India - Second National Agricultural Extension Project

Document of The World Bank FOR OFFICLAL USIE ONLY Report No. 13632 PROJECT COMPLETION REPORT INDIA SECOND NATIONAL AGRICULTURAL EXTENSION PROJECT (CREDIT 1569-IND) OCTOBER 25, 1994 Agriculture and Natural Resources Operations Division Country Department III South Asia Regional Office 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 Name of Currency (Abbreviation) = Indian Rupee (Rs) Appraisal Report (March, 1985) US$1.00 = Rs.12.00 Average During Project (1985-93) US$ 1.00 = Rs. 17.36 Completion Date (March 1993) US$1.00 = Rs.3 1.26 FISCAL YEAR GOI and all States: April 1 to March 31 WEIGHTS AND MEASURES Metric System ABBREVIATIONS AA Agricultural Assistant AAO Assistant Agricultural Officer AO Agricultural Officer AEO Agricultural Extension Officer CAD Command Area Development CAEP Composite Agricultural Extension Project DANIDA Danish International Development Agency DCA Development Credit Agreement DOA Department of Agriculture DOE Directorate of Extension GOI Government of India IAS Indian Administrative Service IDA International Development Agency IPM Integrated Pest Management J&K Jammu and Kashmir M&E Monitoring and Evaluation MOA Ministry of Agriculture NAEP National Agricultural Extension Project NARP National Agricultural Research Project NGO Non-Government Organisation PCR Project Completion Report PWD Public Works Department SAR Staff Appraisal Report SAU State Agricultural University SDR Special Drawing Right SMS Subject Matter Specialist T&V Training and Visit VEW Village Extension Worker WB World Bank  FOR OFFICIAL USE ONLY THE WORLD BANK Washington, D.C. 20433 U.S.A. Office of Director-General Operations Evaluation October 25, 1994 MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT SUBJECT: Project Completion Report on India - Second National Agricultural Extension Project (Cr. 1569-IN! Attached is the Project Completion Report on India Second National Agricultural Extension Project (Cr. 1569-IN) prepared by the South Asia Regional Office. Part II was not provided by the Borrower. The project had the objective of strengthening and deepening the T&V extension services previously supported in three states (Haryana, Gujarat and Karnataka) and to introduce T&V in Jammu-Kashmir. The outcome is typical of many T&V projects previously evaluated in India. On the positive side, the project undertook substantial staff training, further emphasized the technology focus of the extension service and adapted the traditional T&V methodology somewhat to local circumstances, improved staff transport and facilities, enhanced the monitoring and evaluation (M&E) mechanism, and instituted procedures to strengthen the linkage of extension with research. On the negative side, however, at project end the regular visits were often ritualistic, training was not adequate to provide the needed expertise to provide responsive services, marginal farmers in rainfed areas were not given due attention (by research or extension), M&E survey results were not used effectively, and fiscal constraints posed sustainability questions (there has been a net decline in staffing levels due to employment restrictions). There is sufficient evidence to indicate that the project met the general objective of further institutionalizing and improving the T&V extension service. However, the PCR correctly identifies the problems with the existing T&V system and points out that changes in strategy may be necessary for sustainable, efficient and effective public extension services to be provided. The project outcome is rated as marginally satisfactory, with modest institutional development and uncertain sustainability. The PCR provides a comprehensive analysis of the project. Its findings are consistent with the 1994 OED extension study (Report No. 13000). No audit is planned. Attachment 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.   FOR OFFICIAL USE ONLY PROJECT COMPLETION REPORT INDIA NATIONAL AGRICULTURAL EXTENSION PROJECT II (Credit 1569-IN) TABLE OF CONTENTS PREFACE ............................................................ i EVALUATION SUMMARY .............................................................. Hii PART I PROJECT REVIEW FROM BANK'S PERSPECTIVE ..............1..................... 1. Project Identity. 1 2. Background. 1 3. Project Objectives and Description. 2 4. Project Design and Organisation. 2 5. Project Implementation .5 6. Project Results. 8 7. Project Sustainability .11 8. Bank Performance.13 9. Borrower Performance .13 10. Project Relationships ............................................................ 14 11. Consulting Services ............................................................ 14 12. Project Documentation ........................... ....................................... 14 PART II PROJECT REVIEW FROM BORROWER'S PERSPECTIVE (not received) ... 15 This documnent 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. 0  PARTII ....................................................... 16 1. Related Bank Loans and Credits .16 2. ProjectTimetable .16 3. Credit Disbursements .17 4. Project Implementation .18 5. Project Costs and Financing .19 A. Project Costs .19 B. Project Financing. 20 6. Project Results ..20 A. Direct Benefits .20 B. Economic Impact .21 7. Status of Covenants ..21 8. Use of Bank Resources .23 A. Staff Inputs .23 B. Missions .24 C. Costs .25 FIGURES: 4-Year Moving Averages Cereals, Oilseeds, Pulses Production ......... .............. 26 Figure 1 - Gujarat ...................................................... 26 Figure 2 - Haryana.. .......... 27 Figure 3 - Jammu and Kashmir ...................................................... 28 Figure 4 - Karnataka ...................................................... 29 ANNEX 1: Crop Production Statistics Table 1 - Gujarat ...................................................... 31 Table 2 - Haryana ...................................................... 32 Table3 - Jammu and Kashmir ...................................................... 33 Table 4 - Karnataka ...................................................... 34  PROJECT COMPLETION REPORT INDIA NATIONAL AGRICULTURAL EXTENSION PROJECT II (Credit 1569-IN) PREFACE This is the Project Completion Report (PCR) for the National Agricultumal Extension Project II for which an IDA Credit of SDR50.26 million (Credit 1569-IN) was approved on March 26, 1985. SDR10.77 million was cancelled on December 5, 1991 during the funds redeployment exercise. The Credit was closed on March 31, 1993, two years behind schedule. Fmal disbursement from the Credit was made on October 1, 1993 and the balance of SDR1.42 million was cancelled. The Preface, Evaluation Summary, and Parts I and III of this PCR were prepared by an FAO/World Bank Cooperative Programme mission which visited India in August/September 1993. Borrower's Part II has not yet been received. The PCR (Parts I and III) is based on a review of the Staff Appraisal Report (SAR), the legal documents, supervision reports, correspondence between the Bank and the Borrower, internal Bank memoranda, and project files, field visits to the project areas, except for Jammu and Kashmir, and discussions with project staff of the Government of India and State Governments of Gujarat, Haryana, Jammu and Kashmir, and Karnataka, and Bank staff at Headquarters and in New Delhi who had been associated with the project.   iii PROJECT COMPLETION REPORT INDIA NATIONAL AGRICULTURAL EXTENSION PROJECT II (Credit 1569-IN) EVALUATION SUMMARY Objectives 1. The objective of the project was to build upon the institutional base developed under the Composite Agricultural Extension Project (CAEP, Cr. 862-IN) in the States of Haryana, Gujarat and Karnataka to improve the coverage, depth and quality of their respective extension services and assist the State of Jammu and Kashmir in the improvement and reorganisation of agricultural extension. The project provided (i) additional staff to enable increased specialisation and broader coverage of extension, (ii) extensive training programmes in association with State Agricultural Universities (SAUs), (iii) staff to strengthen monitoring and evaluation (M&E) capability, (iv) offices, training facilities and staff housing, (v) vehicles, and (vi) essential equipment to support training and extension activities. The total project cost was estimated at Rsl,003 million (US$83.6 million) with IDA providing a credit of SDR50.26 million (US$49.0 million) to cover 59 percent of expenditures. Implementation Experience 2. Although the project was slow in starting and closed on March 31, 1993, two years behind schedule, many of the quantitative targets were substantially met for training courses and workshops and purchase of equipment and vehicles, but not for civil works and incremental staff. Total project expenditures were 119 percent of SAR estimates in Indian rupee terms, but because of devaluation of the Rupee against the US$ and SDR, total expenditures were only 82 percent in US$ terms and only 66 percent of the SDR credit was utilised (Part I, para. 5.4). Political and budgetary problems in all States and civil disturbances in Jammu and Kashmir adversely affected staff recruitment and maintenance of pre-project extension staff numbers, the objective of exclusive use of staff for agricultural extension activities, some training programmes, purchases of staff- owned motorcycles and bicycles and civil construction programmes (Part I, paras 5.5 and 5.10). Results 3. The project helped in institutionalizing the T&V system, improving professionalism and competency of the extension personnel, increasing mobility of extension staff and upgrading offices, training facilities and staff accommodation. It had a positive impact in consolidating the extension services and technology development capacity within the State DOAs and SAUs. The T&V system provided direct extension advice and promotion of new technologies to about 20 percent of farm families (Part I, para. 6.3). However, the project achievements in terms of improving the quality of extension operations and broadening and deepening extension coverage have been less than satisfactory. The extent to which improvements in extension services have affected farmers' incomes and production cannot be quantified. Examination of production and yield trends indicate that there have been substantial increases in cereal production in Haryana and for oilseeds in Haryana, Karnataka and Gujarat. Many of the farmers interviewed had increased their crop production and returns to a greater extent than increases in input costs and attributed their improved economic circumstance to promotional assistance received from the extension system. However, for most other crops there have been no or only small increases in production and yield, with little increase in cropping intensity and crop diversification.  