heads a division and is assisted by four Assistant Engineers (AE) each responsible for a sub-division. There are usually four sections in a sub-division each headed by a Junior Engineer (JE). The staff of a section would be respon- sible for a cluster of about 25 improved tubewells and consists of tubewell operators and mechanics. 5.05 Until April 1982, construction and O&M of State tubewells were super- vised by the same staff. The exception to this arrangement were the new tubewells constructed under the first stage IDA project where construction staff and O&M staff were separated at the divisional level. Following encouraging results from this pilot reorganization, GOUP separated construc- tion from O&M at the divisional level for all public tubewell activities in the State. The advantages of the separation of functions have been administrative convenience and, for the project, a simplification of the 1/ Some public tubewells,partly financed by institutional credit, are con- structed by UP Nalkoop Nigam, an autonomous State Tubewell Corporation. The Corporation is almost entirely staffed with officers seconded from the Tubewell Wing.  -34- training programs for staff with respect to the improved tubewell technology. In addition, the change will enable the elimination of many of the problems which affect public groundwater deve!lopment in the State because performance and cost of public tubewells with respect to construction and O&M activities can in the future be fully evaluated separately. 5.06 The present staff strength in the Tubewell Wing is given in Chart C-5. The Tubewell Wing is responsible for construction, O&M of public tubewells and lift canals. After O&M and construction are separated, there will be 52 Divisions in charge of O&M of public tubewells and lift canals and the remaining 22 Divisions will undertake only construction. 5.07 Present Staffing Norms. A typical construction division is struc- tured and staffed to spend about Rs 10 M per year and complete about 45 public tubewell systems. A drilling division has the capacity to drill and complete about 120 water points per year. Current norms for an O&M division are to manage about 420 existing public tubewells which equates to about 25 to 30 wells per section. 5.08 Proposed Project Organization. To implement the project program and introduce improvements in planning, design, implementation (construction and procurement) and O&M, the Tubewell Wing would be strengthened. The proposed build-up of the organization is given on Table T-14. 5.09 For project works, a construction circle would have a drilling divi- sion, three construction divisions depending on the workload and an O&M division. The drilling division would be responsible for well construction and development. A construction division would be responsible for construct- ing pump houses, distribution chambers, installing pumping equipment and laying out the pipelines to the 5 ha outlets. It would also be responsible for commissioning new tubewells and would design and supervise the setting up of the rotational system of water distribution in each tubewell command area. Based on present norms (para 5.07), the construction organization would increase from the existing 2 circles used under the first stage project to 6 circles by 1986-87. 5.10 The O&M divisions would be responsible for all aspects of operation and maintenance of project tubewells. A cluster of about 25 new tubewells (commanding some 2,500 ha) would be supervised by a Junior Engineer (O&M). Four JEs would work under an AE and 4 AEs would be overseen by a EE at divi- sional level who would thus be responsible for about 350 tubewells and a central divisional store and workshop. One of the AE would have only two clusters under his charge in addition to the central divisional store and workshop. The O&M staff from ID would work closely with the agricultural staff responsible for development and farm demonstrations under the project. The JE (O&M) would have office space in the agricultural service center provided for each cluster of project tubewells (para 4.38). The project tubewell clusters are scattered through the State and for the O&M staff to function effectively, transportation would be provided with 2 jeeps and 4 light trucks at O&M divisional level and motorcycles for all AEs and JEs with O&M responsibilities. Motorcycles may be purchased by staff through loans provided by the ID and operated under a transportation allowance.  -35- 5.11 A new circle, designated as the Investigation, Planning and Design and Procurement Circle, would be added to the headquarters staff of the Chief Engineer. The circle would be headed by a SE and consist of four divisions with responsibilities as follows: (a) The Investigation, Planning and Design (IPD) Division would coordinate all aspects of planning and design, formulate project principles and criteria and set construction specifications. It would prepare the planning reports for each tubewell cluster (para 4.09) in liaison with UPSEB and the DA. It would ensure that all other agencies involved in project implementation and development are informed of the work program with sufficient notice to avoid project delays. The Division would also be responsible for implementation of the R&D component (para 4.34) and the Design and O&M Manuals to be prepared under the project (para 5.18). (b) The Project Training and Monitoring and Evaluation (PTME) Division would be responsible for all in-staff training (para 5.17) and for organizing the study tours provided under the project to enable staff to visit other projects both inside India and abroad to widen their professional experience. It would also be respons- ible for collecting and analyzing data on project implementation and tubewell performance with respect to the quality and quantity of the irrigation service. Monitoring and evaluation activities are discussed in Annex 11, SDV. (c) The Procurement Division would be responsible for the purchase of materials, equipment and vehicles under the project with staff fully conversant with IDA procurement procedures. The division would include a Project Accounting Unit which would be responsible for IDA disbursements and the account and audit requirements under the project (para 4.55). (d) The Quality Control Division would be responsible for all aspects of quality control during the construction and commissioning phases of the project program. 5.12 Project Staffing Requirements. The staffing build up within the Tubewell Wing under the project is shown in Table T-15. Project staff would be available either through transfer within the Tubewell Wing or from other parts of the ID, or through recruitment, depending on the overall staffing requirements and work load of the ID through the project period. An agree- ment has been reached with GOUP that it would sanction and fill staff posi- tions in accordance with an organization structure and a staffing schedule established in consultation with IDA and train such staff so that the Tubewell Wing of the ID can carry out the project program and operate and maintain the project works. Operation and Maintenance 5.13 Water Allocation. Water allocation procedures for old standard tubewells throughout the State are inadequate. The common practice is for  -36- the Ziledar (Revenue Officer) to work out a rotational schedule for groups of farmers, particularly in peak demand periods. The formation of the groups or Thoks is left to farmers' choice with the command area varying considerably from one thok to another. Irrigation is rotated sequentially between thoks with turn time proportional to the thok command area. The tubewell operator is responsible for the rotation but is often influenced by powerful land- owners or by his own judgment of water requirements on farmers- fields. Inability to easily check water allocation, coupled with unreliable power supply and frequent equipment defects, has meant that designed rotational schedules are almost impossible to observe. Consequently, irrigation deliveries are unreliable and inequitable. An additional problem is that distribution within the thok is left up to the Thokdars (group leaders) who are generally rich farmers with large land holdings. Particularly when supplies are short, small farmers are frequently denied their equitable share of water. 5.14 With the improved tubewell systems, the design practice is to divide the command area of a buried pipe distribution loop into seven equal parts of about 7 ha. Each 7 ha unit is known as an "area day" command and is entitled to water supplies from the tubewell for a fixed day of the week at a stream flow of about 75 m3/hr. The water r:ight of each farmer in an "area day" command is set by the Irrigation Department in proportion to his holding area with the water right expressed in hours of tubewell operating time allocated to the farmer. The farmers within the "area day" command form a committee which is responsible for water distribution within the area served. The advantages of this arrangement are that the farmers' formation is random which minimizes the chance of power groups controlling a tubewell. The management role of the tubewell operator is thus eliminated. In addition, the water allocation procedure is re:Lated to operational considerations and not the physical location of an outlet on a buried pipe distribution system. Outlets are sited to give effective command of all the area served by a tubewell and for any "area day" command, water may be supplied for any outlet in the system depending on which one gives the best service to a farmer's fields. In this way, a typical "area day" command area may be served by 1 to 3 outlets to complete a full irrigation rotation (see Chart C-3). 