India - Second Gujarat Medium Irrigation Project

Document of The World Bank FOR OFFICIAL USE ONLY Report No. 5028-IN STAFF APPRAISAL REPORT INDIA GUJARAT HEDIUM IRRIGATION II PROJECT May 18, 1984 Regional 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 USS1.00 = Rupees (Rs) 10.8 WEIGHTS AND MEASURES (METRIC SYSTEM) 11 1 meter (m) = 3.28 feet (ft) 1 kilometer (km) = 0.62 miles (mi) 1 hectare (ha) 3 = 2.47 acres (ac) 1 million cubic meters (Mm ) = 810 acre-feet (ac-ft) 3 1 cubic foot per second (cfs or cusec) = 0.028 cubic meters per second (m Isec) 1 kilogram (kg) = 2.2 pounds (lb) 1 metric ton (mt) = 2,205 pounds (lb) FISCAL YEAR GOI; GOG; April 1 - March 31 1/ 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 OMCIAL USE ONLY INDIA GUJARAT MEDIUM IRRIGATION II PROJECT Credit and Project Summary Borrower: India, acting by its President (GOI) Beneficiarv: Goverment of Gujarat (GOG) Amount: IDA Credit: SDR 164.3 M (US$172.0 M equivalent) Terms: Standard Re-Lending Terms: From GOI to GOG as part of central assistance to states for development projects on terms and conditions applicable at the time. GOI would bear the foreign exchange risk. Proiect Description: The proposed project is a follow-on to the Gujarat Irrigation Project (Credit No. 808-IN of July 17, 1976). It would (i) complete construction of 27 out of 29 subprojects begun under the first time slice, and bring the remAining 2 to an advanced stage, including a lined canal system to the 8-ha subchak level and field channels to individual fields; (ii) introduce efficient, reliable, and equitable water management systems in each subproject based on the village service area; (iii) establish an appropriate institutional framevork for extending improved water management activities in the state; (iv) strengthen the project organization for quality control, monitoring and the design of minor networks; (v) provide mechanical skill training for about 30 artisans; (vi) provide training for about 200 professional, 400 subprofessional Irrigation Depart- ment staff and 8,800 progressive farmers; and (vii) provide vehicles, plant, and communications equipment for the construction, maintenance and operation of the subprojects. The project would create about 241,000 ha of additional irrigated area and provide a more reliable water supply for 133,000 ha of existing irrigation. Possible risks under the proposed project are those normally associated with irrigation projects in India. ITis document has a restricted distrbution 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.  ABBREVIATIONS AND ACRONYMS AC - Appraisal Committee ARDC - Agricultural Refinance and Development Corporation CAD - Command Area Development CADA - Command Area Development Authority CCA - Cultivable Command Area CRU - Chak Rotational Unit CWC - Central Water Commission DAFP - Directorate of Agriculture and Food Production ERR - Zconomic Rate of Return FSL - Full Supply Level GOG - Government of Gujarat GOI - Government of India ICB - International Competitive Bidding I&PD - Irrigation and Power Department ID - Irrigation Department IDA - International Development Association LCB - Local Competitive Bidding M&E - Monitoring and Evaluation KIP - Medium Irrigation Project NABARD - National Bank for Agriculture and Rural Development OFD - On-Farm Development O&M - Operation and Maintenance R&D - Research and Development RWS - Rotational Water Supply SCMC - State Coordinating and Monitoring Committee UNDP - United Nations Development Program VSA - Village Service Area WMC - Water Management Committee  GLOSSARY main, branch, - main conveyance channels distributary canals minor - channel serving one or more villages watercourse - small channel (lined) below the outlet serving a or subminor chak of 40-60 ha divided into 5-8 ha blocks (subchaks), with capacity to taken full outlet discharge from head to tail field channel - small channel (unlined) below the watercourse serving 5-8 ha block, down to farmers' fields, with capacity to take full outlet discharge adjustable - outlet structure that will give a discharge to a proportional minor or watercourse proportional to the flow in the module (APH) parent canal. Not affected by conditions in the minor or watercourse outlet - structure discharging from watercourse to 5-8 ha block, designed to take full watercourse discharge and be either open or shut chak - watercourse CCA subchak - watercourse CCA below the 5-ha turnout varabandi - a rotational water supply (RWS) system of allocating vater among farmers by fixed turns and time periods; flow rate is constant, and time periods are proportional to land holding size on- farm - small works needed for efficient water control at development the chak level (e.g., watercourses and drains); most such works are actually off-farm village service area - a block of 200-500 ha served by a minor with the preferably with the same boundaries as the village administrative area.  