iv Sustainability 4. Project sustainability is threatened in all States. State government moratoria on recruitment of VEWs and AEOs has resulted in a continuing increase in extension staff vacancies. Budgetary difficulties in meeting salaries and operating costs for all sanctioned positions and adequate maintenance of facilities constructed under the project are expected. If this situation continues, consideration would have to be given to redefining fewer, but larger, extension units with consequent relocation of staff and modification of the extension approach, in order to provide uniform and adequate coverage to all farm families. Lessons of Experience 5. There are many reasons provided in this PCR to support the position that the extension services, as implemented under the existing T&V system in these four States, are at a critical juncture and require major changes in direction and strategy. The main lessons of experience for future projects for extension and technology development are summarised below: (a) A mechanism and methodology for identification of the separate target groups, which constitute the numerous project beneficiaries within a State, and consequent project outcomes of targeted activities for such groups, should be clearly set out. This would ensure a purpose-driven project with good strategic planning to optimally utilise scarce resources; to tailor extension activities to the potentiality for improvement within stratified groups (farming systems); to encourage greater adaptability in development and delivery of extension services and technologies to target groups; and thereby obtain higher quality extension advice and benefits to farmers. (b) The existing extension system needs to be reformed to (i) work with fewer but better qualified and trained extension staff commanding larger areas, (ii) be structurally more flexible to adjust to local requirements for extension services, (iii) be less oriented to top-down message development and delivery, (iv) be capable of developing a more participatory group approach to extension, (v) provide a more broadbased extension service (holistic farning systems approach) with good technical back-up from line departments, (vi) empower the farmers in decision making ability through farmer training, knowledge building, and farmer participation in extension and on-farm research, (vii) embody a better understanding and evaluation of the economic returns and consequences of adopting recommendations, (viii) utilise more widely the mass media in communication of extension messages, (ix) better integrate and utilize technical support services in extension advice, such as soil testing, input supply, biological control services, etc., and NGOs in extension activities, and (x) develop a true professionalism in SMSs that allows them to be more technically competent and more thoroughly involved in and responsible for technology development. (c) M&E units are a vital part of a more efficient and farmer responsive extension service. They should help define profitable directions for extension activities, research priorities and programmes for technology development. It is crucial for M&E units to develop essential computer skills and capabilities and to be staffed by biometricians, statisticians, economists and experienced agriculturalists to provide an adequate service capability. (d) Future projects should give adequate emphasis to marginal farmers in dryland areas, longer-term implications of extension initiatives on sustainability and  v environmental issues, women's role in agricultural production and development and poverty reduction in disadvantaged groups.   PROJECT COMPLETION REPORT INDIA NATIONAL AGRICULTURAL EXTENSION PROJECT II (Credit 1569-IN) PART I. PROJECT REVIEW FROM BANK'S PERSPECTIVE 1. Project Identity Project Name : National Agricultural Extension Project I Credit Number . 1569 - IN RVP Unit . South Asia Country : India Sector : Agriculture Subsector : Agriculture Support Services 2. Background 2.1 Agriculture has all along been the dominant sector of the Indian economy. The successive development plans of the Government of India (GOI) since independence of the country have assigned priority to increasing agricultural growth, alleviating poverty and creating employment in rural areas. 2.2 The Bank's agricultural programme in India for about 15 years since late 1960s has had the objective of assisting the country to achieve self-efficiency in foodgrains and to increase farm incomes in an equitable manner. During this period, the Bank became actively involved in some 60 agricultural projects representing large investments in infrastructure and expanded agricultural services. Improving agricultural extension services was recognised as one of the main relatively low-cost means of increasing agricultural productivity, of making more effective use of past infrastructure investments and of reaching all farmers, particularly the smaller ones. Some 12 IDA credits were, therefore, approved during the above period to assist 13 Indian states to introduce improved agricultural extension by adopting what is generally known as the "training and visit (T&V)" system and strengthen the Directorate of Extension (DOE) of GOI's Ministry of Agriculture (MOA) to improve its ability to assist state extension efforts. 2.3 While the overall experience of the above assistance of helping to establish more professional extension services and broadening their coverage of the farming population was positive, it was recognized that considerable scope still remained for improving the design of the agricultural extension system and its effectiveness. The National Agricultural Extension Projects were therefore conceived to initiate the implementation of second phase activities that would further strengthen and deepen the extension effort. The first National Agricultural Extension Project (NAEP I, Cr. 1523-IN) was approved in October 1984 to further strengthen GOI's DOE and the extension systems in the States of Madhya Pradesh, Orissa and Rajasthan. NAEP-I was shortly followed by NAEP-II (Cr.1569-IN) which also closed simultaneously with NAEP-I at the end of March 1993 and by the ongoing NAEP-II (Cr.1754-IN). NAEP-I was the fourteenth in the series of 15 IDA-assisted agricultural extension projects approved to date by the Bank.  2 3. Project Objectives and Description Project Objectives 3.1 The project objective was to build upon the institutional base developed under the previous Composite Agricultural Extension Project (CAEP) (Cr. 862-IN) in the States of Haryana, Gujarat and Karnataka thereby improving the coverage, depth and quality of their respective extension services and to assist the State of Jammu and Kashmir (J&K) in the improvement and reorganisation of their extension service. This was to be achieved by (i) consolidating the administrative changes and institutional improvements of the reorganised agricultural extension system in Gujarat, Haryana and Karnataka; (ii) introducing the T&V system of extension in the State of Jammu and Kashmir, (iii) improving the quality of extension; (iv) further strengthening the linkages between extension and research in the project States; and (v) broadening and deepening the scope of the extension service to cover such activities as water management, horticulture, farm mechanisation and some aspects of farrn forestry; and more directly assist agricultural production activities of women, rural youth, very small farmers, tenants and sharecroppers, and tribal and hill populations. Project Description 3.2 The project was designed to provide: (i) additional staff to meet the needs of a more specialised extension service covering a broader range of technologies; (ii) training for all levels of extension staff, including fortnightly training sessions for village extension workers (VEWs), monthly workshops for Subject Matter Specialists (SMSs) and upgrading of formal qualifications (promotional training); (iii) strengthening of monitoring and evaluation (M&E) units to improve the quality and speed of survey and analysis of technology adoption and the effectiveness of operation of the T&V system; (iv) civil works to provide offices, training facilities and staff housing; (v) replacement of old vehicles, procurement of extra vehicles and the provision of loans to staff to purchase bicycles and motorcycles, and (vi) essential equipment, including office furniture, audio- visual systems and extension kits to support training and extension programmes. 3.3 Total project costs, over a five year period, were estimated at US$83.6 million (Rs 1002.9 million). The IDA approved Credit of SDR50.3 million (US$49.0 million) was to fund 59 percent of the costs, while the GOI and the State Governments were expected to contribute the balance of 41 percent. The project was to be implemented independently by the four participating State Ministries of Agriculture and coordinated through the DOE of the GOI, which was responsible for providing leadership and guidance to the States in planning and implementation of their extension programmes, and coordination and evaluation of training programmes for extension staff 1. 4. Project Design and Organisation Project Concept 4.1 NAEP II was designed to build on the achievements of CAEP (Cr. 862-IN) and further develop institutional capability in delivery of extension services to farmers. The project concept, although not innovative, was appropriate in relationship to the achievements of CAEP, which had helped establish a professional and single-purpose extension service with a direct link with selected farners (Contact Farmers) and more widescale coverage of farmers in the villages. However, it 1 As noted earlier (para 2.3), support to DOE to build up its capacity was provided under NAEP I (Cr. 1523-IN).  3 was considered that at the conclusion of CAEP, the extension services were not established firmly enough to be self-sustaining in any State, and in the case of J&K, where most village level government staff were involved in non-agricultural extension activities, there was a need to strengthen and reorganise extension services to increase agricultural production. 4.2 The concept of continuing to use the T&V system of extension delivery established under CAEP was appropriate given the level of expertise of the extension staff (both management and field staff) and the condition of agricultural development in the project States, at the time of project formulation. The T&V methodology was also appropriate for the level of institutional maturity of the extension organisations at that time; its highly structured methodology required little or no innovation in implementation, allowed for easy understanding and enabled effective monitoring of the tasks conducted in training, extension and technology development. 