Public Disclosure Authorized Chambal Command Area...

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Report No. 698a-IN India: Appraisal of the Chambal Command Area Development Project (Madhya Pradesh) May 27, 1975 FILE COPY Irrigation and Area Development Division South Asia Projects Department Not for Public Use Document of the International Bank for Reconstruction and Development International Development Association This report was preparedfor official useonly by the BankGroup. It may not be published, quoted or cited without BankGroup authorization.The BankGroup does not accept responsibility for the accuracy or completeness of the report. Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized

Transcript of Public Disclosure Authorized Chambal Command Area...

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Report No. 698a-IN

India: Appraisal of theChambal Command Area Development Project(Madhya Pradesh)

May 27, 1975 FILE COPYIrrigation and Area Development DivisionSouth Asia Projects Department

Not for Public Use

Document of the International Bank for Reconstruction and DevelopmentInternational Development Association

This report was prepared for official use only by the Bank Group. It may notbe published, quoted or cited without Bank Group authorization. The Bank Group doesnot accept responsibility for the accuracy or completeness of the report.

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CURRENCY EQUIVALENTS

US$1.00 - Rupees (Rs) 8.00"-Rs 1.00 = US$0.125US$1 million = Rs 8,000,000Rs 1 million = US$125,000

WEIGHT AND MEASURES (METRIC SYSTEMS)

1 meter (m) = 3.28 feet1 kilometer (km) - 0.62 miles1 hectare (ha) 2.47 acres1 cubic meter (m3 ) 35.3 cubic feet1 million cubic meters (Mm3) = 810 acre-feet1 ton 1,000 kilogram (kg)

= 2,205 pounds1 megawatt (MW) e 1,340 horsepower (hp)

/1 This has been taken as the short-term average exchangerate. The Indian Rupee is linked to the Pound Sterlingand rates with the United States Dollar have variedbetween US$1.00 - Rs 7.60 and Rs 8.70 in recent months.

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PRINCIPAL ABBREVIATIONS AND ACRONYMS USED

AEO = Agricultural Extension OfficerAIC Agro Industries CorporationAPC - Agricultural Production CommissionerARC Agricultural Refinance CorporationCAA Command Area AuthorityCAD Command Area DevelopmentCB Commercial BanksG'NP - Gross National ProductGOM Government of Madhya PradeshHYV - High Yielding VarietiesICAR Indian Council for Agricultural ResearchLDB - Land Development BanksPWD - Public Works DepartmentRMC Right Main CanalSCD - Soil Conservation DivisionNSC - National Seeds CorporationVEW Village Extension Workers

GLOSSARY

Bajra = MilletChak - Irrigation service unit of about 30 to 40 ha.Field Channel - Private ditch within a farmIrrigation

Associations - Organization of farmers responsible forcooperative water management in the chaks

Jowar = SorghumKharif D Wet season (June to September)Mandi MarketNullahs = GulliesPanchayats Village councilsRabi Dry seasonWarabandi Cultivators rotational irrigation system

FISCAL YEAR

GOI, GOM and agencies - April 1 - March 31

ARC, Cooperatives - July 1 - June 30

Commercial Banks - January 1 - December 31

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INDLA

APPRAISAL OF THE

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Table of Contents

Page No.

SUMMARY AND CONCLUSIONS .......... *.............. .......

I. INTRODUCTION ............ .........................

II. BACKGROUND .... ...................................

The Economy ................. ... ..... .......... 1Agriculture in India ...... ..................... 2Agriculture in Madhya Pradesh ................. . 2Project Formulation ....... ..................... 4

III. THE PROJECT AREA . . ........ ...... 4

General . ....................................... 4Climate ........................................ 5Topography, Soils and Drainage ............. .... 5Geology and Groundwater Resources 6............. 6Population, Land Tenure and Social Structure ... 6Agricultural Production .......... 7Marketing and Transporation ..... ............... 8Present Problems . .............................. 9

IV. THE PROJECT ...... ................................ 9

Project Works ....... ................ 9Other Project Components ... ................. 12Water Supply, Demand and Quality ....... ........ 12Engineering Design ..... ......................... 13Construction Methods ............. .. ............ 13Implementation Schedule ........................ 13Cost Estimates ....... .......................... 14Financing ................................... 15Procurement ..................................... 15Disbursements ...................................... 17Accounts and Audits ............. .. ............. 17Environmental Effects of the Project ........... 17

This report is based on the findings of an appraisal mission composed ofMessrs. W.G. Rodger, J.K. Lee, K.V.S.K. Nathan, C.J. Perry (IDA) andMessrs. D. Benor and R.S. Baskett (Consultants).

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Page No.

V. ORGANIZATION AND MANAGEMENT ..... ................. 18

Project Implementationi ............ ............. 18Command Area Authority ..... .................... 18Implementation Procedures for On-Farm

Development Full Package .................... 19Financing Procedures Jor On-Farm

Development Full Package Works ............. . 19Agricultural Supporting Services ............... 20Operation and Maintenance .......... ............ 22Water Allocation ................ . 22Cost Recovery .................. ................ 23Monitoring Project Performance ................. 24

VI. PRODUCTION, MARKETING, PRICES AND FARM INCOMES ... 24

Production .................... ................. 24Market Prospects ............... .. .............. 25Processing and Storage ............. ............ 25Prices of Agricultural Products ................ 26Farm Incomes and Repaynent Capacity ............ 26

VII. BENEFITS AND JUSTIFICATION ....................... 27

VIII. AGREEMENTS REACHED AtD RECOMMENDATIONS ......... .. 28

ANNEXES

Annex 1 - Climatic DataAnnex 2 - Project WorksAnnex 3 - Water Supply, Demand and QualityAnnex 4 - Cost EstimatesAnnex 5 - Equipment RequirementsAnnex 6 - Schedule of Expenditures, Allocation of the Proceeds

of the Credit and DisbursementsAnnex. 7 - Organization, Management and Project FinancingAnnex 8 - Agricultural Supporting ServicesAnnex 9 - Operation and MaintenanceAnnex 10 - Agricultural ProductionAnnex 11 - Marketing, Pricing, Processing and StorageAnnex 12 - Farm BudgetsAnnex 13 - Economic Analysis

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CHARTS

Project Operational Diagram WB9695Implementation Schedule WB9725Organization Chart - State Level and Command AreaAuthority WB9697

Organization Chart - Irrigation and Land Development WB9696

MAPS

11501 - Location11507 - Project Area11524 - On-Farm Development - Typical Chak Layout

REFERENCES

1. Chambal Command Area Development Project (Madhya Pradesh)Report No. 35/74 IND. 20 FAO/IBRD Cooperative Program,Rome, October 1, 1974.

2. Appraisal of the Chambal Command Area Development Project(Rajasthan) in India, IBRD Report No. 430-IN, May 29, 1974.

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INDIA

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

SUMMARY AND CONCLUSIONS

i. Command Area Development (CAD) involves provision of such furtherworks and services as may be required for full realization of the benefitsof existing irrigation systems. These projects have been given a highpriority in India's development planning, and further CAD projects arebeing prepared for Bank Group consideration.

ii. India's development program for the next five years places a heavyemphasis on alleviating rural poverty, creating employment and increasingfood production. CAD projects and the general expansion of irrigationservices fulfill all these aims.

iii. Madhya Pradesh is the largest State in India and economicallydependent on agriculture. The Chambal irrigation system, situated on theMadhya Pradesh - Rajasthan border, consists of three reservoirs, a commoncarrier canal and irrigation networks serving 229,000 ha in Rajasthan and224,000 ha in Madhya Pradesh. I

iv. About 93,000 families live in the Madhya Pradesh project area.The average farm size is 2.4 ha, but the median size is only 1.5 ha and about37% of holdings are less than 1 ha.

v. The total cropping intensity (including both seasons) in theproject area is about 105%, and the irrigation intensity is 65%. The mainkharif (summer, wet season) crops are millet, sorghum and paddy. In therabi (winter, dry season) the most important crops are wheat, pulses andoilseeds. A limited amount of sugarcane is also grown.

vi. Agricultural production in the project area has been limited bydeficiencies in water control, on-farm development, drainage, the transportsystem and agricultural supporting services.

vii. The proposed project covering 224,000 ha would be the first stageof an extended program to alleviate these problems. Project works wouldinclude: lining of 11 km on the main canal where seepage is excessive;construction of 77 control structures; increasing the carrying capacity of400 km of canals and improving village access roads. A full package ofon-farm development would be implemented over 12,000 ha, including provisionof 2,000 nutrient tons of fertilizer to restore soil fertility. Waterloggingproblems on 20,000 ha would be relieved by provision of chak drainage net-works and improvement of 200 km of natural drains; the 220,000 ha area andan additional 10,000 ha would be protected from further flooding by provisionof 560 km of small seepage interceptor drains. The agricultural extensionand research services and the system of cooperatives would be strengthened

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throughout the project area. The extension service would make use ofprogressive farmers as part time extension workers. Provision has been madein the project for technical assistance and in-service training -- includingemployment of a land development expert. A special group would be set upto monitor the progress of the project.

viii. Project implementation would take three years and would use labor-intensive methods wherever feasible. The use of heavy equipment, which wouldbe supplied under the project, would mainly be confined to land shaping andexcavation of large drains.

ix. To ensure full cooperation and coordination among the institu-tions concerned, the Government of Madhya Pradesh (GOM) is setting up aCommand Area Authority (CAA), headed by a Commissioner (already appointed)who would direct the Departments of Revenue and Cooperatives, and havecoordinating authority over all other project activities. To ensure equitabledistribution of the available water, GOM would draw up an allocation program.Such a program would be introduced by the CAA during project implementation.

x. Total project costs are estimated at US$46.6 million, with aforeign exchange component of US$9.7 million (20%). The proposed creditof US$24.0 million would finance 53% of the total cost of project itemseligible for financing (US$45.1 million). The Government of India (GOI)would relend the proceeds of the credit, except for disbursements againstsupplementary fertilizer and technical assistance for GOI's preparationof further CAD projects financed by the credit, to GOM and to the Agricul-tural Refinance Corporation (AAC) in accordance with standard proceduresfor such development projects.

xi. Equipment valued at US$5.2 million would be provided by the project,and of this, US$3.0 million would be procured through international competi-tive bidding. Fertilizer would be procured in line with allocations to thefarmers who had carried out leveling work on their farms and disbursementsfor this purpose would be made following distribution of the fertilizer tothe farmer. Because most of the project civil works would be individuallysmall, scattered, labor-intensive and would be carried out only during theperiod of canal closures, they would not be suitable for internationalcompetitive bidding. These works would instead be carried out by local con-tractors @or by force account.

xii. At full development in Year 11, the average cropping intensity(irrigation intensity) would rise from the present 105% (65%) to 125% (80%).In the on-farm development areas, cropping intensities would be 135% (95%).The production of food grains would increase from 210,000 tons to 375,000tons.

xiii. Farm incomes under the project would increase from Rs 1,100 per haat present to Rs 2,400 at full development. This would enable farmers topay increased irrigation and drainage charges, which would be introducedto ensure that the full costs of construction as well as those of operationand maintenance of the system are covered.

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xiv. Farmers receiving the On-Farm Development Full Package would re-ceive a loan to cover its cost from either a Land Development Bank (LDB) ora Commercial Bank (CB). The banks would receive refinance of at least 75%of the loan from the Agricultural Refinance Corporation (ARC). The cost ofthe loan to the farmer would not exceed 20% of the incremental income at fulldevelopment.

xv. The major crops produced in the project area are paddy, millet andpulses during the kharif season (wet) and wheat, oil seed and pulses duringthe rabi season (dry). Sugarcane is also a relatively significant crop andit occupies the land during the kharif as well as part of the rabi season.

xvi. The project would provide about 12,000 man years of additionalemployment, and an increase in the gross value (economic) of production ofRs 242 million (US$30 million) at full development.

xvii. The economic rate of return is estimated at 22% using shadowprices for farm labor such that incremental labor requirements are pricedat about 70% of the current wage during the peak labor-season. Analysisshowed that the three project component areas (On-Farm Development Full.Package, Chak Drainage and Extensive) all have satisfactory rates of return.

xviii. Provision has been made for technical assistance to GOI to helpprepare further CAD projects throughout India and to employ a land develop-ment specialist for a period of up to two years.

xix. The project is suitable for an IDA credit of US$24.0 million. TheBorrower would be India.

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INDIA

APPRAISAL OF THECHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

I. INTRODUCTION

1.01 The Government of India (GOI) has requested IDA assistance tofinance the Chambal Command Area Development Project in Madhya Pradesh (MP)State. The project would be the third Command Area Development (CAD) proj-ect to be assisted by the Bank Group. The first two CAD projects assistedwere in the neighboring State of Rajasthan (Loan 1101-IN and Credit 502-IN).The CAD involves the completion of irrigation projects such as canals, drainsand roads together with on-farm development including land leveling, con-struction of watercourses, and farm drains and including all aspects ofagricultural supporting services. The whole program is coordinated by aCAD authority for each project. This would be the first IDA-assisted CADinvestment in agriculture in Madhya Pradesh.

1.02. The Chambal (MP) major canal system was largely completed in 1970.At present, it provides water to only about 65% of the potential servicearea. Moreover, the present operation is so independable that farmers findit difficult to utilize water effectively. The problems of improving waterutilization on the Chambal Command Area have been studied for the lastseveral years and in 1973 the Government of Madhya Pradesh (GOM) completeda feasibility report where it outlined a general plan to improve projectefficiency. Final preparation of the plan was assisted by a team from theFAO/IBRD Cooperative Program (Report No. 35/74 IND. 20, October 1, 1974).The present report is based on the findings of an appraisal mission com-prising Messrs. W.G. Rodger, J.K. Lee, K.V. Nathan, C.J. Perry (IDA) andMessrs. D. Benor and R.S. Baskett (Consultants), who visited the projectarea in November 1974.

II. BACKGROUND

The Economy

2.01 India covers some 3,270 million km of which 43% is arable. About21% of the arable land is under some form of irrigation. It has a popula-tion of about 600 million (1974). Rapid population growth and a relativelypoor natural resource base have imposed sharp limitations on India's econo-mic growth. However, since the inception of economic development planningin 1950, national income has grown at nearly 4% per year, compared with anaverage growth rate of less than 1% during the preceding 50 years. In 1972,per capita GNP was about US$110.

2.02 The Government's agricultural development program for the next fiveyears (1975-79) has been based on a projection of a 5.5% growth rate for the

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economy. There will be greater emphasis than in previous plans on allevi-ating poverty. This would be accomplished by promoting labor-intensivetechniques and raising agricultural productivity particularly of subsistencefarmers. Also included are a national program to supply the minimum needsof the poor and tax measures to curb consumption by the richer classes.

Agriculture in India

2.03 About 70% of India's population is involved in agriculture whichaccounts for about 45% of GNP. Agricultural products and agro-based man-ufacturers also provide the majority of India's exports of which the mostimportant commodities are jute, tea, leather, cotton goods and cashews.In recent years, India has emphasized the importance of agriculture andagricultual processing, and has given priority to accelerating the spread ofmodern technology by: increasing the availability of high-yielding seedsand fertilizer; expanding irrigation, and developing new agricultural creditinstitutions. Yet despite impressive results in some areas, the overallgrowth rate in agricultural output in the 10-year period ending in 1972was only 3% per annum which was little more than the population growth andslightly lower than the growth rate in agricultural production in the previousdecade. However, an important structural change has occurred: growth inproduction is now primarily coming from yield increases, rather than fromincreases in cropped area as was previously the case.

2.04 The "green revolution" has mainly affected wheat, and its effectshave been concentrated in thg northwestern states which are well served withirrigation facilities. Paddy production has grown slowly due mainly to inade-quate water control, and, for the last two years, a shortage of fertilizerand high yielding varieties (HYV) of seeds. Production of other crops hasnot increased significantly.

2.05 India's agriculture is still dependent on the weather. For examplein the drought of 1972/73 and again in 1974, reserve stocks were seriouslyreduced and large amounts of graiLn had to be imported. A major factor inreducing India's dependence on the weather will be the expansion of irrigationand the more effective use of existing irrigation potential.

Agriculture in Madhya Pradesh

2.06 yadhya Pradesh is the :Largest State in India with an area of442,840 Km or 13.5% of the totaL size of India. It is predominatelyagricultural with a population of 41.6 million in 1971 of which 84% wasclassified as rural.

2.07 About 40% of the area in the State is cultivated (18.3 m ha) ofwhich 8% is irrigated (1.64 m ha), the balance depending upon natural rainfallwhich averages about 800 mm per year with 95% occurring from June throughOctober. Forests cover about 32Z of the land area of the State.

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2.08 Agriculture and allied activities in the State account forRs 13,307 m annually or 55% of all income. The land use pattern for theState in 1970 is shown below:

Category Ha Million

Forests 14.4Available butnot yet cultivated 4.4

Uncleared or fallow 7.1Net sown annually 18.3Gross sown 20.3Double cropped 2.0Net irrigated 1.5

2.09 The major crops grown and their approximate acreages are:

Crop Ha Million % Irrigated

Paddy 4.3 43Wheat 3.3 29Other Cereals 6.4Pulses 1.8Gram and Oilseeds 3.3

2.10 As most of the land is unirrigated, average yields for crops grownin the dry winter season are low. Current average yields in the State inkg/ha for the main crops are: paddy 820, jowar 630, bajra 630, wheat 800and gram 600. About 12% of the paddy, wheat and bajra hectarage now utilizethe HYV's which were introduced into the area in the late 1960's. Yieldsof gram and oilseed crops, however, have been almost constant.

2.11 The use of fertilizer in Madhya Pradesh has increased rapidly inrecent years. Nitrogen has been the most important, going from 105,000metric tons in 1968-69 to 650,000 tons in 1973-74. Phosphate fertilizersincreased from 54,000 to 420,000 tons over the same period and potash from40,000 to 200,000 tons.

2.12 Food grain yields increased by 2.3% per annum during the SecondPlan pbriod (1956-1960) but remained practically constant between 1961-69.The Fourth Plan (1969-1974) aimed to increase production by 5% per annum.

2.13 Public expenditures in the Fourth Plan placed emphasis on agricul-tural production, minor irrigation, and soil conservation (including ravinereclamation). Components of the program included seed improvement (HYV),fertilizer, agricultural machinery, tractors, tubewells, shallow wells,landshaping, ravine bunding and provision of regulated markets. Actualproduction increases have followed estimates except for the drought year of1972/73 when grain production fell 650,000 tons below the previous year andagain in 1974 when the kharif crop was limited by weather.

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2.14 Planning for 1975-79 proposes further improvements in agriculturewith emphasis being placed on: the development of both ground and surfacewiater; more efficient use of irrigation water on existing projects throughCommand Area Development activities; development programs for backward anddrought-prone areas and soil and water conservation programs.

Project Formulation

2.15 Concern has been growing in India over inadequate utilization ofirrigation systems. Between 1950 and 1972, 10 million ha of new land wereprovided with irrigation facilities but only 70% of this potential is beingutilized and much of that in an inefficient manner. The reasons for theunderutilization of existing faciLities, which adversely affects India'sability to meet its food production needs, are discussed at length in the1972 report of the Second Irrigation Commission and include deficiencies in:watercourses; drains and roads; l.nd leveling; agricultural supportingservices and administrative coordination. It has been estimated that recentlycompleted irrigation projects require additional investments of up to US$600per ha before they can become fully productive. As a result, a Command AreaDevelopment (CAD) Department has been set up within the GOI Ministry of Foodand Agriculture and it has prepared a list of high priority activities whichincludes 46 projects covering over 4 million ha and distributed in nine States.

2.16 At the request of GOI, a Bank Group Irrigation ReconnaissanceMission visited India in November 1972 to review the need for CAD and itssuitability for Bank Group assistance. The Mission confirmed the urgentneed for CAD and identified several projects as having high priority.Accordingly, the FAO/IBRD Cooperative Program assisted in the preparationof the Rajasthan Canal, the Chambal (Rajasthan) and the Chambal (NP) CADprojects. The first two projects are now being implemented, with BankGroup assistance.

2.17 IDA has also approved two projects for MP consisting of an agri-cultural credit and a dairy project credit.

2.18 India's development planning for the next five years emphasizesCommand Area Development. The GOI and the States have discussed the kindof administrative and financial arrangements needed to carry out such proj-ects. The approach will be to achieve integrated development of the land,water and human resources in irrigated areas through a unified projectmanagement (see Chapter V).

III. THE PROJECT AREA

General

3.01 The Chambal Irrigation Project (Maps 11501 and 11507) is one ofthe larger irrigation and power projects in India. Prior to irrigation,the Chambal region in Madhya Pradesh was developed under rainfed agriculture

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with a few small semi-perennial irrigation areas, mainly along the BhindCanal. The Chambal River is the major southern tributary of the Jamuna Riverwhich discharges into the Ganga River and forms the boundary between theStates of Rajasthan and Madhya Pradesh (MP) over much of its length. Thenet irrigable area of the project is 224,000 ha in MP and 229,000 ha inRajasthan. Project construction began in 1953 and the canal system in MadhyaPradesh was completed in 1970 down to the turnout to the irrigation serviceunit (chak) level. Water was first released from the canal system in 1963.The system is supplied from three storage and hydro-electric power dams onthe Chambal River, via the Kota Diversion Barrage in Rajasthan State and the370 km Chambal Right Main Canal (RMC) which serves 127,000 ha in Rajasthanand 224,000 ha in Madhya Pradesh. The available water is divided equallybetween the two State projects by an Inter-State Agreement (see para 4.20).

3.02 The project area is located in Morena and Bhind districts andincludes all the major towns of both districts. It extends 300 km alongthe south bank of the Chambal River. The gross project area in NP isover 320,000 ha of which 224,000 ha would receive, in varying degrees,direct benefits from improvements in the water supply, drainage and agri-cultural supporting services.

3.03 The main and distributary canal system has been completed but40% of the watercourses remain to be either constructed or extended. Awatercourse serves a service area (chak) of about 40 ha with about 30-40farmers and is communally owned. A field channel is a private ditch withina farm. As originally designed, the Chambal project did not include adrainage network. In response to a growing need to relieve waterloggingon 70,000 ha, GOM commenced drainage improvement works on 12,000 ha in theproject area in 1972/73. The drainage network is classified as main drains(natural streams and gullies), collector drains, chak drains and farm drains.From the farmers' fields, runoff is discharged by privately constructedfarm drains to the chak drains and from these to collector drains eachserving between 10-20 chaks. Collector drains discharge to the main drains.

Climate

3.04 The climate in the project area is sub-tropical with three mainseasons: the kharif or wet season (June to September); the rabi or dryseason (October to March) and the very hot and dry pre-monsoon season(April to June). The onset of the monsoon is about one month earlier inthe western part of the area (at the canal head) than in the eastern down-stream part, which affects the cropping seasons. The average rainfall isabout 800 mm with 94% occurring in the wet season (see Annex 1).

Topography, Soils and Drainage

3.05 The project area ranges in elevation from about 150 meters to245 meters above mean sea level and has a gradual slope from the southwestto the northeast in the direction of flow of the Chambal River. The soilsrange from clays and loams to lighter sandy soils. Areas of silt and kankarmixed with gravel and pebbles mark the beginning of the Gangetic plains.

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The topography is flat to slightly rolling. More than 99% of the projectarea has slopes of less than 1%. The terrain is deeply eroded along theCharbal River and its main tributaries form deep channels. These channelsand the associated network of ravines and gullies (nullahs) form the maindrainage system of the project area.

3.06 A semi-detailed soil survey by the Soil Science and AgriculturalChemistry Section of the Agricultural Research Institute at Gwalior hasclassified 74% of the gross command area as irrigable. Of this area, 45%has heavy soil and the remainder has light soil. In 1972, GOM surveysindicated that 70,000 ha of land within the project area was adverselyaffected by a high water table aid poor drainage. These problems are mostserious in areas adjacent to the main canals but also occur at considerabledistances from major canals, indicating that they are not entirely related toseepage from the canals. Saline and akaline soils occupy about 7% of thegross command area and are mainly excluded from the project.

3.07 Even though there are some limited deficiencies in the projectsoils, on the whole they are good and if provided with an adequate supplyof irrigation water, can be high:Ly productive.

Geology and Groundwater Resources

3.08 The project area has an alluvial soils mantle of sand, silt, clayand kankar mixed in some areas with gravels, pebbles and boulders. Thealluvium is derived from the underlying Vindhyan series of sandstones,shales, slates and limestones. In the central Morena district, the Vindhyanseries rises to the surface, or to a very shallow depth where it is tra-versed by the main canal. The series is closely jointed near the surfaceand is a major source of canal leakage where unlined.

3.09 The principal source of groundwater in the project area is thealluvium. A program for the construction of tubewells and of dugwells isin operation and has financial support from the Agricultural RefinanceCorporation (ARC). Since 1970, the GOM Directorate of Tubewells hasconstructed 260 shallow tubewells out of a planned 1,350 of which 164 werein service in January 1974. The wells average 75 meters in depth with ayield of up to 15 l/s and irrigate about 10 ha each. There are 16,000dugwells.in the area, irrigating about 1 ha each. With local exceptions,the groundwater is suitable for irrigation use.

3.10 The location, quantity and quality of the groundwater would beexplored in more detail during the three year project implementation period,thus paving the way for future groundwater development during subsequentproject stages.

Population, Land Tenure and Social Structure

3.11 The population of the project area is about 700,000 of whichabout 70% or 500,000 is classified as rural and the balance as urban. About465,000 of the rural population live on the project farms and the balance

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of 35,000 are agricultural laborers. About 19% of the rural population isliterate.

3.12 Farm sizes in the project area range from 0.5 ha or less to over40 ha. The average is 2.4 ha. Some 37% of holdings are 1 ha or less with18% being under 0.5 ha and 19% between 0.5 and 1 ha (see Annex 12). Prac-tically all farms are operated by their owners; owners of small farm unitsmust rely partly on off-farm employment for their livelihood. The operators'of 55% of the farms (17% of the irrigable area) presently fall below thepoverty level with an annual income of US$50 per person.

3.13 Certain farm jobs, such as the harvesting of paddy and wheat, aretraditionally performed with hired labor -- even though the operator and hisfamily have adequate time to do such jobs. Small farmers and landlesslaborers normally provide the labor to meet these requirements.

Agricultural Production

3.14 Prior to the introduction of irrigation, crops grown in the areawere either rainfed or matured on residual soil moisture followJing themonsoon. Because of the unreliability of the water supply, the area stillretains some of the characteristics of rainfed agriculture and drought-resistant crops play a major role in the cropping pattern. Millet, sorghumand pulses can be grown successfully under rainfed conditions during themonsoon but irrigation is necessary for crops such as paddy which normallydoes not mature until October-November. Drought-resistant crops can also begrown during the dry season on the residual soil moisture but yields arenormally low. Irrigation is required during this season for the success-ful production of most crops.

1

3.15 Present cropping patterns for the project net irrigable area arediscussed and the tabulation of yields, production, and value given inAnnex 10. This indicates an overall cropping intensity of 105%; 25% inthe monsoon season, and 80% in the dry season. The irrigated croppingintensity including both seasons is presently only 65%.

3.16 The low cropping intensity in the monsoon is due to the limitednumber of crops which can be grown in the short, intense wet season.Because there is no tradition of paddy cultivation, apart from the BhindCanal area, this valuable crop is only now taking hold despite surpluswater during the monsoon season and suitable soils over much of the projectarea. The traditional crops, millet (bajra) and sorghum (jowar), are notvery remunerative and rather than plant them many farmers prefer to let theirland lie fallow during the monsoon to replenish the soil moisture and to pre-pare the seedbed for the rabi crop. This allows wheat, the staple crop,to be grown on the residual moisture or as a lightly irrigated crop duringthe dry season. This cropping system also allows fallow land for mustardplanting which requires a good seedbed. The canal system is normally closedfor maintenance for a six weeks period some time between April 1 and June 30.WThen the water supply is turned back into the canal it may not reach the endof the network for up to two weeks. This precludes pre-irrigation for landpreparation and paddy nurseries and results in a delay in the planting ofcrops until the onset of monsoon rains. Water supply (pars 4.20) limits thearea cultivated for HYV wheat. However this crop has made large advances in

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the last ten years causing an important structural change in the originallyconceived cropping and water demand patterns.

3.17 The local population is mostly vegetarian, and relies primarilyupon milk products, wheat and pulses including gram and jowar for food,using vegetable oils for cooking. They produce a surplus of pulses,sorghum and oil seeds including oil cake which is exported in significantquantities to other areas in India. Paddy is grown as a cash crop, almost

the entire production being exported to other States. Sugarcane occupiesa minor area but is an important source of income. Any expansion wouldoccur on farms in the vicinity of the sugar factory at Kailaris. These farmsare largely provided with reliable year-round irrigation from the combinationof canals, shallow tubewells and dugwells.

