lAl ReportNo. PA-90a This reportis for offici use onlyby the Bank Group and specifically authorized organizations or persons. It nay not be pubhshed, quotedor cited without Bank Group authorization. The Bank Group doesnot accept responibflity forthe accuracy or completeness of the report. INTERNATIONALBANK FOR RECONSTRUCTION AND DEVELOPMENT INTERNATIONALDEVELOPMENT ASSOCIATION APPRAISAL OF POCHAMPAD IRRIGATION PROJECT INDIA June 16, 1971 Agriculture Projects Department Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized
Transcript
lAl Report No. PA-90a
This report is for offici use only by the Bank Group and specifically authorized organizationsor persons. It nay not be pubhshed, quoted or cited without Bank Group authorization. TheBank Group does not accept responibflity for the accuracy or completeness of the report.
INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
1 hectare (ha) = 2.47 acres (ac)1 kilometer (km) = 0.62 miles (mi)1 meter (m) = 3.28 feet (ft)1 cubic meter (i 3 ) = 1.31 cubic yards or 35.31 cu ft1 million m3 (Mn3 ) = 810 acre-feet1 m3/sec = 35.31 cfs
WEIGHTS AND MEASURES (LOCAL SYSTEM)
1 thousand millioncubic feet (TMC) = 28.31 Mm3
ABREVIATIONS
GOI - Government of IndiaGAP - Government of Andhra PradeshPWD - Public Works Department of Andhra PradeshLMB - Andhra Pradesh Cooperative Central Land Mortgage BankAPSAIC - Andhra Pradesh State Agro-Industries CorporationCWPC - Central Water and Power CommissionSOI - Survey of IndiaSOD - Andhra Pradesh State Groundwater Directorate
INDIA
APPRAISAL OF
POCHAMPAD IRRIGATION PROJECT
TABLE OF CONTENTS
Page No.
SUMMARY AND CONCLUSIONS .......................... i - ii
I. INTRODUCTION ....... ................. 1
II. BACKGROUND .................................. 2
III. THE PROJECT AREA ................................. 3Climate ..................................... 3Topography, Soils and Land Use .... .......... 4Population, Farm Size and Land Tenure ....... 4Agriculture ................................. 5Transportation .............................. 5
IV. THE PROJECT ................................... 5A. Project Works ............................... 5
Pochampad Dam .......................... 6Main Canal ............................. 6Irrigation Distribution System ......... 7Drainage System ........................ 8Land Levelling ......................... 8Roads .................................. 8Land Acquisition and Resettlement ...... 8
B. Water Demand, Supply and Quality .... ........ 9Water Demand & Supply ................... 9Water Ouality and Drainage Requirements. 9
C. Construction Schedule ..... .................. 10D. Cost Estimates ....... ....................... 10E. Financing Plan ...... ........................ 12
This report is based on the findings of an appraisal mission which visitedIndia in November 1969, comprising Messrs. A. Golan, Y. Abe, C.M. Bolt,D.J. Parsons (IDA) and Messrs. A. Bergan and R. E. Bloodworth (consulltants),and has been updated and revised by Messrs. C.M. Bolt and D.M. Haynes on thebasis of information supplied by GOI.
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Page No.