4.3 In retrospect, however, the project concept suffered from lack of identification of precise goals, and inadequate identification of project beneficiaries and existing constraints of extension services. Project performance would have been enhanced by setting specific goals to address the problems of stratified target groups of farmers that recognised differences in socio-economic status (caste, creed, tribe), farm resources (land, labour and capital), farming systems and environmental attributes (water and soil resources) and thereby differences in potentiality for improvement among the target farmer groups. As a result, the project implementation suffered from: (i) a lack of focus and poor strategic planning for the utilisation of scarce resources (particularly staff), (ii) a narrow interpretation of the role of extension workers and the philosophy of the T&V concept, and (iii) a lack of innovation during project implementation, all of which contributed to insufficient quality of extension services and advice. Project Design 4.4 While the scope and scale of the project was appropriate to the stated objectives, the ability, and in some cases, the commitment of State governments to fully implement various components of the project (civil works, appointment of incremental staff, study tours, etc.) came under budgetary and political pressure. In addition, while the concept of the T&V extension methodology was understood by the relevant extension personnel at all organisational levels in DOAs, lack of clear project goals and poor understanding of extension processes (particularly the T&V system) at higher levels of government meant that there was a lack of commitment by government administrators to supporting the strengthening of agricultural extension services. This was particularly the case in Karnataka and Gujarat which have the strong local government administration under the Panchayat Raj, where at district level extension staff were recruited by and administratively responsible to the local government, but technically responsible to the DOA. Thus at district level in these States there was a perceived conflict in resource allocation (budget and staff activities) between agricultural extension and other local developmental programmes (non- agricultural), which also require the use of an effective extension service. The project design did not also provide the framework for the government extension services to mobilise other organisations such as non-government organizations (NGOs), supply agencies and other government organisations to deliver extension services to farmers. 4.5 Training for farmers in more basic concepts of crop production could have been advantageously included in the project. This would have improved the capacity of farmers to modify recommendations and improve management decisions (eg. integrated pest management [IPM] and water management) in their own crop production system. There was also no evidence of training in the use of community development processes in the implementation of the project to gain farmer participation in planning of extension programmes.  4 4.6 Women make up approximately one third of the rural workforce and agriculture is the main employer of women. NAEP II did not specifically address the role and needs for providing extension and training to assist women's participation in agricultural development. In Karnataka, women extension officers were appointed to each cluster (association of 1-3 extension circles) under the Danish Government (DANIDA) funded Women and Youth Training Extension Project which commenced in 1980. This has been a very successful programme for promoting both agricultural and non-agricultural knowledge and skills among women. In J&K, there are 31 women in field extension positions who are working within the T&V system while in Gujarat and Haryana activities for women focused on traditional home science training. Project Timing 4.7 The start of the project coincided with the availability of technologies offering substantial increases in production from irrigated agriculture, which had not been spread to all potential users and were still relevant at that time. The extension of these technologies (high yielding varieties, herbicides, pesticides, fertiliser and improved agronomic management techniques) provided a timely opportunity for the government extension services to improve agricultural production and build their credibility with the farmers. The initiation of the Second National Agricultural Research Project (NARP II) in 1986 was timely for the thrust of NARP II was for research and technology development to focus on relatively small agro-ecological zones and thereby on developing more relevant technologies for extension, rather than developing broadscale recommendations. Project Organisation 4.8 In general, the role and responsibilities of the institutions and agencies involved in project implementation were clearly understood but the role and the commitment of the State Agricultural Universities (SAUs) took some time to develop. The tasks and duties of extension staff were also well understood. However, the role of the SMSs was narrowly defined with too little responsibility given to technology development, resulting in a general under-utilisation and under- performance of the SMSs, particularly with respect to on-farm trials and demonstrations. Conclusions 4.9 Overall, the aspects of the project's design and organisation which most contributed to its successes were: (i) the clear definition of roles and responsibilities of most extension staff, (ii) the routine nature of the T&V system which provided regular training, farmer contacts and farm visits, (iii) the availability of technologies that still had the potential to achieve significant increases in production and incomes of many farmers, (iv) increased mobility of staff which allowed frequent farmer contact, (v) increased levels of commitment (through training) by extension staff to technology promotion, and (vi) strong project M&E units, which enabled regular monitoring of project activities and conduct of special studies to highlight project achievements and deficiencies. 4.10 On the other hand, the aspects of project design which impeded its achievements were: (i) the lack of clear definition of agricultural development goals for the project (problem definition and purpose), (ii) lack of planning and implementation scheduling of activities to ensure broadening and deepening of extension coverage, (iii) lack of training in extension methodologies per se, farm management and communication skills, (iv) lack of consideration of adverse effects on the T&V system of State government commitment to establishing a decentralised administration system in Gujarat and Karnataka which created dual administrative responsibility for extension staff, and (v) failure to anticipate the macro-economic and policy issues that were, and still are, impacting on farmer families, such as, access to inputs and credit and the prices paid for their products (the  5 project design assumed that the research system was effective, credit was available and input supply adequate). 5. Project Implementation Credit Effectiveness and Project Start-up 5.1 After a number of changes in States to be included in the project, with consequent changes in project cost estimates, the credit was approved in March 1985. Credit effectiveness occurred in December 1985 and the project closed in March 1993 after two extensions, each of one-year duration. Achievement of Physical Targets 5.2 Project activities in the first three years were constrained by inadequate counterpart funding and somewhat intransigent attitude on staffing issues, particularly in Karnataka and Haryana. This affected recruitment of additional staff and general mobility of staff (restricted purchase of new and replacement vehicles and motorcycles/bicycles). Civil works were also greatly delayed, but had little short-term effect on early project activities. Major difficulties were also experienced in recruiting suitably qualified SMSs. By project completion, physical targets for vehicles and equipment and for many training activities had been met or exceeded by all States, while civil works for J&K and Haryana, and staff recruitment and some training activities in all States, were well below targets (Section 4, Part III). In January 1989, each State had a mid-term revision of physical targets. The only significant changes were for civil works, where there was some upward revision of number of offices and downward revision of numbers of staff houses to be constructed. Changes for other targets were minor. 5.3 A total of 68 offices (86 percent of SAR proposal), 43 training halls and 7 classrooms (89 percent of proposed), 18 hostels (95 percent of proposed) and 807 staff houses (30 percent of proposed) were constructed. A large number of houses in J&K and small number in Karnataka were still partially constructed at project completion due to civil disturbances, problems with land titles and budget limitations. In J&K their completion is still uncertain because of lack of budget allocation in 1993-94. A total of 60 cars, 453 jeeps, 16 vans (including some audio-visual vans) and 7 minibuses were purchased, as new and replacement vehicles. A total of 1,038 motorcycles/mopeds/bicycles were purchased by AOs and VEWs under the loans scheme provided in Haryana, Karnataka and J&K; data were not available for Gujarat. For these three States, the utilisation of the loans scheme for purchase of motorcycles/mopeds/bicycles for private use was considerably under target (54 percent) because of the reluctance of the State governments to provide loan funds for this purpose, not allowing staff to choose the most appropriate type of transport, and financial constraints perceived by VEWs in purchase and operation of these vehicles. A large number and variety of training courses and workshops were conducted according to the original proposals and 298 staff (45 percent of proposed) undertook formal BSc, MSc and PhD training in Indian universities. Proposed staff training for BSc was not supported in Gujarat and Haryana due to decisions to employ only graduate extension staff. Proposals for study tours were well supported in Gujarat and Karnataka but not in the other States. Data were not provided on actual numbers of new recruitment to the State extension services, but only on initial and final staff numbers, with indication that the incremental staff included redeployed staff. Nevertheless, it was clear that new recruitment was essentially limited to some SMS, the M&E unit and university positions. Many new SMS positions were filled by promotion within the government service and very little new recruitment of VEWs (AEOs) and AOs occurred, except in J&K where all available graduates were recruited to AEO positions. Moratoria on staff recruitment for VEW (AEO) positions in Gujarat and Karnataka have existed for a number of years. This, together with internal  6 promotions has resulted in considerable reductions (vacancies) in the number of "grassroots" extension staff in all States. Project Costs and Disbursements 5.4 Total project expenditures were estimated at Rsl,196 million (US$68.85 million), or at 119 percent of the SAR estimate in Indian rupee terms but only 82 percent in US dollar terms. Overall, expenditure