5.15 Operation Principles. The operation criteria for new tubewell irrigation systems would be such that: water is allocated according to area of holdings within the tubewell command with service to an individual farmer on a predetermined day of the week. An 'area day"' command would be the unit by which water deliveries are scheduled and quantities delivered to each command area would be based on a rotational allocation designed by the staff of the ID. Only one outlet on a loop distribution system would be opened at a time; thus as discharge is fixed, delivery would be equivalent to volumetric dis- tribution on a time basis. A farmers' committee would be set up within each area day" command, and assisted by t:he staff of the ID, would organize water allocation within each outlet command according to the landholding of each farmer. 5.16 Maintenance Criteria. Each tubewell cluster of about 25 wells would be under the responsibility of a Junior Engineer (O&M) who would have the continuous services of 2 skilled mechanics to provide the maintenance service for individual tubewells. Each O&M division (para 5.10) would have a fully  -37- equipped workshop for maintenance of pumps, prime movers and switch gear, plus adequate transport. It would also have a divisional stores which would hold at least 10% spares against pump turbines, prime movers and ancillary electric equipment. As part of routine maintenance, and at half yearly intervals, pump discharges would be checked and turbine impellors would be replaced if low discharges indicate wear; well discharge and drawdown would also be checked. Wells would be rehabilitated if the discharge/ drawdown relationship indicates deterioration of well performance. Training 5.17 Staff training would be organized by the PTME Division (para 5.11) and would be required in three respects: (i) planning and design of improved tubewell systems with special attention to the layout of pipe distribution systems; (ii) water allocation and land acquisition procedures and legal parameters affecting PTWs; and (iii) the O&M of completed tubewell systems. Training would be necessary because the automatic operation at the well point and the pipe distribution systems to be installed under the project are unfamiliar to many engineering staff who would be responsible for the project works. The training would be "in-service", directed by senior TW officers and other experts. The courses would include lectures, discussions, case studies and field trips. In particular, the courses would cover planning, design and O&M of improved tubewell systems, water management at the field level, cultivator organization and basic cultivation practices for principle crops to be grown in the tubewell command areas. The O&M trainees would be officers assigned to O&M divisions. Junior staff would be trained for about three weeks and senior staff for about one week. Details of the training program are provided in Annex 11, SDV. A pre-requisite for the training program would be the compilation of the Design and O&M Manuals (para 5.18). Design and O&M Manuals 5.18 The technology used for new tubewell systems has been continually improved over the two year period of the first stage project. Sufficient progress has been made to produce (i) a comprehensive Design Manual which would record planning principles, design criteria for the new tubewell tech- nology, and specifications and construction practices to implement the works; and (ii) an O&M Manual covering all aspects of management of public groundwater systems. The manuals would also describe arrangements and proce- dures by which the Irrigation Department relates with other agencies involved in implementation of public tubewell development. A provision is made under the project to assist in the preparation and printing of the Design and O&M Manuals. An agreement has been reached with GOUP that it would submit to IDA for its review and comment by December 31, 1984, drafts of comprehensive Design and O&M Manuals, and taking into account IDA's comments, finalize such manuals and utilize them in the planning, design and construction and for the operation and maintenance of public tubewell systems for the State.  -38- Progress Review and Reporting Requirements 5.19 Progress reports would be prepared by the PTME Division (para 5.11) and be submitted to IDA on a quarterly basis. Each report would include brief descriptions of the main events of the reporting period including construction progress; expenditures incurred; project staffing status; tenders; evaluation and award of contracts; irrigation potential created; actual areas irrigated; operational hours of water points; the power supply situation; and farmers reaction to water allocation procedures. An agree- ment has been reached with GOUP that it would submit to IDA: (i) project progress reports on a regular basis; and (ii) a project completion report no later than six months after the closing date of the project. Uttar Pradesh State Electricity Board (UPSEB) 5.20 General. The UPSEB is responsible for the construction and O&M of rural electrification (RE) works in the State including the connections to public tubewells. A circle under an Additional Chief Engineer (ACE) plans and monitors the progress of both general RE works and also special schemes financed by the