3.18 Farmers in the area rely heavily on cattle for draft power,transportation and milk. The present production of crops and the esti-mated gross value for the 224,000 ha irrigable area are given below:

Production Gross ValueCrUop ('000 tons) (Rs Million)

Wheat 156 156Paddy 27 25Oilseeds and Sesamum 28 55Bajra and Jowar 31 28Kharif pulses 8 10Rabi pulses 30 37Sugarcane 77 9

Total Gross Value of Production 320

Marketing and Transportation

3.19 There are 15 Government-regulated markets (mandies) administeredby local committees in the Bhind and Morena Districts. Most are withinthe project area and generally provide auction space, storage facilities,water, guest houses and stalls for traders. Farm crops are transportedto the mandies, some of which are being rebuilt and enlarged, by bullockcart and most farms are within ten miles of a mandie. Warehouses ownedby cooperatives are available in market towns. Processing facilities forpaddy, and oil seeds which are mostly privately owned are spread throughoutthe project area. There is only one sugar mill but some farmers have theirown facilities for producing unrefined sugar.

3.20 Although the area is fairly well served by a main road network,village roads are unpaved, poorly maintained, badly traced and usuallywaterlogged and impassable during the wet season. Morena, the main projecttown, is connected by road and rail to Gwalior and Bhopal, in the southand to Agra and Delhi in the north.

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Present Problems

3.21 Due mainly to limited water supply and drainage deficiencies,,agricultural production has increased only very slowly. The main deficienciesare: the absence of an agreed and timely water supply plan to allocatewater throughout the command area in accordance with crop requirements; poorcanal management; insufficient regulating structures in the main and dis-tributary canal network, inadequate carrying capacity in certain reaches ofthe network and excessive seepage losses; enforced closures (often duringhigh water demand periods) to repair breaches and remove aquatic weeds; poorand inequitable water distribution within individual chaks due to incompletewatercourses and inadequate land levelling and delays in introducing coopera-tive water use among the cultivators (warabandi). The absence of an adequatedrainage network, which together with the accumulation of rainwater and returnflows from farmers' fields and seepage from canals have resulted in high watertables over 70,000 ha. Waterlogging is mostly seasonal, with the worst con-ditions occuring at the end of the monsoon season when winter planting ismade extremely difficult. There are 20,000 ha where the water table is with-in 2 meters of the ground level. Some 8,000 ha are permanently waterlogged.

3.22 Other adverse factors affecting agricultural production includeuncoordinated agricultural supporting services (extension and research),lack of timely credit for farm inputs and poor road communications.

IV. THE PROJECT

4.01 The proposed project represents the first stage of a program toimprove and complete the existing irrigation facilities, construct drainageworks, provide on-farm development, improve the road system and provideagricultural supporting services (extension and research) throughout theproject area. Works to be included in the present project were selectedon the basis of need, implementation capability and budgetary constraintsof the State Government. Depending upon the level of project works proposed,the project areas are referred to as the On-Farm Development Full Packagearea (some 12,000 ha), the Chak Drainage area (some 20,000 ha) and theExtensive area - the balance of the commanded area (some 192,000 ha). Mostof the works are directed towards the On-Farm Development Full Package andthe Chak Drainage areas but improvements in canal management and in agricul-tural supporting services would benefit the Extensive area as well. Thephysical works and other inputs to be financed under the project aredescribed briefly below. (See also Annex 2 and Mtap 11507.)

Project Works

4.02 Right Main Canal (RMC) Bank Strengthening - Main canals arelargely constructed above ground on earth embankments. Since the RMC wasbrought into service in 1963, it has breached on several occasions, necessita-ting extended closure of the system while repairs were made. The mostvulnerable sections of the canal would be given remedial treatment by strength-ening the embankments, and the lining of 11 km of canal bed and side slopes toreduce piping damage.

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4.03 Canal CapaciLy Works - The original project was designed toprovide water for lightly irrigated crops. The introduction of highyielding varieties, mainly wheat, has greatly increased peak water demandduring the dry season. Existing canal capacity in the distribution systemand in the watercourses is insufficient to meet this demand. The projectwould enlarge some 300 km of distributary canals and increase the carryingcapacity of some 100 km of watercourses which serve the 12,000 ha On-Farm Development Full Package area and selected other areas under IHYV wheat.Their carrying capacity would be increased from the present 0.5 1/s/ha to0.65 1/s/ha.

4.04 Canal Control Structures - The project was originally designedas a free flowing system with only a small number of regulators in the mainand branch canals. The present project would provide 44 additional canalregulators and 11 escape structures, 3,000 gated and enlarged pipe outletsto chaks, and 100 small tail structures. This would facilitate the supplyof water during periods of reduced canal flow and distribute water efficientlyduring peak periods.

4.05 Aquatic Weed Control - To facilitate aquatic weed control, canalclosures are at present requirecd throughout the operating season. Toreduce the time of such closures, modifications are required to enable morerapid drainage of canals. The project would provide 22 additional draw-off structures and, to reduce the source of weed infestation, would provideadditional embankments for two tanks in the RMC and Bhind canals.

4.06 Main Drainage - To help alleviate severe drainage problems(para 3.21), the project would clear and improve 200 km of natural drainagecourses, and construct 560 km of interceptor drains parallel to distribu-tary canals to reduce seepage contributing to waterlogging along thecanals. These works would be aimed mainly at improving the On-FarmDevelopment Full Package and Chak Drainage areas and as well as other areasserved by the Bhind Canal; the total area benefited would be about 40,000 ha.

4.07 Operating Facilities - The operation of the extensive canal networkwith headworks located in another State poses difficult problems. To im-prove canal management and distribute water more equitably among users re-quires an effective communication network, access to both banks of the canalfor continuous maintenance and an adequate staff stationed at strategiclocations along the canal system. The project would install a 300 kmtelemeter/telecom system, surface 220 km of canal roads; construct 54access bridges and provide housing and buildings for the operating staff.

4.08 On-Farm Development - Two categories of land development, dependingon the topography and crop needs of the particular area, would be undertakenby the project. Category (c) in undulating topography would provide a"full package" treatment including land leveling, construction of water-courses, drains and access roads inside the chaks. For these areas, farmboundary realignment would be required to enable a rational layout offields, channels and roads. In v;iew of present organizational constraints,the area is limited to 12,000 ha comprised of six blocks.

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4.09 Implementation of On-Farm Development Full Package in thiscategory would start with the updating of cadastral records, soil classi-fication and detailed topographical surveys of the chaks. The Soil Con-servation Division of the Agricultural Department would prepare plansand cost estimates for the on-farm works and discuss these with the farmers.After receiving approval by the farmers, the works would then be carried outby the Agro Industries Corporation (AIC), a GOM agency, using both exi,tingequipment and new machinery purchased by the project. Upon completion, thefarmers would be provided completion certificates prepared by the CAA forsigning. If they did not elect to accept the job, procedures for resolutionof differences would be available to them. (Further details of planning andconstruction are given in Annex 2.)

4.10 Category (b) land development would be limited to drainage improve-ment works on some 20,000 ha of flat land (some 8,000 ha is completely water-logged) in 16 subbasins spread throughout the project area. The works wouldbe carried out where the water table is within two meters of the ground surface.Boundary realignment would not be required for these works. The GOM wouldobtain easements for the smaller chak drains and acquire land for thelarger collector drains (see Annex 2).

4.11 The GOM has demonstrated the feasibility of both these categoriesof works in pilot schemes completed since 1971/72. Two such full packageon-farm developments including about 300 ha have been completed and fouradditional ones are now underway.

4.12 Roads - About 206 km of village to-market roads would be constructed.First priority would be given to the roads serving the Chak Drainage and On-Farm Development Full Package areas.

4.13 Ravine Erosion Control - A pilot project covering about 50 km ofravine perimeter would be undertaken to identify the "least cost" techniquesfor ravine erosion control. The work would comprise perimeter bunding anddrains with control structures to arrest the erosive floodwater flows.

4.14 Mechanical Equipment - Mechanical equipment would be procured bythe project for the construction of the irrigation and drainage works, forroad construction and ravine erosion control and for the On-Farm DevelopmentFull Package program. After project completion, the remaining equipmentwould be used by the CM for maintenance of the completed facilities.

4.15 Fertilizer - The movement of top soil in the On-Farm DevelopmentFull Patkage areas during land leveling would cause a temporary loss oftop soil fertility. Some 2,000 tons of fertilizer would be provided torestore soil fertility to the original level. It is expected that thiswould be accomplished in a two year period.

4.16 Agricultural Extension and Research - The agricultural researchand extension capability of the Department of Agriculture within project areawould be strengthened. Assurances were obtained from GOM that it wouldstrengthen and make budgetary provision for the agricultural research andextension program which would be acceptable to the Association as part of thebudget requirements for the project.

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4.17 Crop Compensation - As -a result of the On-Farm Development FullPaclkge program, it is expected that some of the lands would be out ofproduction for one dry season during which time the actual land shapingwould take place. To preserve the farmer's income during this transitionperiod, he would be paid Rs 150/ha as partial compensation for the loss offarm income.

OLher Project Components

4.18 The project would include the expansion of the rotationalIrrigation system (warabandi) now in operation on some chaks. Initially,eamphasis would be given to expand:ing this in the Chak Drainage and On-Farm Development Full Package areas. Gradually it would be extended through-out the project area. Funds are provided in the cost estimates to coverthe cost of project administration, operation and maintenance during theconstruction period, technical assistance for on-farm land development andfor the agricultural research and extension program. The project would alsoprovide funds for studies of further developments in the project area. Thestudies would cover groundwater exploitation, increasing delivery efficiencyby canal lining, reuse of return flows, reclamation of saline-alkaline soils,improvement of district roads and further intensive on-farm development inthe command areas.

4.19 The project would also provide technical assistance to GOI tohelp prepare a number of CAD projects throughout the various States of Indiain the next three years. Pilot land development projects would be extendedand improved to cover all necessary technical, economic, organizational andfinancing features essential for comprehensive appraisal of the on-farmdevelopment element of CAD projects. To assist the land development imple-mtentation an internationally recruited specialist would be appointed. Anassurance was obtained from GOI that it would recruit or cause to haverecruited a land development specialist.

Water Supply, Demand and Quality

4.20 Water Supply - Water supply in the project area is from rainfalland the regulated flow of the Chambal River. Present groundwater exploita-tion is small but would become increasingly important in later stages ofthe project. Reservoir operation studies estimate the total annual irriga-tion water availability in 88% of the years at 3,900 Mm3, of which theChambal (MP) project's share is one half (Interstate Agreement). During thelast four years, Chambal (MP) project received supplies in excess of 1,940Mm3 per year. Because of water releases from the main storage reservoirsfor hydro-power generation, --hout one third of the water supply is availableduring the July - October period. Details of the storage and conveyancesystems are given in Annex 2 and water supply in Annex 3.

4.21 Water Demand - The present overall irrigation efficiency isestimated at 20%, reflecting the physical and operational problems discussedin paragraph 3.21. Following project implementation, it is expected thatthe overall efficiency would increase to about 30%, with the greatest

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improvement anticipated in the On-Farm Development Full Package area. Atfull development, peak irrigation demand in February would be about 0.651/s/ha. This figure will be used to establish canal carrying capacitiesin the various segments of the distribution system. The average annualdiversion requirements at full development for the present project wouldbe some 1,500 Mm3 compared to 1,950 Mm3 available. The excess of supplyover projected demand mainly reflects the underuse of water during themonsoon. The main canal peak operating capacity would limit the areaWhich could be planted to HYV wheat. If the whole commanded area werez,w;-eloped to the On-Farm Development Full Package area standards, annual

water requirements would increase to 1,860 Mm3.

4.22 Water Quality - The quality of water supplied in the system isijood. In the limited groundwater areas, the water quality is acceptable.There is some question about the quality of the return flows from irri-gation in the areas having saline and alkaline soils. A monitoringprogram would be started by the Director of Tubewells to determine whetherreturn flows from these areas is reusable.

Fngi_neering Design

4.23 Detailed designs have been prepared,for a number of representativedrainage areas and typical irrigation works. In view of the fairly homo-geneous nature of the works these are sufficient to establish cost estimatesto feasibility standards. No problems are expected in preparing designsin accordance with the proposed construction schedule. Design proceduresfor On-Farm Development Full Package works are described in Annex 2. Roaddesigns would be in accordance with Indian Roads Congress standards.

Construction Methods

4.24 Labor intensive methods would be used for construction whereverpossible. Contracts would provide for mobilization advances to enable smallcontractors to purchase tools and machines, and to increase the productivityof labor. Land leveling, the compaction of road beds and canal banks andthe excavation of the larger drains in waterlogged areas, would requiremechanical equipment. Drainage excavation would be by dragline. For landleveling, which is mostly light, a four-wheeled tractor with a small scraperwouldl be appropriate. Equipment to be procured under the project is listedin Annex 5.

Implementation Schedule

4425 Project implementation would take three years and would becomnplete by 1978 (Chart 9725). As the equipment to be procured under theproject would not be available at the beginning of the first constructionseason in October 1975, equipment on hand would be used to achieve the firstyear's targets.

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Cost Estimates

4.26 Project costs are estimated at US$46.6 million, with a foreignexchange component of US$9.7 million, or 21% of the total. Costs arebased on price levels prevailing in December 1974, and include the recentincrease in the costs of gasoline and diesel oil. Expected price in-creases for civil works and fertilizers have been made as follows: 25%in the first year (including a component for price increases from December1974 to mid 1975) tapering to 12% in the third year; for administrativeand operating costs, price escalation was taken at 19% in the first yeartapering to 8% in the third year. These rates are considered reasonablein the Indian context. Estimated price increase equals 27% of the cost ofthe project. Physical contingencies were taken at between 10% and 15%depending on the nature of the work.

4.27 A breakdown of project costs is given in Annex 4 and summarizedbelow:

Local Foreign Total Local Foreign Total(Rs Million) (US$ Million)

Irrigation and Main Drainage 76.1 19.1 95.2 9.51 2.39 11.90Chak Drainage Area 23.1 5.7 28.8 2.89 0.72 3.61

On-Farm Development, FullPackage Area 14.4 7.7 22.1 1.80 0.96 2.76

Roads 35.6 8.9 44.5 4.45 1.11 5.56

Ravine Erosion Control 2.2 1.0 3.2 0.27 0.13 0.40Supplementary Fertilizer 0.2 4.6 4.8 0.03 0.57 0.60Project Administration,Operating Costs duringImplementation, and Stage 1.preparation 45.5 4.2 49.7 5.69 0.53 6.22

Technical Assistance to GOIfor preparing CAD projectsand for a land developmentspec'ialist 3.9 2.6 6.5 0.48 0.32 0.80

Sub-Total 201.0 53.8 254.8 25.12 6.73 31.85

Physical Contingencies 12.4 4.1 16.5 1.55 0.51 2.06

Estimated Price Increases 81.9 19.9 101.8 10.24 2.48 12.72

TOTAL Project Cost 295.3 77.8 373.1 36.91 9.72 46.63

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Financing

4.28 During negotiations, GOI reserved procurement on equipment costingUS$1.5 million. The proposed IDA credit of US$24.0 million would finance53% of the total cost of the project items eligible for financing i.e.those not reserved for local procurement (i.e. 53% of US$45.13 million).The credit would finance 100% of component foreign exchange costs (US$9.72million) plus 39% of local costs. The credit would be made to GOI for on-lending to ARC and GOM. On-Farm Development Full Package works would befinanced initially from the GOM budget and, after completion of construction,would be refinanced by local banks and ARC as described in Annex 7. A con-dition of effectiveness of the credit would be that a Subsidiary Loan Agree-ment, satisfactory to the Association, had been executed between GOI and ARC.Operation and Maintenance would be financed by GOM from its regular budget.

4.29 Assurances were obtained from GOM that it would make budgetaryprovision in its annual development plans for the implementation of theproject in accordance with a detailed schedule of expenditures which wouldbe acceptable to the Association (Annex 6, Table 1) and that GOM wouldfurnish to IDA, not later than February 1st each year, a detailed plan forimplementation of the project for the following fiscal year.

4.30 Purchases of fertilizer required to restore soil fertility afterleveling would be financed by the credit.

Procurement

4.31 Vehicles and Equipment. The estimated cost of vehicles andequipment for project management, force account construction and for hireto contractors (Annex 5), is US$5.2 million. Out of this total, US$3.0million would be subject to international competitive bidding in accordancewith Bank Group Guidelines. A preference limited to 15% of the cif priceof imported goods, or the prevailing customs duty if lower, would beextended to local manufacturers in the evaluation of bids. About US$0.7million worth of equipment and vehicles, consisting of groups of contractscosting less than US$100,000 each, which for reasons of efficiency arenot suitable for international tendering, would be purchased throughnormal GOM procurement procedures, which are satisfactory. The balanceof US$1,5 million, consisting of vehicles and water tankers, would bereserved for local procurement and would not be eligible for reimbursementout of the proceeds of the Credit. (See Table 2, Annex 6).

4.32 Civil Works - A review has been made of the suitabillty of theproject civil works for grouping into large contracts, with the followingconclusions (the amounts shown are the basic costs, net of physical andprice contingencies and administrative and engineering staff costs but theyinclude the cost of building materials):

(a) Irrigation -- (US$8.2 million), Irrigation works would beindividually small and scattered and would be carried out inperiods of canal closure. Under these conditions, it wouldnot be feasible to group these works into large contracts.

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(b) Main Drainage -- (US$1.4 million) - The main drainage workswould have to be grouped into one or two large multi-yearcontracts in order to 'be of interest to large contractors.If a large contract were used, the problems, both for thecontractor and the project engineers, on administering alarge work-force scattered throughout the project area andworking intermittently over three years, on a relativelysmall contract, would be difficult and likely to resultin higher than necessary costs. For these reasons, thedrainage works are not considered suitable for a largecontract.

(c) On-Farm Development Full Package -- (US$2.1 million) andChak Drainage (US$3.0 million) - These works would needto be planned and executed at short notice to coincidewith the short dry season. For these reasons, the workscould not be grouped in,to large multi-year contracts.

(d) Roads - (US$4.9 million) - Because of the need for theroad program to keep pace with the other project elements,particularly the provision of adequate drainage, the worksmust also be spread over three years. The reasons statedin (b) above, would apply to the road element as well.

Because of these special conditions in the project area, none of the civilworks could be efficiently grouped into contracts large enough to be ofinterest to international contractors. It is therefore proposed to carrythese works out by small, local contractors or, where this is not prac-ticable, by force account. Generally, the small local contractors donot posses the necessary skills to maintain and operate heavy constructionequipment. Road works, however, would be carried out using simple machineryprocured under the project and hired out to local contractors. Other localcontract works would include those portions of the irrigation, drainage,ravine erosion control and on-farm development (irrigation channels anddrains) which would not require t'he use of specialized machinery. Allother works under these categories would be constructed by force accountusing heavy equipment. The On-Farm Development Full Package works wouldbe carried out by GOM's Agro-Industries Corporation which is specializedin construction of these works.

4.33 Fertilizer - Procurement: of the relatively small amount offertilizer required would be comb:Lned with the regular bulk procurementof fertilizer by the India Tender Board. Because of the present extremelyitight world supply situation, the India Tender Board's current procedureprovides for "international shopping," which includes seeking pricequotations from possible suppliers, followed by price negotiations withthe bidders to obtain the lowest price. The above procedure would besatisfactory to the Bank, providedl at least three quotations are invited.Fertilizers would be ordered in line with allocations to the farmers whohad carried out leveling work on their land.

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DTsbursements

4.34 Disbursements would be made at the rate of 100% against the cifcost of directly imported equipment and of fertilizer, after it had beendelivered to the farmers or the ex-factory price for equipment manufacturedlocally, and at the rate of 707 for imported equipment procured locally.Disbursements for civil works .ould be on a percentage basis (68% for On-Farm Development Full Package and 60% for other civil works). Disbursementsfor force account work would be made against a certificate of expenditurefrom the Command Area Authority. The supporting documentation would notbe submitted for review to IDA but would be retained by the Authority andwould be available for inspection during project progress review. Theestimated schedule of expenditure on the project, the proposed allocationof the proceeds of the credit and a semi-annual disbursement schedule are inAnnex 6. Any savings in one credit category would be reallocated by increas-ing the percentage disbursement for other categories. It is expected thatdisbursements would be completed by December 31, 1979, about one year aftercompletion of project construction.

Accounts and Audit

4.35 The Command Area Authority (CAA) would be subject to normalGovernment control and auditing procedures. Assurances were obtainedfrom GOM that the accounts and financial statements of the CAA would beaudited each year and that certified copies of the audit would be sub-mitted to the Association within six months of the end of each fiscalyear. Agro-Industries Corporation would be required to produce a detailedyearly report on the use of equipment supplied by the project for On-FarmDevelopment Full Package and other works including hours worked, breakdownof costs and charges made for work. The ARC would require participating banksto maintain separate project accounts (including details of overdues andbad debts), copies of which audited and certified by ARC, would be submittedto the Association within four months of the end of each fiscal year alongwith the audited accounts of such banks.

Environmental Effects of the Project

4.36 The existing irrigation project which has been constructed withoutadequate provision for drainage has created swampy areas resulting in thecontamination of some village wells. As a result, the incidence of someforms of water-associated diseases has increased, malaria and typhoid beingthe most serious. The proposed project would alleviate this problem. Thedrainage works would eliminate many of the mosquito breeding grounds andwould lower groundwater tables which would reduce the risk of pollutionof village water supplies. The GOM is well aware of these problems. It isconsidering the introduction of a monitoring system for water-associateddiseases and would take control measures. The project extension servicewould advise farmers on the judicious selection of pesticides in order tominimize environmental damage. The project would monitor the quality ofreturn flows from the project area for possible injurious effects on down-stream uses, and would also be a step in the struggle to control erosionin the area (para 4.13).

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V. ORGANIZATION AND MANAGEMENT

Project Implementation

5.01 This project is one of many Command Area Development Projects tobe undertaken in India in the next few years. It has been the concern ofboth GOI and the State Governments to devise effective organization structuresfor the implementation of such projects.

Command Area Authority

5.02 Following the pattern developed by GOI and introduced in theRajasthan projects, GOM established a Chambal Command Area DevelopmentAuthority (CAA) in September of 1974. The CAA's responsibility is to manageand coordinate the activities of the various GOM departments and the creditinstitutions operating in the project area. The CAA is placed within thejurisdiction of the Minister of Food and Agriculture and is headed by aCommissioner with powers to assure coordination. The Commissioner is assistedby the Joint Director of Agriculture (Planning Officer), a developmentofficer with the rank of Collector and appropriate staff. The Commissioneris assisted in carrying out his coordinating activities in the project areaby a Board composed of the department heads of the Agriculture, Irrigation,Veterinary Services, Cooperation, Industries, Buildings and Roads, andRevenue departments, as well as representatives of the two Cooperative Banks,the Commercial Banks and the project farmers. Other GOM organizations wouldparticipate as appropriate.'

5.03 The Commissioner reports directly to the Agricultural ProductionCommissioner (APC) at the State level. The APC is Chairman of a CoordinatingCommittee which includes the Secretaries of Finance, Revenue, Agriculture,Irrigation, Public Works, and the Development Commissioner. In consultationwith this Committee, the APC would approve the annual development plan of theCAA.

5.04 Funding for the project would be included in the budgets of therespective departments involved. Except for a small staff to assist incoordination, the CAA Commissioner would rely upon the staff of the variousGovernment agencies and departments posted to the CAA. "The Chairman, CAD,will have complete administrative control and powers over the staff of thevarious concerned disciplines pcsted to the area within the jurisdictionof the Authority", Section 9 of the Order of September 4, 1974 establishingthe CAD. Construction work (irrigation, drainage, land development and roads)would be carried out by the respective departments operating in the projectarea.

5.05 The CAA would supervise and coordinate the planning and implementa-tion of all services and works required for development of the command area.

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5.06 Under the supervision and coordination of the CAA, the individualGovernment departments would assume the following responsibilities: theIrrigation Department would be charged with the improvement and operation ofthe irrigation and drainage works down to the outlet from the minor canalto the chak, and groundwater development; the Agricultural Departmei.t wouldbe responsible for all agricultural supporting services and all On-FarmDevelopment Full Package works within the chak, and for ravine erosioncontrol works, and the introduction of rotational irrigation; the Departmentof Public Works would implement project roads and buildings; the RevenueDepartment, through the Collectors at Morena and Bhind, would exercise itspowers in respect to land development and registration, and collection ofland revenue arrears and the Department of Cooperation would be responsiblefor strengthening credit, marketing and processing societies.

Implementation Procedures for On-Farm Development Full Package

5.07 On-Farm Development Full Package would only be undertaken whentwo-thirds of the farmers or holders of two thirds of the land within achak agree to the preliminary plan and cost estimates drawn up by the SoilConservation Division (SCD) of the Agricultural Department. Chaks notmeeting eligibility requirements would be left for later stages of theproject. These plans would then be submitted to the local Land ImprovementCommittee, and, if approved, construction works would begin.

5.08 During the construction period, loan applications would be preparedfor the farmers by the SCD so that loans could be obtained as soon as theworks were completed and completion certificates issued.

5.09 Although farmers would have the option of undertaking the workthemselves, in practice it is expected that the Agro-Industries Corporation,under the supervision of the Agricultural Department, would normally carryout the work.

Financing Procedures for On-Farm Development Full Package Works

5.10 The cost of On-Farm Development Full Package will be borne by GOMduring the construction stage.

5.11 , On completion of the project works and when costs become known,farmers eligible for bank loans would receive loans to cover the cost of theworks carried out, and GOM would be reimbursed. Ineligible farmers wouldremain indebted to GOM, and would pay off the loan as arrears of land revenue(regular land taxation procedures). A premium interest rate (at least 2%higher than the rate on bank loans) would be charged to encourage eligiblefarmers to take bank loans and in order to encourage others to try to becomeeligible.

5.12 The loans to the farmers would come either from Land DevelopmentBanks (LDB) or from Commercial Banks (CB), the project area being dividedbetween these institutions. Interest would be charged at 10-1/2%, witha 12-year repayment period, including one year's grace.

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5.13 The LDfl or CB would then apply for refinance of loans made fromARC. The ARC would refinance at least 75% of the loan at 7.5% interest. Theremaining funds required would come from the sale of special debentures tothe State Government in the case of LDB, and from private investors in thecase of CB.

5.14 The Madhya Pradesh Land Improvement Schemes Act of 1967 has beenamended to permit the participation of Commercial Banks in financing On-Farm

Development Full Package.

Agricultural Supporting Services

5.15 To maximize the benefits of the proposed investments in physicalfacilities, complementary and closely coordinated efforts are needed in allthe agricultural supporting services. -The agricultural supporting servicesare described in detail in Annex 8.

5.16 Research - The existing program of applied research would becontinued and expanded. More emphasis would be placed on irrigation methods,fertilization of HYV, monsoon interplanting systems, and effects of irriga-tion and drainage on soil salinity and weed control methods. Researchstaff would work closely with the Irrigation D,partment in cairying outthese studies.

5.17 A limited number of full time research and supporting staff wouldbe appointed, laboratory equipment and farm machinery purchased, and officespace and housing provided on the enxisting research farms. GOM would pro-vide liaison with the Indian Counc:U for Agricultural Research (ICAR) toensure adoption of the latest national research results, particularly thosereilating to the HYV of wheat, paddy and bajra, in the project area.

5.18 Extension - Starting frota 1974, GOM has introduced a new type ofagricultural extension service in t:he project area, modeled on the systemscurrently used in the Bank Group-assisted CAD projects in Rajasthan State.The system involves the reorganization of existing extension personnel,new methods of demonstration, strict adherence to a preset extensionprogram and concentration on a few major crops and practices for a limitednumber of "contact" farmers in the villages. Close coordination with appliedresearch work and regular in-service training for extension staff isemphasized.

5.19 The organization would be headed by a Project Extension Directorwith two Deputy (District) Directors; the area would be divided into sixexitension subdivisions, each hleadecd by a Sub-District Extension Officeand a number of Agricultural Extension Officers (AEO); each AEO would beresponsible for six Village Extension Workers (VEW) and each VEW wouldinstruct 240 farmers. A subject maLtter specialist would be available forall major crops. Transport vehicles, training equipment and staff housingallowances would be provided under the project. (See Annex 8).

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5,20 Fertilizers - The project farmers realize the need for fertilizerfor better yields. particularly on HYV wheat and paddy; they would increase

if supplies were locally available at reasonable cost and the irrigationwater supply fully assured. However, most of the farmers have only beenco-eceiving 50-60% of their fertilizer reqjuirements. Over the next five-year.etied, supplies of domesticP?1y-produced fertilizers are expected to

ficvrease and the unit cost of imports is expected to decline. Fertilizers*w. ,rketed through cooperatives, Government shops and private dealers.

5,21 Seeds - for HYV of wheat and paddy, as well as other important cropspiX roduced on seed farms which are operated in conjunction with the four

>.;search' stations in the project area. The seed farms in turn get the found-ation seed from the National Seeds Corporation (NSC) and the Terai Seedcrowers. At present, the supply is sufficient only for about 10% of the.t mand; it is GOM's goal to increase the production so farmers could get newor replacement seed every 4 to 5 years. Additional seed farms are underpreparation. During negotiations, GOM outlined an acceptable program top.rovide improved seeds.