on civil works was much lower than scheduled in the SAR, whilst expenditure on salaries in J&K and Karnataka and operating costs in Gujarat and Haryana were much greater, with other expenditure categories about as scheduled. Expenditures on salaries and operating costs were a large proportion of total expenditures; 51 percent, 73 percent, 86 percent and 48 percent for Gujarat, Haryana, J&K and Karnataka, respectively. Utilisation of IDA Credit in US dollar terms was well ahead of SAR estimates in the first two years, but thereafter gradually fell behind to end up at 57 percent of the SAR estimate by the original project completion date of March 1991. Two project extensions, for a combined period of two years, allowed credit utilisation to increase to 88 percent in US dollar terms mainly due to savings arising from the devaluation of the Indian rupee against the US dollar. Civil unrest in J&K also adversely affected credit utilisation (see para 5.15). A total of SDR$10.77 million of the Credit was cancelled during project implementation because of exchange rate movements. As October 1, 1993, SDR38.07 million or 76 percent of the total Credit of SDR50.26 million had been disbursed, and the undisbursed balance of SDR1.42 million was cancelled. Project Risks in Implementation 5.5 The lack of promotional opportunities for SMSs in their own fields of expertise and restrictions on recruitment of new SMSs from outside the civil service was one of the major weaknesses identified in the T&V concept at appraisal and caused adverse effects on SMS performance in all project States. The reality of the seniority- based promotion system meant that many SMSs were in fact neither experienced nor had an acceptable level of expertise in their particular disciplines; SMSs were often promoted from other disciplines or from administration responsibilities and were not specialists in the position to which they were appointed. The function of the SMSs was further weakened by the appointment of SMSs at the same level as their immediate supervisor causing, in many cases, supervisory and motivational problems. 5.6 There were general administrative constraints and policy problems consequent to: (i) promotions based exclusively on seniority, (ii) frequent transfers of staff, (iii) inappropriate selection criteria for staff to participate in training, and (iv) lack of delegation of authority, which were also identified at appraisal and had adverse effects on project implementation. Rapid turnover of extension staff did not maximise the value of their contribution to local development because of insufficient time to fully appreciate the local agricultural situation and to develop good relationships with farmers. 5.7 The risk of limited support from the SAUs to extension services was initially a problem but by the end of the project the working relationship between the SAUs and the DOAs in all Project States was acknowledged by both parties as being adequate, but with room for improvement in the level of commitment to extension. At most SAUs, the allocation of staff and resources is strongly skewed towards research, followed by education and lastly extension. In some instances, there was duplication of activities of SAU staff and DOA SMSs. This was a serious issue in Haryana which was raised repeatedly by Bank Supervision missions but was never resolved.  7 Weaknesses in Project Implementation 5.8 Credit disbursements under the project depended on prior expenditure by participating States, and, therefore, on adequate provisions being made in their budgets and timely release of allocated funds. This meant that the utilisation of the IDA Credit was determnined to a large extent by the overall political and financial priorities, policies and decisions of State governments, rather than by the State DOAs who were responsible for implementation of the project. This had considerable adverse effects, in terms of delays and shortfalls, on achievements of physical targets. 5.9 The development of extension services reflected the strong emphasis on achievement of tasks (process-oriented), rather than the development of a range of strategies to achieve project objectives (purpose-oriented). By the end of the project the routine of fortnightly and monthly training with regular visits to contact farmer groups had become ritualistic and non-targeted. Extension managers in all four States realised this problem and in some States had moved to reducing the frequency of training and workshops. There was strong evidence that extension services needed greater technical expertise than that could be provided through their regular training programmes, and, therefore, needed training of a different type geared to enhance their technical capabilities. 5.10 Although the project aimed to broaden and deepen extension activities, insufficient emphasis was given to marginal farmers in dryland areas, longer-term implications of extension initiatives on sustainability and environmental issues, absorption capacity of different fanning communities for new technologies, women's role in agricultural production and development, poverty reduction and economic assessment of overall farm production and new recommended production packages. This was due in part to a lack of institutional staff development and lack of specific focus in the project design. These remain priority areas for development of appropriate extension services. 5.11 In Gujarat and Karnataka, the dual line of administration responsibility of agricultural extension staff to both the DOA and the district level administration continued during the project implementation period. The adverse effects of the dual administration system were associated with the appointment of inappropriately qualified staff, delays in disbursement of funds and the demands on managers and field extension workers for administration and implementation of non- agricultural (technical) extension activities. However, the dual responsibility system did also have some positive impact in bringing agricultural extension services into closer contact with broader development issues at the district level as well as providing an opportunity for the District Agricultural Officer (extension manager) to directly interact with government administrators. 5.12 During project implementation, regular M&E and special studies reports were produced at both national and state level. These reports contained a wealth of information on assessment of extension performance and uptake of new technologies. However, evidence suggested that senior management made insufficient use of the M&E information in their decision making processes. Initially, an inordinate time lag between collection of survey data and the publication of reports diminished the relevance of some of the findings, but this was overcome to a certain extent by publishing summary reports as soon as possible after collection of field survey information. For example, despite M&E reports consistently identifying low level of diffusion of new technologies, due to the ineffectiveness of the Contact Farmer/Follower Farmer system, no concerted action was taken by extension managers in any State to rectify the situation. The response by extension managers to the need to expand services to underprivileged farmers, livestock and horticulture was minimal. Despite the moratoria on the appointment of new staff, management made no positive efforts to readjust staffing resources and structures to ensure maximum utilisation of staff for the delivery of extension services to the farmers.  8 5.13 Training provided by the project strongly emphasised knowledge building but with little emphasis on personal communication skills and extension processes. The training component of the project could have been strengthened considerably by application of principles of adult learning, more use of experiential and on-the-job training, and the use of learning contracts to specifically help extension staff and SMSs to do their job better. Trainers training (or training in teaching techniques) for Master Trainers, SMSs and extension staff would have better equipped these people to carry out their training functions. The training programmes could have been further strengthened by conducting participatory analysis of training needs with the VEWs to overcome the often cited problem of the lack of relevance of some of the training. 5.14 The PCR mission's discussions during field visits revealed that despite project support, the research system was unable to continue to develop relevant technologies for farmers which were more area specific. It was also unable to continue to identify technologies appropriate to the improvement of agricultural production in the dryland areas and failed to respond to the increasing need for commercialisation of the farmer. Until recently, researchers continued to concentrate on commodity/discipline specific research, generating high input and high cost technology packages while there was an increasing need for farming systems research which considered the impact and interaction of adoption of individual practices on both yield and marginal rates of returns, both for individual crops and the whole farm production system. 5.15 Finally, the civil unrest in Kashmir, which was unforeseen at the time of project appraisal, had a major negative impact on the implementation of the project, particularly in the northern part of J&K. The Government of J&K could not settle annual accounts for 1991-92 and 1992-93 and claim reimbursements for project expenditures. 6. Project Results 6.1 The project improved the extension services and technology development within the State DOAs and SAUs, through: (i) the institutionalisation of the T&V system (the DOAs are the only organisations that have contact systems in most villages in India), (ii) improvement of research/extension linkages forged through the formalisation of steering committees, regular training programmes, workshops, diagnostic teams, and on-farm trials and demonstrations, (iii) improvement of the professionalism and competency of the extension personnel (through regular training and education), (iv) improvement of mobility of extension staff, and (v) improvement of housing accommodation of the field staff. Each State government now has an extension service structure in place which, while not fully staffed, is providing extension services to farmers on a regular and systematic basis. T&V System 6.2 The project design assumed that the T&V system would work effectively and efficiently in all its various aspects. In general, the knowledge of VEWs and frequency and regularity of their visits to Contact Farmers, increased during the life of the project, but anecdotal inforrmation indicated that the level of contact was falling towards the end of the project, and less than 50% of Contact Farmers understood their role in the transmission of extension information. The concept of technology inforrnation sharing between Contact and Follower/Fellow Farmers was assumed to be an automatic process which would lead to the extension services reaching 500 to 800 farm families per VEW. Reportedly informal teashop meetings facilitated filtering of considerable information from Contact Farmers to others. However, M&E reports from all States indicated that this process was not always effective. The level of contact between the Contact Farmer and the Follower (Fellow) Farmer was below 35 percent in all States. Attempts were made to change Contact  9 Farmers but not always successfully as farmer interviews by the PCR mission revealed that in many cases there was no regular rotation of Contact Farmers to allow a more widescale experience and exposure to extension advice. 