Rural Electrification Corporation (REC). At field level, where there are sufficient REC works, UPSEB positions an Assistant Engineer (AE) with responsibility only for construction of these works. At present, if a new public tubewell falls within a special REC scheme area, energization of that well would be undertaken as part of the REC scheme; in areas outside a REC scheme, the AE (O&M) in whose jurisdiction the new tubewell is located is responsible for the connection as part of his routine O&M activities. Supervision of all construction works is carried out by the O&M Executive and Superintending Engineers under the control of the zonal Chief Engineers. Generally the AE (O&M) is burdened with various maintenance and administra- tive duties and cannot give special attention to the design or construction of connections to individual wells. This has resulted in poor power dis- tribution planning and delays in execution of the works. 5.21 Public Tubewell Electrification (PTE) Unit. To overcome these problems, an agreement has been reached with GOUP that the UPSEB would main- tain an independent unit for energization of all public tubewells under the project. The UPSEB plans that the unit would also be responsible for the energization of any other public tubewells in the State to be constructed outside the project. The PTE Unit would be under the supervision of an Additional Chief Engineer (ACE) who would be assisted by a circle headed by a Superintending Engineer at headquarters. With respect to project tubewells, the unit would undertake all planning and design activities associated with energization of the wells. It would prepare or approve cost estimates received from field staff and arrange for the necessary sanctions to imple- ment the works. The unit would also zoordinate procurement and supply of materials to field units, monitor the progress works, and be responsible for the prompt receipt of work accounts from the field units. The unit would maintain accounts on the basis of tubewell clusters and also prepare the completion reports on the energization of each cluster for inclusion in the project quarterly reports. At field level, there would be units headed by Executive Engineers located in zones where new tubewell clusters are being executed. The field units would be responsible for all construction works  -39- and for ensuring that the project schedule is maintained. They would coor- dinate closely with field officers of the ID. 5.22 Operation and Maintenance (Power Supply). Control of power supply to each tubewell cluster would be the responsibility of the UPSEB officer in charge of 33/11 kV sub-station from which the dedicated feeder line is taken. He would also maintain switchgear at the sub-station and keep daily records of energy sent out to the cluster from metering facilities at the sub-station. The AE (O&M) for the area where the cluster is located would be responsible for maintenance of 11 kV main and spur lines and transformer centers supplying individual project tubewells. When tubewells are energized and commissioned, the AE (O&M) would get additional maintenance staff depend- ing on the length of line and number of transformer centers added to the system under his responsibility. Department of Agriculture 5.23 Background. Under the first stage project (Cr. 1004-IN), agricul- tural services were provided by deputing staff from the Department of Agriculture (DA) into each project O&M division in the Tubewell Wing. The arrangement did not work effectively because of difficulties in securing dedicated staff on deputation from the DA to the ID and the lack of direct involvement of the DA in public tubewell development. To overcome these shortcomings, the project would support an agricultural development component (para 4.38) under the DA to work exclusively for the introduction of effec- tive irrigated agriculture in the project tubewell command areas. The organization schedule of setting up this Agricultural Development Wing (ADW) is given in Chart C-6. The ADW would comprise in the field of three Agricul- tural Supervisors (AS) at tubewell cluster level reporting to an Agricultural Officer (AO) assisted by an Additional Agricultural Officer (AAO). This AO would be responsible for about 6 TW clusters (150 tubewells) and each AAO for 2 tubewell clusters or about 50 tubewells. Three Deputy Directors Agricul- ture (DDA) at regional level would each supervise three AOs (about 900 tubewells) and be located in suitable district offices in the Western, East- ern and Central Regions. Administrative control at the State level would be through a Joint Director Agriculture (JDA) who would report directly to the Director of Agriculture. Two Subject Matter Specialists would be attached to each DDA at the regional level. The organization would provide close contact with the farmers; assist in preparation of crop plans; assist in the organization of farmers' groups; identify the requirements and local sources for the timely supply of agricultural inputs and credit; provide guidance to farmers in water management techniques; and organize and administer farm demonstration plots. 