V. ORGANIZATION AND MANAGEMENT . . 15A. Project Coordination andl Management 15B. Supervision of Works ........................ 36C. Operation and Maintenance .17D. Agricultural Support Program. 18E. Agricultural Taxes and Recovery of Project
Cost .19
VI. PRODUCTION, MARKET PROSPECTS AND FARM INCOMES 20A. Production. 20B. Market Prospects ............................ 21C. Prices .22D. Farmers' Income ............................. 22
VII. BENEFITS AND JUSTIFICATION .24
Environment .25
VIII. RECOMMENDATIONS .25
ANNEXES
1. Rainfall2. Soils3. Agriculture4. Description of Project Works5. Water Demand, Supply and Quality6. Construction Schedule7. Cost Estimates8. Organization9. Grain Storage, Agricultural Processing and Marketing
10. Agricultural Support Program11. Present and Projected Cropping Patterns12. Charges for Water and Other Levies13. Farm Budgets14. Economic Rate of Return15. Sensitivity Analysis16. Estimated Schedule of Disbursements
FIGURES
1. Water Supply and Demand2. Reservoir Storage Capacity
MAP
INDIA
APPRAISAL OF
POCHAMPAD IRRIGATION PROJECT
SUMMARY AND CONCLUSIONS
i. Agriculture plays a dominant role in the Indian economy, andirrigation is essential for the achievement of higher productivity as wellas to reduce farmers' dependence on unpredictable rainfall. In its FourthFive-Year Plan, 1969-74, the Government of India (GOI) placed emphasis onthe completion of on-going irrigation projects.
ii. The Pochampad Irrigation Project is a major scheme in the Stateof Andhra Pradesh in southern India and has been under construction since1964. Upon completion, it would irrigate about 400,000 ha along the rightbank of the Godavari river. The first phase of the project would irrigate100,000 ha and includes construction of most of the dam and 113 km of theGodavari South main canal; distribution canals and a drainage system; roads;and levelling and bunding of farm land. It would also provide for theestablishment of an agricultural demonstration and training center and anexperimental station, a study of water charges, a groundwater investigationand preparation of feasibility studies for further development of theirrigation potential of the reservoir.
iii. The estimated total cost of the first phase of the project is Rs944 million (US$126 million). Of this, about Rs 262 million, or 28% of totalproject costs, had been spent by the end of March 1971; of the remainingRs 682 million (US$91 million) about Rs 129 million would be provided byfarmers and credit institutions for on-farm development. The proposedcredit of US$39 million would assist in financing about 53% of the balanceof government expenditures of Rs 553 million (US$74 million). The estimatedforeign exchange cost of the project is US$10 million (about 18% of projectconstruction costs). Of this amount US$3.1 million would be for equipmentand materials to be procured after international competitive bidding andUS$1.7 million would be for imported special equipment and spare parts whichwould be unsuitable for competitive bidding. The balance (US$5.2 millionequivalent) comprises the foreign exchange component of locally procuredgoods and services. Proceeds of the IDA credit would be channeled to GOI,which would relend to Andhra Pradesh an amount at least equivalent to theproceeds of the Credit, which would be allocated specifically to the project.
iv. With the exception of final designs for Pochampad dam, preparedby the Central Water and Power Commission (cWPC), design of all civil worksas well as supervision of construction would be the responsibility of theState's Public Works Department (PWD). These works, as well as remainingworks on the masonry dam, would be constructed by local contractorsgenerally using labor-intensive methods. However, the State Governmentalso intends to use heavy machinery whenever it is economically justified.The procedures used in awarding contracts and executing works by force
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account are satisfactory and would be followed on the project. While mostof the civil works would be carried out under cotitracts awarded followinglocal competitive bidding, some would be carrifd out by department forces.
vI A senior government official would be appointed as ProjectCoordinator for all engineering and agricultural activities on the project.He would also be a member of a State-level Development Committee, comprisingthe Secretaries and heads of the departments and agencies associated withthe project. The Committee would be responsible for the allocation andcoordination of departmental operations and would exercise direction ofpolicy, planning and management for the project. In addition, improvementswould be made in the agricultural supporting services, particularly inextension, training, research and demonstration farms.
vi. At full agricultural development of lands, in the first phasethe annual incremental net value of production would be about Rs 114 million(US$15.2 million). The economic rate of return would be about 9% if allpast expenditures are included, or 14% if they are disregarded. However, ifreservoir and main canal costs are allocated to the present project and tofuture phases in proportion to the respective cropped areas, the rate ofreturn is 19% (26% excluding sunk costs).
vii. The project is suitable for an IDA Development Credit of US$39million equivalent. The borrower would be the Government of India and therewould be a Project Agreement with the State Government of Andhra Pradesh.