6.3 The Bank expected that improved extension services in the 13 States receiving IDA assistance would eventually reach about 70 percent of farn families. Projections of the number of farmers reached by the extension service under NAEP II were greatly overestimated because of biases in sampling procedures. M&E survey sampling overestimated contacts and adoption because of sampling bias to larger farms and the exclusion of circles without VEWs; in Karnataka there are presently 1,426 circles without field extension staff (27 percent of the AA and 23 percent of the AAO positions are vacant). It is estimated, using projections based on current levels of contact between VEWs and farmers and the level of contact between Contact and Non-Contact Farmers in recent M&E surveys, that the level of extension coverage between the DOA extension services and farm families might be as low as 20 percent. 6.4 Many farm families are receiving advice and new technologies from the regular mass media programmes of the DOAs and SAUs, although this was not supported directly by the project. The widespread use of extension materials and mass media have become institutionalised extension practice in all DOAs and the awareness of farmers of the services of the DOA has increased in all States. Mass media has been used effectively to increase extension coverage with TV and radio programmes, and articles in local newspapers supporting extension activities. This is a vital as well as effective means of extension communication which would need to be emphasized in future development of extension services. 6.5 As the T&V System became institutionalised through the conduct of regular training courses, meetings and workshops and contact with farmers, the simple application of the T&V methodology has been modified advantageously in a number of ways in some States, viz.: (i) a change from monthly to bimonthly training workshops for SMSs with the introduction of more intensive preseasonal workshops, (ii) a decreasing emphasis on the contact farmer with greater use of the group approach to extension, (iii) more broadbasing of extension advice to include other farm production activities (horticulture, animal production, social forestry), and (iv) increasing flexibility to adjust the level of extension activity to the intensity of agriculture and size/remoteness of each extension unit. M&E Units 6.6 M&E Units were strengthened under the project through provision of more staff. These units produced regular reports for kharif and rabi seasons based on the standard survey methodology produced by the World Bank. The survey manual was subsequently revised in 1990. In addition, special studies were undertaken on specific topics. Considerable amounts of data were collected to assess the degree of implementation of the T&V system and uptake of recommended practices by Contact and Follower/Fellow farmers, as indicated above. The data generated have proved valuable to assess the impact of extension activities and to define problems which require more emphasis in extension and research activities. 6.7 Data was analyzed manually in Haryana and J&K and by computers in Gujarat and Kamataka in recent times. The M&E units in Karnataka and Gujarat had special software programmes written for entry, analysis and tabulation of data. This was not shared with other participating States. The capability of these software programmes is limited to data entry, simple analysis and tabulation; inter-relationships between various activities and practices were not generally analyzed. The value of M&E reports could have been substantially improved by the use of computer systems and software to allow multiple factor analyses to assess the effectiveness of  10 the T&V system, in terms of both functionality and farmer adoption of promoted technologies, and more importantly, examination of multiple relationships between crop production and many other measured factors associated with crop production. Additionally, provision of computer capability with appropriate software programmes would have greatly enhanced the usefulness of the total analysis of survey data by reducing the time lag between the collection of data, analysis, interpretation, identification of significant inter-relationships and report production. Notwithstanding the above comments which could be noted for future improvement, introduction of computerisation in M&E activities was by itself a welcome achievement. 6.8 The lack of funds for computers for all States during early project implementation has constrained the development of an effective M&E capability. The DOE of the GOI has recently provided a networked (four terminals) computer system (UNIX-based) to each State M&E unit to enable the development of a unified system for evaluation of monitoring surveys. Assistance has been provided by the National Informatics Centre. Thus far no systems are operational, due to inadequacies in computer training and unavailability of suitable work environments. Software provided, however, is still inadequate to fully exploit in-depth analysis of the considerable amount of data collected. A short-term consultancy is required to review and advise on optimum evaluation of data and the development of suitable software systems for survey data analyses at district, State and National levels. Research/Extension Linkages 6.9 The project sought to strengthen research/extension linkages and develop a more demand driven system of research under the SAUs. Formal mechanisms were established to achieve these objectives through: (i) monthly workshops organised by the SAUs for SMSs; (ii) joint SAU/DOA seasonal workshops which reviewed research by the SAUs and on-farm trials of the DOA and determined future research programmes of the Zonal Research Stations, on-farm trials and demonstrations and technology recommendations; (iii) joint quarterly meetings which discussed outcomes of M&E reports; (iv) joint inspection of on-farm trials and demonstrations; and (v) joint diagnostic teams which made regular field visits. Undoubtedly there is close collaboration and exchange of research information between the SAUs and extension services and the mechanism for technology transfer from research to extension is firmly established in all States. 6.10 The critical questions are whether research designs, methodologies and analyses used in on- farm trials were appropriate and whether research is now sufficiently demand-driven. The establishment of NARP II has assisted the development of more locally specific research. All States have undertaken a large number of on-farm trials and demonstrations each cropping season. However, there is scope for improvement. In many instances on-farm trials were very poorly designed, monitored and measured and neither clearly demonstrated incremental effects of application of technologies nor produced data that could be interpreted satisfactorily. On-farrn trials were also limited to one or two locations rather than a wider scale evaluation of a new technology in a target zone. In some instances demonstrations simply compared existing farmer practice with an improved package of technology. In this situation the researcher, VEW and farmer cannot separate the benefits of individual technological improvements contained in the package, either in terms of yield or economic returns. This is necessary if farmers are to continue the process of technical development by adding further refinements of their own. Project Impact on Agricultural Production 6.11 There has been an increase in the area sown to high yielding varieties of the major crops (see Part III, Annex 1, Tables 1 to 4) and an increase in the consumption of fertilisers, insecticides and herbicides in all four States. The trends in crop yields indicate that in Gujarat there appear to be  11 smaller upward trends for cereals, oilseeds and pulses production during the last 8 years, which was preceded by a period of falling production (Part Ill, Figure 1). In Haryana, there have been large increases in production of cereals due to increase in yield, and of oilseeds due to both increases in area and yield, with little change in production of pulses (Part III, Figure 2). In Karnataka, there has been little change in production of cereals and pulses, but an upward trend in oilseeds production, associated with a large increase in sown area (Part Ill, Figure 3). In Jammu and Kashmir, production of cereals has stagnated, with small upward trends in oilseeds production and recent increase in pulses production, both due to increasing sown area (Part III, Figure 4). In all States, there have only been small increases in crop intensification and diversification. 6.12 Project impact on farmer incomes and production is difficult to quantify because of the problem of apportioning increases in crop production and farmer incomes to different factors, such as better input supply, irrigation, incentive producer prices and extension activities. Many farmers interviewed had increased their crop production and returns to a greater extent than increases in input costs and attributed their improved economic circumstance to promotional assistance received from the local extension agent. On the other hand, it is also apparent that there have been significant increases in irrigated area in some States and some of the technologies adopted have been driven by the demand of farmers seeking ways to increase incomes, spread risk and diversify production. For example, evidence suggests that the increase in total oilseed production has been a result of price increases for oilseed, although extension was able to provide the necessary technical advice to support this situation. Overall, however, while no conclusive evidence can be produced as it is difficult to disaggregate the incremental production benefits of extension from the other influencing factors, it is apparent that the project impact on improving agricultural production has been positive and significant. 6.13 However, along with some positive impacts such as production increases, some negative impacts, such as the over-exploitation of the groundwater, increased soil salinity and reduction in water quality and loss of access to potable water, can also be attributed to extension promotion under the project. Extension advice and recommendations therefore must not only consider shorter- term gains but longer-term implications to agricultural production. 