5.24 Once the majority of tubewells in a cluster have reached full development levels assumed under the project, the cluster would be handed over to the regular extension services responsible for that area, and the AD staff would move onto a new cluster. 5.25 Monitoring and Evaluation. The project would provide staff and facilities for monitoring and evaluation of agricultural performance in the project area. A M&E unit would be established within the Agricultural Development Wing at headquarters under the direction of the project JDA with  -40- three field units set up under the D:DAs at regional level. The M&E units would undertake agro-economic surveys; data collection for the main crops under the project during the growth cycle including crop production and input/crop yield data. Staff strength in each of the 4 M&E units would comprise an Economist, 2 Statistical Assistants, 7 AOs Officers, 13 AAOs and 7 ASs. The tubewell operator at each tubewell would assist the M&E units by keeping certain daily and seasonal r,ecords which reflect aspects of agricul- tural performance. 5.26 Staffing Requirements. The staffing schedule for the Agricultural Development Wing is shown in Table T-16. The ADW would be built up as com- pleted clusters of tubewells are brou-ght into operation with an initial staffing requirement to provide agricultural development services for the improved tubewell systems (about 570 units) constructed under the first stage project. An agreement has been reaclhed with GOUP that it would santion, deploy and train agricultural development staff in accordance with an organization structure and staffing schedule established in consultation with IDA. Farmers' Organization Within a Tubewell Command 5.27 Under the project, an important task of the JE (O&M) and ASs in charge of a cluster of tubewells would be to assist in organizing farmers. Farmers within each "area day" command would form a committee (see para 5.14) and elect a leader to supervise water distribution within their command area as per authorized schedule. Leaders of the committees would elect five representatives to form a Tubewell "Kshetra Din" Committee for each tubewell. Each tubewell committee would have a President and a Secretary and would be responsible for coordination and cooperation among "area day" committees, for solving disputes and for advising the concerned JEs (O&M) in working out the rotational water allocation schedule. The President of each tubewell committee would represent the tubewell farmers on a Tubewell Cluster Committee which would also elect a cLuster President and Secretary who would work closely with the JE (O&M) and three Agricultural Supervisors in matters affecting all the tubewells within a cluster. VI. AGRICULTURAL PRODUCTION, MARKET PROSPECTS AND PRICES Cropping Patterns 6.01 Experience with the first stage project has shown that cropping patterns for the three Regions (Western, Central and Eastern) with public tubewell development would generally follow the present practices. Wheat, sugarcane and fodder crops would be the main crops in the Western Region; wheat, paddy and barley in the Central Region; and paddy, wheat and gram in the eastern part of the State. In the kharif season, paddy would be the main crop to receive supplementary irrigation whereas in the rabi season, most crops would be fully irrigated. Availability of a reliable irrigation serv- ice would encourage farmers to grow early varieties of paddy (100 to 120 days duration) planted in June. The harvesting dates of the early paddy would enable an earlier planting of wheat with a resultant increase in wheat  -41- yields. In addition, high value pulse crops such as 'mung' can be grown in the hot or 'zaid' season with full irrigation from March to May when the crops would be less affected by pests than when grown in the kharif season. Areas under cash crops such as oilseeds, sugarcane and potato would also increase with a reliable irrigation supply. Typical cropping patterns for the three regions under the project are described in Annex 6, SDV and detailed in Table T-17. 6.02 Cropping patterns for the 'present' and 'future without' project situations are based on available statistics, a survey of the project area and discussions with agricultural staff and farmers in the command areas of those improved standard tubewells completed under the first stage project. The 'future without' project situation takes into account tubewell siting criteria under which most project beneficiaries would be small or marginal farmers. It is assumed that most farmers will continue to follow rainfed cropping patterns even if they have access to protective irrigation by rent- ing water from owners of private irrigation sources. The irrigated area from private sources is difficult to evaluate in terms of the project analysis because, at present, any area that receives even less than one complete watering is recorded as 'irrigated.' For the purpose of the project analysis, the 'present' and 'future without' project irrigated areas are taken as the equivalent area which could be irrigated from private sources existing within the project tubewell command areas assuming the same water supply per unit area as that provided under the project (see Annex 4, SDV). 