5.22 Multi-purpose cooperatives are the major type of farmers' organiza-tion operating in the project area. They provide a wide variety of servicesincluding: banking; provision of short and medium term credit; hire ofmachinery; supply and distribution of fertilizer and insecticides and storageand marketing facilities. The management capability of the co-ops variesgreatly. Under the project, the co-ops would be strengthened and expanded.Other farmers' organizations include irrigation associations (responsible forcooperative water management in the chaks) and village councils (panchayats)which are the basic elected unit of local government.

5.23 Agricultural Credit - Short-term (production) and intermediate termcredit is provided by cooperatives and Commercial Banks as well as privatemoney lenders. The cooperatives are the major source of short- and medium-term institutional credit. These are organized on a three-tier basis: thevillage level -- some 400 primary credit societies in the project area; theDistrict level -- two Central Cooperative Banks and the State CooperativeBank. Long-term as well as some medium-term credit is provided by the LandDevelopment Banks. While these banks are structured as cooperatives they areentirely separate from the cooperative banks which provide short-and mediumterm credits. Commercial Banks have recently entered into agricultural creditin MP and both the State and Central Banks operate in the State: the CentralBank, which has been designated as "lead bank" in the project area hasestablished four branches. Both the State and Central Banks have indicatedthat they would establish more branches, once the areas have been dividedbetween the CB and the LDB. Farmers receiving finance for On-Farm DevelopmentFull Package from the LDB will have automatic access to the primary creditsocieties for short and medium term-credit while those receiving financingfrom the CB will have similar access to such banks for their operating credit.

5.24 Technical Assistance and Training - While the existing projectstaff has adequate experience in most types of work involved in the project,there are some specialized areas where additional training would be necessary.

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Substantial improvement in the operation of the canal system down to theoutlet to the individual water source is proposed and to achieve this, thecapability of the operating staff would have to be improved by in-servicetraining. The Soil Conservaticn Subdivisions of the Agricultural Departmentand Agro-Industries Corporation would train additional staff in planningon-farm land development and in. operating land leveling equipment.

5.25 To enable efficient irrigation at field level, all aspects of landleveling, field layout, and channel network design have to be carefullyplanned in accordance with the needs of the particular chak. Present GOMdesigns are rather rigid. To improve planning, design and constructionprocedures, a land development specialist would be recruited (para 4.19).To the extent such a specialist had extra time, it is anticipated that hewould also assist with the Chambal (Rajasthan) and Rajasthan Canal CADprojects. The cost associated with the employment and assignment of thespecialist would be charged to the credit for the Chambal (MP) project.

Operation and Maintenance

5.26 Operation and Maintenance (O & M) of the irrigation system is theresponsibility of the Irrigation Department. Because of design and structu-ral deficiencies, and inadequate operating procedures described in paragraph3.21 as well as a shortage of funds, the present 0 & M program is insufficient.The project would provide vehicles and equipment for 0 & M and would financerecurrent costs during project implementation. The 0 & M of the project workswithin the chak would be the responsibility of the farmers concerned, or-ganized into irrigation asscciations for each chak. Under the "warabandi"system, a strict rotational irrigation schedule would be enforced to allocatewater according to the type of soil and size of each holding. The 0 & M defi-ciencies in any chak would be reported to the Irrigation Department ExecutiveEngineer, who has magisterial powers to fine or even jail offenders if thedeficiencies are not rectified. Roads would continue to be maintained by thePWD.

Water Allocation

5.27 At present, the project largely operates without a water allocationplan, with excessive water application in the head reaches of the canals andonly small water quantities reaching the downstream parts of the project.The projected cropping patterns have been selected to optimize the use ofavailable supplies and canal conveyance capacities and allow equitable dis-tribution of water over the whole area. Initially the water allocationswould be based on the cropping patterns of the "minor" canal commands. Aftergaining some experience, the wal:er allocation plan and the operation pro-cedures would be refined tc pernit water allocation on a chak by chak basis.This would ensure that all commanded land would receive an equitable shareof the available water supplies. Assurances were received from GOM thatit would introduce a suitable water allocation plan before the end of theproject implementation period (t:hree years). Further details are given inAnnex 9.

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Cost Recover

5.28 (O3ion aL,d Maintenamce (,osL - The present aniual operation andmainteiuance expenditure for the enLire system averages about 18 sSk-Presernt water charges, which are varied by kind of crop and numbe- e;irri.gations provided, average about Rs 30/ha, The excess passes in-0-UGOI revenute aiid in a sense represents repa3yient on the ..-Onstructio . cost ofexisting works. rhe cost of adequate 0 & M has '2en estimated s. Rs 48/ha(US$6 ha) for the irrigation and drainage system. It Ic propn-i to collectthis amount from the entire project area.

5.29 Construction Cost -On-Farm Developmont Full Package Area - Thecost of construction of the On-Farm Developmrnt Full Package works wouldbe recove-ed as described in paras. 5.10-5.14. On average, this is expectedto amount to Rs 2,250 per ha. The annual charge required to return thisamount in 12 years including one year^s grace at 10-1/2% interest is aboutRs 355/ha.

5.30 Construction Cost - On-Far velont k - It isproposed that the cost of Chak Drainage works be returned directly by thebeneficiaries over a 30-year period without interest. It is estimated thatthis will cost Rs 1,440/ha (Annex 4, Table t), which will require an a nualpayment of Rs 48/ha.

5.31 Construction Cost - Total Proect - All irrigated lands includingthose in the On-Farm Development Full Package area, would contribute to therecovery of the project irrigation and main drainage construction cost ofRs 95.2 million (Annex 4, Table 1 line 1). This cost amounts to Rs 425/ha.It is proposed that this be recovered in a 30-year period, which wouldrequire annual payments of Rs 14/ha without interest.

5.32 Summary of Charges Required - On the basis of the presentlyestimated costs excluding interest during construction or price escalation,the following average annual cost recovery would be required:

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On-Farm Development

(Rs/ha)Full Package Area (12,000 ha)

0 & M 48Construction - On-Farm* 355Construction - Other** 14

Total 417

Chak Drainage Area (20,000 ha)

0 & M 48Construction** 48Construction - Other** 14

Total 110

Balance of Project Area

0 & M 48Construction 14

Total 62

* Recovered in 12 years including oneyear's grace with interest at 10-1/2%(Banks) or 12-1/2% (MP).

** Recovered in 30 years.

5.33 Assurances were obtained from GOM during negotiations that itwould establish a system of water charges to recover the full annual costof 0 & M and the full construction costs without interest over a 30-yearperiod.

Monitoring Project Performance

5.34 A small staff would be assigned to the CAA Commissioner's officewhich would monitor progress in various project activities. The staffwould record: the amount of water received in the project area and itsdistribution in the canal system; canal conveyance efficiencies; croppingpatterns, and yields on both irrigated and non-irrigated land.

VI. PRODUCTIO,, MAlKETING, PRICES AND FARM INCOMES

Production

6.01 Implementation of the project would lead to a more intensive crop-ping pattern and higher yields in the On-Farm Development Full Package andthe Chak Drainage areas with more modest increases in the Extensive area.In the Extensive area, increases in production would result from extension

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activities and from improved management of the canal system. Averagecropping intensities over the whole area would increase from the present105% to 125% at full development and irrigated cropping intensity wouldincrease from 65% to 85%. For the various parts of the project, croppingintensities and production at full development would increase as follows(See Table 1, Annex 10):

Present Full Development-- Cropping (Irrigation) Intensity--

(%)On-Farm Development Full

Package area 120 (80) 135 ( 95)Chak Drainage area 75 (50) 130 ( 90)Extensive area 105 (65) 125 ( 80)

Total Production(tons) (tons) (% Increase)

Wheat 155,000 240,000 55Paddy 25,000 75,000 200Bajra and Jowar 30,000 60,000 100Gram and Pulses 40,0pO 60,000 50Oilseeds 30,000 60,000 100Sugarcane 80,000 190,000 137

Market Prospects

6.02 Local and national shortages of foodstuffs will ensure a readymarket for agricultural production in the area. The entire increase inoutput of wheat would be needed to feed the local population, while paddy,which is not eaten by the local people, would be exported to deficit areaselsewhere in India.

6.03 Additional marketing facilities would be required in the projectarea. GOM has already begun a program to expand and improve the existingmarkets, and this, together with the improvement of service roads, wouldensure both adequate capacity and reductions in the existing inequality ofprices between markets due to excessive transport costs.

Processing and Storage

6.04 Adequate facilities for processing the present production ofsugar, rice, oilseeds and pulses exist in the project area, but in thefuture, additional capacity would be required. Except for the sugar factory,most of the existing processing capacity is privately owned and it isanticipated that additional facilities would be provided as required. Thestorage facilities in and around the project area include 7,500 tons capacityat Morena and 5,000 tons at Sheopur as well as about fifty small facilitiesscattered over the project area. As the production increases, these facilitieswould require expansion. Storage would be provided by the co-ops and by the

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GOM at the mandies. Since most farmers sell their products almost immediately

after harvesting, there is little on-farm storage. That part of the cropretained by the cultivators for food and seed is stored in the houses.

Prices of Agricultural Products

6.05 The farm gate price used in the economic analysis, was reducedsubstantially below current prices. The prices for paddy, wheat and jowarwere based on the Bank's 1985 projections with appropriate adjustments fortransportation and grade. Since the Bank does not make projections of prices

of other agricultural products included in the analysis, these were basedupon local prices projected to 1985 levels on the basis of the Bank's generalindices. In assessing the ability of project farmers to meet the cost ofOn-Farm Development Full Package!, the prices of some crops were reduced

below the current high levels, but not to the extent that prices are expected

to fall by 1985, since the most trying period for the farmers would be the

first few years when the incremental income would be small.

6.06 The price of fertilizer used in the economic analysis was sub-

stantially below current prices and reflects the Bank's 1985 projections.The prices of all crops as well as farm inputs are in Annex 11.

Farm Incomes and Repayment Capacity

6.07 Since the On-Farm Development Full Package area is the only partof the project with significant repayment requirements, the farms selectedfor analysis were limited to.the sizes and types that might reasonably beexpected to exist in that area. Two sizes were selected: a 1 ha farm re-presents the income potential on small farms, and a 2.4 ha farm representsthe average size farm for the project area. The budget for the 1 ha farmwas based upon a wheat - oriented cropping pattern. Two budgets wereprepared for the 2.4 ha sized farm. One was based upon a composite croppingpattern and the other with wheal: as the major crop.

6.08 The analysis is based on the assumption that eight years would berequired to attain full production and that the annual cost of familysubsistence would be Rs 1,600. A substantial part of this would be farm-produced foods. However, since the method of analysis assumed that all

farm prqduction would be sold, a sufficient family living allowance wasprovided to enable the farm operator and his family to purchase grainsand pulses for home consumption. The same applies to grains fed to bullocks

during the working seasons. The detailed results of the farm budget analysisare in Annex 12. The results are summarized below:

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Net FarmFarm Income In Repayment inSize Year 8La Year 8ha Rs Rs % of Net Inccme

1.0 wheat 2,438 355 152.4 composite 6,305 852 142.4 wheat 5,710 852 15

/a Return to the operator and his family for their laborand management after deducting all costs of productionexcept water charges (0&M, betterment levy, and repaymentof cost of on-farm development.) This is the amountleft over to cover family living, social expenses andsavings.

6.09 The present net farm income amounts to about Rs 1,100/ha. Thiswill nearly double in the On-Farm Development Full Package area. Althoughan analysis was not made, the increase in net farm income will probably belarger in the Chak Drainage part of the project area because a substantialpart of the land to be drained is now waterlogged and out of production.As soon as major drainage outlets are provided, this problem will beeliminated.

6.10 The farm budget analysis indicates that the average farmer canrepay the costs of On-Farm Development Full Package with interest at 10-1/2%in a ten-year period, following a one-year grace period. On the 2.4 ha wheatoriented farm, after paying all costs including those associated withwater, the farmer would have an increase in income of Rs 2,000 per year.This would repay him and his family for their additional 71 days of labor.This converts to a return of Rs 28 per day for the additional work, anattractive incentive when compared to the Rs 10 per day allowed for harvestlabor in the analysis or the Rs 5/day paid to labor during the regularseason.

6.11 The farmer on the 1 ha size farm unit would find it more difficultto meet the prospective water charges and support his family. However,he would have sufficient income to pay water charges and to leave Rs 1,600for fami'ly living without off-farm work by Year Six. Since his farm wouldrequire only about 95 days of labor per year, he would have spare time tosupplement his farm income by off-farm employment.

VII. BENEFITS AND JUSTIFICATION

7.01 As indicated in Chapter Three, agricultural development in theChambal Command Area has fallen short of what was anticipated at the timethe project was planned and constructed. The project outlined here wouldbe the first step in a continuing program to eliminate constraints in the

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operation of the irrigation system and to make more effective use of theland and water at the farm level. At full development, it would producebenefits which would have the following impacts on the economy:

(a) provide the equivalent of 12,000 man years of additionalemployment in agriculture;

(b) nearly double the income of 93,000 farmers including35,000 disadvantaged farmers who operate farm unitsof one ha or less in size;

(c) increase the production of food grains andpulses by 184,000 tons, and

(d) produce an annual incremnental net value of production(economic) of Rs 145 miLlion.

7.02 The economic rate of return is estimated at 22%. This is basedon the following: a 25-year period of analysis; full realization of benefitsfor any particular block of land eight years after development; an averageincrease in crop yields of 45%; price projections for both farm inputs andoutputs as given in Annex 11; shadow pricing of incremental farm laborrequirements at 70% of the curreni: wage rate in peak periods (Annex 13),and project costs as developed in para 4.26. The rate of return is sensitiveito the growth rate of benefits. For instance, a one year delay in therealization of project benefits would reduce the rate to 19%. The rate:Ls also relatively sensitive to project costs. An increase in these costsby 25% would decrease the rate of return to 18%.

7.03 Rates of return were calculated separately for each of the threesub-areas and the Chak Drainage area was was highest with a return of 36%.The Extensive area has a rate of ^18%, while the On-Farm Development FullPackage area has a rate of 25%.

VIII. AGREEMENTS REACHED AND RECOMMENDATIONS

3.01 Assurances have been obtained from GOI that it would recruit orcause to have recruited a land development specialist (para 4.19).

13.02 Agreement on the follow:Lng major points has been reached with GOM:

(a) the GOM would strengtheni and make budgetary provision forthe agricultural research and extension program which wouldbe acceptable to the Association (para 4.16);

(b) the GOM would make budgetary provision in its annualdevelopment plans for implementation of the projectin accordance with a detailed schedule of expenditureswhich would be acceptable to the Association, and that

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it would furnish to the Association not later than February1st each year, a detailed plan for the project implementationfor the next fiscal year (para 4.29);

(c) the accounts and financial statements of the CAM wouldbe audited each year and that certified copies of suchfinancial statement and audit would be submitted tothe Association within six months of the end of eachfiscal year (para 4.35);

(d) the GOM would introduce a suitable water allocation planbefore the end of the project implementation period(three years) (para 5.27); and

(e) the GOM would establish a system of water charges to coverthe full annual 0 & M costs and to recover theconstruction costs over a 30-year period (para 5.33).

8.03 Condition of effectiveness of the credit would be that a Sub-sidiary Loan Agreement satisfactory to the Association had been executedbetween GOI and ARC (para 4.28).

8.04 The proposed project would be suitable for an IDA credit ofUS$24 million under the usual IDA terms. The Borrower would be India.

May 27, 1975

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ANINEX 1Page 1

INDIA

CHANBAL COMMAND AREA DEVELOPIEINT PROJECT (MAD1}YA PRADESH)

Climatic Data

1. The climate varies little throughout the project area, althoughthere are slight differences in the timing of the seasons from one end ofthe area to the other.

2. The climate is subtropical with three distinct seasons: thesummer (kharif) or wet season (June to September), when the southwestmonsoon prevails; the cool, dry winter (rabi) season (October to February)and the very hot, dry pre-monsoon season (March to May).

3. Temperature, humidity, pan evaporation and rainfall data for thearea are in Table 1.

4. The area is essentially frost-free, with an average minimum tem-perature in the coolest month of about 8°C.

5. Humidity is low between March and May and high in the summer. Panevaporation is low during the cool winter season, and relatively high fromMarch to August.

6. Unirrigated agriculture depends on the short, unreliable rainyseason. Reliable irrigation would allow full use of the long sunshinehours in May and June.

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INDIA

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Climatic Data

1/ 2/ Average Rainfall-/Air Temperature- Mean- Monthly Pan Mean Wettest Driest

Month Mean Extreme Relative Evaporation Monthly Month on Month onMaximum Minimum Highest Lowest Humidity Rate Total Record Record

o 8.30 17.30----------------- C ---------------- --- hours --- -------------------- mm -------------------

January 24.5 7.8 33.9 0.6 64 34 90 14 59 0February 28.5 9.9 38.3 2.3 51 25 129 5 41 0March 34.2 16.0 42.8 9.9 -34 18 217 6 18 0April 38.8 21.3 45.6 14.4 24 13 326 1 4 0May 42.4 26.8 47.8 18.9 28 16 401 5 45 0June 40.3 28.6 47.8 21.1 47 35 396 53 228 3July 33.8 25.9 47.2 20.4 74 65 248 243 456 55August 31.3 24.7 41.1 18.9 81 69 184 305 554 122September 32.5 23.5 40.6 20.0 73 58 151 150 304 25October 32.9 18.4 41.1 13.4 53 34 155 27 128 0November 29.4 11.0 37.2 7.8 51 29 111 3 16 0December 26.1 8.3 33.9 3.9 61 35 88 6 77 0

Annual Mean Totalor Extreme 32.9 18.5 47.8 0.6 53 36 2,496 818

1/ From data collected at stations in the Command Area.

2/ At Kota.

3/ At Agra.

H~j

FJ M

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ANNEX 2Page 1

INDIA

CIIAHEAL COMMAND AREA DEVELOPMENT PROJECT (MADRYA PRADESii)

Project Works

A. Past Development

General

1. The Chambal Command Area located in Bhind and i4orena Districtsin northwest Madhya Pradesh (lIP) State comprises a 320,000 ha tract(224,000 ha net irrigable) of fertile alluvial clay-loam and sandy-loamsoils. The area is flat with only 1% of land over 1% slope. Under thefavorable subtropical monsoon conditions, a wide range of valuable grainand cash crops are grown, but irrigation is required for year-round pro-duction. The area is fully settled with small farmers (average holding2.4 ha). Prior to the Chambal Irrigation Projects, the area was princi-pally pasture and rainfed agriculture with small, supplementary tank-fedirrigation, principally in The Bhind District. The project is contiguouswith the Chambal Irrigation Project in Rajasthan State and shares the samewater source.

Chambal (MP) System

2. The Chambal (MP) system down to the 40 ha irrigation service unit(chak) turnout level was completed in 1970. Irrigation service to parts ofthe area commenced in 1963. The Chambal system is supplied from threestorage and hydro-electric dams in cascade on the Chambal River (Ghandisagar,Rana Pratap Sagar, and Jawahar Sagar dams) via Kota diversion barrage inRajasthan State and the 370 km Right Main Canal (RMC). The first 130 kmof the Pb4C is in Rajasthan and 240 km is in Madhya Prades8. The InterstateWater Agreement provides for sharing equally the 3,900 lMm estimated asbeing 3 available in 88% of She years. The nominal RUC peak capacities are190 m /s at Kota and 110 m /s at Parvati where the 1UX crosses into IadhyaPradesh. The canal system is 3,191 km long, almost entirely unlined. TheChief Engineer Chambal (UP) has operational control responsibility for themain storage dam at Gnandisagar. Details of the reservoir and conveyancesystem are given in Table 1. The nomenclature of the canal system indescending order of size is: main, branch, distributary and minor. Aminor delivers water to the watercourse which serves an irrigation serviceunit (cnak) area of 30-40 ha.

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3. Although the entire Chambal (MP) system is operable and has re-ceived its full annual water a:Llocation between 1970-74, it serves onlyabout 150,000 ha at present due to the following deficiencies:

(a) Lack-of an agreed water allocation plan aimed atoptimum use of canal supplies.

(b) Inadequate canal management because of:

- poor canalside road and telephone communica-tions;

- lack of simultaneous water recording devicesto provide vital data for control decisions;

- insufficient head regulating structures andunder-capacity in some of the distributary andminor canals, restricting timely and equitablewater distribution;

- insecurity of the RMC; breaches reduce thereliability of supply;

- unsuitable operating procedures, insufficient0 & M staff and staff housing at strategiccontrol points;

- losses due to leakage from the attenuated canalsystem;

- enforced canal closures to remove aquatic weeds;

- supply interruptions due to difficulties on theRajasthan reach of KIC (now being overcome).

(c) Inadequate irrigation distribution below the chak outletlevel due to:

- poorly construct.ed and badly maintained watercourses;

- incomplete on-farm land shaping and irregular propertyboundaries which. inhibit field channel and drainagelayout, and farm access;

- the absence of cooperative water use (warabandi)among the cultivators (only 12,000 ha is currentlyoperating the rotational system).

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(d) poor land drainage in the low soil permeability areasbecause of lack of efficient main and secondary drainagechannels.

Some 70,000 ha of land is adversely affected in varying degrees, mainly duringthe July-October monsoon season; of this area, 20,000 ha (including 8,000 haof flooded land which is virtually out of production) has water tables within2 m of the surface at the end of the monsoon season.

(e) limited areas (about 7% of the project area) of salineand alkali soils requiring reclamation, the acknowledgedfirst step of which would be improved drainage.

4. Agricultural production has also been constrained by:

- lack of coordinated agriculture and irrigation planningon a crop/season/area basis;

- poorly trained and badly organized agricultural exten-sion staff;

- inadequate credit facilities, and

- shortage of inputs (fertilizer, improved seeds) atfarm level.

5. There is also a continuing loss of agricultural land due toprogressive gully erosion. This is mainly along the periphery of theproject area adjacent to the Chambal River and its main tributaries.

Project Formulation

6. The Government of Madhya Pradesh (GOM) has prepared a long-termprogram to correct the irrigation system and the on-farm land developmentdeficiencies identified above. The present project, which would constitutethe first three years of this program, would concentrate on: priority in-frastructural works (irrigation, drainage and roads); coordinated projectservices (extension, research, and operation and maintenance), and twocategories of on-farm development. The scope of the possible infrastruc-tural works program is constrained by GOM State Budget resources, whileon-farm development is restricted by the present small planning and execu-tion capacity.

7. Irrigation and Ma_.n Drainage and Road works (described in PartsB and D below) for which Government works agencies are already partly inplace, would be constructed rapidly from the outset of the project. On-Farm Development Full Package works (described in part C below) would beconstructed with GOM budget funds. On completion of each chak development,the cost would be financed by institutional credit (Land Development Banks,

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Commercial Banks, both refinanced by Agricultural Refinance Corporation).Thus projected on-farm developmnent would not be constrained by State budgetlimitations. The necessary organization to plan and execute this work wouldhave to be built up from the present small size to a level at Year Three whichwould permit larger scale implementation in a second stage project. Theproject would also provide for feasibility studies for a second stage proj-ect, assistance in operation and maintenance (Annex 9) and agriculturalsupporting services (Annex 8).

B. Irrigation, Main Drainage and Erosion Control

8. The following system improvement works are included in the proj-ect: (a) RMC erosion protecticn, including lining; (b) canal capacityimprovement; (c) canal control structures; (d) aquatic weed control; (e)main drainage; (f) miscellaneous works. These are described below.

RMC Erosion Control and Lining Works

9. During its early years of operation, the RMC suffered a serifs ofserious breaches culminating in the 1970 Pathak Enquiry Committee recom.menda-tions for bank strengthening, selective lining and provision of facilitiesfor improved operational supervision. These remedial works are now par-tially completed and have significantly reduced the danger of breaching.They would be completed under the project. For complete assurance, an ex-tended program is required. ThLs is fully justified because major breacheshave caused total annual production losses on over 20,000 ha. The projectwould, therefore, include the following high priority works: gunite cementmortar lining of 3.62 km of RMC where its bed penetrates the permeableweathered rock formation; concrete lining of 0.37 km of RMC and Lower MainCanal (LMC) where they pass through soluble alkaline soils; a total of3.66 km of masonry lining upstream and downstream of 19 large cross drain-age structures (aqueducts carryJ:ng RMC across streams and gullies) wherethe existing seepage poses a serious danger to canal bank stability andlengthening of the barrels of two large drainage culverts passing under RMCto facilitate essential canal bank strengthening.

10. Canal lining would be mostly 20 cm thick masonry set in cementmortar. It is locally proven as efficient and is low-cost because largestockpiles of rock from previous canal excavation are available along thePIC. It is suitable for speedy construction, a vital factor since themaximum permissible canal closure in April-May is six weeks. 'Ihere plain1:3:6 concrete lining is utilized, it would be 15 cm thick. Both typesof lining would be formed on sand filter layers and provided with upliftrelief. Gunite lining on rocky bed reaches would be machine-applied to afinal 2.5 cm thickness. Canal reaches to be lined are listed in Table 2.

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11. Although these works are primarily intended to prevent canal bankerosion and breaches they would also reduce loss of valuable canal water.GOM in their request for IDA assistance had originally envisaged lining upto 380 km of main and secondary canals, in order to reduce water conveyancelosses - at a cost of over $19 million. There is insufficient evidence tosupport such a large investment. The quantity and points of occurrence ofcanal losses have not yet been specifically identified and the cost/benefitof remedial works cannot be established at present. Also implementation ofsuch a large program would involve lengthy canal closures with unacceptablelosses in crop production. The project would, however, include provisionfor systematic technical and cost-benefit studies to determine the extentof canal lining which could be justified in a second-stage project.

Canal Capacity Works

12. The main canal system was originally designed for a water duty of0.4 litres/ha commanded. Subsequently, with the reduction of the plannedirrigation service area from 280,000 ha to 224,000 ha the duty effectivelyincreased to 0.5 litres/ha. This is adequate to meet the water demand forthe projected, increased cropping intensity in the peak demand month (Feb-ruary). Fhe main canals have sufficient capacity to meet this demand.

13. The branch, distributary and minor canals serving the presentlyprojected on-farm development area would be increased in capacity to 0.651/s/ha to meet the planned cropping pattern. In addition, those canalsserving compact blocks of land already growing HYV wheat would also beincreased in capacity. In all, 300 km of canals would be widened anddeepened and their existing control structures correspondingly modified.carthvork would be un-ortaken tnroughout the dry (rabi) season by con-structing a new bank outside one of the existing banks to avoid supplyinterruption. Structural modifications would be completed during theannual canal closures.

14. Ccrtaia e.x.istian watercourses serving s-mall comimand areas arefed directly from the main canals. These would be raised to tuie standardof minor canals by bank strengthening to reduce present water loss throughiand over the banis. 'Under the present project, the ;ost urgently required100 km af these watercourses would be modified duritng a series of acceptable15-day closures timed to minimize conflict w£th crop demands of the particu-lar se!rvice areas. Canal capacity improvement works are shown on .ap 11507.

Control Structures

15. Present inadequate canal water control is due to the lack of:

- cross regulator structures to maintain head at thecanal offtakes when tne system is operating at lessthani full flow capacity;

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spillway structures to permit the canals to run atfull capacity over extended periods under varyingdrawoff conditions without the danger of overloadingparts of the system;

gated pipe outlets and tail control cluster structuresto control flow from minor canals to watercourses.

16. These inadequacies prevent water delivery to the individual serv-ice areas on the time-schedule required by the cropping pattern. The in-tensified cropping pattern now projected would require much closer watercontrol for effective delivery. The project would construct 44 crossregulators, 11 overflow escape st:ructures, 3,000 prefabricated pipe out-lets and 100 tail control structures;

17. Canal cross regulators and escapes would be of concrete andmasonry with vertical steel gates and would be constructed during the sixweeks annual canal closure. Materials would be stockpiled at site duringthe dry season. Offtakes would be of prefabricated concrete pipe withwooden gates and would be installed during 15 day closures throughout theyear.

Aquatic Weed Control

18. In certain sections of the RMC and LMC, the clearance of aquaticweeds requires canal closures during the operating season. The work in-volves hand cutting and uprooting of tenacious weeds growing below thecanal water level. The project would provide 22 additional drawoff struc-tures to facilitate rapid draining of the canal.

19. The most troublesome canal reaches are downstream of two exist-ing tanks (small reservoirs originally constructed for irrigation) whichact as breeding grounds for the weeds. To eliminate this source of trouble,the project would provide banks to separate the canals from the tanks. TheRIMC would be canalized through the Kalarna tank and the Bhind Canal throughone of the Kotwal tanks.

Main Drainage

20. As described in paragraph 3(d) of this Annex 70,000 ha of landin the project area suffers from poor drainage. An essential first stepin remedying this situation is the rehabilitation of existing naturalmain drainage channels together with the interception and diversion ofcanal seepage water into the natural main drainage system. Pilot schemescarried out by GOM have demonstrated the feasibility of these remedialworks.