7. Project Sustainability 7.1 The current economic situation in all the Project States and the resultant fiscal constraints being applied by the GOI on staffing, travel allowances, and funds for recurrent costs, impose potential risks to the ability of the State governments to maintain a T&V extension service to farmers. Competition for limited funds from the State governments may force policy makers to seek cheaper and possibly more cost effective extension systems in preference to the T&V system which has high overhead costs associated with large numbers of staff needed to reach all farmers through individual contact system. All State governments have made funding commitments for the extension services within the 1993-94 budgets and under employment regulations of the civil service, will be obliged to fund salaries of staff hired during the project. Examination of the State budget provisions for 1993-94 indicated that while the plan budget had been reduced, there appeared to be sufficient funds for salaries of existing staff (not the full staff complement), sufficient operating expenses (although one district in Karnataka had no budget for local travel expenses), but with no budget provision to complete the civil works programme in J&K. Budget provisions for the Public Works Department (PWD) for maintenance of civil works constructed under the project appear to be inadequate. 7.2 There is a need for sectoral policy review and reform including improving the structure of incentives for farmers. There is strong evidence to suggest that changes in government policy are more likely to influence the agricultural output than any technology based extension schemes.  12 Extension goals to accommodate the needs of the diverse farming systems need to be clarified at the State and District levels and the M&E Units need to readjust their focus from the monitoring of tasks and activities to providing information to management that indicate the degree that these goals are being achieved. Sustainability of an effective extension service is dependent on extension managers becoming more responsive to the rural community's needs and identifying innovative ways to address these needs. Utilisation of NGOs and other service and input supply organisations can greatly increase the coverage and effectiveness of the extension service. 7.3 The T&V extension methodology has been institutionalised in both the DOAs and SAUs and there is a general commitment to the methodology with some modification. The limits of growth in the agriculture sector through high yielding varieties and increased fertiliser usage are being approached with few new technologies in the pipeline. The gains from the growth in the agricultural sector have not been spread evenly and there is a continuing neglect of crop diversification, innovative cropping systems and trade opportunities. The sustainability and relevance of the extension service is at risk if extension continues to have a narrow focus and the research system continues to fail to generate new appropriate technologies with further tailoring of recommendations to specific agroclimatic zones and in particular to dryland agriculture. The increasing attention by research on area specific farming systems under NARP II should ensure that the extension system has viable technology to extend to the farmers. Technology development and promotion must consider the potentiality of production within credit constraints imposed on farmers by their level of commercialisation of crop production, labour costs and off-farm income. 7.4 There is need to move away from the concentration of the extension and research effort on wheat, cotton, rice and sugar crops to more broad-based issues such as farm management, land management, social forestry within the context of optimising productivity and net returns of the whole farm system. The broad-basing of extension to include all agricultural activities, including livestock and fodder production, horticulture and agroforestry, will ensure the commitment of the government to whole farm extension approach, but this will require better quality extensionists, a more direct linkage between line agencies and extension, and more intensive technical backup for extension staff, which were not addressed under the project. 7.5 The staffing of the extension systems remains one of its major weaknesses and the current experienced but aging extension workers are not being replaced nor do those existing extension workers have a defined possible career path. There is a perception that the present hierarchial structure is too top-heavy and there needs to be a redeployment of some higher level staff positions to more 'grass-roots' activities. The appointment of SMSs for farm machinery and input supplies needs to be reviewed while deployment of SMSs for horticulture needs to be more dependent on information needs assessments in local extension areas. 7.6 Lack of timely supplies of production inputs and credit were often cited as constraints to increasing crop production. There were suggestions that the government should be responsible for organising convenient access of input supplies for farmers at local level. This should be discouraged as it would restrict the available time of extension staff for providing extension services. Instead, there is a need for government policy changes to encourage private sector participation in input supply and reform in the credit system to allow more equitable access to credit. Increased competition in input supply would then bring better services and price competition to rural areas. 7.7 The sustainability of the extension effort in improving production and incomes can be put at risk by extension activities which promote long-term over-exploitation of natural resources. The promotion of irrigation development has resulted in dropping water tables and increasing  13 salinisation of water in some areas of Gujarat, Karnataka and Haryana, which are putting at risk some of the production and income gains made from the private investment in tube-wells. 8. Bank Performance 8.1 The officials of the participating State governments were appreciative of the assistance and guidance provided by the Bank during project implementation. Two project extensions were agreed by the Bank to enable the Borrower to fully utilise the Credit because of difficulty of disbursements, particularly for civil works. In all States, extension managers indicated that supervision missions provided constructive assistance in resolving implementation problems. 8.2 The Bank used about 85 staffweeks for project preparation/ appraisal, and about 138 staffweeks for project supervision which provided 2-3 specialists for about 5 days every six months (Part III, Section 8). Ten consolidated supervision reports were prepared. Joint Bank supervision missions for NAEP II and NARP II also helped obtain better coordination and interaction between research and extension. 8.3 The main issues handicapping project implementation, such as counterpart funding, lack of annual work plans and very slow appointment of SMSs, were consistently noted by supervisory missions from the commencement of the project. These issues were discussed at both state and national levels with some incremental improvement during the life of the project. However, the routine nature of project supervision reports (issues such as budgetary difficulties, staff vacancies, performance of SMSs, and the quality and quantity of some of the training activities were consistent themes) was raised in an informal communique in 1988 suggesting that while extension had changed considerably, supervision continued to emphasise these matters to the detriment of more rigorous examination of second generation problems such as extension policy, level of management and quality issues. Some innovative ideas to improve the accountability and commitment of research organisations, by instituting formal mechanisms to enable extension to positively influence research, were suggested, but not pursued. 8.4 The main lessons of experience that may be relevant to other Bank-financed technology generation and dissemination projects have been summarized in the Evaluation Summary. The most important among them is that future efforts should be directed towards: (i) improving the quality of extension operations, and (ii) broadening and deepening the coverage of the extension system through promotion of farming system approach and improving the coverage of production activities of rural women and other underprivileged farming population. 9. Borrower Performance 9.1 The performance of GOI and the participating State governments was generally satisfactory. It was apparent, however, that political and financial decisions of the State governments, that often resulted in inadequate and/or delayed release of counterpart funds, adversely affected project implementation (slowing civil works, staff recruitment and some training programmes). Within these constraints and limitations in project design, the State DOAs endeavoured to make the project a success. The result was a slow disbursement of funds and while the States expended the total project budget in Indian rupee terms, they failed to fully utilise the financial allocations in US dollar and SDR terms leading to cancellation of part of the Credit and two project extensions. Thus it is important for the borrower to carefully assess the budgetary implications before committing themselves to implement any investment project and later ensure adequate and timely budgetary support to avoid implementation delays and secure sustainability.  14 9.2 A comprehensive set of covenants were provided in the Credit agreement. There was compliance with most of these covenants. The outstanding non-compliances were the inability of the States to: (i) fill incremental staff positions, (ii) assign project staff exclusively to agricultural extension activities, (iii) provide sufficient loans for staff to purchase motorcycles/bicycles, and (iv) for J&K to provide properly audited accounts for 1992 and 1993. Consideration should have been given to the inclusion of a covenant requiring all States to maintain existing staff positions, as the project was planned on the basis that these staff would be available to implement the T&V system. 10. Project Relationships 10.1 The relationship between the Borrower and the Bank was good throughout the project and the continual liaison between the two parties at the biennial review meetings meant that any issues were able to be resolved through consultation. The strong involvement of resident Bank staff allowed for continuity in supervisory missions and local availability for liaison outside these times. 