INDIA
APPRAISAL OF
POCHAMPAD IRRIGATION PROJECT
I. INTRODUCTION
1.01 The Pochampad Project, in the State of Andhra Pradesh, mayeventually irrigate about 400,000 ha with 3,397 Mm3 (120 thousand millioncubic feet, TMC) of water from the Godavari river. However, the riparianstates (Andhra Pradesh, Madhya Pradesh, Maharashtra and Orissa) have disagreedover their allocation of Godavari water, and have submitted their disputeto a tribunal that is not expected to reach a decision until 1973. TheGovernment of India (GOI) has sanctioned construction of Pochampad dam butall parties have agreed that diversions will be limited to 1,870 Mm3 (66 TMC)pending the tribunal's decision. Full development of the first phase, com-prising the present project, will require an annual diversion of about878 Mm3 (31 TMC).
1.02 An IDA reconnaissance mission reviewed the project in early1969 and the Public Works Department (PWD) and the Agricultural Departmentof Andhra Pradesh prepared the feasibility study with assistance from theFAO/IBRD Cooperative Program. The project was first appraised by IDA inNovember 1969. However, it was not until December 1970, that the Associationwas informed that GOI and the Government of Andhra Pradesh (GAP) had agreedto a financing plan making provision for the project in the Fourth Five-YearPlan, 1969-74.
1.03 The Bank Group's lending for agricultural projects in Indiatotalled some US$250 million up to April 1, 1971. If approved, this wouldbe IDA's second credit since 1968 for a major Indian irrigation scheme.The first (176-IN, US$35 million) for the 140,000 ha Kadana project inGujarat was signed in February 1970 and was declared effective on July 29,1970. Progress on the civil works has been satisfactory and initial dis-bursement difficulties have been overcome. Land development and agricul-tural aspects of the project are still behind schedule. A third project,rehabilitation of the Cauvery Delta system in Tamil Nadu, was appraised in1969 but negotiations were postponed sine die when an inter-state waterrights dispute arose in 1970. A fourth major irrigation project - Tawain Madhya Pradesh, - was appraised in November 1970. An IDA reconnaissancemission, in February-March 1971, has discussed future lending for irrigationwith GOI and state governments.
1.04 In most Indian states, institutional credit is available for privateinvestment in shallow wells, tubewells, land levelling and farm mechanization.Up to June 1, 1971, the Association had approved agricultural credit projectsin five states as well as a seeds production project and an agriculturalaviation prolect.
1.05 This report is based on the feasibility study and on the findingsof the November 1969 mission: Messrs. A. Golan, Y. Abe, C.M. Bolt,
D.J. Parsons (IDA) and Messrs. A. Bergan and R.E. Bloodworth (consultants)and of subsequent missions in February, April and September 1970, and February1971 by Mr. Bolt and other members of IDA staff. Final revisions and updating,on the basis of information supplied by GOI and GAP in February 1971, werecarried out by Messrs. C.M. Bolt and D.M. Haynes.
II. BACKGROUND
2.01 India's gross national product (GNP), about US$51 billion in 1971,has been increasing at about 3.5% per annum. Preliminary results of the1971 population census indicate a total of 547 millions which suggests agrowth rate of about 2.25% per annum over the last ten years. Per capitaincome at current prices is about $90. However, if income is expressed in1960/61 prices and rupee value, per capita incomes have remained nearlystatic at US$40-45 during the decade.
2.02 Agriculture sector generates about 40-45% of GNP and providesemploymenc for about 70% of the labor force. Agriculture is still animportant factor in exports, although its share of the total has fallenfrom 65% in the early 1960's to 50% in 1968-70. Output of foodgrains rosefrom 82 million tons in 1960/61 to 99.5 million tons in 1969/70, but all ofthe increase was in rice and wheat. Production of other cereals and pulsesdecreased. Production of oilseeds, sugarcane, cotton lint, jute and othercrops has been, at best, static since 1960/61. Per capita production of allmajor agricultural commodities has declined, the loss being most serious forpulses, oilseeds and cotton.