INDIA GUJARAT MEDIUM IRRIGATION II PROJECT Staff Appraisal Report Table of Contents Page No I. BACKGROUND ...................- ............ . 1 Introduction.. .. 1 Agriculture and Irrigation in Iudia...... 1 The State of Gujarat .. ............ 1 Performanoe Under Phase I ........ . .. ... 3 Rationale for Bank Involvement in Phase II ..6 II. THE PROiE6T AREA. .. .. ............ 6 General .*oo.. .e............... . 6 Climate.. ..... 7 Topography and Soils. ..................... 7 Land Use . ........ ...... ... 7 Population and Land Tenure .......... 8 Crops and Yields ...... 8 Inputs Used. . .. 9 III. THE PROJECT ............................................ 10 General .............................................. 10 Objectives and Scope ............ ................... 10 Detailed Features .................................... 10 Construction Activities ............. ............... 10 Training, Studies, Institutional Strengthening and Introduction of RWS . ....................... 13 Design and Implementation Criteria ................... 15 General .................. 000.0.0 .... 9-0.....o 15 Water Supply and Demand ............................ 15 Design of Conveyance Network ....................... 16 Design of the Minor (VSA) Network .................. 16 Dam Safety. ........ . . 17 Construction Methods .............. 17 Status of Project Preparation ................. 18 Implementation Schedule ............................ 18 Rehabilitation .................... 19 This report is based on the findings of an appraisal mission which visited India in January/February 1984 and comprised of Messrs. C. Helman, B. Albinson, Y.K. Choi, Ms. G. Leithmann (Bank) and Mr. L. Shanan (Consultant). Word processing was done by Ms. S. Douglas with the assistance of Mmes. Kalinger and Bromley.  -11- IV. COST ESTINATES AND FINANCIAL ARRANGEMENTS .............. 21 Cost Estimates ................... .................... 21 Financing ..................... ....................... 22 Procurement .......................................... 22 Disbursements ................... ..................... 23 Accounts and Audits . ....................... ...... .... 24 V. ORGANIZATION AND MANAGEMENT ............................ 25 The Irrigation Department (ID) ......... .. ............ 25 The Central Water Commission (CWC) ................... 27 Supporting Services .................................. 27 Monitoring and Evaluation (M&E) ........ .. ............ 29 VI. ORGANIZATION OF WATER SUPPLY ........... .. .............. 31 Present Situation ................. ................... 31 Rotational Water Supply ............. .. ............... 32 Water Allocation ....... ........... ................... 33 Operation and Management of Subprojects ...... ........ 33 Training in Rotational Water Supply ............... O.. 34 Operation and Maintenance Cost ......... .. ............ 34 Narmada and Gujarat Medium Irrigation II Project 35 VII. AGRICULTURAL PRODUCTION. FARM INCOMES. AND COST RECOVERY 36 Agricultural Production ........... .. ................. 36 Market Prospects and Prices .......... .. .............. 38 Cost Recovery ................... ..................... 38 VIII. BENEFITS AND JUSTIFICATION ............................. 40 Project Impact ....... ............ .................... 40 Economic Analysis ................. ................... 41 Sensitivity Analysis and Risks ....... ................ 42 Environmental Impact .............. .. ................. 43 IX. AGREEMENTS TO BE REACHED AND RECOMMENDATIONS ..... ...... 43 Schedule A: Rehabilitation .......................... 46 Schedule B: Introduction of Rotational Water Supply.. 47  -iii- TABLES 1 Status of MIPs at end of Phase I 2a Quantities of Civil Works for the Canal System - Main System 2b Quantities of Civil Works for the Canal System - Distribution System 2c Target for Implementation of Rotational Water Supply 3 Salient Features of MIPs 4a Rehabilitation 4b Progress of Land Acquisition 5 Climatic Data 6 Cultivable Comnand Area and Irrigability Class 7 Land Use 8 Distribution of Holdings by Size 9a Cost Estimates - Summary Account Cost Summary 9b Cost Estimates - Project Cost Summary 9c Cost Estimates - Summary Account by Project Component 9d Cost Estimates - Summary Account by Time 9e Cost Estimates - Project Component by Time 9f Cost Estimates - Water Management Training 9g Cost Estimates - Mechanical