10.2 The relationships between the DOAs and the SAUs was generally good although all States indicated that the SAUs took some time to see their role in the extension process and to make a firm commitment to supporting NAEP II. The association of the NARP with the SAU and development of Agro-ecological Zone Research Stations was seen as a positive assistance to the development of new technologies for extension promotion and strengthening of the research/extension linkages. 11. Consulting Services 11.1 The project benefitted from a number of additional external technical inputs. The M&E unit of the DOE used a system of internal consultancies involving the exchanges of senior staff between project States using special funds provided by NAEP I and NAEP III. The Bank staff made technical inputs into the project and the review missions also contributed technically to the project. The DOE also retained the services of the National Informatics Centre to assist them with the development of a computerised system for storage, analysis and presentation of M&E survey data. There were no external consultants used to assist project implementation and development. 12. Project Documentation 12.1 During project implementation, the SAR provided a useful framework for the Bank and Borrower for monitoring of physical achievements and budget expenditure against SAR target estimates. However, the SAR failed to clearly define the goals of the project, did not provide methodologies and schedules for achieving some of the stated objectives, such as broadening and deepening of the extension coverage, and did not provide sufficient guidance to M&E Units in procedures for assessment of impact of extension on improvements in agricultural production and the implications of these findings to project implementation and management. 12.2 As requested, information was provided by each State for the preparation of the PCR by the FAO/CP mission. Adequate data were provided to assess the main components of the project, particularly physical and financial inputs and crop production information. These documents could have been even more informative if some of the findings of the seasonal and special M&E reports relating to project impact, had been included.  15 PART II. PROJECT REVIEW FROM BORROWER'S PERSPECTIVE (not received)  16 PART III 1. Related Bank Loans and/or Credits'/ Loan/Credit Titic Purpose Year of Status Conients Apprv Composite Agricultural Rcorganization and strengthening State 1979 Closed 1984 PCR issuedl985 Extension Project extension services in Gujarat, Haryana and PPAR issued 1986 (Cr.862-I.N) Karnataka (lst phase), and improvement of GOI/DOE capacity to assist State extension efforts. National Agricultural The rlrst of a second phase of extension projects 1984 Closed 1993 PCR under Extension Project I to provide follow-up support to already preparation (Cr.1523-IN) participating states (Orissa, M. Pradesh and Rajasthan), and to further strengthen the GOT/DOE capacity. National Agricultural Follow-up to NAEP 11, to provide further 1987 Ongoing Implementation is two Extension Project Ill support to Assam under Cr.728-IN, introduce years behind original (Cr.1754-IN) T&V system to Himachal and Uttar Pradesh, schedule, and expected and to replenish the Special Sub-Project Fund to close in 1996. established in GOI/DOE under Cr.1523-IN. t In addition to the national projects listed here, the following state level IDA-assisted projects are related to introduction of the T & V system in India: Rajasthan CAD Project (Cr502-IN); Chambal CAD Project (Cr562-IN); Orissa Agricultural Development (Cr.682-IN); West Bengal Agricultural Extension and Research Project (Cr.690-IN); Madhya Pradesh Agricultural Extension and Research Project (Cr.712-IN); Assam Agricultural Development Project (Cr.728-IN); Rajasthan Agricultural Extension and Research Project (Cr.737-lN); Bihar Agricultural Extension and Research Project (Cr.761-IN); Kerala Agricultural Extension Project (Cr. 1028-IN); Maharashtra Agricultural Extension Project (Cr.1135-IN); Tamil Nadu Agricultural Extension Project (Cr.1137-IN); Madhya Pradesh Agricultural Extension Project (Cr.1138-I.N); Andhra Pradesh Agricultural Extension Project (Cr.1219-IN). 2. Project Timetable Item Date Planned Date Revised Date Actual Identification NA. NA. Feb. 7, 1984 1/ Preparation NA. NA. 1983 to 1984 Appraisal Mission May 1984 May/June 1984 Credit Negotiations Oct. 1984 Feb. 1985 Feb. 22, 1985 Board Approval Jan. 1985 NA. March 26, 1985 Credit Signature NA. NA. May 10, 1985 Credit Effectiveness June 1985 NA. Dec. 13, 1985 Project Closing March 31, 1991 March 31, 1992/ March 31, 1993 March 31, 1993 Credit Completion July 31, 1993 July 31, 1993 October 1, 1993 1/ Date of the first projcct bricf.  17 Comments Major issues raised at each stage of the project cycle as recorded in the Project Brief, Issues Paper, the Decision Memorandum and the Agreed Minutes of Negotiations were as follows: Identification/Preparation: Preliniinary cost estimates were US$60 million, including contingencies, for Haryana, Gujarat and Karnataka, which was subsequently revised to US$70 million. It was proposed that 60% of all eligible costs be financed by IDA and accordingly US$42 million was estimated for the Credit requirement. Appraisal: Subsequently, Jammnu and Kashmnir (which had been dropped from NAEP I) and Himachal Pradesh were included as first phase sub-projects in NAEP II and it was proposed that the IDA Credit be increased to US$61 million. Negotiations: On account of a delay in obtaining cabinet approval for the inclusion of Himachal Pradesh in NAEP II, it was dropped and the Credit was reduced to US$49 million (SDR 50.26 million). 3. Credit Disbursements Cumulative Estimated and Actual Disbursements (SDRs Million) IDA Fiscal Year 1986 1987 1988 1989 1990 1991 1992 1993 1994 (I July-30 June) Appraisal Estimate 5.03 11.06 21.61 30.66 40.71 50.26 0 0 0 Actual Disbursed 5.33 10.77 14.78 17.2 22.02 29.66 33.32 33.33 38.07 Actual as % of Appraisal Estimate 106 97 68 56 54 59 66 66 76 Final Disbursement was on October 1, 1993 Comments: SDRs 10.77 million was cancelled on December 5, 1991. The undisbursed balance of SDRs1.42 million was cancelled on October 1, 1993. The revised credit amount was SDRs38.07 million.  4. Project Implementation Units ........... Gufat ...................... H ia ........... .... Jnun & Kashn* ... ......... Kam . SAR Achl as SAR Acdu as SAR Acal as SAR Acudl as Estimate Actual o d SAR Estmate Acul of SAR EsSbiat Achul % of SAR Estimate Acua % of SAR CMi Works Offices No. 11 13 118 9 I 11 24 6 25 41 48 117 Training Hafs No. 40 35 88 0 0 0 0 0 8 8 100 Hostels No. 9 4 44 2 6 300 0 0 57 8 8 100 Classrooms No. 6 1 17 2 6 300 0 0 0 0 Houses No. 1289 206 16 446 40 9 339 193 600 368 61 Vehikes Cars No. 39 36 92 4 6 150 5 4 80 10 14 140 Jeeps No. 172 168 98 55 53 96 72 72 100 203 160 79 Vans No. 0 0 17 5 29 2 2 100 30 9 30 Minibus No. 0 0 3 3 100 2 4 200 0 0 250 Motorbicydes/l3icycles No. 1750 500 84 17 1125 204 18 300 750 Training Induction Indiv. 750 1050 140 500 24 5 553 357 65 750 277 37 Orientation Courses No. 340 340 100 45 39 87 78 316 405 165 171 104 FortnightlyTraining Courses No. 22750 18284 80 4550 6164 135 3640 8051 221 22750 32725 144 MonthtyWorkshops No. 1140 500 44 180 178 99 120 545 454 1140 1590 139 Refresher Indiv. 5950 2494 42 1690 1077 64 1243 692 56 6065 5044 83 Special Courses No. 140 438 313 155 52 34 275 519 189 200 110 55 Promotional Study No. 96 0 0 96 1 1 45 25 96 94 B.Sc (VEWs) No. 80 0 0 16 10 63 50 49 56 s0 40 98 M.Sc (AEOs) No. 32 42 131 16 6 38 30 7 98 32 28 50 M.SciPh.D Indiv. 1190 1190 100 375 11 3 481 57 23 1190 1098 88 Study tours No. 5 31 620 0 0 5 16 12 25 10 92 Management Workshops No. 10 16 160 0 0 10 8 320 10 9 40 Special M&E Courses No. 10 16 160 0 0 10 12 80 10 12 90 Information Courses No. 10 13 130 0 0 5 17 120 10 9 120 Senior Executive Courses 340 90 heaainntal Staff Project Coordinator No. 2 n.a.'/ u n.a.1/ 1 n.a."/ 0 n.a.I/ Deputy Directors Agricuhure No. 4 n.a. 30 n.a. 8 n.a. 0 n.a. Subject Matter Specialists No. 64 n.a. 33 n.a. 100 n.a. 20 n.a. S.'Division Agricultural Officers No. 2 n.a. 0 n.a. n.a. 42 n.a. Agricultural Officers No. 11 n.a. 79 n.a. n.a. 17 n.a. AgricuturalExtensionOfficers No. 300 n.a. 0 n.a. 57 n.a. 17 n.a. Vdlage Extension Workers No. 600 n.a. 41 n.a. 700 n.a. 61 n.a. M&E Staff No. 35 n.a. 54 n.a. 27 n.a. Training Staff (SAU) No. 60 n.a. 68 n.a. 10 n.a. Information No. 46 n.a. 50 n.a. 245 n.a. Technical Assistants No. a n.a. 0 n.a. Support Staff No. 0 n.a. Other Staff No. 0 n.a. Data for actual incremental staff recruitment was not provided, only total staff at initiation and completion of project.  19 5. Project Cost and Financing A. Project Cost SAR Estimte Actual (Rs miUlioa) (US$ million) (Rs million) (US$ million) GUJARAT Civil Works 105.16 8.76 79.69 4.58 Equipment & Vehicles 16.11 1.34 51.06 2.96 Training 6.06 0.51 5.63 0.23 Incrementai Staff 123.73 10.31 76.70 3.91 Operating Costs 54.97 4.58 65.79 4.03 Physical Contingencies 13.64 1.14 Price Contingencies 65.65 5.47 Sub-total 385.32 32.11 278.87 15.70 HARAYANA Civil Works 44.11 3.68 29.61 1.71 Equipment & Vehicles 16.20 1.35 9.98 0.59 Training 3.20 0.27 1.57 0.08 tncremental Staff 15.20 1.27 29.63 1.66 Operating Costs 18.70 1.56 79.75 4.79 Physical Contingencies 4.81 0.40 Price Contingencies 19.36 1.61 Sub-total 126.92 10.58 15053 8.84 JAMMU & KASHMGR Civil Works 42.09 351 45.05 2.66 Equipment & Vehicles 17.51 1.46 20.39 1.46 Training 2.42 0.20 3.15 0.20 Incremental Staff 10254 8.55 379.88 21.11 Operating Costs 17.43 1.45 30.84 1.94 Physical Contingencies 4.79 0.40 Price Contingencies 46.37 3.86 Subtowal 239.73 19.98 479.31 27.38 KARNATAKA Civil Works 8950 7.46 87.61 4.91 Equipment & Vehicles 31.80 2.65 37.42 2.18 Training 6.29 052 653 0.37 Incremcntal Staff 22.72 1.89 49.64 2.90 Operating Costs 52.18 4.35 68.12 4.15 Univ. Agric. Sciences 38.14 2.41 Physical Contingencies 10.93 0.91 Price Contingencies 3756 3.13 Sub-total 250.97 20.91 287.47 16.93 Total 1002.94 8358 1196.18 68.85 Actual total cxpenditures for the Karnataka University of Agricultural Sciences (SAU) was provided separately and could not be allocatcd to cupentidure categories.  20 Comments SAR estimates for Gujarat, Haryana and Karnataka are based on summary project costs in SAR (Table 4.2), which do not agree with detailed SAR cost tables in Annexes 5,6 and 7. By agreement, actual incremental staff salary shown for Karnataka is calculated as 6% of total staff salary expenditure. B. Project Financing SAR Estimate Actual Actual Local IDA Total Local IDA Total Local IDA Total I/ (US$ million) (Rs million) (US$ million) Gujarat 13.5 18.6 20.9 51.0 227.9 278.9 n.a.2/ n.a. 15.7 Haryana 4.3 6.3 10.6 35.0 115.5 150.5 n.a. n.a. 8.8 Jammu and 8.2 11.8 32.1 295.2 184.1 479.3 n.a. n.a. 27.4 Kashmir Karnataka 8.6 12.3 20.9 40.7 246.8 287.5 n.a. n.a. 16.9 Total 34.6 49.0 83.6 421.9 774.3 1196.2 25.8 43.1 68.9 Percentage 41.4 58.6 100.0 35.3 64.7 100.0 37.4 62.6 100.0 -/ Based on annual exchange rate conversions of Rupee disbursements during 1985-93. -/ Separate data for actual expenditures from local and IDA sources in US dollars were not available. 