21. Existing main drainage consists of streams and gullies traversingthe project area from the higher ground in the south to the Chambal River

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system in the north; these drainage channels are about 1 to 2 km apart.Due to lack of maintenance, they are overgrown. In places they follow tor-tuous courses with adverse flooding and land erosion consequences duringthe monsoon flow periods. The project would undertake the first stage ofa longer program to improve the hydraulic efficiency and stability of thesechannels by providing sections with sloping banks, masonry check drop struc-tures to reduce the flow velocity and realignment of tne meandering reaches.Some 200 km of channels and associated structures would be undertaken in the16 subbasins listed in Table 3. Design criteria are outlined in paragrapn 43of this Annex.

22. The project would also construct 560 km of small interceptor drainsparallel to branch and distributary canals mainly in the Bhind, Ambah andJora areas where canal seepage has resulted in waterlogging of adjacent farmland. These drains would be of 50-70 1/s capacity, about one meter deep withsloping sides and unlined. Small masonry fall structures would be providedat points where the drains join deeper, natural main drainage channels. See-page drain locations are shown on 'fap 11507.

Liscellaneous Works

23. Various high priority miscellaneous works aimed at improved canalmanagement would be constructed under the project. These include: build-ings for operating staff to be located at strategic control points; improve-ment of tne telecommunications system and its extension to cover a total of300 km of the RMC and LMC, including automatic water level recorders con-nected by wire telemetering to a central control room; all weather surfacingof 200 km of canalside roads together with 54 additional bridges to providerapid access to both banks of the IZIC and LMC.

Ravine Erosion Control

24. The Chambal area is renowned for its impressive ravines, in manycases 20-30 meters deep, connected to the Chambal River and its tributaries.Progressive gully type erosion moves upstream in these ravines annually,endangering canals and roads and causing loss of valuable farm land. TheGOM has embarked on a pilot program of ravine reclamation. This programinvolves heavy earthmoving at high cost and doubtful benefit/cost advantage.However, some form of economic, protective action is necessary. In orderto develop least cost methods for adoption on a large scale, the projectwould include pilot ravine erosion control aimed at interception of upstreamflood waters and stabilization of the gully floor and sides. These wouldcomprise earth embankments around the perimeter of the ravines with paralleldrains leading to drop structures to pass upstream flood water safely tothe gully floors. The project would also include afforestation and checkdrop structures inside the gullies. Some 50 km of works around the peri-meters would be included, the maximum extent which could be completed inthree years given the present small planning and implementation capacity.

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C. On-Farm Development Works

25. The Chambal irrigation system has been constructed down to thieturnout from the distributary canals to the watercourses which serveindividual irrigation service areas (chak), each about 30-40 ha in extent.Apart from watercourses serving about 130,000 ha, and drainage works for6,000 ha, both constructed by GOM, the on-farm works necessary for fullirrigation development withini the chaks have been left to the farmers.These works include both communally owned facilities and private landimprovement. They comprise watercourses, drainage ditches, farm accessroads, and, on uneven topography, field leveling to enable water distribu-tion. In many cases adjustment of property boundaries is necessary tofacilitate a rational channel layout. Generally these works have provedto be beyond the capacity of the farmers to plan, finance and carry out.Consequently, increases in agricultural production both from improved yieldsand from higher cropping intensity, which would have resulted from betterwater use, have not been achieved.

26. Two main categories of Dn-farm development have been identifiedfor inclusion in the project on tnie basis of priority needs of the respeztiveareas selected. These categories are: (a) chaks in which land levelingrequirements exceed 300 cubic meters per ha, (b) flat but badly drainedchaks with relatively impermeable underlying soils. Category (a) improve-ments include the full package of works necessary to utilize available waterfor optimal agricultural prodcuction increases on 12,000 ha of land; category(b) includes only the drainage improvement works which are a prerequisitefor furtiher development of 20,000 ha. Tne blend of the two categories inthe project was selected after co:asideration of the following objectives:

- to improve areas where land levelling and watercourseconstruction is beyond the capacity of the farmersand the scale of works is sufficiently large to warrantproject involvement;

- to demonstrate the beneEits of comprehensive on-farmdevelopment throughout -he project area;

- to develop additional planning criteria for a secondstage project,

- given GO'f's present s;-iaLl capacity for planning andexecutin g the full package type of on-farr, development,to limit project involver-.ent to those chaks which csuldbe fully completed in three years;

- to build up the organization necessary for completingon-farm land developmen: at the annual rate of 5 ,000-6,000 ha in succeeding project stages;

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- to provide urgently needed drainage facilities to theworst waterlogged land as quickly as possible, utilizingthe comparatively large existing works organization, and

to introduce more complete and uniform drainage planningcriteria from the outset.

27. The GOM has demonstrated the feasibility of both categories of landdevelopment on pilot schemes constructed between 1972-74. Full package on-farm development has been completed on 300 ha. Drainage treatment totalling6,000 ha has been carried out within four blocks of land at Baroda, Mangrol,Sabalgarh and Premsar.

Full Package (Category (a))

28. Development would be planned on a chak by chak basis. For thisto be effective, all farmers within the chak would have to participate.Prior to detailed planning, a careful selection of particular chaks wouldbe made on the basis of a participant census. The areas in which chakswould be selected for inclusion in the project are listed in Table 3. TheGOM has already selected sufficient chaks for the first year of the project.

29. The planning of each chak would be based on existing Land Revenuemaps suitably updated by the Revenue Department of the Command Area Author-ity (CAA). Present experience is that the Revenue maps are in fairly goodorder. Topographic detail would be superimposed from existing 1:15,840scale Survey of India maps with 30 cm contour intervals. Plane table surveyswould establish 10 cm contour intervals. Detailed soils survey data wouldbe collected and incorporated.

30. Based on these maps, the Soils Conservation subdivisions of theCAA Agricultural Department (Annex 7), strengthened by experienced engineersseconded from the Irrigation Department would draw up a comprehensive chakdevelopment plan. This plan would cover all necessary watercourses, drains,farm roads, land shaping and property boundary realignment required. TheRevenue Department of the CAA would be closely involved.

31. * In particular, boundary realignment proposals would be carefullyprepared to ensure an optimal solution embodying rational channel layout,minimum earthmoving and farmer acceptance. Present GOM experience is thatboundary realignments including land consolidation have been acceptable tothe farmers. This acceptance has probably been the result of judiciouschoice of chak and automatic compensation of land lost to channel and roadeasements by inclusion of wualienated State land (commonly about 5% - 8%of the area) in the chak development. As successive chaks have beencompleted, the benefits of on-farm development have become visible to agrowing number of farmers.

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_2. The detailed engineering design would include irrigation water-courses located on the micro-ridges and drains on the intervening lowerland, together with the necessary small brick-built water control structures.W-atercourses would have a capacity of 0.7 litres/ha and drainage channels1.1 litres/ha. All channels except the first 50 meters at the watercoursehe-ad would be unlined. Land leveling would be in conformity with the gen-cral topography. Fields would be rectangular, maximum 100 m length, withaccess to both watercourse and drain. They would be leveled to 0.2% slopeand cross leveled to form 15 m strips. In predominantly heavy soil paddycultivation areas, small level basins would be formed. Farmers would haveto construct any additional ditches and drains inside their own fields them-,-elves under technical guidance of the project.

33. Existing GOM layout designs-are rather rigid. They involve con-siderable earthmoving. Equivalent or better results could be obtained atlesser cost. Earthmoving equipment (bulldozers) available to the Agricul-tural Department are unsuitable for farm land leveling. GOM has agreed tosuitably modify their designs. A typical example of chak development com-pleted by GOM is shown on Map 11524.

34. After completion of detailed planning, an estimate would be pre-pared, broken down to show the costs of development to each individualfarmer. The costs of channels and roads would be proportionately sharedaccording to the size of each farmers' land holding. The cost of landlevelling to be borne by a farmer would be the cost of levelling hisoriginal holding.

35. Detailed plans and estimates for each chak would be submitted tothe District Land Improvement Committee and then to the cultivators forapproval. If two thirds of the latter (by number or area held) approvethe plans, the works would proceed after allowing 2-3 months for settlementof objections. Although powers of compulsion are vested in the CAA, it isnot anticipated that it would be necessary to invoke this authority fre-quently. If the majority of cultivators of any chak refused development,the chak would be postponed until later in the project. Present GOM ex-perience is that the contrary is t'he case and that cultivators, now ableto view the results so far obtained on completed chaks, are pressing forearly action. A recent census of 41 villages showed an 85% acceptanceof the On-Farm Development Full Package concept.

36. Once agreed, the works would be constructed by the Agro-IndustriesCorporation (AIC), a GOM agency, under the technical supervision of the CAAAgricultural Department Soil Conservation subdivisions. The project wouldprocure land levelling equipment suitable for the project. Title to theequipment would remain with GOM. On-Farm Development Full Package workwould be undertaken with existing GOM equipment during the first year ofthe project. Work would be carried out during the October through Maydcry period.

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37. On completion of the works on the chak to the satisfaction of theCAA, a completion certificate would be prepared for each farmer who wouldbe requested to countersign it. It would then form part of the farm devel-opment loan application document file. In due course, the farmer wouldreceive an amended land title from the Land Revenue Department of the CAAwho would also be responsible for revising the Land Revenue map showing allproperty boundaries.

Chak Drainage (Category (b))

38. The Chambal project area is relatively flat, generally sloping atabout 0.5% from south to north. Some chaks are underlain with relativelyimpermeable clay soils at about 2 m depth, which restrict downward percola-tion of water. Disposal of surplus surface water accumulated from monsoonrainfall, irrigation return flows and canal seepage poses a problem. Apartfrom the topographic and soil factors, contributory causes of waterloggingare an insufficient network of drainage channels and inadequate drainageculverts and bridge openings under roads, railways and canals. Naturaldrainage channels such as small streamcourses and gullies are overgrown withtypha grass. Perennial rivers are in fairly clear condition but are oftenseveral kilometers remote from the farmland. ,Smaller gullies have beencultivated over by farmers and are no longer operative as main drains.

39. In 1971/72, GOM began a pilot drainage improvement project in fourareas. This has benefitted about 6,000 ha of land and has been well receivedby the farmers. The project would continue this process to a further 20,000ha. In addition, the works would be planned to penetrate to farm level. TheChak Drainage works would be preceded by the main drainage works (para-graphs 20-22 of this Annex) which form part of the infrastructural improve-ment under the project. The Chak Drainage works would be undertaken in theworst affected areas within the sixteen subbasins listed in Table 3.

40. Chaks selected for the drainage development typically would beflat areas, requiring very little land levelling. Many of these areas aresuitable primarily for paddy cultivation due to their soils and topography.Their further development must be preceded by drainage improvement as afirst step. Farmers are only too aware of this and are anxious for drainageimprovement. After completion of chak drainage works, the areas would bemonitored for 2 to 3 years to ascertain whether an additional package ofon-farm development similar to that proposed in category (a) would yieldbenefits consistent with further investment--to be undertaken in a laterstage project.

41. The drainage layout would comprise chak drains to convey waterfrom the farm boundaries (small farms under 1 ha would he grouped together)to a collector drain which would, in turn, discharge at the nearest conven-ient point, to a natural drainage course already improved under the project.Collector drains would be spaced at 0.5 km maximum intervals and would belocated in the lowest land between chaks. A typical collector drain would

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serve up 12 chaks, i.e., about '500 ha, which would be formed into a drainageblock by low embankments. The particular layout to be adopted would beplanned according to the topography, soils and location of outfall into thenatural drainage courses. Farm drains from the fields to the chak drainswould be constructed by the farmers themselves on their own fields under thetechnical guidance of the project. In order to maintain water table duringthe paddy planting seasons, small check structures equipped with woodensluices would be located, as determined by topography in the chak drains.

42. At this stage of chak development, no boundary realignment wouldhave been completed. The GOM would therefore obtain the necessary channeleasements by compulsory acquisition. It would exercise its prerogative togrant unalienated State land in lieu of monetary compensation to affectedfarmers. Because the work would be commenced in the worst affected chaks,GOM believes, based on its previous experience, that farmers would be agree-able to any necessary boundary adjustments.

43. Drainage design standards have been derived from run-off studiesand are as follows: channel capacity in the first instance would be suf-ficient for a run-off of 1.1 1/s/ha resulting from a one-day, 130 mm stormwith an acceptable maximum crop submergence of 72 hours; drainage structuressuch as bridge openings, culverts and falls would be constructed to a capa-city of 2.2 1/s/ha to allow for future increase in crop drainage require-ments; large structures such as major spillways would be designed, on theirindividual merits, for acceptable risk. Channel dimensions would be: 1 mminimum depth (2 m for collector drains), 1:1 side slopes, 0.05% to 0.10%bed gradients.

44. Construction of collector and chak drains deeper than 1 m wouldbe by force account using small dragline excavators procured under theproject. Smaller drains and all structural work would be undertaken bylabor-intensive, small contracts. Machine excavation would continue through-out the year whereas hand excavation would be restricted to the October-Maydry period. The Irrigation Department would be responsible for surveys,engineering design and construction supervision. The Land Revenue Depart-ment would be responsible for the land acquisition/boundary adjustments.These Departments' work would be closely coordinated by the CAA and theDistrict-Land Improvement Committee would approve all plans (Annex 7).

.45. Chak drainage would be financed in the first instance from GOMState Budget. Because a chak dra:in would normally serve two chaks, thismini-block would have to be planned as a whole.

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D. Roads

Background

46. The command area is fairly well served by a main road networkcomprising part of the Agra-Bombay national highway and state highwayslinking most of the important towns and all the nine new markets underconstruction. The principal deficiency in the road system is the absenceof access roads to villages. The villages have populations ranging from500 to nearly 10,000 inhabitants with no links to the main roads exceptfor cart tracks which are regularly obliterated by monsoon rains.

47. The proposed road component is aimed at reducing the isolationsuffered by the villagers and contributing to the expansion of the villageeconomy mainly by enabling the villagers to obtain higher profits from thesale of their surplus by reducing transportation costs to the markets situ-ated in the towns. Easy access to the main roads and towns would also at-tract better education and health facilities.

48. The village roads proposed under this project total 206 km (Table4). Roads in waterlogged areas, have been given priority followed by thosein other irrigated areas. Most of the roads are around the towns of Sheopurand Gohad. Roads in the sugarcane areas near the Kailaras sugar factoryhave also been included. a

Preparation of the Road Program

49. The road surveys, including soils and materials surveys, finalengineering and documentation would be undertaken by the Public Works De-partment (PWD). The PWD is organized regionally and has responsibilityfor both roads and buildings. However, in order to ensure better coordina-tion with the Command Area Authority and improve the planning and executionof the roads program, the PWD has agreed to establish a separate Circle toundertake this work.

50. The PWD also agreed that the new Circle would have a PlanningDivision'to determine individual road priorities to enable construction tobe scheduled in that order. The Division would also be responsible for thepreparation of roads for possible inclusion in a future project and, for thispurpose, would undertake identification work and conduct necessary economicand technical feasibility studies.

51. The roads would have a single lane 3.5 m wide on a formation widthof 6.0 m and would not be bicuminized. They would generally have a gradedcrushed stone aggregate surface with murrum shoulders (murrum is a sandyclay soil with a fair amount of gravel). There are no major bridges on theroads. The geometric standards are generally those adopted for the villageroads by the Indian Roads Congress (Table 5) and they are satisfactory.

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Execution of the Road Program

512. Construction. Contractors would be employed to construct allroads with supervision carried out by the new PWD Circle. The work consistscf the construction of low cost roads for which labor intensive methodswould be more suitable and is scheduled for implementation over a periodof three years.

53. The general conditions of contract currently used in road con-struction contracts, however, are not satisfactory and require certainamendments to place the contractor in an equitable position in his contrac-tual relationship with the State Government. For example, there are noprovisions in the conditions of contract for third party arbitration andescalation of prices and the PWD has powers unilaterally to terminate aciDntract without compensation if flnds become scarce. The PWD has agreedto amend the general conditions in consultation with the Association.

54. Purchase of Equipment. lhe works would be carried out in smallcontracts worth about Rs 2.0 million each. The local contractors usuallyhire equipment from the PWD. The project would procure some essentialiltems of equipment to meet construction and supervision requirements andsubsequent road maintenance. The equipment consists mostly of locallyrntanufactured like trucks and road rollers.

E. Assistance to the GOI in Project Preparation for CommandArea Development Projects in Other Parts of India

5'. The project includes funds (for the Command Area Development (CAD)Department of the Ministry of Agriculture and Irrigation of GOI) to assistin project preparation of a number of CAD projects in other States of India.Over the next Five Year Period, a large number of irrigation projects, eachwith a CAD element, would be prepared for Bank Group financing under thecurrent operational program. This provision would help extend the necessarypilot land development projects to all the States participating in the CADprogram during the next three years.

56. Pilot land development projects would help identify the key eco-nomic and water use parameters governing the implementation of optimum on-farm development. Various levels of land development would be investigatedta, determine their respective costs and benefits and to check out organiza-tional, management and financing arrangements prior to the project's ap-praisal. The total cost of the CAD project preparation to be financed underthis tredit, including expected price increases, over the next three years,would be US$900,000.

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ANNEX 2Page 15

57. Project provision is also made for technical assistance to 0O0(Ministry of Agriculture, CAD Department) for employment of an internationally-recruited land development specialist for a period up to two years.

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ANNEX 2Table 1Page 1

INDIA

CHAMBAL COMMAND AREA DEVELOFKENT PROJECT (MADHYA FRADESH)

Project Works

Main Features of the Cham'Dal Irrigation Project

1. Reservoirs (Map 11501 )

(a) Ghandisagar Dam: 64 m high masonry structure; reservoir

storage 7,750 Vn3; reservoir water area at full operating

level 630 km2; power station capacity 119 14W.

(b) Rana Pratap Sagar Dani: 5b m high masonry structure;

reservoir storage 2,900 Mm3; installed power capacity 172 MW.

(c) JawaharSagar Dam: lt5 m high concrete gravity structure,

small storage in heacl pond of the 100 MW power installation.

(d) Kota diversion barrage: 20 m high concrete gravity structure

with steel gates.

2. Canal System (Map 11507 )

From Kota diversion barrage the Right Main Canal (RMC) passes

through Rajasthan State for 130 km. It then crosses over theParbati

River into Madhya Pradesh and continues for 179 km to a point near

Sabalgarh where it divides into the Lower Main Canal and the Ambah Branch

Canal. -The Lower Main Canal in turn serves the Morena Branch Canal and,

by way of the Asan drop and the Kotwal tank system, theBhind Main Canal.

The Bhind Canal also serves the Mau Branch Canal. The canal lengths and

irrigable areas served are as follows:

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ANNEX 2Table 1Page 2

NetReach Length of Canal Irrigable Area

(km) (ha)

Right Main Canal (RMC) (Upper Main Canal) 179 62,400

Ambah Branch Canal (ABC) 171 43,980

Lower Main Canal (LMC) 53 21,560

Morena Branch Canal (MBC) 38 21,400

Subtotal 441 149,340

Bhind Main Canal 82 51,800

Mau Branch Canal X 22,860

Subtotal 130 74,660

Total: Main and Branch Canals 7L 224.000

The total legth of' the Chambal Canal system is (km):

Main and Branch Canals 571

Major distributary canals 538

Lesser distributary canalsand minors 2,082

3>191

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ANNEX 2Table 2

INDIA

CHAMBAL COMMAND AREA EEVELOPMENT PROJECT (MADHYA PRADESH)

Pro.ject Works

Canal Lining

1. Canal Lining of Rocky bed reaches and soluble salt soil reachesLocation

Canal Chainage of Reach length of Lining Type of Lining

A. Right Main Canal (RMC)(rocky bed reaches) 1,874 790 Gunite-Cement

2,286 490 Gunite-Cement2,315 1,130 Gunite-Cement4,895 1,210 Gunite-Cement

Subtotal 3,620

B. Lower Main Canal (LMC)(soluble salt soil reaches, 461 370 Concrete

Total Lining of rocky bed reaches andsoluble salt reaches 3.99 km

2. Lining upstream and downstream of Cross Drainage (CD) Structures

Name of Structure Location Length of Lining(Chainage) (m)

A. RMC

1. Parbati. 39 3002. Aheli 306 1803. Ratdi 366 1904. Syphon 576 305. Syphon 586 306. Syphon 820 507. Seep Aqueduct 1,977 2108. Amral 2,200 1209. Sarari Syphon 2,607 17010. Dhatoni Aqueduct 2,799 30011. Dohi Aqueduct 3,392 16012. Papra Aqueduct 4,462 6013. Birfin Aqueduct 4,486 7014. Kemara Aqueduct 4,790 1,52015. Jawahagarh Aquediuct 5,053 30

Subtotal 3,420

B. _IC

1. Kunwari Aqueduc1; 567 1502. Suean Aqueduct 802 303. Kotsirthra Aquecduct 1,OL1 304. Sukhdeni 1,244 30

Subtotal 240

Total lining upstream and downstream of CD Structures 3.66 km

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ANNEX 2Table 3

INDIA

CHAMBAL COMMAND AREA DEVELOPMENT FROJECT (MADHYA PRADESH)

Project Works

On-Farm Development and Chak Drainage

Categoxy (a): Full Package Intensive Development Areas

Name Irrigable Area (ha)

1. Sheopur-Premsar 3,0002. Sabalgarh-Kailaras 1,8753. Jora 7504. Bhind-Morena 4,8755. Ambah 1,500

12 * 00

Category (b): Drainage Areas

Drainage Subbasin Area to be Drained (ha)

1. Rajpurna 1,8002. Baroda 1,6203. Hirnikhira 8004. Premsar 1,8005. Gohera 6306. Mangrol 9607. Sabalgarh 9008. Semai 1,0009. Jora I 1,26010. Jora II 58011. Rethora I 54012. Rethora II 1,54013. Anchaya 50014. Kharwa 2,50015. Chitora 50016. Chirol 3,070

Total area to be drained: 20,000

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AiNNEX 2Table 4

INDIA

CHAMBAL COMMAND AREA DEVELOPMEIWT PROJECT (MADHYA PRADESH)

List of Village Roads

Morena District Length (km)

A. Waterlogged Areas

1. Sheopur - Baroda Road to Makravad 9.02. Sheopur - Baroda Road to Indarpura 9.03. Sheopur - Baroda Road to Barodiyabindi 6.04. Sheopur - Baroda Road to Ba,iarlee 11.05. Sheopur - Baroda Road to Raclhapura 3.56. Sheopur - Baroda Road to Jublad 5.57. Sheopur - Khatoli Road to Gtiheda 7.08. Sheopur - Khatoli Road to Kilo 6.09. Sheopur - Khatoli Road to Nimoda 2.010. Road 4 above to Hirnikheda 7.011. Morena - Sabalgarh Road to Farsota 7.012. Kailaras - Pahargarh Road to Damajar 11.0

Subtotal 84.0

B. Other Irrigated Areas

1. Morena - Sabalgarh Road to C;hachiha 4.52. Morena - Sabalgarh Road to J-mdpura 7.03. Sheopur - Khatoli Road to Kishorpura 3.04. Sabalgarh - Atar Road to Raghukagaon 8f5

Subtotal 23.0Total for Morena Distriact 107.0

Bhind District

A. Waterlogged Areas

1. Gohad - Mau Road to Itayanda 10.52. Gohad - Mau Road to Madroli 7.53. Gohad - Mau Road to Baghora 3.04. Gohad - Mau Road to Banipura 2.05. Gohad - Mau Road to Enchaya 8.06. Jahawal pura to Kathwa Hazi Road 3.07. Gohad - Mau Road to Dhamsa 12.58. Kharauwa to Khitoli 12.59. Gwalior - Biind Road to Gurikha 2.0

10. Road 1 above to Girgaon 5.0Subtotal 66.0

B. Other Irrigated Areas

1. Ambah - Mehgaon Road to iKripexcapura 8.02. Barahead to Barona 7.03. Gwalior - Bhind Road to Endori 8.04. Gwalior - Bhind Road to Raikipali 10.0

Subtotal 33.0Total for Bhind District 99.0Total Village Roads 206.0

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ANNEX 2Table 5

INDIA

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Design Standards for Village Roads

Design speed 40 km/h

Pavement width 3.5 m

Shoulder width 1.25 m

Formation width 6.00 m

Right of Way 12.00 m

Stopping sight distance 50 m

Passing sight distance 130 m

Maximum super elevation 6.7%

Minimum horizontal radius 70 m

Source: Indian Roads Congress/State PWD/Mission

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ANNEX 3Page 1

INDIA

CHAMBAL COThIAND AREA DEVELOPMENT PROJECT (MADIIYA PRADESH)

Water Supply, Demand and Quality

Water Supply

1. The main sources of water for crop production in the project areaare rainfall and the regulated flow of the Chambal River, delivered throughthe Right Main Canal (RMC) and lower Main Canal (ULC). Groundwater fromshallow wells is largely used for domestic purposes. Electric-poweredshallow tubewells have been developed only since 1970; their contributionto the water supply is, as yet, small. There are, however, prospects fordeep groundwater development in the area.

2. The Chambal project in Rajasthan and Madhya Pradesh (MP) States isthe only major withdrawal use from the Chambal river. Two storage dams(Ghandisagar and Rana Pratap Sagar), a power pondage (Jawahar Sagar) and adiversion barrage (Kota) provide a high degree of flow regulation. Detailsof the storage and conveyance systems are included in Annex 2. Operationalstudies of the Chambal system est:imate the tstal annual surface water supplyavailable in 88% of the years to be 3,900 Mm ; Chambal (MP) share is onehalf. The GOI Central Water Comm'ssion (CWC) is continuously updating andrefining its hydrological knowledge of the Chambal basin and plans to conductadditional water supply optimisation studies. Existing knowledge isadequate to establish the feasibility of the project.

3. From 1969 to 1974, the t:op operating level of the major storagedlam at Ghandisagar was restricted to 425.8m (5m below design level) toprovide a flood cushion against overloading of the spillway. This reducedt:he utilisable storage available but water supplies to the Chambal MadhyaPradesh Project, were not seriously affected. During 1970-73 the annualwater quantities delivered to the RMC head were 1,800Mm3, 2,070Mm3 and1,940Mm3, respectively. An improved flood prediction system is now beinginstalled in the Chambal River catchment area which will allow precautionarydrawdown of the reservoir level ahead of advancing flood arrival. This willgradually permit restoration of the design operating level.

4. In the absence of definite plans to augment the supply of water tothe system, the project cropping pattern (Annex 10) is designed to utilizethe available supply with regard to constraints on delivery rates, timingand to farm-related factors.

5. There are four constraints on the water supply which affect thechoice of cropping pattern:

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ANNEX 3Page 2

(a) the total annual supply will normally be 1,950Mm3;

(b) the miximum delivery in any month should not exceed310Mm , which allows for 10% surcharge of the maincanal design capacity and is the current operationalmaximum;

(c) at present, until alternative energy sources aredeveloped, about 33% of the annual supply must betaken between July-October due to hydroelectric powergeneration requirements, and

(d) the canal system is closed for annual maintenance (andfor capital improvement works envisaged under theproject) during a 6-weeks period in April-May.

6. Beginning in 1970, GOM planned construction of 1,350 shallow tube-wells in Morena and Bhind Districts. Some 260 wells were constructed by1974 of which 164 were in service. Because the average area irrigated by awell is only about 10 ha, the present groundwater contribution to the projectwater supply is insignificant. GOM, on broad-based 3recharge assumptions, hascurrently defined the aquifer's safe yield as.120Mm . This is probably a verylarge underestimate of the groundwater potential since the aquifer is re-charged by both rainfall and deep percolation from irrigation. The projectwould include assistance in deep groundwater investigation. This would helpplan groundwater development with the twin objectives of increasing irrigationintensity in the project areas and extending service beyond the boundariesof the present 224,000 ha area.

Water Demand

7. Table 1 shows estimated present and future system efficiencies.The projected efficiencies are conservative estimates, sufficient to supportthe estimates of water-balance made for the project. They would be refinedby additional systematic measurements throughout the system as part of thefeasibility studies, which would be undertaken by the project. The presentlow efficiency (21%) results partly from seepage losses along the canalsand watercourses, the lack of adequate control structures in the canalsystem and the lack of rotational irrigation and inadequate operatingprocedures. In the future, higher efficiencies are expected in the On-FarmDevelopment Full Package area die to better control of water application,higher field efficiencies after land shaping, and the enforcement otrotational irrigation through cooperative water use (warabandi). Thewhole project area would benefit from some lining, and better management ofthe main canal system and the introduction of rotational irrigation. Anoverall efficiency of 31% is foreseen as a result of the project, assumingwatercourses are unlined but well maintained.

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ANNEX 3Page 3

8. Table 2 shows the detailed monthly water requirements in theon-farm development area, assuming 80% field efficiency, and Table 3 showsthe monthly irrigation and diversion requirements of the whole project area.Average rainfall is taken from Annex 1, Table 1, and a factor varyingbetween 60% and 75% has been used to estimate the effective rainfall (i.e.,the moisture retained in the soil). Crop consunptive use has beenestimated from the Blaney-Criddle formula with appropriate crop coeffi-cients, and is comparable with regional parameters.