6.03 Future cropping patterns for the 'with project' situation take into account four major factors: (i) the area irrigated from private sources; (ii) the capacity constraint of the irrigation service particularly with respect to land preparation and transplanting of paddy in the wet season; (iii) the optimum time for wheat sowing in the dry season; and (iv) the socio-economic potential of the farmers served. Under the project, in the kharif season, paddy would continue to be the dominant crop. With improved water distribution and regulation and with the agricultural development services provided, it is assumed that the area cultivated with local paddy varieties would decline while the area cropped with HYV paddy would increase. In the rabi season, wheat is expected to remain the principal crop. The area under maize, oilseeds, pulses and, to a lesser extent, sugarcane (par- ticularly in the Western Region) would also expand under the project. Some vegetables including potatoes would be grown for home consumption and local markets. The cropping intensity 1/ at full development is estimated to average about 145% as compared with about 120% at present (Annex 6, SDV). Although the increase in cropping intensity would be small, the increase in irrigated crop intensity as a result of the project tubewells is estimated to average about 97% at full development. Crop Yields 6.04 Present yields of all crops cultivated by most farmers to be served under the project are low because of the random and unreliable rainfall and a 1/ Including the area irrigated from private irrigation sources.  -42- justifiable reluctance to invest in modern inputs. Farmers follow rainfed agricultural practices and tend to use local varieties even if they are able to purchase water from private irrigation sources to deal with critical drought periods. Applications of fertilizer and plant protection chemicals are low primarily because of limited cash resources and the heavy risks involved. As a result, all rainfed (and even irrigated) crops produce low yields. Small increases in HYV paddy and wheat yields would be possible in the 'future without' situation providing farmers use good quality seeds and apply improved methods of cultivation. Such yield increases are only likely to be achieved by farmers with larger holdings or with incomes outside agriculture. In the 'future with' project situation, yields of HYV paddy are estimated to reach 3.0 ton/ha, local paddy varieties 2.4 ton/ha; maize 1.8 ton/ha (wet season); wheat 2.2 ton/ha; pulses 1.0 ton/ha; and oilseeds 1.2 ton/ha. The yield of sugarcane is estimated to be about 55 ton/ha. The irrigated crop yields reflect better water regulation, timely and more thorough land preparation, increased use of fertilizer, good quality seed, improved weed and pest control, improved cultivation and planting techniques, and timely harvest and threshing. However, these crop yield levels assume the degree of under irrigation presently practiced in UP on holdings with private irrigation sources and a moderately effective agricultural extension service. Estimates of crop yields are detailed in Annex 6, SDV and sum- marized in Table T-17. Agricultural Production 6.05 Based on the expected future cropping patterns and yield levels, the annual incremental production at full development (four years after the first full cropping season following start of irrigation) for typical project tubewells (detailed in Table 7, Annex 2) would be as follows: Improved Tubewells /a Old Standard Tubewells /b Total 150 m3/h 300 m3/h Modernized Improved Power Incremental Connection Production /c ------------ tons/annum/tubewell----------------- '000 tons Foodgrains 102.7 205.4 102.7 66.8 300.2 Oilseeds 3.4 6.8 3.4 2.2 9.9 Sugarcane 128.3 237.6 128.3 83.4 371.2 /a Based on performance data under the first stage project. /b Pilot components - provisional estimates. /c All tubewells constructed or improved under the project at full development (1991). Input Requirements 6.06 Present use of fertilizer and plant protection chemicals by the majority of potential project beneficiaries is minimal and is mostly limited to paddy. wheat and maize. Even farmers with their own irrigation sources and the potential to apply full crop water requirements use, on average, about a third of the recommended chemical inputs. Very few farmers use good quality seeds (paddy, wheat and maize); most farmers meet their seed require- ments from their previous harvests. The average farmer owns one pair of  -43- draft animals which provide adequate farm power for the small size holdings and general farming practices. 