2.03 The Fourth Five-Year Plan, 1969/70 to 1973/74, projected a 5%growth in agricultural output. While foodgrain production increased at thisrate during the first two years of the Fourth Plan, there were shortfalls inother crops due partly to a shift of lAnd and other resources to wheat andrice and partly to the lack of effective technology.
2.04 Efforts to accelerate agricultural development have concentratedon the introduction of vheat and rice varieties that are more responsiveto fertilizers, irrigation and pest control; and an increase in multiplecropping by irrigation, in many cases facilitated by farm mechanizationincluding tractors. The development strategy has included improvement ofthe quantity and quality of agricultural extension staff, especially inareas with responsive soils and adequate water resources.
2.05 The High-Yielding Variety program, started in 1964/65, providedseeds for 11 million ha by 1969/70. Fertil:.zer consumption rose from400,000 tons in 1961 to 2 million tons in 1969/70. However, shortages ofassured and timely water supplies to crops, lack of fertilizer productionand distribution, and of credit and marketing services, limit rapid adoptionof the new technology. The total irrigated area has increased from 28 millionha in 1960/61 to 37 milLion ha in 1969/70. Thus, about a quarter of the total
area of ^rops - 160 million ha per year - are now irrigated but complementarytechniques necessary for fully effective water use, such as field channelconstruction, land-shaping and drainage, are lagging behind provision ofbasic irrigation.
2.06 The State of Andhra Pradesh has invested large sums in irrigationprojects during the past 20 years but returns have been low, mainly becausescarce resources have been spread over too many projects, resulting in longconstruction and gestation periods and delayed benefits. The emphasishas been on engineering works at the expense of agricultural developmentand, in some cases, limited water supplies have been distributed over toolarge an area.
2.07 The Andhra Pradesh Cooperative Central Land Mortgage Bank (LMB),in association with some commercial banks, provides credit for agriculturalinvestments, especially in minor irrigation, land levelling and farm mechan-ization. In January 1971, the Association made a credit of US$24.5 million(226-IN) to help finance this program until June 1973. Some of the invest-ments will be in the Pochampad project area: in particular, provision ismade for credit to farmers for land levelling.
III. THE PROJECT AREA
3.01 The project area covers about 240,000 ha in the Karimnagar andNizamabad districts of the State of Andhra Pradesh (see map). It lies at analtitude of 250-360 m on the Deccan plateau along the right bank of theGodavari river. The Godavari, the largest river in southern India, rises inMaharashtra and flows eastwards 1,500 kis to the Bay of Bengal, but overhalf of its length is within the boundaries of Andhra Pradesh. The estimateddependable flow is 77,850 Mm3 (2,750 TMC) per annum and less than aboutone-third of the flow is now used for irrigation.
3.02 The Pochampad dam, which will be one of the longest in Asia, isabout 200 km by road from the State capital, Hyderabad. The river is about900 m wide and the valley is broad and slopes gently: at ultimate develop-ment, the reservoir will cover 452 km2.
Climate
3.03 The climate is monsoonal, with 85% of the annual rain fallingduring the kharif season from June through October, the remainder occurringas variable light rains in the rabi season, November through February. Theaverage annual rainfall is about 1,000 mm but the 75%-probability annual totalis less than 600 mm (Annex 1). Temperatures range from about 13°C (December)to over 42°C (May) and the relative humidity drops to about 20% in the rabiseason. While conditions are suitable for crop growth throughout the year,irrigation is a prerequisite for most rabi crops and in most seasons isneeded for rice, chillies and turmeric during kharif.
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Topography, Soils and Land Use
3.04 The country is open and undulating, characterized by numerousgranite outcrops rising 80 m or more above the general plain. Naturaldrainage channels are traditionally used for irrigation and many smallreservoirs ("tanks") have been created by damming small streams. Groundwaterresources have not been studied in detail but a small area (7,000 ha in all)is irrigated from privately-owned shallow wells.