9. The effects of residual moisture are difficult to quantify.Clearly since some crops can be grown in the winter season without irriga-tion, residual moisture is important. The estimates of its magnitudeare based on the known soils properties in the area and on judgment inconsultation with local agronomists. For most crops, a pre-sowing irriga-tion has been assumed, and application of 300 mm of water has been allowedfor paddy to account for the needs of land preparation and the nurserystage.

10. Table 3 shows the total diversion requirements, by month, forthe whole project area. Projected full development demand would be1,500Mm3. The total annual demand is 23% below the available supply, butthe demand in February is above the design maximum delivery rate for thecanal, though within the operational maximum. This therefore limits thepotential for more intensive irrigation in the winter. Most of the excesswater is available in the summer, and future increases in the irrigationintensity (until such time as irrigation efficiency is increased due tobetter conveyance and the spread of on-farm development throughout theproject area) must be in this season, mainly by increased cultivation ofpaddy. If the whole area were developed to the level of the On-FaDevelopment Full Package area, the annual demand would be 1,860 Mm .

Water Quality

11. Studies on water quality are being undertaken under the IndianCouncil for Agricultural Research (ICAR) program. Although only a fewsamples have been taken, the quality of the water seems high, with totaldissolved solids less than 250mg/l, and a sodium-absorption ratio of lessthan 3. Salinity problems in the area have been caused by the upwardleaching of salts from the soil profile but less than 7% of the projectarea is estimated to be adversely affected. Improvements in the drainagesystem and standards of water application would gradually solve theseproblems. Only preliminary measurements have been made of the quality ofreturn flows to the Chambal River, but no problems with downstream usershave been identified. Under the project, continuing studies would be madein the chemical composition of the applied irrigation water, return Slowsand soil profile.

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ANNEX 3Table 1

INDIA

C?R,WBAL C01IMIAND AREA DEVELOPMENT PROJECT

(MADHYA PRADESH)

Water Supply Demand and Quality

Efficiencies

FuturePresent On-Farm ChakOverall Develop. Drainage Extensive Overall

Area Area Area

Field Efficiency 65 80 65 65

Conveyance Efficiency

-water courses 65 80 70 70

- canal / $0 75 75 65

Total (rounded) 21 48 34 30 31

1/ Canal efficiency from Kota diversion to the outlet to thewatercourse

Note: On-Farn Develonment (Full Package) Area is 12,000 ha

(Chak) Drainage Area it tl it 20,000 ha

Extensive Area " " " 192,000 ha

Total Project Area 224,000 ha

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ANNEX 3INDIA Table 2

21060141. 2101021720 AREA4 XEV4IOD7FHET PROJECT (WIRIEaA PRtDESO)

water DemandO-a' cuiW

(Avera ge Yea)lint Jevuory February Apr10 lure July No. Tot.,) or~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~N. .,

Crop it e m ,--y Pbuq _H Ap r c hI _-l August Irere ber October November December irr. 'i..oraa

A verAge ra-ifall 14 5 6 11 5 53 243 305 150 27 3 6 828

Affective r_mfoll -. - - - - 70 70 60 7D 63(--lmdW d)- =. 37 170 183 105 27 _ 522

__---------------------------------------- _ -- _--__--------_----- --------- K H A R I F S E A S O N --------------------------------------------- _----------_-_ ---------------- -------- ___-__-_______--____-_______ -___ -

Psddy Aro '000 hb 1.5 2.9 2.9 2.9 2.9

Cnvsuepttte Ass = 175(3/4) 180 173 150 630

Eff Rate 45 170 183 105 25Relcoicoti ~~~~~~~ ~~~~~~~ ~~~~~ ~ ~~~~~~~ ~~~~~~~~~~~~~~~~~~250 1/ 150 .2/ 75 2/ 200 gi 125

irratgiton Reqttrement Hm3 3.8 4I 2.2 5.8 3.6 19.8

Aai- (IIYY) Area '000 hA 0.2 1.1 1.1 1.1 1.1Eooumpci- Use 85 10143 8 45

Off. Oslo 37 170 I03 140 ^5 19

Irrlgellon Nequitoe=ee Rmt3 125 125 2bmI 0.25 1.4 1.6

Sno--t Ar.e '000 he 0. 04 0.06 0.09 8.11 0.11 0.11 0.11 O0.11 0.11 0.11 0.11 0.06Cnrautvptive lint mm ~~~ ~~~ ~~~ ~~~~ ~~50 50 SE 120 20 35 10 140 1 55 160 110 800

Eff. Raio em 37 170 183 105 19

ItrrgAfluc Oequiroemet Rmei 50 75 75 150 275 050 7S 72 125 it5 150 11

im? .Un 0.04 0.07 0.16 0.3 0,27 0.08 0.8 0.16 0.16 0.1 2.2

Sub-Tntol urea ' h.O be 1.04 0.06 3.09 0.11 0.11 1.8 4.1 4.1 4.1 4.1 0.1 .06o Ta rtrlgotmnn Oequiceneut bSnl 0.02 0.04 0.07 0.16 0.3 4.32 4.48 2.2 7.28 3.76 0.16 0.1

----------- -------------- _ ---- ---------- -------------------- ---------- R-A---I-----A---0RNA-B---------------------------- ------------------------------ ------ ----------------------- ------------------------------

Alicat (tYY) urea. '000 ho 4.9 4.9 4.9 08.i5 2.5 4.9 4.9Annso'iiptave Toe mm 05 ~~~ ~~~~ ~~~~~~~~~~~~~95 180 100(I12) 28 40 iS

Ecaldual Neistuto =ou 50, 100 70

TnvAgatiea Oequineoeav Ret 400 100 100 75 SO1

50s 100 6 575hm3 4.9 4.9 4.9 I.9 1.25 2.5 4.9 25.25

lmeai (I.-v) uAee 00 .b 0. 7 0.7 0.7j 0.4 0.4 0.7 0. 7-) nsuptine Ure Lm 70 90 05(/ 20(1/2) SO h0 10

Residual Mnolature mm 70 100 1s

trlg- tli- REequircl-eu- e3

100 125 501 50 50 4

Mmv 0.7 0.8 0.2 0.35 0.35 2.4

hatard Aea. '000 ha 1.1 1.1 6 .7 1.1 1.1

Cn--umptive UOa Rm 65 75 50(3/4) 44 52 55 30

Residual Witture t 50 50 50 50Irrigation RequirR ent mm 75 75 100 71 4

lU3

0.82 0.82 1.1 0.82 3.56

i Amt Area '000 h 1.7 1.7 1.7 1.7 1.1.rEonauuuptive Ose rm 45 70 85 30 30 260

Reelduol Moitscure imm 017Irrlgatio R equlreaent = 100 10D. 75 3

iNi3

1.7 1.7 1.3 4 7

Sub-T-l Aurea 000 hb 8.4 8.4 7.9 2.9 3.6 8.4 8.4T-rrigulon Requiremenit M

36.42 8.22 4.9 1.9 3.15 3.95 7.37

Total Area 00 ha 8.44 8,46 7. 99 .01 .11 1.8 4.1 4.1 4 .1 .7 8.5 8.16rlgAtioun Requiremee. We 6.44 8.16 4.97 2.06 .3 4.32 4.48 2.2 7.28 6.9i 4.21 7.47 58.0

orveratu>n Eequineoeut ML?3

7onvth 10.0 13.8 B.3 3.4 .5 7.2 7.5 3.7 12.1 11.5 6.8 12.4 97.9am /a 4.2 5.5 3.3 1.3 .2 2.9 2.9 .5 4.7 4.6 2.7 4.9 3.2

l(tS/ctnppad he 0.5 0.45 0.41 0.43 1.82 1.6 0.71 . 37 1.15 0.6 4.32 0.58 0.17

1/e/-neeavded hi 0.38 0.46 0.28 0.11 .02 0.24 0.24 0.12 0.4 0.38 0.23 0.41 0.27

1/ Pre-Ir-igacuor. 2/ N_isal a-voonto Eo. count fur prolonged dry p-riods.

(a) Icrigation -cq.irnncut. Inc-lAdn allua..e fur 807 fltld efficlency mod utilize soils field cepacitY to pronide -rviduo1 aoiature vs lanyc.

(b) Djucat o requlreeet=icnfgarioo ecuireoerruxncrhined ef irucy oa terroiree and cot -1 sysCem.

7c) rlguree shotr are cepeoenra-1ive cur ohs aevera 1 lil typEe a-d -nditlo- fonnd. io thc ieu blocks uf lend olecatd fur On-F57m D-ttlepront Full P.cbOCg -reot-cot in the praje-t.

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INDIA

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Water Supply Demand and Quality

Summary of Water Requirements

January February March April May June July August September October November December Total.

-------------------------------------------------Mm3---------------------------------------------------m3 /ha command.per yr

1. Water Requirementsat outlet to the field

Extensive Area 14.0 120.1 90.0 33.9 9.0 36.8 25.2 11.4 35.7 46.7 27.0 114 564 2,940

Chak Drainage Area 0.9 11.9 8.5 4.0 0.8 11.3 8.7 4.3 12.4 7.7 5.8 8.6 85 4,240

On-Farm Development Full 6.4 8.3 5.0 2.1 0.3 4.3 4.5 2.2 7.3 6.9 4.1 7.5 59 4,900

Package Area1/

2. Diversion Requirements

Extensive Area 30.8 264 197.8 75.5 19.8 80.9 55.4 25.1 78.5 102.6 *59.3 250.5 1,240 6,450

Chak Drainage Area 1.7 22.7 16.2 7.6 1.5 21.5 16.6 8.2 23.6 14.7 11.0 16.4 160 8,200

On-Farm Development Full 10.7 13.8 8.3 3.4 0.5 7.2 7.5 3.7 12.2 11.5 6.8 12.4 100 8,300

Package Area

Total 43.2 300.5 222.3 86.5 21.8 109.6 79.5 37.0 114.3 128.8 77.1 279.3 1,500 2/ 6,700

I/ 3Equivalent flow rate (m' /sec) 16.7 116.0 85.7 33.4 8.4 42.3 31.1 14.3 44.4 49.7 29.7 107.7

Fs >

1/ At Kota diversion: See Table 1 for efficiencies

2/ Rounded

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ANNEX 4Table 1

INDIA

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Ccst Estimates

ForeignExchange

Item No. Item Local Foreign Total Local Foreign Total %Rs Million------ ------US Million ---

1 Irrigation and MainDrainage (Table 2) 76.1 19.1 95.2 9.51 2.39 11.90 20

Chak Drainage Area 23.1 5.7 28.8 2.89 0.72 3.61 20

2 On-Farm DevelopmentFull Package Area (Table 3) 14.4 7.7 22.1 1.80 0.96 2.76 35

3 Roads (Table 4) 35.6 8.9 44.5 4.45 1.11 5.56 20

4 Ravine Erosion Control 2.2 1.0 3.2 0.27 0.13 o.40 32

5 Supplementary Fertilizer 0.2 4.6 4.8 0.03 0.57 0.60 95

Subtotal 151.6 47.0 198.6 18.95 5.88 24.83 24

Physical Contingencies * 12.4 4.1 16.5 1.55 0.51 2.06 25

Subtotal 164.0 51.1 215.1 20.50 6.39 26.89 24

Estimated Price Increases 68.0 17.0 85.0 8.50 2.12 10.62 20

Subtotal 232.0 68.1 300.1 29.00 8.51 37.51

6 Project Administration andoperating costs during3 years Implementationand Stage II project pre- 15.5 4.2 49.7 5.69 0.53 6,22 9paration (Table 5)

7 Technical Assistance to GOIfor CAD Project Preparation 3.9 2.6 6.5 0.48 0.32 0.80 40

Estimated Price Increases 13.9 2.9 16.8 1.74 0.36 2.10 17

Subtotal 63.3 9.7 73.0 7.91 1.21 9.12

Total Project Cost 295.3 77.8 373.1 36.91 9.72 46.63 21

1/ Engineering, administration and equipment costs are included in Items 1, 2, 3,and 4.

2/ Indian Rupeea 8.00 = US$1.00.

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AI:LNEX 4Table 2Page 1

I'DIACIT~~__

CUANBA.7 C( I A- i`TA) FAREE0A \ FT PROJECT (IIDHYA IPADE:SE

Cost Estimates

Irrigation and Main Drainage

I-e.. Qua 1 tzt Unit Rate Total Cost

(Rs) (Rs rillion)Coi-irxletion of rEc Erosion Protection

Work 7

Earth .cork 300,000 m3 4 1.iRoa.d surfacing 20 km 10,000 0

I'asonary 1ilning 120,000 m 2 32 3.8

Strengthening cross drainage(CD)

structu,res Lo 2.0

Sub tctal 7.

Additional Z1IC Protection Works

Gumite Lininig rocky reaches 130,000 m'

Concrete lining, earthl reaches 1-3,000 0.7M4asonry lining at CD struPtiires 176,000 m2 32 5.7Lengthening CD structures 2 LS 4.7

Subtotal

Tonal Capacitv Works

Ninors and distributaries(4(00 km) 3,650,000 a 3 h T3.6

'anal Control Wor,k.s

:,ross regulators 44 LS

Escapes ll LS 3.4

Pipe outlets 3,000 LS

Tail control structures 100 LS 0. 2

Subtota?

Quatic WIeed Control

T C Canalization at Kalarna tank 40,000 a3 10 0.4

.EEC and ELC draw-off outlets 22 AS 0.9

3hind canalization of K,otwal tank 160,000 m3 10 1.6

Subtota 7 2.9

1/ Completion of the ongoing progran instituted following findings of Pathak Comnitte

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Page 2

IPIDIA

CIHAMABL COPIMAND AREA DEVELOPENT PROJECT (MAD1.YA PRADESH)

It;em Quantity Unit Rate Total Cost(Rs) (Ts million)

,-,ain Drainage Works

ITmprovement of natural gullies 200 km 24I,000 4.8Seepage interceptor drains 560 km 11,000 6.2

Subtotal 11.0

liiscellaneous 'Works

Buildings for 0 and M staff LS 2.'Telecommunications system LS 2.3Service roads 200 EMm 4.9Access bridges 5, LS 1.6

Subtotal 11.6Total 75. 7

Contingencies 10 7.7EJngineering and Administration ) 15.3Special groundwater studies ) - LS 3.2

Subtotal 772

Total Cost of Irrigation and MainIrap.iage 102.9

7/ Includes engineering studies estimated to cost anoroximately Rs 3 million andsoecial groundwater studies; both these studies are required for the prepara-tion of second stage CAD project in the Chambal (MP) Command. All otherpreparation work would not require budgetary allocations financed under thisproject.

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;'64-lF,X 4Tab' e

IlIDIA

CHA1r3AL CO612ANID AREA DEVELCJP1-IZ TROJEC_ (MAADHIA FMDESL)

Cost Estimates

On-Farm Development Cost Total Cost

Item- ---- ----(Rs million)---

(a) Full Package Area (12,000 ha)

Irrigation system 230Drainage systerm 200Land' shaping 975

Subtotal 1,405

Physical Contingencies - 15', 211

Engineering and Administration - 20•J 281

Crop Compensation 150

Total 2,0h7

Total Rounded 2,050 2

(b) Chak Drainage Area (20,000 ha)

Secondary and Tertiary Drainage 1,200

Physical Contingencies - 10% 120

Engineering and Administration - 201"v 21X0

Total L,6 31.2

(c) Supplementary Fertilizer (for 6,000 ha for2 years) 300 _

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AENEX 4Table 4

INDIA

CIAIIBAL COEIAMID AREA DEUELOPMENT PIOJECT (MADETYA PRADESH)

COst Estimates

Roads

Item Quantity Unit Rate Total Cost /(i7) (Rs million)

1. Construction of Village Roads

i) Iorena District

(a) Waterlogged areas 84.0 164,000 13.8(b) Other Irrigated areas 23.0 czi 158,000 3.7

ii) Bhind District

(a) Waterlogged areas 66.0 km 167,000 11.1(b) Other Irrigated areas ,33.0 km 162,000 5.4

Subtotal 206.0 km 34.0

2. Procurenent of Equipment 2/5.7

3. Engineering and Administration (4W) 1.8

4. Land Acquisition LS 3.0

5. Physical Contingencies (10% of 1)

Total Cost: Roads 47*S

1/ Rounded

2/ Eor project supervision and hire to contractors.

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Tiable 5il:2DrA

NIA>iLCO2DAR~L!~DETEOITITh2_ROjECT (KADJI -A PIEL p-)

Goat Estimates

Project Administration and Operating Costs

Total CostAnn;Y.a- ost at Ihirinr iYroAe1;

I+er dIf Develo½r.:-ert In emertatio- Period 3 yrs)-- '.s illicr ---------

Conlnapd Area A~thorit r 0.2

2. Tech-nical Assistance andlTraining _ 1.31/2/

3. Operation an. lainte-i-anceIrrication and Drainage 10.c 26.5Road,s 0.7 O. 3

L Extension and lesearch l/

Re search 0.6 3.1Extersion j.r 17.7

Total: Annual Cost atFul1 Development 17.8.

Total: Project Administration and Operating Costs 51.0

(1975-77)

1/ Includes all buildings, equipment, operating costs, staff salaries and

labor wages.

2/ Includes provision to GOI of a land development specialist for a period

of un to two years.

3/ Iaintenance of roads constructed under the project commences only in

Year Two, and reaches its full annual cost in Year Four, of the project.Does not include equipment which is included in capital cost estimates (Annex h,

Table 4).

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ANNEX 5

INDIA

CHAMBAL COMMAND AREA D)EVELOPMENT (MADHYA PRADESH)

Equipment Requirements

Project YearItems

ItemS 1 2 3 Total 1!------ US$ million------------------

Irrigation and Drainage 1.5 0.5 - 2.0Equipment (Table 1)

On Farm Development 0.4 0.4 - 0.8Equipment (Table 2)

Road Equipment (Table 3) 0.5 0.2 - 0.7

Ravine Erosion 0.1 - - 0.1Control Equipment (Table 4)

Project Administration 0.2 - - 0.2Equipment (Table 4)

2.7 I.1 3.8

Expected Price (33) (45)Increases (%)

.9 .5 1.4

Total 3.6 1.6 = US$ 5.2 million

of which, foreign exchange (57%)= US$ 3.0 million

1/ Indian Rupees 8.00 = US$1.00. Due to rounding off figures may not exactlytally with conversions from Rupee costs shown in Tables 1-4.

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ANi.EX <Table 1

TITLIA

2HANBAL COMMAN;D AREA DEVELOPMENT PROJECT (ADIIHYA PRADESH)

Equipment, List: Irrigation anrd Drainagei/

Item Quantity Unit Price >otal Method of- Rs '000 ----- Procurement

1. Project Management 2/

Car 1 35 3 RPStation Wagon 2 50 100 RPField vehicle 30 35 1,050 RPMotor cycles 60 6 360 LCBSubtotal

2. Construction:

(a) Irrigation

Concrete mixer 12 14 168 LCBVibrator 20 3 60 LCBGunite equipment 3 60 180 LOBWinch - 5 ton 3 5 15 LCBPump -10 hp 10 9 90 LCBPump- 5 hp 16 5 80 LCBRollers/compactors 16 20 320 LCBSurvey equipment LS 200 LOBOffice equipment LS 100 LCBTow boy transporter 1 44° 4Lo ICBMobile crane 1 220 220 IOBCompressor - 100 1/s 10 55 550 LUBPortable generator - 15 kw 10 22 220 LCBTrucks - 10 ton 20 100 2,000 RPTractor with trailer 20 70 1,400 LCBBulldozer - 90 hp 3 300 900 ICBDiesel tanker trucks 2 100 200 RPWater tanker trucks 2 120 360 RPWorkshop equipment LS 300 LCB

Subtotal 7,803

(b) Drainage 3/

Dragline excavator 3/h m3 5 520 2,600 ICBDragline excavator 3/8 m3 5 320 1,600 ICBPump - 10 hp 16 9 144 LCBPump - 5 hp 16 5 80 LCB

Subtotal h,h2h

Spare parts 15% 2,066

Total Cost Irrigation and Drainage Equipment 15,8381/ ICB - International Competitive Bidding

LCB - Local Competitive Bidding- RP. - Reserved Procurement2/ Includes Irrigation and Drainage 0 and M vehicles.3/ Includes Chak Drainage Area equipment.

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A I T9,EX 5Table 2

I.TDIA

CHAEMAL COI4MAIND AREA DEVELOPMSENT PROJECT (MADHYA PRADESH)

Equipment List: On-Farm Development Full Package

Item Quantity Unit Price Total Method of------------- Rs '000 ----------- Procurement

(a) Project I'anagement

Field vehicle 20 35 700 RPPickup truck 5 35 17 RPSubtotal 875

(b) Construction

Drag scraper 4 m3 with 70 hp wheeltractor 30 80 2,400 ICBBulldozers - 50 hp 3 300 900 ICBIotor grader 1 320 320 ICBShieepsfoot roller-vibrating 2 120 240 ICBWater tanker/lubricator truck 2 120 240 APTractor trailer - 20 ton 1 160 160 lCBLand plane 4 12 48 ICBTrucks - 10 ton 5' 100 500 RPIiiscellaneous equipment LS 100 LCBWorkshop equipment * LS 120 LCBSurvey equipment LS 200 LCBOffice equipment LS 100 LOBSubtotal 5,328

Spare parts 15% 799

Total Cost On-Farm Development Full Package - Equipment 6,127

1/ ICB - International Competitive BiddingLCB -- Local Competitive BiddingRP - Reserved Procurement

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ANiEX 5Table 3

INDIA

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Eqipment List: Roads1/

Unit Price Rs. Method ofItem Quant. Rs. (thousand) Procurement

Road Roller 8-10 T 10 140,000 1,400 ICB

Tipper Trucks 5-7 T 10 110,000 1,100 RP

Front End Loaders l¼cuyd. 2 200,000 400 ICB

Tractors 5 55,000 275 LCB

Tanker Trailers with Spray Bar 5 15,000 75 LCB

Concrete Mixers 2 25,000 50 LCB

Concrete Vibrator 2 10,000 20 LB

Jeeps 5 3.5,000 175 RP

Station Wagons 2 50,000 100 RP

Crane 5 Tons 1 350,000 350 ICB

Graders 2 350,000 700 ICB

&ieep Foot Rollers 5 10,000 50 LCB

Service Trailers 2 50,000 100 ICB

Survey Equipment/Lab Equipment L.S. 125 LCB

Sub Total 41,920Spares (15%) 738

Total Cost of Road Equipment 5,658

l/ ICB - International Competitive BiddingLCB - Local Competitive BiddingRP - Reserved Procurement

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ANINEXTable

INDIA

CHAMBAL COTTIAND AREA DEVELOPMENT PROJECT (HADHYA PRADESII)

Equipment List: (a) Project Administration, Extension and Research(b) Ravine Erosion Control

1/

Item Quantity Unit Price Total Method of----- Rs p000 ------- Procurement

(a) Project Administration,Extension and Research

Field Vehicles 20 35 700 RPMotor Cycles 38 6 228 LCBTractors 4 55 220 LCBPloughs 8 6 - 48 LCBDisc Harrow 4 5 20 LOBPaddy Disc Harrow 2 h 8 LCBTillers 4 4 16 LCBSeeding Attachment 4 2 8 LCBTransporter 4 2 8 LCBThreshers 4 10 40 LCBMiscellaneous Equipment LS 30 LCBLaboratory Equipment LS 140 LCBOffice Equipment LS 80 LOB

Subtotal 1,546

Spare Parts 15% 232

Total Cost: Project Administration. Research and ExtensionEquipment 1,778

(b) Ravine Erosion Control 2/

Field Vehicles 6 35 210 RPTrucks - 10 ton 4 100 400 RP

610

Spare Parts 15% 90

Total Cost Ravine Erosion Control Equipment 700

1/ LCB - Local Competitive BiddingRP - Reserved Procurement

2/ Ravine control works would be carried with existing machinery.

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ANiNEX 6

INDIA

CHAMBAL CC4MAN) AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Schedule of Expenditures

------ IDA Fiscal Year--Total Cost 1975/76 1976/77 1977/78---------------Rs million--------------

1. Irrigation and Main Drainage 95.2 21.9 43.8 29.5

Chak Drainage Area 28.8 6.7 13.2 8.9

2. On-Farm Development Full Package 22.1 5.5 9.3 7.3

3. Roads 44.5 11.4 19.3 13.8

4. Ravine Erosion Control 3.2 o.6 1.3 1.3

5. Supplementary Fertilizer 4.8 0.5 1.9 2.4

Subtotal 198.6 46.6 88.8 63.2

Physical Contingencies 16.5 4.1 7.5 4.9

Subtotal 215.1 50.7 96.3 68.1

Expected Price Increases:(%) (40) (25)1/ (39) (51)Rs million 85.0 12.7 37.6 34.7

Subtotal 300.1 63.4 133.9 102.8

6. Project Administration and OperatingCoste and Preparation of a StageII Project 49.7 15.0 16.7 18.0

7. Technical Assistance to GOI forCAD Project Preparation and fora land development specialist 6.5 2.1 2.2 2.2

Expected Price Increases:(%) (29) (19) (29) (37)Rs million 16.8 3. 5.7 7.8

Subtotal 73.0 20.4 24.6 28.0

Total Project Cost 373.1 83.8 158.5 130.8

1/ Includes expected price increases from November 1974 until July 1975.

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ANNEX 6Table 2Page 1 of 2 pages

;INDIA

CHAMBAL CCMMAND AREA DEVEL)PMENT PROJECT (MADHYA PRADESH)

Allocation of the Proceeds of the Credit

Proposed Alloca-Estimated Cost tion of Credit

Total Foreign Amount % of Expend----------US$ Million-------- iture

I. Civil WorksIrrigation and Main Drainage 11.10 2.23Chak Drainage 3.61 0.72Roads 5.56 1.11Ravine Erosion Control 0.40 0.13Price Contingency 7.93 1.58

Less:- uipment with Price Contingency (3.90) (3.33

Sub-Total 24.70 2.44 14.4 60

I. On-Farm DevelopmentFull Package 2.76 0.96Price Contingency 1.11 0.26

Less:Equipment with Price Contingency (1.05) (0.93)

Sub-Total 2.82 0.29 1.9 68

III. Equip tCivil Works 2.00 1.80On-Farm Development 0.80 0.70Roads -0.70 0.60Ravine Erosion Control 0.10 0.10Project Administration 0.20 0.20Price Contingency 1.42 1.12

Sub-Total 5.22 4.52 3.5 67

IV. Fertilizer o.60 0.57

Price Contingency 0.23 0.19

Sub-Total 0.83 o.76 0.5 60

V. Unallocated

Physical Contingencies 2.83 o.68

Sub-Total 2.83 o.68 2.5 88

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ANNEX 6Table 2Page 2 of 2 pages

Proposed AllocationEstimated Cost of Credit

Total Foreip Amount % of Expend------ UEIillion - ------ iture

VI. Project Administration and_tage II Xr2iect reparation 7.00 0.70

Price Contingency 2.40 0.24

Less:

Equipment with Price Contingency (0.27) (0.26)

Sub-Total 9-13 o.68 0.4 4

VII Technical Assistance to GOI forCAD project preparation and fora land development specialist. 0.80 0.24

Price Contingency 0.30 0.11 73

Sub-Total 1.10 0.35 0.8

Total ' 46.63 9.72

Less:

Reserved procurement items __1.5

Grand Total 45.13 224.0 53%

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-ANNEX 6Table 3

INDIA

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Estimated Scheoule of Disbursements

IDA Fiscal DisbursementsYear & Semester US$ million Equivalent

Actual Cumulative

1976

1st

2nd

1977

lt 2.2 7.6

2nd 5.5 13.1

1978

1st 4.1 17.2

2nd 3.4 20.6

1979

1st 3.4 24.o

2rZi

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ANNEX 7Page 1

INDIA

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Organization, Management and Project Financin

Background

1. Command Area Development (CAD), the modernization of irrigationproject infrastructure in phase with On-Farm Development Full Package hasbeen accorded high priority by the Government of India (Got). The GOI has,therefore, been anxious to devise various organizational arrangementssuitable for duplication in various parts of India. State governments aredirectly concerned with establishing an organization capable of rapid anduniform extension throughout their State. The GOM has decided that CADcould best be implemented in their State by existing agencies, supervisedand co-ordinated at project level by the Commissioner of the CAA.

Project Coordination and Management

2. In September 1974, GOM officially constituted the Chambal CAMwhich is headed by a Commissioner. The CAA is placed umder the jurisdic-tion of the Minister of Agriculture and Food. The Commissioner reportsdirectly to the Agricultural Production Commissioner (APC). The APC isalso an additional Chief Secretary with direct access to the Chief Minister.CAD activities at State level are coordinated by a Committee with the Agri-cultural Production Commissioner as Chairman and include the Secretariesof Finance, Agriculture, Irrigation, Public Works and Revenue. The CAACommissioner has chief executive authority for all activities within theCommand Area related to the development. Coordination at project level isensured by a CAA Board of Directors comprising the State Heads of the concerneddepartments or their representatives with the CAA Commissioner as Chairman.The CAD organization structure is depicted in Chart WB9697.