6.07 Present and projected input requirements are presented in Annex 6, SDV and reflect the low income group being reached by the project. Crop yields used in the project analysis correspond with the assumed moderate input levels. On average, existing facilities would be sufficient to meet the small projected increase in input demand over present statewide consump- tion (para 2.19) but there may be local shortfalls in some areas once project tubewell clusters become fully operational. The agricultural development component would assist in assuring that sufficient quantities of agricultural inputs would be made available in the tubewell command areas to meet the project needs. Market Prospects and Prices (Annex 2) 6.08 The project area covers most of UP and therefore the potential market is large. Production increases, although substantial percentage-wise and in terms of the immediate areas developed, are small in relation to the market. Marketing of surplus produce is not expected to pose any significant problems since the established trading system through private dealers and Government markets would take care of disposing the surplus. However, many small farmers may continue to receive unfavorable prices because they sell crops at harvest time for want of suitable storage and in order to repay crop loans. It is envisaged that the project would generate the need for more storage capacity at local cooperatives to allow farmers to store their produce for some time and thus benefit from higher seasonal prices. The agricultural development staff would provide assistance on a tubewell cluster basis. 6.09 No major changes in crop prices are foreseen because prices are largely determined by seasonal supply and demand patterns, supplemented by a supportive pricing policy of the Government. The price supports for rice and wheat have been particularly effective in maintaining sufficient incentives for farmers while keeping the real prices to consumers fairly stable. As a result, it is assumed that future farmgate prices (in constant terms) for paddy and wheat would follow the official procurement prices of Rs 1,270/ton and Rs 1,390/ton for paddy and wheat respectively as of April 1982. VII. FINANCIAL ANALYSIS General 7.01 To assess the project's impact on farmers' incomes, the population of farms has been divided into three classes which represent typical small, medium and large farms in the project area. For each class, farm budgets have been estimated for the 'present', 'future without' and 'future with' project situations. Apart from holding size, farm models differ in household size, cropping intensities and patterns, and in the use of hired labor. The main characteristics have been generated from socio-economic surveys con- ducted in the project area and data provided by the ID and DA staff operating in improved tubewell command areas constructed under the first stage project.  -44- The detailed assumptions and crop budgets used in formulating the model farm budgets are given in Annex 2. Farm Incomes 7.02 Project tubewells would be sited where private irrigation sources are either difficult to construct or there is suppressed demand because of finan- cial constraints of most farmers within the command area (para 4.07). None- theless, on average, about 15% of project tubewell command areas will be served by private tubewells or pumpsets generally restricted to farms that exceed 2 ha and are owned by about 10% of the farmers. The project analysis assumes no change in farm incomes of farmers who own private irrigation sources capable of providing "productive" or full irrigation to their hold- ings. Should these private tubewell owners take up the project irrigation service, they would achieve the 'future with' project farm incomes at full development in the first full season that the tubewell becomes operational (see Annex 4, SDV). 7.03 Average farm incomes from crop production before payment of water charges assume that most farmers will move from rainfed to full irrigated agriculture under the project. It is also assumed that without the project these farmers could not afford their own irrigation sources and thus their incomes will continue to stagnate at present levels. Even though they may be able to "rent" water from private tubewell owners to protect their crops under drought conditions, this limited irrigation service will only have the marginal effect of making "rainfed" crop yields more reliable. 