3.05 A soil survey has been made by the Agriculture Department. Thereare two dominant soil types, both inherently suitable for irrigated farmingwith proper management:
(a) light, sandy red soils, usually shallow, with good permeability.They are non-saline and neutral but of low fertility and respondwell to fertilizers.
(b) heavy, black, fine-textured clay soil,usually deep, with poorpermeability and imperfect drainage. They are non-saline butslightly alkaline and will require careful management underirrigation.
The red soils cover nearly two-thirds of the area, generally adjacent tohills and on slopes of up to 3%. They require erosion control measuresand careful levelling for efficient irrigation. The black soils are foundin lower-lying, gently undulating lands with slopes of about 1%. Althoughthey have not been affected by the present scale of irrigation from tanks,sustained irrigation would cause waterlogging and increasing salinity unlessadequate drainage is provided. Further details of the soils are givenin Annex 2.
3.06 About 20% of the project area - mainly on the hills - is underforest and only about 150,000 ha is suitable for cropping. About 10,000ha would be excluded from the project because they are already satisfactor-ily irrigated from tanks. A further 40,000 ha cannot be commanded by gravity.The net cultivable area irrigated under the project, therefore, would be100,000 ha.
Population, Farm Size and Land Tenure
3.07 Population density in the project area, 135 per km2, is lowcompared to other parts of India. There are about 67,000 farm families,averaging four persons, in the area to be irrigated in the first phase butthe Pochampad reservoir is designed to provide irrigation water ultimatelyto over 380,000 holdings.
3.08 The overall average farm size is 2.2 ha. Fragmentation is commonbut is not sufficiently serious to have a significant influence on produc-tion or irrigation layout. By far the largest number of farms (85%) are lessthan 4 ha but they account for only 40% of the area: only 6% of farms areover 6 ha, but they account for 36% of the area. Under a 1961 state law,
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the maximum permissible size of holding is 30 ha but, while the law has beengenerally implemented, large holdings may be registered under the namesof several family members. Tenancies are uncommon - less than 7% of allfarms - and all tenants are protected by law and enjoy security of tenure.
Agriculture
3.09 Local farmers are generally competent and industrious, though theirefforts are handicapped by the uncertain rainfall. New, proven crop varietiesare readily accepted and the use of fertilizers and pest control chemicals isgrowing. Most farms grow rainfed kharif crops such as sorghum, millets,pulses, maize, sesame and groundnuts. Where supplementary irrigation isavailable, the main crops are rice (irrigated mainly from tanks) and turmeric,chillies and castor (with supplies from shallow wells). Most of the cultiva-tion and seeding is done with bullock-drawn implements. Further details aregiven in Annex 3.
Transportation
3.10 The national highway to Nagpur and Delhi passes close to the projectarea, crossing the Godavari just below the dam site (see Map). The projectarea is also served by the Central Railway, which has a junction at Warangal.The internal road system connecting villages with main markets in the area,however, is inadequate even for the present levels of production. The all-weather roads system does not reach many of the communities, and constructionand maintenance standards are poor.
IV. THE PROJECT
4.01 The project would be the comprehensive development for perennialirrigation of a net area of 100,000 ha along the right bank of the Godavaririver, including construction of the Pochampad Dam to its first phase level;resettlement of the population of the area to be inundated by the reservoir;construction of a lined main canal, and of distributaries, drains and roads.The project would include the introduction of an adequate agriculturalsupport program; land levelling and bunding in most of the project area;and studies of recovery of project costs and of the need for processing,storage and marketing facilities. It would also include establishment of anagricultural demonstration, training and experimental center; an investigationof groundwater movement and water losses; and preparation, including airphotography, mapping and feasibility studies, for the development of the fullpotential of the reservoir.