Functions and Responsibilities of CAA

3. A GOM resolution setting up the Authority on September 4, 1974defined CAM responsibilities as:

(a) "Modernization, maintenance and efficient operationof the irrigation system up to the outlet of 28 1/scapacity;

(b) Development and maintenance of the main and intermediatedrainage system;

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ANNEX 7Page 2

(c) Development of field channels and field drains withinthe command of each outlet;

(d) Land-levelling on an outlet command basis for the typeof irrigated crop that is to be grown;

(e) Consolidation of holdings and redrawing of fieldboundaries wherever necessary for efficient soil andwater management on an outlet command basis;

(f) Enforcement of a proper system of 'warabandi' and fairdistribution of water to indivldual fields;

(g) Selection and introduction of suitable cropping patterns;

(h) Development of groundwrater to supplement surfaceirrigation;

(i) Supply of all inputs zmd services including credit;

(j) Preparing individual programs of action for smallfarmers, marginal farmters and agricultural laborersas part of the Master Plan;

(k) Diversification of agriculture and development ofactivities like animal husbandry, farm forestry,poultry, etc.

(1) Development of marketing and processing facilities;

(m) Soil conservation and afforestation, where necessary;

(n) Town and Country Planning;

(o) Construction of new roads within its jurisdiction foropening up areas;

(p). Proper development of transport and communicationsincluding post-offices, telephone and telegraph offices,etc., in consultation with the appropriate authorities;

(q) Development of cottage and small scale industries in thecommand areas; and

(r) Promotion and development of cooperative movement in thecommand area for providing inputs and services; setting upof processing industries besides arranging all short, longand medium term credit requirements of the area."

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ANNEX 7Page 3

4. The CAA prepares annual development plans and cost estimates forthe approval of the Agricultural Production Commissioner who is assisted bythe State level CAD Coordinating Committee. The CAA does not have a separatebudget for the development program, which would be financed through thebudgets of participating Departments. The CAA Commissioner has completeadministrative control and power over the staff involved in project imple-mentation. The CAM appoints its own staff subject to Government approvalof the number of posts to be created. Thereafter, such staff cannot betransferred without the agreement of the CAA.

Role of Government Departments

5. Under the overall supervision and coordination of the CAA, theindividual Government Departments would assume the following responsibilities:The Irrigation Department would be charged with the improvement and operationof project irrigation and drainage works including lining and repairs ofsections of main and branch canals, distributaries and minor canals, anddrainage works, down to the outlet from the minor to the chak. It would alsohave responsibility for the chak drainage works in collaboration with theSoil Conservation Service and the Revenue Department; The AgricultureDepartment would be responsible for all on-farm works including boundaryrealignment, land shaping, construction and improvement of watercourses,drains, etc., and would have responsibility for the ravine erosion controlworks. It would utilize the Agro-Industries Corporation to implementthat part of the On-Farm Development Full Package works requiring mechaniza-tion; Machinery and workshop' facilities of the Agro-Industries Corporationwould be suitably strengthened; The Department of Public Works (Buildingsand Roads) would implement the project road development and improvement, andthe construction of project buildings; The Revenue Department through theCollectors at Morena and Bhind, would, as necessary, exercise its powersin respect of land development and registration, and collection of revenuearrears; The Madhya Pradesh Electricity Board, a statutory authority, wouldprovide power as required for project works; The Department of Cooperationwould be responsible for strengthening credit, marketing and processingsocieties.

Financing of Project Works

6. All project works comprising irrigation, main drainage, roads,ravine erosion control and, in the first instance, On-Farm Development FullPackage and Cnak Drainage works would be financed by annual allocations fromthe GONt development budget. All project administrative and operating costswould be met annually from the GOM budget which would also include fundsto cover the costs of agric;oltural research and extension. Funds for theproject would be made available in the annual budgets of the GOM departmentsof Revenue, Agriculture, Irrigation, Public Works, Cooperation and Forestry.On-farm development costs would be financed by means of a GOM budget advancewhich would be reimbursed in large part by assumption of farmers loans bythe Land Development Bank (LDB) and the Commercial Bank (CB) and refinanced

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ANNEX 7Page 4

by Agricultural Refinance Corporation immediately following completion ofeach chak as described below.

7. Because the on-farm development must be carried out systematicallyover whole chaks (Annex 2), the program would be compulsory. Legal powersto carry out such On-Farm Development Full Package and to recover costs areavailable in the following legislation:

(a) Land Improvement Loans Act of 1883;

(b) Madhya Pradesh Irrigation (Second Admendment) Act 1960;

(c) Madhya Pradesh (MP) Land Improvement Schemes Act of 1966;

(d) Resolution setting up Chambal CAA: GOM Order publishedSeptember 9, 1974.

The NP Land Improvement Schemes Act has been amended to permit CommercialBanks to participate in financing On-Farm Development Full Package wouldbieequired.

8. To carry out effectively a full package of on-farm developmentover 12,000 ha and chak drainage over 20,000 ha would require not only thenecessary legal instruments and skillful planning but also the whole-hearted cooperation of the cultivators. In order to select, judiciously,the chaks for On-Farm Development 'Full Package, the approval of the culti-vators would be sought. GOM would continue their present, considerablep re-extension program aimed at exp:laining the benefits of On-Farm Develop-ment Full Package.

9. The cost of category (a) On-Farm Development Full Package wouldbe largely financed by the LDB and CB; they would in turn be refinanced75% or more by the Agricultural Refinance Corporation (ARC). The On-FarmDevelopment Full Package areas would be divided, for the purposes of banks'operations, between the LDB and CB.

1t. The GOM would finance farmers not eligible to receive bank loansand would recover these loans by collections as arrears of Land Revenue. Itis presently estimated that up to 10% of the farmers (representing lessthan 10% of the land area) would be ineligible for a bank loan because ofindebtedness, or lack of clear land[ title. GOM and LDB are currently under-taking an intensive program to collect overdues and reduce indebtedness.

ill. The ARC has indicated its willingness to refinance eligible loansat: 75% or more. Participation of IRC would be essential for refinancingloans made by LDB and CB. The ARC would raise funds by borrowing from GOIarLd from any entity approved by the GOI; from issue and sale of debentures

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ANNEX 7Page 5

and bonds guaranteed by the GOI, borrowing from the Reserve Bank of India,and deposits from the GOI, State governments and local authorities.

12. The LDBs are organized on a two-tier basis with the-State LandDevelopment Banks (SLDBs) operating in the various districts of the State.The State LDBs receive their funds from share capital and deposits ofmembers, loans and grants from state governments and sale of debentures.The debentures are purchased primarily by the Reserve Bank of India andARC. There are two Primary Land Development Banks located at Bhind andMorena. The Bhind LDB has four branches: Mehgaon, Gohad, Lahar and Bhind.The Morena Bank has seven branches: Ambah, Jora, Sabalgarh, Kaliras, Sheopur,Vijaypur and Morena. The branches are widely distributed over the projectarea and should be able to service the areas selected for On-Farm DevelopmentFull Package. The LDB raises funds from share capital provided by members,from the sale of debentures, and from borrowings from the SLDBs.

13. The Commercial Banks are relatively new in the field of long-termagricultural credit, but they ascribe high priority to on farm developmentand have indicated an intent to take necessary steps to organize in orderto carry out their assigned responsibility. The Central and State Commer-cial Banks of India both operate in the project area. The Central Bank ofIndia has been designated the "lead bank" in the Morena District. It hasalready established four branches in order that it may improve its servicesto agriculture. Both Commercial Banks would establish additional branchesas necessary to service the On-Farm Development Full Package areas assignedto them. The CB obtains funds from depositors or from refinancing throughthe Reserve Bank of India. The participation of the CB, in the overallproposal, provides a means of mobilizing capital from the private sectorfor agricultural development.

14. Loans for On-Farm Development Full Package would be for a 12-yearperiod including 1 year's grace at an interest rate of 10-1/2%. It is alsoexpected that farmers who are ineligible for loans from the banks would befinanced by MP under the same terms. However, if farmers are eligible forsuch loans but decline to sign application for them, then it is proposedthat IP charge a premium rate--at least 12-1/2% in order to encourage alleligible farmers to take bank loans.

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ANNEX 8Page 1

INDIA

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Agricultural Supporting Services

1. In the past, deficiencies in the level and quantity of the support-ing services have seriously constrained development of the full agriculturalpotential of the project area. The services were not fully coordinated nordid they have an impact on many of the individual farms except when leadingprogressive farmers took the initiative themselves. Efforts such as exten-sion proved difficult to sustain. In order to maximize the benefits of thephysical facilities proposed undler the project, considerable improvementin the supporting services, particularly in agricultural extension andresearch, would be required. With this in mind, GOM, following a visit bya Bank Group consultant in early 1974, introduced an improved extensionservice patterned on the model developed for Rajastjan State. The moreimportant agricultural supporting services and inputs are described below.

Agricultural Research

2. There are four agricultural stations of Baroda, Jora, Morena andBhind involved in applied research in the project area. The programs whichare carried out by the Depat'tmert of Agriculture, with the assistance ofthe State Agricultural University, cover all the main crops of the area,wheat, millet, sorghum, paddy and oilseeds. The research includes variety,fertilizer, plant protection and irrigation trials. The four stations alsogrow certified seed to be released to progressive growers for multiplication.

3. The research program would be continued and expanded under theproject with emphasis on the following:

(a) varietal trials, time of planting, spacing for yield anddisease resistance;

(b) response of crops to various fertilizer levels up tooptimum level and the interaction of timing of irrigation;

(c) irrigation methods, requirements, and consumptive useof various crops;

(d) study of the kharif interplanting system with bajraand/or jowar and the pulses;

(e) monitoring of soil salinity and akalinity in the projectarea and pilot reclamation trials, and

(f) weed control.

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ANNEX 8Page 2

4. The research program would work in close support of the projectobjectives. Annual costs for research would continue to be financed fromGOI and GOM budget, under the auspices of the Indian Council for Agricultu-ral Research (ICAR). Laboratory equipment, field vehicles and farmmachinery would be provided together with laboratory and office buildingsand a limited amount of housing. Existing research farms would be providedwith improved irrigation, drainage, land leveling and additional storagefacilities.

5. Full-time research staff would be appointed, but would be limitedinitially to an agronomist, soil chemist, soil physicist, a plant physio-logist and a statistician. Additional assistant agronomists would beposted to each sub-station. One specialized agriculturist would beappointed to head each of the wheat and paddy programs. Subject matterspecialists (SMS) would conduct simple demonstration, to assist extensionworkers' training. Considerable research is undertaken at university stationsof Indore, Sehore, Jabalpur, Rewa and Raipur. Visits would continue tothese important research centers. Project research personnel and SMS wouldbe sent for refresher training to the all-India Rice Improvement program atHyberabad, Andhra Pradesh, and to the national centers for wheat researchin northern India.

Agricultural Extension

6. The effectiveness of extension has recently been improved inRajasthan. The new system cdncentrates on achieving yield improvements inone or two crops by improving farm management (timeliness of operations,irrigation practices, pest control, etc.) without increasing inputs.This system is being introduced to Mahdya Pradesh. The system involves strictadherence to schedules, and concentration on a few crops and practices fora limited number of "contact" farmers in each chak. Each contact farmerreceives a regular two-weekly visit from the Village Extension Worker (VEW).Experience in Rajastjan, so far, is that a large number of additionalfarmers quickly follow the example set by the contact farmer.

7. Because a massive extension effort would be required to achievethe production targets GOM has agreed to reorganize its Chambal extensionservice on the principles outlined above. The new organization would beheaded by the Project Extension Director who would be responsible for allagricultural activities in the project area. He would be assisted by sevensubject matter specialists and two Deputy Directors, one each for the Morenaand Bhind District. A unit based on a training center at Morena would beresponsible for all in-service training. The project area would be dividedinto six extension sub-div-sions; two in Bhind District and four in Morena.A Sub-District Extension Office, headed by a Sub-District Extension Officer(SDEO) would be established in each of the six sub-districts. Each SDEOwould be assisted by Agricultural Extension Officers (AEOs), the numbers ofthese would be determined by the number of farmers in a sub-division, andthe number of subject matter specialists.

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ANNEX 8

Page 3

8. Every AEO would be responsible for the work of the six VillageExtension Workers (VEWs) maintaining weekly contact with each VEW. EachVEW would be responsible for provision of extension services to about 240farmers. The VEW would visit each chak once a week on a fixed day. Aprogressive farmer would be selected in each chak to act as a liaison withthe farmers.

9. To coordinate the project extension activities with the overalldevelopment efforts in the project area, and to obtain assistance fromresearch and other technical personnel, a Project Extension Council wouldbe set up under the chairmanship of the CAA Commissioner. The Councilmembership would include personneL from all relevant organizations.

10. A number of different crops are grown in the project area, and eachhas its technical problems. Init:ially, the efforts of the technical person-nel would be focused on a limited area and confined to the main crops intheir area, with a view to significantly increasing yields in the shortest1possible time.

11. Vehicles would be allocated to the Director of the ExtensionP?roject, his two deputies, his SMSs, the Director of the Training Unit andithe SDEOs. AEOs and the SMSs in the Sub-District would receive loans tobuy motorcycles and receive mileage allowances. Office space would beprovided by the headquarters of each of the two Districts, and in each oftWhe six Sub-Districts. Adequate space for the training center would alsobe provided. Each member of the extension organization would receive properh-ousing in the vicinity of his work.

12. Successful extension act:ivities depend on the training of thewiorkers. A program will be introcluced to cover both the practical aspectsof farming, and efficient methods of passing this information on to thefarms. All extension personnel would have regular courses. They would alsovisit good representative fields cnd research stations. The direction of themain efforts and activities would be decided on a weekly basis. Shortcourses would also be provided for progressive farmers in the area.

Training of Agricultural Department Soil Conservation Officers

13. The limited experience of soil conservation officers in Xna-F armDevelopment Full Package survey and design has been noted in the report(Annex 2). A training program would therefore be initiated for those of-f-icers responsible for that aspect: of project implementation. The coursewould cover topographical surveying and plotting, design of farm irrigationand drainage works, soil survey and studies of soil characteristics influ-encing design. An internationally recruited On-Farm Development adviserwould be assigned to the project. It would be feasible for a single adviserto be shared between Chambal MP and Chambal Rajasthan (CAD) Projects.

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ANNEX 8Page 4

Soil Survey

14. A semi-detailed soil survey has been completed for the whole ofthe command area by the Soil Science and Agricultural Chemistry Section ofthe Agricultural Research Institute at Gwalior. Additional soils informa-tion required for designing on-farm development works would be collectedby Soil Conservation personnel during the course of the topographical survey.Assistant Soil Conservation Engineers would receive training in recognitionand description of soil types and special features influencing design, duringtheir initial training.

Seed

15. To maintain a continuous supply of high quality seed, the MadhyaPradesh Government makes avialable each year 10% of the requirements ofimproved seeds of high yielding grain varieties and other important crops.The supply comes mainly from Government seeds farmers for multiplication.The rapidly increasing demand for Mexican wheat has been met in this way.There is, however, an evident need for a better organized system of seedproduction and distribution, with particular emphasis on quality control,seed cleaning facilities and adequate storage,-if the requirements of theproject at full development are to be satisfactorily met.

16. The Seeds Act has been enforced in the State and an independentorganization for seed certification is envisaged. Additional seed farmsare being established in the Command Area and steps are being taken to bringprogressive farmers together into seed growing cooperatives. A full-scaleseed multiplication project, although desirable, would need to be organizedon a State-wide basis, and is not, therefore, proposed as a component of theproject. The GOM would, however, give consideration to the overall needs ofthe State with a view to preparing a future seeds project.

Fertilizers

17. Farmers in the project area are aware of the benefits of usingfertilizers particularly for HYV wheat and paddy. However, they havebeen using only 50%-60% of the amounts recommended for maximum yield, dueto poor distribution and high prices. Over the five year (1975-79) period,both domestically produced and international fertilizer supplies shouldincrease and unit costs decline. Fertilizer is to be procured internationallyunder the annual All-India tender procedure acceptable to the Association.GOI is expected to make sufficient fertilizer available to the State, andthe State, in turn, to the p-oject.

18. Because of the land shaping operation on the 12,000 ha On-FarmDevelopment Full Package area, the soil fertility on approximately half ofthe area (6,000 ha) would be reduced as a result of the removal of the topsoil. It is estimated that 50 kg of N and 30 kg of P would be required for

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ANNEX 8Page 5

each of two years to restore the fertility. This would require about 2,000tons and it is estimated that it would cost Rs 4.8 million.

Farmers Organizations

19. The major farmers organizations in the project area are thecooperatives, the irrigation associations and the village councils(Panchayats). These are discussed below.

20. Cooperatives: In Madhya Pradesh State as a whole 40% of the farmersare members of cooperative societies. There are 199 Primary Credit Societies(PCS) in Bhind District and 238 in Morena District. Their main functions arethe receipt of the deposits and provision of short- and medium-term credit,supply of agricultural production inputs and marketing of produce to theirmembers. Medium-term loans were mainly given for well construction, instal-lation of pump sets and purchase of bullocks. The PCS vary widely in thestrength of their management and the services they provide.

21. At State level there is a State Cooperative Bank. In each ofthe two districts there is a Central Cooperative Bank (CCB). Overdues arehigh both at the CCB and PCS levels.

22. Irrigation association;s are relatively new in the project area.There is no detailed evidence of their individual performance. However, asthe area irrigated under the project has steadily increased in the lastseven years to a total of 15b,000 ha, it must be assumed that these, largelyinformal water users groups have had some success. Further improvementwould be a major goal of the project (Annex 9).

23. Panchayats (village councils) are the basic units of electivelocal government. They cover one or more villages with a total populationof 1,500. Previously, the village agricultural extension workers wereresponsible to the panchayats wii:h mixed results. This is now being changedunder the transformed extension service (para. 7). The close cooperationof the panchayat leaders would be sought, however, to assist project develop-ment.

Agricultural Credit

24. The agricultural credit: aspects of the project are described indetail in Reference 1 (See Table of Contents), which also contains financialstatements for the various institutions. A substantial share of farmerscredit requirements in India is provided by private money lende-cs. Ins-titutional agricultural credit is provided by the cooperative movement, theLand Development Bank, and, increasingly, the major Commercial Banks.

25. Cooperative credit institutions and Commercial Banks would beinvolved in the financing of the On-Farm Development Full Package works.About two thirds of the project area would be served by the Cooperatives,

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ANNEX 8Page 6

and the remainder by the Commercial Banks. Farmers involved in On-FarmDevelopment Full Package would get seasonal credit from the same source astheir development loan, but the much more intensive coverage of the area bythe Cooperative Banks will probably mean that other farmers will use thissource of credit. The terms and interest rates are shown in Table 1.

26. There are two types of cooperative credit institutions in theproject area: (a) Cooperative Banks, which extend short- and medium-termloans (up to 5 years), and (b) Land Development Banks which extend long-termloans (up to 15 years).

27. The Cooperative Banks have a three tier structure: at the Statelevel there is the State Cooperative Bank (SCB), at the district level theCentral Cooperative Banks (CCB) Bhind and Morena, and at the village levelthere are Primary Credit Societies (PCS).

28. The Cooperative movement is very widespread - there are nearly10,000 PCS in Madhya Pradesh, and 437 in the project area. About 40% ofthe State's farmers are members. Although a considerable volume of depositsfrom members has been generated by the PCS, the major source of funds isrefinancing from the Reserve Bank of India, at 2% below bank rate, via theState Cooperative Bank. In mid-1973, total outstanding short-term advancesto farmers in the project area were Rs 50 million, largely for crop inputs,while medium-term loans (largely for well construction and installation ofpump sets) were Rs 9.5 million. Overdues are high in the project area. Acampaign is underway to improve the situation, utilizing for the firsttime, the statutory powers of the State Collectors.

29. The Land Development Banks (LDB) have a two tier structure. TheState LDB is located at Bhopal, and has eight branches, one of which is atGwalior. The LDB provides finance and supervision for the activities ofthe 43 Primary Land Development Banks (PLDB) and their 181 branches atdistrict level, including eight branches in the project area. At the closeof 1972-73, the SLDB had loans of almost Rs 350 million outstanding toPrimary LDBs. This was financed by sales of debentures to the Reserve Bankof India, State Government, commercial banks, etc. (about 70%), and sales ofdebentures to the Agricultural Refinance Corporation (ARC, 20%), theremainder coming from reserves, deposits, share capital and profits.Advances for FY 1973 totaled Rs 119.6 million, of which 32% was for ARCscheme loans. Overdues made a technical recovery as a result of a specialshare capital investment by the State Government at the PLDB level, enablingthem to increase their repayments to the SLDB. The extent to which this maybe done to meet ARC recovery requirements is now limited by ARC refinancingrules, and thus the overdues situation must be carefully watched. The per-centage of overdues to demand for the project area LDB in 1972/73 was justunder 20%. Most of the credit extended by the PLDB's in the project areahas been for minor irrigation works, tubewells, tractors and other farmequipment. The sanctioning authority of the PLDB is Rs 10,000, which ismore than the expected average loan requirement for the project.

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ANNEX 8Page 7

30. Commercial Banks - Since nationalization, the Commercial Banks (CB)have been encouraged to expand their agricultural lending. An expansion hastaken place, but this has generally been confined to loans to the biggerfarmers. The relatively high risk (although the Credit Guarantee Corporationguarantees most categories of loans), low rate of return and larger ad-ministrative cost per loan to small farmers undoubtedly is a disincentiveto CB involvement. CB would, however, participate in financing of projectOn-Farm Development Full Package works; they agreed to modify their loanrequirements for On-Farm Development Full Package works so as to make con-ditions uniform throughout the project area.

31. The Central Bank of India is the designated "lead" bank for theproject area. The lead bank in any area is responsible for surveying theagricultural need for credit in the area and ensuring provision of adequatefacilities to meet this need. Branch expansion has been one of the mostsignificant achievements since nationalization.

32. There are five CB in total in the project area. When thegeographical division of areas between CB and LDB has been agreed, morebranches will be opened.

33. Agricultural Refinance Corporation (ARC) - ARC has been describedin previous Credit agreements. Its main function in the project would bethe refinancing of -at least 75% of the amounts of loans made by CB and LDBto eligible farmers. Funds for this would be provided by GOI.

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INDIA

C{AXBAL C0IATSND AREA DEVELOPMENT (MADHYA PRADESH)

Agricultural Credit-Terms of Lending

Loan Type Lender Deposit or Interest TermSecurity Rate

Seasonal Primary Cooperative 1 0 /o/ 110/0 Seasoncrop lien

Conmercial Bank Two Guarantorscrop lien 10.50/ Season

Medium Tern Primary Cooperative 10°/o.-/ 11-1/2O/o 3 - 5 yrs.Land or AssetPurchased

Land Development Bank 5-7 /o 2 9-1/2°/o 3 - 5 yrs.Land and Assets

Commercial Bank 10-25°o/l 10-1/20/o 3 - 5 yrs.Two GuarantorsCrop and Assets

Long Term"-/ Land Development Bank 5°/o 10-1/20/o 10 - 15 yrs.Commercial Bank Land One year 8race

1/ In the form of shares in the society.j Also ensures access to production credits.3/ Proposed unified terms for On Farm Development Loans.

CT3

HCn

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ANNEX 9Page 1

INDIA

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Operation and Maintenance

Existing Situation

1. The Operation and Maintenance (O & M) of the irrigation systemis the responsibility of the Irrigation Department. The present level of0 & M is unsatisfactory because of the deficiencies listed in Annex 2paragraph 3. The major management difficulties are the lack of a waterallocation plan (para. 5) and a shortage of staff. Also, maintenance ofthe drainage system has been limited. These problems are aggravated byfinancial constraints. Whereas the current irrigation assessementsaverage Rs 30 per irrigated ha only Rs 18/per ha are allocated for 0 & M.Madhya Pradesh also contributes 50% of the cost of 0 & M of the KotaBarrage and 75% of that for the common carrier (RMC) in Rajasthan.

2. The maintenance of national and State highways, major and otherdistrict public works is the responsibility of the Madhya Pradesh PublicWorks Department. Standards of road maintenance are discussed inparagraph 10. 0

Irrigation and Drainage System

3. The 0 & M of the irrigation system down to the chak outlet andthe main drainage systems would continue to be the responsibility of theIrrigation Department staff within the framework of the CAA. The staffwould be increased in number and provided with housing located at strategiccontrol points throughout the canal system. The proposed organizationalarrangements are discussed in Annex 7. Vehicles and equipment to be pro-cured under the project (Annex 51 would be adequate to meet the needs ofboth construction and 0 & M. Construction equipment would be used for0 & M after project completion.

4. The costs of 0 & M of t:he irrigation and drainage system have beenestimated at Rs 48 (US$6) per ha per annum.

Water Allocation

5. The projected cropping patterns have been selected to make optimumuse of the water supply. The canal system was completed between 1960-70from the head of the RMC downstream, except for the existing Bhind canal.As each successive minor canal was completed, its commanded area wasprovided with irrigation service. Until the whole canal system was

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ANNEX 9Page 2

completed in 1970 (largely completed in 1967/68), there was a water supplysurplus. Upstream areas were supplied with excessive amounts of water, andthis contributed to the waterlogging of the area.

6. IWith the completion of the system, the downstream areas receivedtoo little water at peak periods, although supplies in the upstream areaswere still excessive. This situation could be remedied by a combination ofphysical and canal management improvements. The GOM has agreed to introducean equitable water allocation plan during the project.

7. The disposition of soils and the topography generally determinesthe particular cropping pattern selected. On the flat, heavy soil areasthe predominant pattern would be monsoon HYV paddy followed by dry seasonpulses. On the gently undulating, light soil areas monsoon pulses wouldbe followed by dry season HYV wheat.

8. For canal operation purposes, the project area would be divided into400-800 ha irrigation blocks, each served by a minor canal, according totopography and soils. At the beginning of each water year in June, theIrrigation and Agricultural Departments would, in close consultation withthe irrigation associations of the chaks (Annex 8), prepare water deliveryscheules. All chaks in the command of a particular minor canal wouldreceive water according to either of the two cropping patterns. Duringthe project, refinements of this water allocation plan would be made assoon as better canal management was achieved. Within five years it shouldbe possible to provide irrigation service on a chak by chak basis.

On-Farm Works

9. The communally owned watercourses, drains and roads within the

typical 30-40 ha chak would be operated and maintained by associations offarmers. The main function of these associations would be to plan andcarry out rotational irrigation (warabandi) to ensure an equitable shareof water for each farmer. They would be assisted by the Irrigation Depart-ment. Present practice is to subdivide the chak, which generally has 30-40farmers into about 5-6 units (Thoks) each headed by an elected watermaster(Thokdar) responsible for supervising the irrigation of the unit. Thishas provedl successful on the present limited scale (only about 5% of theproject area has rotational irrigation). A group of chaks forming theminor canal command area are supervised by the irrigation patwari (village-level irrigation official). The Irrigation Department engineers haveregulating powers to ensure compliance with the approved water deliveryschedule. Rotational irrigation would be implemented throughout the projectarea within five years of project commencement.

Roads

10. Road maintenance would continue to be the responsibility of thePUD. Maintenance would be ensured for those roads constructed under the

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ANNEX 9Page 3

project. Also, equipment procuredl under the project would facilitate moreregular maintenance of all roads Ln the project area. The cost of maintenanceof roads constructed under the project would be about Rs 3,500 per km.

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ANNEX 10Page 1

INDIA

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Agricultural Production

1. This Annex outlines the more important factors which affect higheragricultural production anticipated under the project. Cropping patterns,yields and production for the present, future-with, and future-withoutproject conditions are presented in Tables 1-4. The cropping calendar forthe project area is shown on Figure 1..

2. Prior to the Chambal Irrigation Project, the crops were mainlyrainfed and brought to maturity on residual moisture. The subsistencetype agriculture was reflected in various systems of interplanting cropsand in the drought resistant, low yielding nature of the crops grown.The major summer monsoon (kharif) crops included jowar (sorghum), bajra(pennisetum millet), and pulses (mainly pigeon pea and green and blackgram) followed in winter (rabi) by duram wheaes, gram, oilseeds (mustardand linseed), lentils and sesamum.

Present Cropping Patterns

3. These crops continued even after the introduction of irrigation.There was a significant change from rainfed to irrigated agriculture onlyin those upstream parts of the project area which had a dependable watersupply. Paddy, which was previously grown only in the old Bhind Canal area,has spread to Sheopur, Pramsar, Baroda and Jora areas while HYV wheat haslargely replaced the local duram varieties. Sugarcane is grown on a smallscale, largely around the Kailaras sugar factory. Both the light andheavy soils in the project area support the same range of crops with afew exceptions. Paddy is grown only on the heavy soils, jowar is largelygrown on the heavy and medium textured soils, and bajra on the lightersoils.