6. Project Results A. Direct Benefits No direct benefits were quantified in the SAR, as is the practice for agricultural extension projects. Indications of changes in areas, yields and production of main crops for Gujarat, Haryana, Jammu and Kashmir and Karnataka during 1978-92 are given in Tables 1, 2, 3 and 4, respectively. Trends (four year moving averages) of changes in areas, yields and production of total cereals, oilseeds and pulses in Gujarat, Haryana, Jammu and Kashmir and Karnataka during 1978-92 are given in Figures 1, 2, 3, and 4, respectively.  21 B. Economic Impact (Not Applicable) C. Financial Impact (Not Applicable) D. Studies No special studies were undertaken from NAEP II funds. 7. Status of Covenants DCA Sectioe Cvcwnat Dcadlinc for Compianc Status GOI 3.04 GOI(DOE) shall: (a) monitor and Fully complied. coordinate extension activities; (b) provide technical assistance; (c) fumish the Association with semi- annual progress reports each June and December. GUJ 3.01 (a), PA (a) Project statcs to maintain Fully complied. records & accounts; (b) Project states to furnish the Association with accounts and statements cerTificd by an auditor not later than 9 months after the end of each financial year. GUJ 3.02, PA Project states to havc their accounts Fully complied. and statements audited and fumish the Association with the report of such audit. GUJ SCH.2, PA Project state shall: (a) carry out Fully complied. effcctive monitoring and evaluation and fumish annual summanes to the Association. (b) Ensure all staff assigned to the Partially complied. project shall be used cxclusively for agricultural extension. (c) Provide loans on suitabic terms Fully complied. to staff for motor-cycle/bicycle purchase and provide adcquate travel allowances. (d) Fill incremental staff positions Partially complied - not affecting with properly qualificd and implemcntation experienced staff. (c) Prepare and furnish to the Fully complicd. A..soiation a mid-lerm review of priject execution by Siept. 30, 19)86.  22 DCA Section Covenant Dcadline for Comipliancc Status GUJ SCH.2, PA (f) Submit annual project budgets to Fully complied. (cont.d) the Association each July. (g) Ensure that a single line of Partially complied - not affecting command is established within DOA implementation. from District level to VEW. HRY 3.01, PA (a) Project states to maintain Fully complied. records & accounts; (b) Project states to fumish the Association with accounts and statements certified by an auditor not later than 9 months after the end of each financial year. HRY 3.02, PA Project states to have their accounts Fully complied. and statements audited and furnish the Association with the report of such audit. HRY SCH.2, PA Project state shall: (a) carry out Fully complied. effective monitoring and evaluation and furnish annual summaries to the Association. (b) ensure all staff assigned to the Fully complied. project shall be used exclusively for agricultural extension. (c) provide loans on suitable terms Partially complied - not affecting to staff for motor-cycle/bicycle implementation. purchase and provide adequate travel allowances. (d) fill incremental staff positions Fully complied. with properly qualified and experienced staff. (e) prepare and fumish to the Fully complied. Association a mid-term review of project execution by Sept. 30, 1987. (f) submit annual project budgcts to Fully complied. the Association each July. J&K 3.01, PA (a) Project states to maintain Fully complied. records & accounts. (b) Project state to fumish the Non compliance. Association with accounts & statements certified by an auditor not later than 9 months after the end of each financial year. J&K 3.02, PA Project slate to have its accounts Non compliancc. and statements audited and fumish the Association with the report of such audit. J&K SCH.2, PA Project state shall: (a) carty out Fully complied. effective monitoring and evaluation and furnish annual summaries to the Association. (b) ensure all staff assigned to the Fully complied. project shall be used cxclusivcly for agricultural extension. (c) provide loans on suitable terms Fully complied. to staff for motor-cycle/hicyclc purchase and provide adequate travcl allowanecs. (d) fill incremcntal staff positions Fully complied. with properly qualified and cxl rncnccd staff.  23 DCA Sectiou Covcnant Deadliie for Compliance Status J&K SCH.2, PA (e) prepare and furnish to the Fully complied. (cont.d) Association a mid-term review of project cxecution by Sept. 30, 1987. (f) submit annual project budgets to Fully complied. the Association each July. (g) By August 31, 1985, establish a Fully complied. co-ordination committee. KAR 3.01(a), PA (a) Project states to maintain Fully complied. records & accounts; (b) Project states to furnish the Association with accounts and statements certified by an auditor not later than 9 months after the end of each financial year. KAR 3.01, PA Project states to have their accounts' Fully complied. and statements audited and furnish the Association with the report of such audit. KAR SCH.2, PA Project state shall: (a) Carry out Fully complied. effective monitoring and evaluation and furnish annual summaries to the Association. (b) Ensure all staff assigned to the Partiaily complied. Project shall be used exclusively for agricultural extension. (c) provide loans on suitable terms Fully complied. to staff for motor-cycle/bicycle purchase and provide adequate travel allowances. (d) fill incremental staff positions Partially complied - not affecting with properly qualified and implementation. experienced staff. (e) prepare and furnish to the Fully complied. Association a mid-term review of project execution by Sept.30, 1987. (f) submit annual project budgets to Fully complied. the Association each July. 8. Use of Bank Resources A. Staff Inputs (staff weeks) FY84 FY85 FY86 FY87 FY88 FY89 FY90 FY91 FY92 FY93 Total Stage of Project Cycle Identification/ Preparation 11.6 11.6 Appraisal 13.4 59.6 73 Negotiations 3.5 3.5 Supervision 12.2 32.9 18.3 21.4 13.3 11.2 11.7 5.2 11.7 137.9 Total 25 75.3 32.9 18.3 21.4 13.3 11.2 11.7 5.2 11.7 226  24 B. Missions Stagc of Project Month/Year No. of Days in Spccialrzation Rcprcsented11 Pcrfornance Typc of Cycke Persons Ficid Rating Status 2 Probktns 3/ ldcntification - - Prcparation Feb. 84 2 2 AG, AG Appraisal 1 June 84 3 30 AG, EC, FA - Appraisal 2 Supervision I (Mar. 86)/ - - 2 F - J&K Oct. 85 3 4 EX, AG, AG - - - Gujarat Dec. 85 2 5 AG, EX, AG - Haryana Jan. 86 3 5 EX, AG, EX - Karnataka Feb. 86 3 5 AG, EX. AG - Supervision 2 (Jun. 87)/ - - 2 F, Nt - J&K May 86 2 6 AG, EX - - llaryana July 86 2 5 EX, EX - J&K Nov. 86 1 6 EX - - - Gujarat May. 86 2 S EX, EX - Gujarat Nov. 86 2 6 EX, EX - Karnataka June 86 2 5 EX, EX - Karnataka Dec. 86 2 5 AG, EX - Haryana Jan. 87 2 5 EX, EX Supervision 3 (May 88)4/ - - 2 F, M - Karnataka May 87 2 4 AG, EX - J&K July 87 1 7 EX - llaryana July 87 2 5 EX, EX - Gujarat Aug. 87 2 5 EX, EX - J&K Nov. 87 2 5 AG, EX - Kamataka Jan. 88 1 6 EX - Haryana Jan. 88 3 5 AG, EX, FA - Gujarat Mar. 88 3 8 AG, EX, EC Supervision 4 Jan. 894/ - - 2 F, N1 J I&K May 88 3 6 AG, AG, EX - - Karnataka July 88 2 6 AG, EX - laryana July 88 2 5 EX, RS - Gujarat Nov. 88 1 5 AG - J&K July 88 2 3 AG, EX - - J&K Dec. 88 1 4 AG Supervision 5 (Aug. 89)4/ - - 2 F, M - laryana Jan. 89 3 5 AG, RS, RS - - Karnataka Fcb. 89 2 5 AG, RS - J&K Apr. 89 2 5 EX, AG - Gujarat May 89 3 5 EX, RS, AG - Supervision 6 (Jun. 90))/ - - 2 F, M - llaryana Sep. 89 2 4 AG, RS - - Karnataka Oct. 89 2 S EX, RS - Gujarat Dec. 89 2 5 RS, EX - Supervision 7 (Feb. 91)/ - - 2 F, M - Karnataka Mar. 90 2 5 AG, RS, - - Karnataka Nov. 90 2 5 FC, RS - liaryana May 90 3 5 FO, EX, AG - liaryana Dec. 90 2 5 EX, RS - Gujarat May 90 3 5 AG, EX, EX - Gujarat Jan. 91 3 4 AG, AG, RS  2 5 Stage of Prjcct Month/Ycar No. of Days in Spccialization Rcprcscnted1d Pcrforiatnce Type of Cyc Pcrsons Ficld Rating Status2/ Problcmts31 Supervision 8 (Nov. 91)4/ - - 1 I1M - Gujarat July 91 2 4 AG, EX - Haryana Aug. 91 2 5 AG, RS - J&K Sept. 91 1 6 EX - Kamnataka Oct. 91 2 4 AG, RS Supervision 9 (June 92p/ - - I F, M - Haryana Mar. 92 2 5 EX, RS - Gujarat Apr. 92 2 4 AG, RS Supervision 10 (Jan. 93p/ - - - I - Karnataka July 92 2 5 AG, RS - Gujarat Aug. 92 1 3 AG - Haryana Nov. 92 2 4 AG, EX Completion 93 - - 1/ Specialization: AG = Agriculturist; EC = Economist; EX = Extension Specialist; FA = Financial Analyst; RS = Research Specialist; SO = Sociologist; FO = Forestry Specialist. 2/ Performance Rating Status: I = No significant problems; 2 = Moderate problems, significant but not critical deviations from project goals; 3 = Major problems, serious enough to require special attention and usually intensive supervision; 4 = As in 3., but the problems are not being addressed adequately. 3/ Type of Problems: F = Financial; M = Management; P = Political; T = Technical. 4/ Month/Year of Form 590 issued. The project supervision was undertaken by NDO throughout the implementation period. Since the project covered a wide-geographical location (four States), separate supervision mission, each comprising of 2 to 3 specialists, were sent for about a week for each State at about 6 month intervals. Each team produced a Field Report on completion of the visits. Formal supervision reports with Form 590 were produced by the Agricultural Division of NDO, based on these Field Reports, annually, with a few exceptions. C. Costs Data are not available on cost of staff inputs broken down by each stage of the project cycle.  26 Figure 1. Four-year moving averages of total cereals, oilseeds and pulses production in Gujarat T otal cereal production in Gujarat (4-year means) : -4 WJ42 U-44 83-45" 2I-44 1-8 8 " 85 I "8"8- 87-_1 U-02 -.-Yield (kg/ha) _Area (000 ha) . Production (000 t) otal oilseeds production in Guiarat (4-year means -,Yield (kg/ha) _Area (000 ha) . Production (000 t) otal pulses production in Gujarat (4-year means) 40 - -,Yield (kg/a) .-Area (000 ha) Production (000 1)  27 Figure 2. Four-year moving averages of totai cereals oilseeds and pulses production in Haryana -.. Yi ld (k ha) . . A re* 0 O 0j ~ ...~P oductioA {000 t) T a :t d . Yiehj (kz,'& a) _-Area (000 h a) . PrsdJu ctio. ( 000t)  28 Figure 3. Four-year moving averages of major cereals, oilseeds and pulses production in Jammu and Kashmir Maior cereals producton in J&K (4-year means) - .-- it . .'-U .3- II-. 4- .2- . - Yield (kg/ha) _Arta (000 ha) _ Production (000 t) Major oilseeds producton in J&K (4-year means) LM _Yield (kg/ha) _Area (00 ha) ,Production (00 t) Total pulses production in J&K (4-year ma ns) fl fl-U n-U *,-U 42-U *4U0 44-5 *4. _Yield (kg/ha) _Area (00 ha) ,. Production (00 t)  29 Figure 4. Four-year moving averages of total cereals oilseeds and pulses production in Karnataka T tal cereals ,>oduction in Karnataka (4-years nmea) . =1 .n-p2 %9-u 1-63 Ia- l L-U ai1l S 16.91 p i-u I.- - YieId (kg/ha) _Area (000 ha) -.Production (000 t) .lotal oilseeds production in Karnataka (4-y-ear me rs 71-Si 719-l SO- Si-IS 82-14 Si-Si ItU st-59 it:-go