A. Project Works
4.02 Construction of the works started in 1964, and in March 1971 theremaining engineering works (Annex 4) to be carried out included:
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(a) continuation of the construction of Pochampad dam toa level (spillway overflow elevation 318.5m) creatinglive storage of 270 Mm3 (9.5 TMC);
(b) completion of the remaining excavation and structures forthe first phase of the Godavari South main canal (about65 km) and lining of its entire first phase length (113 km);
(c) completion of branch, distributary and minor canals andfield channels to serve 83,000 ha in addition to thoseunder construction in 17,000 ha of the system;
(d) construction of field drainage where necessary within theproject area; and
(e) construction of about 460 km of village roads.
Pochampad Dam
4.03 The dam has a total length of 14.6 km and consists of extensiveearth embankments up to 36 m in height, flanking a central spillway section1 km long constructed in hand-laid masonry. Under the project, the spillwaycrest would be raised to a temporary level 4 m short of its final height of28 m (elevation 322.5 m) to provide sufficient live storage capacity to meetfirst phase dry-season irrigation requirements (para 4.13). The dead storagevolume of the reservoir 850 Mm3 (30 TMC), is expected to provide fordeposition of silt inflow for about 90 years. The masonry dam is foundedon very sound granite gneiss, and the design satisfactorily provides forpossible local earthquake forces. The levels of flood peaks have been re-corded nearby for over 50 years, and the spillway has been designed safelyto pass a flood of a size (45,000 m3/sec) which is expected to occur lessthan once in 1,000 years, with an acceptable margin for operational factors.
4.04 Preliminary designs and site investigations for the dam were madein 1961-62 by the PWD, although GOI's Central Water and Power Commission (CWPC)were made responsible for final detailed designs prepared in Delhi during1964-66. Construction was started in 1964, but progress was constrained byshortage of funds until 1967. Heavy earth-moving is undertaken by PWD, whichhas already purchased most of the necessary equipment. However, there is achronic shortage of spare parts and the project includes provision forreplenishment of proper stocks. Work is now progressing satisfactorily inaccordance with the construction program (Annex 6) and about 50% of the damhas been built.
Main Canal
4.05 The first phase of construction of the Godavari South canal,designed by the NWD, would be about 113 km long including a tunnel ofabout 1 km. Because of the terrain, which is broken by natural drainageways leading to the river, the canal would require an unusually large
number of flumes, syphons and other structures, and it would be difficultand expensive to increase its size at a later stage. The canal is thereforebeing built with a bed width (38 m) and discharge capacity adequate for thesecond phase of development (150 m3 /sec), and it would be lined duringthe construction period of the project. The lining will not only reducelosses and water-logging but also permit the extension of the irrigable areaand increased velocities of flow required for later phases. Higher dischargecapacities would then be obtained by raising the banks and extending thelining, without the need for canal reconstruction closures which would other-wise have called for widespread and unacceptable reductions in rabi croppingand project benefits. Since there is no suitable brick-clay in the area, the112 km of lining would be of concrete, and the estimated cost would be Rs 75million (US$10 million). Since the lining has to be constructed to an exact-ing schedule, the FWD has agreed that it would be carried out under fourlarge contracts, covering the first 68 km by June 1974 and the remaining 44km by June 1976, and an assurance has been obtained to this effect.
Irrigation Distribution System
4.06 The production of rice, the staple food in the project area, shouldbe limited as far as possible to lower-lying black clay soils ("Wet" lands),since its cultivation on permeable red soils ("Irrigated Dry" lands) wouldrequire excessive amounts of water. Criteria for selection of "Wet" and"Irrigated Dry" lands have been modified and are now acceptable to theAssociation (Annex 2). The capacity of each distributary canal is relatedto the proportion of its minor canals which serve exclusively either "Wet"or "Irrigated Dry" lands. For the design and efficient operation of thecanals in the present and later phases it will be important to obtain dataon crop irrigation requirements and water losses, particularly those dueto seepage from canals and percolation in fields, which are liable to beexceptionally high in the project area (Annex 2). These studies will beincluded in the project.