Technician Training 9h Cost Estimates - Farmers Training 9i Cost Estimates - Vocational Training 9j Cost Estimate - Monitoring/Development/Studies 10 Estimated Schedule of Expenditures and Implementation 11 Estimated Disbursement Schedule 12 Credit Allocation 13a Equipment Summary 13b Equipment for Construction 13c Equipment for O&M - Dams and Canals 13d Equipment for O&M - Standby Generators for Spillway Gates 13e Equipment for O&M - Telecommunications 13f Equipment for Hydrology and Drafting 13g Equipment for Construction 14a Details of Organization set-up: Existing and Future Requirements 14b Organization Set-up for a Typical 16000 Ha Irrigation Management Unit 15a Farmers Training (Block Leaders) 16a Crop Water Requirements by Zone 16b Results of Water Simulation 17 Present and Projected Cropping Patterns 18 Area, Yields, and Production 19 Incremental Crop Production and Value 20 Summary of Prices for Economic and Financial Analysis 21 Derivation of Economic P-ices for Major Crops and Inputs in Gujarat 22 Crop Financial Budget 23 Crop Economic Budget 24 Estimated Financial Farm Budgets 25 Estimated Farm Budgets and Project Rent at Full Development 26 Estimated Project Rent and Cost Recovery  -iv- TABLES (cont) Cost and Benefit Streams, Including Sunk Costs 27a Watrak 27b Sukhi 27c Und 27d Zankhari Cost and Benefit Streams, Excluding Sunk Costs 28 Modernization Project (Shetrunji) ANNEXES 1 Economic Analysis 2 Documents in Project File CHARTS 1 Implementation Schedule 2a Irrigation Department 2b Typical Irrigation Circle 2c Typical Project Staff Chart 3 Central Water Commission MAPS AND DIAGRAMS Index to Map 18107 IBRD 18107 Major and Minor Irrigation Schemes IBRD 18109 Isohyets, Irrigation Needs and Tracks of Storms IBRD 18108 Agricultural Zones IBRD 18182 Village Service Area (layout for Rotational Water Supply) 5 Precast Trough Construction 6 Precast Tile Canal Lining SUPPLEMENTARY DATA VOLUME I ANNEXES 3 Design 4 Agricultural Aspects of RWS 5 Rehabilitation  INDIA GUJARAT MEDIUM IRRIGATION II PROJECT I. BACKGROUND Introduction 1.01 The Government of India (GOI) has requested Bank Group assistance to finance a second timeslice of Gujarat's development program for medium irrigation projects (MIP). The first timeslice has been assisted by IDA under the ongoing Gujarat Irrigation Project (Credit No. 808-IN), which is nearing completion (referred to here as Phase I). The proposed Gujarat Medium Irrigation II Project (referred to here as Phase II) would support primarily the completion of ongoing subprojects and the introduction of an efficient, reliable, and equitable water management system in each MIP. It was prepared by the Government of Gujarat (GOG) with the participation of GOI's Central Water Commission (CWC). Agriculture and Irrigation in India 1/ 1.02 India has a population of about 750 M (mid-1984) that is growing at an annual rate of about 2.1Z. Agriculture, which is the dominant sector of the Indian economy, contributes about 40X of GNP and engages about 70X of the labor force. GOI has devoted considerable resources to agricultural develop- ment, especially irrigation, which has accounted for at least three-quarters of the agricultural growth since 1960. The State of Guiarat 1.03 General. The state of Gujarat covers an area of 18.8 M ha, and has a population of about 36 N (1983) that is growing at an annual rate of 2.5%. It is relatively urbanized and has a large and fast-growing manufacturing sector. Between 1960 and 1982 the state's income grew at an annual rate of 3.7% and per capita income reached in 1983 a level of US$320, which is con- siderably higher than the all India level (US$260). Agriculture accounts for more than one third of the state's income and for more than 60% of the work- ing population (1981). Moreover, agriculture-based industries account for more than 50Z of all factory employment. Agricultural production largely depends on weather conditions since much of Gujarat is characterized by low and highly variable rainfall. This, and the limited irrigation facilities, have made the state susceptible to drought and famine. Since 1900, severe food shortages due to drought have been experienced at least 25 times. Con- sequently, GOG has given a high priority to irrigation development. 1.04 The Irrigation Subsector. The ultimate irrigation potential, and the potential created and utilized are summarized below: 1/ A more dctailed review is incorporated in numerous SARs of Indian irriga- tion projects, of which the most receit one is the SAR for Periyar Vaigai Irrigation II Project (Report No. 4913-IN, April, 1984).  -2- Ultimate Irrisation Potential Potential Created Potential Utilized