4. The various cropping patterns are illustrated on the croppingcalendar in Figure 1. Paddy generally cannot be followed by HYV wheat,except on the few mechanized farms, due to the field preparation timerequired between these crops. Jowar and bajra must be harvested earlyin October to permit the full range of winter crops to follow. Mustard,an important winter oil crop must usually be planted on land left fallowduring the preceding monsoon period.

5. The present land use and irrigation intensity remain low, dueto inadequate water supply, and lack of on-farm development. The presentoverall cropping intensity is 105% and only about 65% of the land iscropped under irrigation most years. Most crops are grown during the

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ANNEX 10Page 2

winter season when the overall and irrigated cropping intensities reach 80%and 60% respectively. Low irrigated cropping during the monsoon reflectsthe traditional dearth of paddy despite abundant kharif season water andsuitable soils. Farmers in the project area have preferred to leave theirlands fallow during the monsoon and plant winter wheat and oilseeds. Thereasons for this choice are not entirely clear but probably indicate thedietary preference for wheat as a staple. However, paddy is now of growingimportance as a valuable cash cro01.

6. Present conditions are also demonstrated by the low crop yieldsobtained which are as follows (in tons/ha): HYV wheat, 1.9; bajra, 0.8;jowar, 0.9; oilseeds, 0.5; pulses, 0.7; paddy, 2.2; sugarcane 35. Theselow yields are also a result of limited fertilizer use. Farmers presentlyuse only about one half of recomnended dosage.

7. Farm equipment now available includes the traditional oxen drawnplows, smoothing boards, etc. Nearly all present farm operations are car-ried out by draft animals. A pair of oxen for plowing and transport, andmilk buffalos form the typical stock holding. This, therefore, requiressubstantial home-grown fodder whichi in turn influences the farmers' choiceof crops. Less than 400 farm tractors are reported in the project areabut mechanization, including custom hire of tractors, is slowly spreadingand would be stimulated by the project.

Projected Cropping Patterns

8. In the absence of project development or other special programsaimed at making better use of existing land and water resources a slowimprovement in cropping intensity and crop yields can be anticipated overthe next decade. The irrigated cropping intensity is expected to increaseby about 10% and yields of paddy and wheat would rise by about 12%.

9. Under the project, both cropping intensities and crop yieldswould be anticipated to rise steadily as a result of better water supply,improved cultivation practices and additional inputs (fertilizer, improvedseed and pesticides). For the purpose of project analysis, an 11-yearperiod from commencement of project implementation to full developmenthas been assumed. No new crops are proposed under the project.

10. The overall cropping intensity would increase to about 125%and irrigation intensity would rise to nearly 85%, including 72% duringthe rabi season. The irrigated cropping pattern during the kharif periodwould remain relatively low but strenuous efforts would be made by theExtension service to increase the area planted to paddy. This would alsobe stimulated by a water allocation schedule aimed at timely supplies toensure early season field preparati3n and paddy nurseries.

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ANNEX 10Page 3

11. Crop production increase would be most rapid in the 20,000 haChak Drainage area which would respond immediately to surface water removal.Rapid increases would also be anticipated on the 12,000 ha On-Farm Develop-ment Full Package area as a result of the complete package of land develop-ment; improved field water supply and drainage, and the emphasis on bettercultivation practices and farm inputs. The 192,000 ha Extensive area pro-duction would grow slowly compared to the other two areas. Crop productionis projected to increase as follows:

ggp q _rPresent Year 11-- '000 tons

wheat 155 240Paddy 26 75Bajra 22 43Jowar 9 15Pulses 38 62Oilseeds 28 59Sugarcane 77 187

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ANNEX 10Table I

INDIA

CRABAML COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESII)

Agricultural Production - Total Area (224,000 ha)

Present Future - Without Project Future - With ProiectValue of Value of Value of

Area Production Production Area Production Production Area Production ProductionCROP '000 ha '000 Ton Rs '000 '000 ha '000 Ton Rs '000 '000 ha '000 Ton Rs '000

KqIIRIF - Irrigated

Paddy 12.0 26.5 24,380 16.4 40.6 37,360 24.0 74.3 68',350Hybrid Bajra,/ - - - - - - 3.1 6.3 5,800Sugarcane - 2.2 76.6 9,190 3.2 127.0 15,240 3.7 186.6 22,390

KHARIF - Non-Irrigated

Bajra 27.7 22.0 20,240 29.9 29.8 27,410 32.6 37.2 34,220Jowar 2/ 9.8 8.5 7,820 10.2 10.1 9,290 12.5 15.0 13,790Pulsesa (16.0) 8.0 9,990 (18.6) 11.4 14,240 (23.7) 17.5 21,870Sesamum 1.2 0.4 1,210 1.2 0.5 1,520 2.4 1.4 4,240

Sub-Total 52.9 60.9 7.,,

Wharif uropping Intensity % 24 27 35

BI - Irrigated

Wheat (HYV) 75.6 142.8 142,800 81.7 171.1 171,100 88.7 222.9 222,900Wheat (Local) 13.9 12.5 12,500 15.9 17.2 17,200 13.4 16.0 16,000Pulses 17.9 13.1 16,370 19.9 18.4 23,000 20.6 27.3 29,750oilseeds 21.1 17.1 32,840 23.1 23.2 44,540 29.8 39.2 64,890Sugarcane 1' 2.2 3.2 3.7

RABI - Non-Irrigated

Pulses 32.9 16.4 20,490 31.4 18.9 23,620 24.1 17.0 21,250Oilseeds 21.2 10.7 20,550 27.1 16.3 31,300 26.1 18.5 35,520

Sub-Total 184.8 202.3 206.4

Rabi Cropping Intensity h 82 90 92

TOTAL.S 237.7 318,380 263.2 415.820 284.7 560.970

Cropping Intensity % 106 117 127

Irrigated Cropping Intensity % 65 73 83

cr x1/ Sugarcane occupies land for 9-10 months and is included as irrigated in both Rharif and Rabi. - x2/ Interplanted with Bajra or Jowar.

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ANNEX 10Table 2

INDIA

CHAIABAL COMKAND AREA JEVNLOPE8T PROJECT (MADHYA PRADESH)

Agricultural Production - On-Farm De_upaent FulL Package Area (12,000 ha)

Present Future - Without Prolect Future - With ProjectValue of Value of Value of

Area Yield Production Production Area Yield Production Production Area Yield Production ProductionCROP '000 ha Ton/ha '000 Ton Rs '000 '000 ha Ton/ha '000 Ton Rs '000 '000 ha Ton/ha '000 Ton Rs '000

EHARIF - Irrigated

Paddy 1.7 2.4 4.1 3,770 1.9 2.6 4.9 4,510 2.9 3.6 10.4 9,570Hybrid BaJra 1/ - - - - - - - - 0.6 2.2 1.3 1,200Sugarcane - 0.1 34.7 3.5 420 0.1 39.8 4.0 480 0.1 57.1 5.7 680

KHARIF - Non-Irrigated

Bajra 1.1 0.8 * 0.9 830 1.3 0.9 1.2 1,100 1.2 1.6 1.9 1,750Jowar 2 1.8 0.8 1.4 1,290 1.9 1.0 1.9 1,750 2.0 1.6 3.2 2,940Pulses- (1.8) 0.5 0.9 1,120 (2.2) 0.7 1.5 1,870 (2.4) 0.9 2.2 2,750Sesamum 0.2 0.3 0.1 300 0.2 0.4 0.1 300 0.3 0.7 0.2 600

Sub-Total 4.9 5.4 7.1

Kharif Cropping Intensity % 41 45 59

RABI - Irrigated

Wheat (HYV) 4.2 1.8 7.6 7,600 4.5 2.1 9.4 9,400 4.9 3.6 17.6 17,600Wheat (Local) 1.2 0.9 1.1 1,100 1.2 1.1 1.3 1,300 0.7 1.8 1.3 1,300Pulses 1.5 1.0 1.5 1,870 1.6 1.1 1.8 2,250 1.7 1.5 2.6 3,250O0lseeds 0.8 1.0 0.8 1,540 1.0 1.L 1.1 2,110 1.1 1.5 1.7 3,260Sugarcane if 0.1 0.1 0.1

RABI - Non-lrrigated

Pulses 1.0 0.5 0.5 620 0.9 0.7 0.6 750 0.8 0.9 0.7 870Oilseeds 0.5 0.6 0.3 580 0.6 0.7 0.4 770 0.5 0.9 0.5 960

Sub-Total 9.3 9.9 .. 8

Rabi Cropping Intensity /. 77 82 82

TOTALS 14.5 21.040 15.3 268590 16.9 46,730 g|

Cropping Intensity % 118 127 141 lo

Irrigated Cropping Intensity % 80 87 101

I/ Sugarcane occupies land for 9-10 months and is included as irrigated in both Kharif and Rabi.2/ Interplanted with Bajra or Jowar.

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ANNEX 10Table 3

INDIA

CRAMBAL CO%NAND AREA !)EVELOPM.ENT PROJECT (JAONYA PRADO.11)

Agricultural ProducLion - Chak Drainage Area (20,000 ha)

Present Future - Without Prolect Future - With ProjectValue of Value of Value of

Area Yield Production Production Area Y'eld Production Production Area Yield Production ProductionCROP '000 ha Ton/ha '000 Ton Rs '000 '000 ha To./ha '000 Ton Rs '000 '000 ha Ton/ha '000 Ton Rs '000

KnALIF - irrigated

Paddy 2.6 2.1 5.5 5,060 3.0 2.3 6.9 6,350 5.7 3.1 17.7 16,280Hybrid BajraI - - - - - - 0.6 2.0 1.2 1,100Sugarcane Al 0.2 33.0 6.6 790 0.2 35.0 7.0 840 0.3 53.0 15.9 1,910

KhARIF - Non-Irrigated

Bajra 1.6 .0.7 1.1 1,010 1.7 1.0 1.7 1,560 2.6 1.4 3.6 3,310Jowar 2/ 0.3 0.7 0.2 180 0.6 0.9 0.5 460 0.9 1.3 1.2 1,100Pulses- (0.8) 0.5 0.4 500 (1.0) 0.7 0.7 870 (2.1) 0.9 1.9 2,370Sesamuma - - - - - - 0.2 0.6 0.1 OuG

Sub-Total 4.7 5. 10.3

Ktlarif Cropping Intensity % 24 27 52

REAI - Irrigated

Wheat (hYV) 4.2 1.8 7.6 7,600 4.3 2.0 8.6 8,b00 7.0 3.0 21.0 21,000Wlheat (Local) 1.2 0.8 1.0 1,000 1.3 0.9 1.2 1,200 1.2 1.5 1.8 1,800Pulses 1.0 0.8 0.8 1,000 1.0 1.0 1.0 1,250 1.6 1.4 2.2 2,750Oilseeds 1.1 0.8 0.9 1,730 1.0 1.0 1.0 1,920 1.8 1.4 2.5 4,800Sugarcane-' 0.2 0.2 0.3

RABI - Non-Irrigated

Pulses 1.2 0.5 0.6 750 1.7 0.6 1.0 1,250 2.2 0.7 1.5 1,880Oilseeds 1.5 0.5 0.8 1,540 1.5 0.6 0.9 1,730 1.8 0.7 1,3 2,500

Sub-Total 10.4 11.0 15.9

Rabi Cropping Intensity % 52 21,160 55 26,030 80 61,100

TOTALS 15.1 16.5 26 .2

Cropping Intensity % 76 82 131

Irrigated Cropping Intensity % 52 55 93

1/ Sugarcane occupies land fo, 9-10 msonths and is included as irrigated in both Kharif and Rabi.2/ Interplanted with Bajra or Jowar.

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ANNEX 10Table 4

CHAMBAL COMMND ARFIA DEVELCPMNTC PROJECT (MAOWYA PRADDSH)

Agricultural Production - ExtensiveArea (192.000 ha)

Present Foture - Without Project Future - With Project

Value of Value of Value ofArea Yield Production Production Area Yield Production Production Area Yield Production Production

CROP '000 ha Ton/ha '000 Ton Rs '000 '000 ha Ton/ha '000 Ton Rs '000 '000 ha Ton/ha '000 Ton Rs '000

KHARIF - Irrigated

Paddy 7.7 2.2 16.9 15,550 11.5 2.5 28.8 26,500 15.4 3.0 46.2 42,500Hybrid Bajra 1/ - - - - - - - 1.9 2.0 3.8 3,500Sugarcane - 1.9 35.0 66.5 7,980 2.9 40.0- 116.0 13,920 3.3 50.0 165.0 19,800

KILARIF - Non-Irrigated

Baj.a 25.0 0.8 20.0 18,400 26.9 1.0 26.9 24,750 26.8 1.1 31,7 29,160Jowar 2/ 7.7 0.9 6.9 6,350 7.7 1.0 7.7 7,080 9.6 1.1 10.6 9,750Pulses- (13.4) 0.5 6.7 8,370 (15.4) 0.6 9.2 11,500 (19.2) 0.7 13.4 16,750Sesamumo 1.0 0.3 0.3 910 1.0 0.4 0.4 1,220 1.9 0.6 1.1 3,340

Sub-Total 43.3 50.0 60.9

Kharif Cropping Intcusity % 23 26 ' 32

RABT - Irrigated

Wheat (HYV) 67.2 1.9 127.6 127,600 72.9 2.1 153.1 153,100 76.8 2.4 184.3 184,300Wheat (Local) 11.5 0.9 10.4 10,400 13.4 1.1 14.7 14,700 11.5 1.4 12.9 12,900Pulses 15.4 0.7 10.8 13,500 17.3 0.9 15.6 19,500 17.3 1.1 19.0 23,750Oilseeds 19.2 0.8 15.4 29,570 21.1 1.0 21.1 40,510 26,9 1.1 29.6 56,830Sugarcane i / 1.9 2.9 3.3

RABI - Non-Irrigated

Pulses 30.7 0.5 15.3 19,120 28.8 0.6 17.3 21,620 21.1 0.7 14.8 18,500Oilseeds 19.2 0.5 9.6 18,430 25.0 0.6 15.0 28,800 23.8 0.7 16.7 32,060

Sob-Total 165.1 181.4 180.7

Rabi Cropping Intensity % 86 94 94

TOTALS 208.4 276.180 231.4 363.200 241.6 453.140 1:

Cropping Intensity 7. 109 120 126

Irrigated Cropping Intensity % 65 74 81

1l Sugarcane occupies land for 9-10 months and is included as irrigated in both Rharif and Rabi.2/ Interplanted with Baira or Jowar.

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INDIA

CHAMBAL CONMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Cropping Calendar

Crop and Season May June July Aug. Sept. Oct. Nov. Dec. Jan. Feb. March April

KHARIF

Paddy

Hybrid Bajra xxx xxxx ....... .... .......

Bajra, local xxxx- xxxx ........... ............

Jowar xxxxxxx) ............................

Pulses x ... ....... ---

Sesamum ... ....... ......

RABI I

Wheat (HYV) xxxxxxx ...............................

Wheat (Local) xxxx ... ............................

Gram _ xxx ....... ........................

Mustard xxXXXXXmc ....... ....................

Lentil 30 0 xxxx... . ...... ........................

Linseed XXxxxxv =)xxx: ... ... ....................... =

BOTH SEASONS ............

Sugarcane ........................... =====xy

Legend: Land Preparation1H1H+-H- Nurseryxxxxxxxx Sowing

........ Vegetative StageHarvest -n

c1Wq

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ANNEX 11Page 1

INDIA

CHAMBAL COMMAND AREA DEVELOP1MENT PROJECT (MADHYA PRADESH)

Marketing, Pricing, Processing and Storage

Marketing

1. Farmers sell their produce either at local markets on directlyto processors. Deliveries to markets on collection points are usuallymade by bullock cart. Trucks are used for transporting goods from themarkets, and from collection points to processing facilities.

2. Fifteen local markets (Mandies) established under the AgricultureProduct Act of 1973 provide offices, banking facilities, godowns, shops,auction space, traders' stalls, water supplies and sanitation facilities.They are operated by a local marketing committee of 8 to 20 members of whichat least two thirds are agriculturalists. Eaah market has an approved stafffinanced by a levy upon the trader (buyer) of not more than 0.5% of thevalue of the purchases. GOM has a program underway to enlarge and relocateseveral of the existing markets, and to construct new markets. The marketsare highly successful and assure the grower of a fair price for his pro-duce. The market provides storage for three days without cost. Longerterm storage is provided for a fee. The markets are situated over theproject area so that farmers can make the round trip to and from the marketwithin a day.

3. Throughout the year there is considerable price variation betweenmarkets, due to the cost of transport, lack of market price information andlocal shortages. The road improvement program planned under the projectwould assist in equalizing the prices among markets. The existing radiomarket-news program would be improved.

Prices

4. Current and prospective food shortages indicate that there willbe a demand within India for the entire increase in production from theproject. The largest increases in production are expected in wheat andthis can be entirely absorbed within Madhya Pradesh. Other food grains,particularly paddy, will exceed the needs of the state and the surpluswill be available for shipment to other parts of India. The general foodsituation in India and Madhya Pradesh is summarized in Tables 1 and 2.

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ANNEX 11Page 2

5. In the present serious inflationary situation in India food prices,particularly cereals, pulses and sugar have outpaced all other commoditygroups. In October 1974, the overall wholesale price index for foodarticles reached 375.7 (1961/62=100) compared to food grains at 426.2.These indices were higher than for any other commodity group. 1/ (Table 3)

6. The prices used in the economic analysis for wheat, rice, andsorghum were based upon the Bank's projections for 1985 (constant values)with adjustments for transportation and grade. Those for other commoditieswere based upon local prices projected to 1985 conditions on the basis ofthe Bank's general indices. The primary purposes of the financial analysisis to determine the ability of the beneficiaries to repay the project costswithin reasonable periods of time and at appropriate interest rates. Sincethe critical time in the repayment period is normally the first few yearsof development, the prices used in the financial analysis for wheat, paddy,bajra and jowar were not discounted as much from current levels as thoseused in the economic analysis.

7. The prices of fertilizer used in the economic analysis were basedupon suggestions made by the Banak's Fertilizer Unit, while current priceswere used in the financial analysis and in the determination of the costof fertilizer required to restore fertility to those areas that would bsinvolved in the On-Farm Development Full Package program. The pricesused in both the economic and financial analyses are in Table 4.

Processing

8. There are presently 17 lentil mills, two oil mills and one sugarmill of significant size in the project area. In addition, there aremany small oil, flour and unrefined sugar mills. The present capacity isadequate to process the current production but as the project develops itis anticipated that additional capacity would be required for lentils, oil,flour and possibly paddy. The existing sugar factory has sufficient capa-city (1,250 tons of sugarcane per day) to process the anticipated caneoutput of the project. Because of transportation cost and convenience,however, it is anticipated that the small privately owned sugar plants willcontinue to operate. The private sector has demonstrated a willingnessto invest in processing facilit.ies and, as the project develops, noproblem is anticipated in the arailability of processing facilities. Onerice mifl operator visited during the appraisal was in process of enlarginghis mill in anticipation of an increase in paddy production.

Storage

9. The farmers normally market their produce immediately afterharvest and therefore, except for seed and home consumption the need for

1/ Reserve Bank of India Bulletin, October 1974, page 1905.

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ANNEX 11Page 3

on-farm storage is minimal. Food grains and seeds are normally stored inthe farmer's house. Limited storage capacity is provided in the traders'stalls at the markets and special storage facilities are being constructedat such places. In addition many of the multi-purpose cooperatives providesome storage for members, but this is generally utilized for the storage offertilizers in anticipation of needs by the farmer. The Food Corporationof India and the Central Warehousing Corporation which stores food collectedunder the levy program has storage of 7,500 ton capacity and 5,000 toncapacity, respectively, at Morena and Sheopur.

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ANNEX 1 1Table 1

INDIA

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (Madhya Pradesh)

Estimated Food Requirements, Production and Supply in India

Per Capita PCons4mtion Lemand_y Production Suppl,y Gap

Crp 1975_197619 975 76 1980-1981 1975-1976 1975-1976 1980-1981

kg/yr ---------- Million tons-------------------------

Rice 75.h7 51.2 56.4 41.9 9.3 14.5

Wheat, 37.h6 26.5 30.7 20.8 5.7 9.9

All Cereals 15i.62 108.5 120.1 95.6 12.9 2h.5

Pulses 30.66 17.7 20.8 10.8 6.9 10.0

All Food Grains 17h.88 126.2 140.9 106.4 19.8 34.5

Edible oils 5.97 6.0 6.6 5.0 .6 1.2

/ Includes provision for livestock feed and seed.

Source: National Council of Applied Economic Research.

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ANNEX 11Table 2

INDIA

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (Madhya Pradesh)

Export and ImPort of Major Agricultural Commodities from and to Madhya Pradesh

Exports Imports

ComEodities 1960-61 1965-66 1969-70 1970-71 1960-61 1965-66 1962-70 1270-71

--- thousand tons-----------------------------------

Rice . 455.1 101.4 353.3 282.3 26.6 9.8 2.6 2.6Paddy 29.5 0.1 2.4 1.7 - - - _

Wheat 121.9 2.5 45.8 25.6 114.0 183.8 90.7 184.2

Pulses (otherthan Gram) 168.6 225.5 263.2 297.6 15.1 16.1 15.2 20.7

Gram and itsproducts 157.7 58.2 116.7 113.2 13.1 4.2 3.4 6.9

Bajra 13.4 0.4 7.3 1.8 - - -

Jowar 114.7 17.9 110.1 82.4 - - -

Oil Seeds 105.2 78.5 76.8 70.9 - - - -

VegetableOils 17.2 19.7 20.2 15.8 20.5 20.4 19.6 19.2

Source: 1973 Agricultural Statistics, Madhya Pradesh.

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ANNEX 11Table 3

INDIA

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (Madbya Pradesh)

Index Numbers of Whclesale Prices for India!"

(1961 - 1962 = 100)

Sept. Sept. Sept. Sept. Sept. Sept.1969 1 1971 1972 19974

All Commodities 175 185 190 210 250 300

Food Articles 205 210 215 245 300 385

Manufacturers 145 15O 165 175 190 250

Industrial rawmaterials 185 195 205 190 305 3h5

Machinery and trans-port equipment 135 145 155 170 180 260

i/ Numbers taken from graph, Page 1956, Reserve Bank of India Bulletin,October, 1974.

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ANNEX 1 1Table 4

INDIA

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (Madhya Pradesh)

Prices of Agricultural Productsi/

Economic Analysis Financial Analysis SeedRs/Ton $/ton Rs/ton $/ton Rs/ton

Wheat 1000 125 1320 165 1350

Paddy 920 115 1000 125 1200

Bajra 920 115 1000 125 1150

Jowar 920 115 1000 125 1150

Gram 1250 155 1250 155 1400

Mustard 1920 240 1920 240 2000

Sesame 304C 380 3o40 380 3200

Sugarcane 120 15 120 15 1500

Fertilizer Z Rs/kg

N 2 5

P 2 6

K 1 2

2/ Measured at farm gate./ Plant Autrient basis.

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ANNEX 12Page 1

INDIA

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Farm Budgets

Obiectives

1. Farm budgets were prepared for two reasons:

(a) to determine the ability of the water users to repaythe cost of On-Farm Development Full Package; and

(b) to determine whether the prospective increases in farmincome would be sufficient to compensate the farmer andhis family for the additional labor they would have toperform and for other farm production costs they wouldhave to incur.

Procedure

2. Farm budgets were prepared for the On-Farm Development Full Packagearea. To provide a basis for the preparation of the complete farm budgets,crop enterprises budgets were prepared for each of the major crops producedin the On-Farm Development Full Package area. These budgets which includephysical inputs, costs and both gross and net income were prepared forthe present and future - with-project situations. The crop budgets arepresented in Tables 1 and 2. The cropping patterns used in the budgetsare presented in Table 6.

3. The largest farms in the project area are over 30 ha, but thedistribution of sizes is very skewed, 37% of holdings being 1 ha or less.Complete farm budgets were prepared for two farm sizes, one of 2.4 ha(the average size) and the other of 1 ha. Budgets for larger farms werenot prepared, since their repayment capacity is greater than that of a2.4 ha farm. Distribution of farm sizes is as follows:

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A.ZNEX 12Page 2

per,c<ntage cf ?enraeFar1m Size Farms hiectare8 In S7zeInterval (no) (Cwzu?.atlve) (to, L)0Aj Interval Ct

Under - 0.5 16,461 16,161 4,090 i ,09 17.7 17.70.5 - 1.0 17,$77 34w,Q038 13,100 17, 19:o) 18.9 36.61.1 - 2.0 20,646 54,68 30Q780 D7,970 2/?.$58.8

2.1 - 3.0 12,927 67,611 3? 130 80,l l 72.-3.1 - 4.0 8,277 71,.68 , E!rn loi 8.9 81.64.1 - 5.o 5,301 81,159 23,710 132,610 5.7 87.35.1 - 10.0 9,300 90,489 69,330 201,90 110 97.3

10.1 - 20.0 2,139 92,625 31,790 233,830 2 .3 59.620.1 - 30.0 279 92,907 t,930 240,75A 0.3 p9930.1 - plus 93 93,000 .200 244,0ow 0.1 100.0

Total 93.000 2Utm LO0.0

4. A wheat farm was analyzed for both the 1 and 2.4 ha size units.In addition, a second analysis was prepared for the 2.4 ha farm with acomposite cropping pattern representative of' the On-Farm Development FullPackage Area.

5. It was assumed in the farm budget analysis that all crops wouldbe sold. Therefore provision was made in the farm cost for the purchaseof seed and of grain to feed the bullock team during the heavy workingseason. It was also assumed that the grain and lentils used for familyconsumption would be purchased with funds from the family living allowance.

6. Most farms - particularly those over about 1 ha in size-- havea bullock team for draft purposes as well as 1 or 2 water buffalo for milking.Provision was made in the farm costs to replace the bullock team every eightyears. The buffalo were considered as a household item and replacementswould be purchased from the family living allowance.

7. On most farms, the farm-produced fodder and straw would besufficient to feed the livestock at the rate of three tons per year per matureanimal. The average weight ratios of grain to fodder for the variouscrops are: local, wheat 1:2; HYV, wheat 1:1, HYV, paddy 1:1; bajra 1:3;jowar 1:4; gram 1:1 and mDst of the pulses about 1:1.

8. Two farm budgets were prepared for each of the three situationsanalyzed. The first represented the present condition and the second thecondition after full develc?ment is achieved (Year Eight for the individualblock). In the first year or so after development, it is anticipatedthat the increase in production would be relatively small, but it wouldincrease rapidly thereafter.

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ANNEX 12Page 3

9. The detailed results of the farm budgets as well as the cash flowanalyses are presented in Tables 3, 4, and 5. These indicate a presentnet farm income of about 1,100 Rs/ha. With full development this willnearly double in the On-Farm Development Full Package area. Although ananalysis was not made, the increase in net farm income would probably belargest on the Chak Drainage Area. This is because a substantial partof this area is now out of production because of perennial waterlogging.As soon as major drainage outlets are provided, this problem would beeliminated and there would be an immediate response in production.

10. The farm budget analysis indicates that the average size farmscan return the costs of On-Farm Development Full Package with interestart 10-1/2% in a 12-year period, including a one year's grace. Also,at the same time, a sufficient surplus would be left to the farmers toprovide an inducement to them to undertake the development program. Forecample, on the 2.4 ha wheat oriented farm (in Year eight), after paying allcosts the farmer would have an increase in income of 2,000 Rs per year torepay him and his family for the additional 71 days of labor they wouldperform. This is a return of 28 Rs per day for the additional work which isvery attractive when compared to the 10 Rs per day allowed for harvest laborin the analysis or the 5 Rs/day paid to labor during the regular season.

11. The farmer on the 1 ha size farm unit would find it more difficulttco meet the prospective water charges and support his family. However,starting in the sixth year, he would have sufficient income to pay watercharges and to leave 1,600 Rs for family living. However, since his farmwould only require about 95 days of labor per year, he would have ample timeto supplement his farm income by off-farm employment. In Year Two, the firstyear he would be required to pay water charges, if he were to work off thefarm for 68 days during the harvest season at 10 Rs per day. his income wouldbe increased sufficiently to cover the minimum cost of living. The develop-ment of the project would substantially increase the opportunities for suchnon-farm employment. After paying all water charges starting in Year Threehis residual farm income available for family living would be higher thanit is under present conditions.