7.04 Three model farm budgets in each agro-climatic region have been examined to assess the impact of irrigation on farm incomes. It is expected that improvements in farm incomes from crop production for actual farms would vary considerably depending on location within the State. However, the farm location within a tubewell command will not affect the quality of irrigation service. The likely impact for the representative farm sizes is detailed in Annex 2 (Tables 4 to 7) and shows that average increase in farm incomes from crop production before payment of water charges would be about 150%. Total family income would rise only about 130% since it includes income from other sources which is assumed to remain constant. Smaller farmers would experience larger increases per unit area than large farms for both crop production income and for total income. Distribution of incomes by family group would be slightly more skewed 'with' than 'without' the project because the farmers with more land can take greater advantage of the improved irriga- tion service. About 50% of all incremental income would accrue to farmers with greater than 2 ha (about 20% of a typical tubewell command area), while these farms currently receive an estimated 45% share of total income. Impact on Poverty 7.05 For farmers without a private irrigation source, annual incomes per capita 'with' and 'without' the project are estimated as follows:  -45- Per Capita Income (Rs) Farm Model Farm Other Total Farm Other Total ---'Future without'--- ----'Future with'----- 0.4 ha 100 170 270 330 170 500 1.4 ha 220 160 380 710 160 870 4.0 ha 420 220 640 1,260 220 1,480 Weighted Average 170 180 350 520 180 700 This compares to an estimated average State per capita income of about Rs 1,000. Thus none of the farm size classes presently reach the State average income level, although individual farms (and probably all farms with private irrigation sources) within project tubewell command areas will exceed it. If the poverty line is taken as Rs 840 (US$90) 1/ per capita then, at present, about 95% of all farm households and about 85% of the farming population (within the project command area) live at or below this poverty line (see Annex 2). 7.06 At full development, average per capita income before water charges would increase by about Rs 350 (US$40). However, all farm size classes would not benefit equally from this increase. For the smallest farms, the increase would be only 85% of the average as against 130% for the largest farms. Only farming units above about 1.4 ha would exceed the poverty level. Thus, even assuming all farmers could obtain predicted cropping intensities and yields at full development, about 75% of the farming population cultivating 50% of the land within a typical project tubewell command would still live under poverty conditions. 7.07 A primary project concern will be to assist farmers to obtain the other inputs necessary to generate the incremental crop production possible with reliable irrigation. In particular, those who may be unable to generate a reliable income from crop production to sustain the family and provide sufficient cash flow to buy inputs for modern irrigated agriculture. It appears that for most small and marginal land owners, either farming is a secondary income to other activities or they rent land which can be developed as envisaged under the project. The analysis assumes that some small farmers grow crops for home consumption utilizing project facilities to the extent that their cash budget allows. Thus, in terms of formulating a cost recovery policy and appropriate water charges, consideration must be given to the weaker elements of the project population; that is those farm families that may remain below the poverty line even with full development benefits. To achieve this objective, a socio-economic study of project beneficiaries would be undertaken once sufficient project tubewells have operated long enough to provide a significant data base. The study would (i) evaluate the extent that the weaker elements of the project population are able to fully utilize the irrigation service and to purchase the other inputs necessary to achieve 1/ Estimated for project impact areas in UP; based on a minimum caloric requirement of 2,100 Kcal. per capita (worth about Rs 640 at present farmgate prices) and other minimum consumption requirements of about Rs 200 per capita.  -46- full development benefits; and (ii) formulate proposals to enable the full development benefits of the project to be achieved in a timely manner. In this respect, an agreement has been reached with GOUP that would: (i) carry out a socio-economic study of farmers benefiting from the project with terms of reference established in consultation with IDA; and (ii) submit, by July 31, 1986, a report summarizing the results and recommendations of the study to IDA for its review and comment. Capital and O&M Costs 7.08 For purposes of cost recovery, the estimated project costs have been adjusted and separated into two parts. Fixed Costs include that part of the capital cost not related to tubewell utilization and costs for those items (such as pump units) which need to be replaced after some time as a function of tubewell operation; they also include fixed O&M Costs which do not vary appreciably with tubewell operating hours. The only variable cost is elec- tricity which is a function of tubewell utilization. Annual costs for typical improved standard tubewells are detailed in Table T-18 and are summarized (for 3500 hrs annual operation) as follows: 150 m3/h Units 300 m3/h Units Weighted Average /a -----------------------Rs/ha