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INDIA ~~~~~~~~~~~~~~~AN1MEX 12INDIA Tabole 1

CHAMBAL COMMAND AREA DEVELOPMENT (MADEYA PRADESH)

Crop Enterprise Budgets (Present) On-Farm Dayelopment rull Package Area

(Per Hectare)

I N P U T S C O S T S O U T P U T

Fertilizer Plant Cross Net

Labor N P K Seed Protection Labor Fertilizer Seed Yield Value Value

Mn _Days ha kg kg Rs Rs Rs Rs Ton Rs Rs

IKHARIF - Irrigated

Paddy 1.10 50 30 - 35 35 360 330 42 2.4 2,400 1,635

KHARIF - Non-Irrigated

Bajra 39 15 8 - 12 2 - 123 14 0.8 800 660

Jowar 39 5 3 - 15 6 - 43 17 0.8 800 735

Pulses (Interplanted) 12 - - _ 15 9 - - 22 0.5 660 630

Sesamum 42 - - _ 10 3 - - 38 0.3 912 870

RABI - Irrigated

Wheat (HYV) 62 40 20 - 120 25 280 320 162 1.8 2,400 1,615

Wheat (Local) 50 24 12 - 100 17 220 192 120 1.0 1,300 750

Gram 43 10 25 . - 75 23 - 200 105 0.7 950 620

Mustard 40 25 13 - 7 54 - 205 14 1.0 1,900 1,625

Sugarcane 77 60 30 20 8,000 86 320 520 1,200 35.0 5,250 3,125

RABI - Non-Irrigated

Gram 41 - - - 75 10 - - 105 0.4 544 430

Mustard 37 12 6 - 7 21 - 96 14 0.6 790 660

ax

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ANNEX 12Table 2

INDIA

CHAMBAL COMMAN) AREA DEVELOPMENT (MADHYA PRADESI)

Croi Enterprise Budgets (Future - With Project) On-Farm Development Full Package Area

(Per Hectare)

I N P U T S C OS T S O U T P1U TFertiliser Plant Hired Gross Net

Labor N P K Seed Protection Labor Fertilizer Seed Yield Value ValueMan Deys kg kg kg Rs Rs Rs Rs Tmn 1.o

KHARIF - Irrigated

Paddy 130 100 60 - 35 76 550 860 42 3.6 3,600 2,070Hybrid Bajra 63 75 40 - 5 25 - 620 18 2.2 2,200 1,540

KIIARIF - Non-Irrigated

Bajra 56 30 20 - 12 11 - 270 14 1.4 1,400 1,105Jowar 50 30 18 - 15 25 - 260 17 1.6 1,600 1,300Pulses (Interplanted) 15 10 30 - 15 14 - 230 22 0.8 1,100 835Sesamum 50 20 20 - 10 , 14 - 220 38 0.6 1,820 1,550

RABI - Irrigated

Wheat (HYV) 87 100 60 - 120 73 550 860 162 3.4 4,480 2,835Wheat (Local) 62 55 30 - 100 41 400 455 120 1.8 2,380 1,365Gram 63 25 50 - 75 52 - 425 105 1.4 1,900 1,320Mustard 55 45 30 - 7 85 - 405 14 1.8 3,460 2,955Sugarcane 123 100 45 30 8,000 148 450 830 1,200 57.1 8,570 5,940

RABI - Non-Irrigated

Gram 47 10 30 - 75 29 - 230 105 0.7 920 555Mustard 45 25 12 - 7 38 - 200 14 1.1 2,110 1,860

February 10, 1975 r

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ANNEX 12Table 3

INDIA

CHAM4BAL CCMMAND AREA DEVELOPMENT PROJECT (MADHrA PRADESH)

Farm Budget for Average Size Farm(2.h ha Wheat Farm, On-Farm Development Full Package Area)

(in Rs)

Y E A R SItems 0 T 2 3 4 5 6 7 8-12

Gross Value Production 4,240 4,845 5,450 6,055 6,660 7,265 7,870 8,475 9,090I/

Cost bf Inputs 2/ 1,050 1,250 1,450 1,650 1,850 2,050 2,250 2,450 2,650Interest on Production Credit 3/ 50 60 70 80 90 100 110 120 130Maintenance of Farm Eouipment and Bullocks 500 515 530 545 560 575 590 595 600

Ne1t Farm Income 2,640 3,020 3,400 3,780 4,160 4,540 4,920 5,310 5,710

Water Charges

0 & M 4/ 72 72 116 116 116 '116 116 116 116Betterment Levy 5/ - - 34 34 34 34 34 34 34Repayment of Development Loan - - 852 852 852 852 852 852 852

Total Water Charges 72 72 1,002 1,002 1,002 1,002 1,002 1,002 1,0026/ 7/

Residual for Fwdly Living and Savings 2,568 2,948 2,398 2,778 3,158 3,538 3,918 4,308 4,708

1/ Fertilizer, hired labor, plant protection and seeds.(Required 128 man-days labor in Year Zero and hired 28. Needed 226 with full development and hirdd 55.)

2/ Assumesfarmer borrows money to finance all inputs and pays 10% for i year.3/ Depreciation of Bullock Team 400 Rs/year. Team cost 3,200 Rs and works about 8 years.Ii/ Assumed 14 Rs/ha/yr. to recover construction costs over a 30-year period. (bi

3/ Assumed loan of 2,250/ha repaid in 12 years including one year's grace at 104 interest. , .

'/ Family living estimated at 1,600 Rs/yr.t/ Income will probably be substantially less than this in Year One when on-farm development occurs.

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ANNEX 12

INDIA

CHAMBAL CCMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Farm Budget for amall Farm(1 ha Wheat Farm, On-Farm Development Full Package Area)

(in Rs)

Y EA R SItems 0 1 2 3 4 5 6 7 8-12

Gross Value Production 1,765 2,020 2,270 2,525 2,775 3,025 3,280 3,530 3,7901/

Cost of Inputs / 315 380 445 510 575 640 705 770 830Interest on Production Credit 3/ 15 19 22 25 29 32 35 38 42Maintenance of Farm Equip. and Bullocks 1 440 445 450 455 460 465 470 475 480

Not 'Farm Income 995 1,176 1,353 1,535 1,711 1,888 2,070 2,247 2,438

Water Charges

0 & M 4/ 30 30 48 48 48 48 48 48 48Betterment Levy 5/ - - 14 14 114 14 14 14 14Repayment of Development Loan - - 355 355 355 355 355 355 355

Total Water Charges 30 30 417 417 417 417 417 417 417_________ -- 6/ 7/

Residual for Family Living and Savings 965 L,1146 936 1,118 1,294 1,471 1,653 ,830 2,021

1/ Fertilizer, hired labor, plant protection and seeds.(Required 54 msn-days labor in year Zero and 95 when fully developed. Did not hire any.)

2/ Assumes farmer borrows money to pay for all inputs and pays 10% interest for i year.3/ Depreciation of bullock team estimated at 400 Rs/yr. Teams cost 3,200 Rs and work about 8 years.IV Assumed 14 RsAWa/yr.to recover construction costs over a 30-year period. x§/ Assumed cost of 2,250 Rs/ha. and repayment in 12 years including one year's grace with interest at 10C.3/ Family living cost estimated at 1,600 Rs/yr.7/ Income will probably be substantially less than this in Year One when on-farm development occurs.

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ANNEX 12Table 5-

INDIA

CHAMBAL CCMMAND AREA DEVI_UFENT PROJECT (MADHYA PRADESH)

Farm Budget for Average Size Farm(2.4 ha Composite ropping Pattern, On- arm Development Full Package Area)

kin RS)

Y E AR S

It ms 0 1 2 3 _ _7

Gross Value Production 4,865 5,580 6,295 7,010 7,725 8,440 9,155 9,870 10,5701/

Cost of Inputs 2/ 1,355 1,622 1,889 2,156 2,423 2,690 2,957 3,224 3,490Interest on Production Credit 3/ 68 81 94 107 120 133 146 159 175Maintenance of Farm Equipment and Bullocks 500 513 526 539 552 565 578 591 600

Net Farm Income 2,942 3,364 3,786 4,208 4,630 5,o52 5,474 5,896 6,305

Water Charges

0 & M 4/ 72 72 116 116 116 116 116 116 116Betterment Levy 5/- - 34 34 34 34 34 34 34Repayment of Development Loan - - 852 852 852 852 852 852 852

Total Water Charges 72 72 1,002 1,002 1,002 1,002 1,002 1,002 1,002

Residual for Family Living and Savings 2,870 3,292 2,784 3,206 3,628 4,050 4,472 4,894 5,303

1/ Fertilizer, hired labor, plant protection and seeds.(Required 180 man-days labor in Year Zero and hired 46. Needed 287 with full development and hired 94.)

2/ Assumes farmer borrowed money to finance all inputs and pays 10% interest for 6 months.3/ Depreciation of bullock team 400 Rs/yr, Team costs 3,200 Rs and works about 8 years. m X17/ Assumed 14 Rs/ha/yr. to recover construction costs over a 30-year period.3/ Assumed loan of 2,250 Rs/ha will be repaid in 12 years including one year's grace at 1014 interest.6/ Cost of family living estimated at 1,600 Rs per year.7/ Income will probably be substantially less than this in Year One when on-farm development occurs.

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ANNEX 12Table 6

INDIA

CHAMBAL COzL44AD AREA DMVELOPMENT PROJECT (MtADIHYA PRADESH)

Cropping Patterns for Farm Budgets -On-Farm Development Full Package Area

2.4 ha Farm 1 ha Farm_Composite Wheat 'Wheat

Present Year 81- Present Yearl Present Year 8--------------------------- ha -----------------------------

Kharif - IrrigatedPaddy 0.35 o.58 _ _ _ _

Bajra (HYV) - (.11 - - - -

Sugarcane 0.02 0.01 - - _ -

- NonirrigatedBajra 0.22 C.24 0.20 o.4o 0.08 0.16Jowar 0.37 0.39 - - - -

Pulses (0.37) (O.48) o.4o 0.50 0.16 0.21Sesamum 0.o4 o.o6 - - -

Sub-TotalHectares 1.00 1.39 o.60 0.90 0.24 0.37Intensity 42 58 25 38 24 37

Rabi - IrrigatedWheat (HYV) 0.83 1.00 1.00 1.20 o.41 0.5oWheat (local) 0.24 0.14 - - _ _Pulses 0.30 0.33 -- - -

Oilseed 0.17 0.22 o.60 0.70 0.25 0.29- Nonirrigated

Pulses 0.20 0.:16 o.4o 0.20 o.16 0.08Oilseeds 0.19 0..0 - - - -

Sub-TotalHectares 1.93 1.55 2.00 2.10 0.81 0.87Intensity 80 81 83 88 82 87

TOTALHectares 2.93 3.3,4 2.60 3.00 l.05 1.24Intensity 122 139 108 125 105 124

/ Year of full de-velopment.

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ANNEX 13Page 1

INDIA

CHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Economic Anlsis

Prices

1. Prices for internationally traded farm production inputs andcrops grown on the project are based on Bank projections for 1985, withadjustments for transport costs ad variations in quality. Prices oflocally traded inputs and crops for 1985 have been estimated from localmarket prices, projected to 1985 assuming constant price levels. Theprices used are in Annex 11.

Farm Labor

2. The population of the project area is presently about 700,000 ofwhich about 70% is classified as rural (500,000) and the balance as urban.There are also about 93,000 farms in the project area and the average sizefarm family is about 5 persons thus indicating a farm population of 465,000people. The balance of the rural population (35,000) is composed of thefamilies of landless laborers. In all, there are at least 100,000 ruralfamilies. Assuming that the rural people work five days per week for 52weeks in the year, an individual would work 260 days per year. Furtherassuming only one worker per family, the rural population could perform26 million man days of labor per year. With the project, under conditionsOf On-Farm Development Full Package, it is anticipated that the laborrequirement would amount to only 17.4 million man days per year. Thuswithin the project area there is adequate labor to perform all of the farmoperations at full development. Although there is ample labor on mostfarms to meet all needs, most farm operators traditionally hire laborfor the harvesting and threshing of paddy and wheat and for the harvestingof sugarcane. Such hired labor is available from the families of landlesslaborers or from the families and operators of small farm units.

3. Estimates of the per hectare labor requirements for the variouscrops grown in the three development areas of the project are presentedin Table 1. Total labor requirements by month are shown in Table 2.There is considerable flucturtion in labor demand throughout the year. Twopeak seasons occur each year during the respective times of harvest forthe karif and the rabi crops. The opportunity cost for labor was esti-mated on a monthly basis using available information on labor supply anddemand.

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ANNEX 13Page 2

4. Labor has been shadow priced at marginal rates of between 2 and10 rupees per day. The shadow pricing is based on the following assumptionsand observations:

(a) at very low levels of employment, it is doubtful whetherthe opportunity cost of labor in terms of foregone productis much above zero: however, there seems to be an effectiveminimum wage of Rs 3-4/day, and the payment of this wageis an economic cost in terms of foregone investment. Muchof the labor utilized at the lowest levels of employmentmay in fact be family labor, where the payment is onlythe extra food necessary for work rather than leisure. Asa compromise, the minimum wage assumed is Rs 2/day;

(b) at the present peak level of employment, the marginal costof labor is assumed tc, be Rs 8/day, which is the marketwage rate, and is assumed to reflect the opportunity costof labor;

(c) at the future maximum levels of labor requirements, thewage rate is assumed to be Rs 10/day which should beadequate to attract labor from surrounding surplus areas.An instance was observed of a large farmer employing amigrant gang of workers, and the total pay they receivedwas Rs 10/day. &

5. Theoretically, it is assumed that the relationship between thequantity and opportunity cost of labor employed can be approximated by anS-shaped curve (Figure 1), joining the points listed above. The initialincrease in slope is slow, reflecting the lack of alternative employment,with the rate of increase growing as labor becomes more fully utilized,and finally leveling off when migrant labor would be attracted from awide area by the wage rate.

6. While the shape of the curve can be viewed with some confidenceat the upper levels on the basis of observation, the intercept at theminimum employment level is open to debate. Fortunately, since the lowestlevels df employment occur in both with and without project situations,the incremental cost of labor is not sensitive to the assumption madeabout the minimum economic wage.

7. For the purposes of anaLysis, the S-curve is formed by threestraight-line segments. The economic cost of labor is found by calculatingthe area beneath the curve up. to the employment rate.

8. Computed in this way, the average incremental cost of labor isRs 5.6/day - 70% of the current maximum.

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ANNEX 13Page 3

Project Costs

9. The Capital costs as developed in Annex 4 and amounting to Rs 215million were used in the economic analysis. The cost used includes physi-cal but not price contingencies. The sunk costs in existing facilities werenot included. It was assumed that after the three-year implementationperiod, the construction equipment On-Farm Development Full Package wouldhave a salvage value of Rs 4.2 million and this was reflected in the analysisin Year Four. Total 0 & M costs were included for the three-year constructionperiod after which only the incremental 0 & M costs (costs in excess of thosewhich would occur in the absence of the project) were included for the balanceof the 25-year period analysis.

Project Benefits

10. The project benefits are based upon the incremental net value offarm production after subtracting the incremental costs including farmlabor, fertilizer, pesticides and seeds. It was assumed in the analysisthat the benefits would reach the full level of development in Year 11 ofthe project. The build-up to that level reflects both (1) the rate ofconstruction and (2) the rate at which the physical productivity of theproject lands increase. The anticipated build-up is graphically illustratedin Figure 2. It is anticipated that the most rapid increase in farm incomewill occur in the Chak Drainage area where a large response will occurimmediately after the surfacp waters are removed and protection from futureflooding is provided.

Economic Rate of Return

11. The economic rate of return for the project is 22%. Separaterates of return for each of the three sub-areas are to be 25% for theOn-Farm Development Full Package area, 36% for the Chak Drainage areaand 18% for the Extensive Area. These results show that the investmentsfor each sub-area are justified, and also that investment in ChakDrainage gives a higher return than complete On-Farm Development FullPackage (Table 3).

Sensiti,lity Analysis

12. Several of the basic inputs into the economic analysis have beenvaried to determine their impact on the project economics:

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ANNEX 13Page 4

Variations Rate of Return

(a) rate of project development delayedby-one year 19

(b) project costs increased by 25% 18

(c) fertilizer priced at present (financial)prices rather than the Banks projected1985 prices 18

13. The above analysis indicates that there is moderate sensitivityto all changes. However, it is highly unlikely that any changes wouldoccur which would render the project unacceptable.

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INDIA

CHAIBAL COMMAND AREA DEVETDPMENT PROJECT (MADHYA PRADESH)

Iabor Requirements(man-days/ha)

On-Farm Development Area Chak-Drainage Area Extensive AreaCrops and Season Present Future Present Future Present Future

With- With With- With With- Without out out

Kharif Irrigation A

Paddy 110 114 130 105 111 122 108 111 124Bajra (Hybrid) Sugarcane 77 80 123 75 77 89 77 80 86

Kharif Non-IrrigationBajra 39 41 56 37 43 51 39 43 45Jowar 39 41 50 31 39 45 40 41 43Pulses (Interplanted) 12 13 15 12 13 15 12 13 15Gram 35 36 38 35 36 38 35 36 38

Rabi IrrigationWheat (HYV) 62 70 87 62 65 87 64 67 72Wheat (Local) 50 52 62 47 49 57 49 52 56Pulses 35 36 38 35 36 38 35 36 38Oilseeds 42 43 50 39 42 48 38 42 43

Rabi Non-IrrigationPulses 35 36 38 35 36 38 35 36 38Oilseeds 37 38 45 34 37 43 33 37 38

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ANNEX iSTable 2

INDTA

CUAMBAL COMMAID AREA DEVELOPMENT PROJECT (MADNYA PRADESH)

Economic Cost of Farm Labor (Year 8)

Jan. Feb. Mar. Apr M June July Aug. Sept. Oct. Nov. Dec. Total

Labor Requirement(Million man-days)

Fulture With Project 0.4 1.1 1.0 3.2 1.8 0.9 0.9 1.5 0.8 1.1 2.6 2.1 17,4Future Without Project 0.3 0.8 1.0 2.3 1.3 0.8 0.9 1.2 0.7 1.1 2.3 1.6 14.3

Margioal Opportunity Cost(Rs/man-day)

Future With Project 2.3 3.2 2.5 9.5 7.3 2.4 2.4 5.4 2.4 3.2 5.8 8.1Future Without Project 2.2 2.5 2.5 8.4 4.6 2.4 2.4 3.R 2. 3.2 0.4 6.0

Fcor.r...i C_at - Labor(Rl Million)

Future With Project 0.8 2.5 2.3 15.8 6.2 1.9 2.0 4.6 1.7 2.6 12.7 8.4 61.5Future Without Project 0.7 1.9 2.3 10.0 3.3 1.7 2.0 2.8 1.6 2.6 10.0 5.2 44.1

Incremental Economic Cost of Labor(Re Million)

Future With Project minusFuture Without Project 0.1 0.6 0.0 5.8 2.9 0.2 0.0 1.8 0.1 0.0 2.7 3.2 17.4

Febru,ary 24. 1975 1

m

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ANNEX 13Table 3

INDIA

CHAMBAI COMMAND AREA DEVELWOMENT PROJECT (MADHYA PRADESH)

Economic Costs and Benefits(Rs million)

Entire ProJect On-Fars Development Area (12.000 ha)

Costs Benefits Costs Benefits

Year Capital 0 & M Total 0 & M Total

1 50.4 10.4 60.8 0.0 - 8.7 0.5 9.2 0.0

2 96.1 11.4 107.5 3.1 15.8 o.6 16.4 0.3

3 68.5 12.4 80.9 16.2 13.1 0.6 13.7 2.1

4 - 11.8 11.8 42.1 1/ - 0.6 o.6 9.9 1/5 - 12.3 12.3 55.7 - 0.7 0.7 9.1

6 - 12.2 12.2 68.4 - o.6 0.6 11.4

7 - 12.2 12.2 78.3 - o.6 o.6 12.5

8 - 12.2 12.2 86.9 - 0.6 0.6 13.6

9 _ 12.2 12.2 95.1 - o.6 0.6 14.5

10 _ 12.2 12.2 103.1 - 0.6 0.6 15.3

11-25 - 12.2 12.2 lo.64 - 0.6 0 15.8

Rate of Return 22.45 Rate of Return 25.15

Chak-Drainage Area (20.000 ha) Extensive Area (192,000 ha)Costs Benefits Costs Benefits

Year Capital 0 & M Total Capital 0 & M Total

1 10.0 1.0 11.0 0.0 31.7 8.9 40.6 0.0

2 19.5 1.0 20.5 1.5 60.8 9.8 70.6 1.3

3 13.4 1.1 1I.5 6.9 42.0 10.7 52.7 7.2

4 - 1.1 1.1 15.3 - 10.1 10.1 16.9

5 - 1.1 1.1 19.9 - 10.5 10.5 26.7

6 - 1.1 1.1 21.2 - 10.5 10.5 35.8

7 - 1.1 1.1 22.2 - 10.5 10.5 43.6

8 - 1.1 1.1 23.2 - 10.5 10.5 50.1

9 - 1.1 1.1 24.0 - 10.5 10.5 56.6

10 - 1.1 1.1 24.7 - 10.5 10.5 63.1

11-25 - 1.1 1.1 25.5 - 10.5 10.5 65.1

Rate of Return 35.95 Rate of Return 18.25

1/ Includes Rs 4.2 million residual value of equipment.

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ANNEX 13Figure 1

INDIACHAMBAL COMMAND AREA DEVELOPMENT

(MADHYA PRADESH)Labor Cost Versus Demand

8

6 6

a

y 4E

0II I I I i0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0

Labor Requirement (million mandays/month

World Bank-9659

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ANNX 13Figure 2

INDIACHAMBAL COMMAND AREA DEVELOPMENT PROJECT IMP)

Rate af Build-up in BSn.fits

100 --w* -

0 DDevelopnentArea

C 60-

Eensive Area

40 Ae

20 L S

1 2 3 4 6 6 7 8 9 10 11

Years

World Bank-9639

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INDIACHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Project Operational Diagram

Pubic Wor ks Departmnt D

lrrlOatinrr DcPartrrrrnr Ir rigeriso and

DrrnU Cirle

' O| nrettin Canal Caasirinoe a

Agro-lndastries Corporation

Agarciult- DepWrrhenr Fr-

S v oil Conservation Division/\\

D ~ ~ ~ ~ ~ witF | ~~~~~~~~~~~~~~~~~~~~~Topography SurveY /\\

u,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~C~ EIn F ( \ Itt | ~~~~~~~~~~~~~~~~~~~PtelWittry Layouts Rncisiot of Layouts|\

Comman -Aren Authotity

Lend Development BeeksLoan Processng C plet en Agritultura1

9~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Ct , n

Cl. Commercial Banks CesfcstPooto

|Crc dies |

Governnent of Indir

Coopers tines

Agro-Service Cottons Coordination of lrputs Supp* o

= Extension Srrmice iAgricalluoral Enteosiun _--

Reseat-i Stations-|Agricultural Research | _ _ _ _

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INDIACHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Implementation Schedule

Calendar Year and Quarters 1975 1976 1977 1978Total Unit

Item 4thQ 1stQ 2ndQ 4thQ 1stQ 2ndQ 4thQ 1stQ 2ndQ

Irrigation and Drainage

Man Canai Erosion Protection 1 1 1 40 I 4 0

Canal Capacity Works 400 km

Canal Con-trol Structure 3177 no 9 1 9 13

Aquatic Weed Control

115 300 345Main Drainage Works 760 km 1 1

15 40 4Miscellaneous Works

On-Farm Development

400 400 401400 1400 140 20 20_20

a) Full Pakage Area12,000 ha1000 1000 1002600 2700 2700 3000 3000 3000b) Chak Drainage Area 20,000 ha t

Roads 206 km

Ravine Erosion Control 50 km i

World Bank-9725

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INDIACHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESH)

Organization Chart: State Level and Command Area Authority

r-~~------*---* ~ -- - - -- - - - -

r * - * * .L _ ankd DevaloPnrenf * *~ -. * Ref9+ ~ ~~~~~~~~~~~ tARCCoprto

Ccno erttnc Art AgrIcutrre __ _ AdtvtIOOat ChIef -- i - ~Cccndicai,cO Production Scry. Prd

CpLadi d Aretoi

, ~~~~~~~~~h r "Y iC A Ai

! -1 =---- ~~~~~----------- ----------'

nment tSCDl Research

Cn dNOTE Bnard of D-r-ctor of CAA Inc udet alt h,aid of den -rtmertrno A,r-c.Itre Irr,tatn omm1a-n

R-e-en Pobhrc Works Co-tetr-on, Ildutrret, Ve-eri-r, Forf-rvy. SCO S tIe So6t

Co0te-vtIOn Diota-on of the Agn-cltnt-l De,a-r-ert. _ Flow af Investment -fnds World Eank-9697

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INDIACHAMBAL COMMAND AREA DEVELOPMENT PROJECT (MADHYA PRADESHJ

Organization Chart: Irrigation and Land Development

C|o od Ar A

3~~~~~~* -- -------------- mm m - - - -Am- -w- --

ro 0~~~~~~~~~~~~~~JitDrctr0 aae| D,-tric, | | DistrictC b

Ch Lobe Agninultoa. Chamb AgAo..baus DriesnIrrigatlon 1 Agriculture Dep rtment Corpg ati,o

Flonnirng R-sac WokhpSorney e~~ ~~nd WorIc aed Worhs sead S1.,ts

Dep ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~Ui Design Uni D_eootn ntU

ProIec- I Ui *

Pciall milg j Part es l -| le~~~~ttrastruc- C | ocntract chdlm -|iato SProluemen

Field ~~~~~~~~~~ ~ ~~~~~~~~~~~~~~~~Snidhndrn -nd

- 4 3 2 XC _ + ~~~~~~ ~~~~~ ~ ~~~~~~~~~ ~~~Maccing l | Realign- l~ ofrksFerm Improorment of |oit> On-Farm Mai|ntenancemant WonIct~~~~~~~~~~F.. .,,

DiojerOt iii 0 Leoeling Wok Renaci |o "- f Machines

I I _ I I r~~~~~~~~~ ~~~~~~~~~~~~~~~ ~~~~~~~~Estimating PonEttemmon

| Cunal l l Dramage t l Mechameal l J ~~~~~~~~~~~~~~~~~~~~~~~Specitinatont

o| f Loane | Ageinulture Department Chamluat

Irrigation OperArtment Chainball

Total comber of sp-Ch bTisiont Constructionb-t4Tota number of aobduitinoa 0 & M-2A World 6ank-9656(RCEach C-ircl heeded by a SAperitr-dng Engineer lSE) Techn_ Wc ains inn966Etch planingi cr1 an,d dMoi-iu heaiIde bn art Encutica Enoi-er EElIe Fonet ton FarmEac,h so.bdi-i-io headed by ani Assit-n E,,gi-e (AE) DthsadFr

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INDIA Ae lur~7 O

-2- Chambol CommonMdrureaDevelopment Project 2'

(Madhya Prodesh)

< ,Pmjeot areaH A R Y A N A JOF ~~~~~~~~~~~~~~~~~~~NEWDE *Pbi

Chatmbol Command Area Deo. ProjeCt(Rajnstha)-

Other irrigated areas

- Major canals B lt

s<11:1Reservoirs and darns Si

-Main raads

RailwaysSahatr

® National capntalPS HtWStote capita)Wo

oDistrict headquarters

o TnwnsFae

District boundariesR AH A N Bhrtu

State boundaries r%-a r

27-

0 2p~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~C ~O75 10715'~

wallor -

MOIJA~~~~~~~~~~~~adeI Khafar I

KAO-crcl~~~~~~~~~~~~~~~~

Chittou 04.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ hhtro

(VIAGAki,~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Cra IA

no ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~(n

SAMAID ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~? ML(

I KEA BAnI r 4 4~~'l oa~7 A - Narsiarhopdoso

24-~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

5ADAONAD7~ ~~2ASen

R A~~~~~~~~~~~~~~Ds~~~~~~~~M~7C

d, 'I) I Rll~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ LA r~~~~~~~~~~~uIC4 5'

-P'Y~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~~~~~

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IBRD 11507~~~~~~~~ INDIA ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~APRIL 1975Chambal Command Area Development Project

(Madhya Pradesh) Numbers cand names of

P RO J EC T AREA RE on-fabrm developmentf reas:

5 Areas for on-farm development c : ==1 Reservoirs, tanks, with dams ( S heopur- Kremsiar

Areas for drainage Rivers Jora- A R0 t j F o lO 20 3o 4o 5o Seepage drains to be constructed 0 Towns JorBhind-Mau U i

SLOMETER Existing major canals Roads Ambah

BANGLADE$ KILOMETERS ~ ~~~~~Exnsting minor canals -.----- Railways oP R A D ESHi0 10 20 30 -_ Ccinals to be increased in copoicity Staite boundaries ¢

.--. I^erlo ol MILES r T

-"N ~ ~

b.udre R A J A S T H A N ,'A /'

KO8 o hiprlmOAMu K

Porboti Aqoedunt a~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~liheo ur ~ ~ ~ ~ ~ ~ ~ '

TIGHRA ha~~~~ -

ToSipur, aou

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IBRD 11524APRIL 1975

06 6

0 50 100 150 200 250 300 -- ¢ -Dr:ins___________C Cntrol sructures - \ arI E5P

METrERS -. sY__Roads - Naturall gullies \-orQ

O 100 200 300 400 500 000 700 bO0 9000 1000 \ nuecdurba

FEEr Note Fel .h-nl n l r,shhnPOet onolsntzon0~ --- SttuF flbaardaOh' f s . m

BRA~~~~~~~~~~~~~~~~~~~0 wr.., ~mir0o 5i0R

f~~~~~~~~~~~~~~~~~~k$C0w00&