4.07 The distribution system is being designed by PWD. The standardsadopted are acceptable but at present the layout is based on surveys bySurvey of India (SOI) and the project staff. The surveys, though accurate,are insufficiently detailed for designing irrigation and drainage systems.To assist the proper planning of the present project and the remaining areairrigable from the reservoir, it will be necessary to provide large-scalemapping of the relevant areas as soon as possible. The maps would be basedon air photography produced by the SOI with UNDP support, using improvedtechniques with equipment to be procured under the project.
4.08 The 1,800 km of branch canals and distributaries would becompleted by 1975. In many previous Indian irrigation projects therealization of benefits has been delayed because the permanent irrigationoutlets from minor canals to field channels as well as the field channelsthemselves, were not constructed until long after completion of thelarger canals. To achieve early benefits from the project, permanent outletsand field channels would be constructed as part of the project by PWD beforeeach minor canal is commissioned, according to a schedule that would ensure
that all first phase channels are operational by June 1976. Outlets wouldserve no more than 40 ha, and the exact site of each outlet would bedletermined by teams of officials (each comprising a Revenue Inspector, PWDSupervisor, Agricultural Extension Officer, Cooperative Supervisor andBlock Development Officer) after consultation with farmers. Two such teamsEltarted work in April 1970, and additional teams would be formed as and whennecessary.
Drainage System
4.09 The natural drainage system would be improved and new drains builtas necessary by PWD, to prevent waterlogging and salinization of low-lyinglands and also to prevent erosion and to protect roads and other works. As-surances have been obtained during negotiations that construction of drainagesystems would proceed simultaneously with on-farm development in each area,and would be completed before June 1976.
Land Levelling
4.10 Land levelling would be required in most parts of the project areaand "wet" lands would also require bunding to provide adequate water controlfor rice cultivation. Farmers on smaller holdings are expected to do thiswork by hand or with bullocks, with their own resources. On larger holdingsfarmers would employ labor contractors or the mechanized units of the State-owned Agro-Industries Corporation for at least part of the work. Basedcn experience with similar projects in Andhra Pradesh, it is expected thatfarmers will seek long-term credit from the LMB for development of about 25%(17,000 ha) of the "irrigated dry" lands and 40% (14,000 ha) of the "wet"lands. The Agricultural Credit Project (226-IN, see para 2.07) would assistin financing these works until June 1973. Assurances have been obtainedduring negotiations that the State will at all times ensure that appropriatetechnical staff are posted to the project area for this purpose, thatsatisfactory standards are adopted and adequate equipment provided, andthat sufficient funds will be available to assist farmers in the projectarea who require credit for land levelling.
Roads
4.11 The Public Works (Roads and Buildings) Department would beresponsible for construction of the project roads according to its customarystandards and practices. Upon completion of these roads the project areawould have about 1,000 km of all weather roads which, with adequate mainten-ance, should satisfy the major transport requirements of the project. Costsof road construction will be financed entirely by GAP but there is a provisionfor road maintenance equipment in the Credit.
Land Acquisition and Resettlemsent
4.12 Pochampad reservoir will eventually inundate or infringe on theareas surrounding 82 villages. During the first phase of construction of the
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dam, 26 villages will be wholly or partly submerged, involving the resettlementof some 7,500 families. Under a phased plan, villagers are being resettledby GAP in cleared forest areas on both banks of the Godavari river. Familieswho have cultivated land for more than three years would be given an equivalentarea free of charge, subject to a maximum of 2 ha dry land or 0.8 ha irrigatedland. Housing sites, transport and other services would be provided by thestate government. Sites for new resettlement centers have been selected, andfour villages have already been resettled by special teams. Families whowish to move elsewhere are eligible for cash grants of Rs 500 - 2,000 in lieuof land.
B. Water Demand, Supply and Quality
Water Demand and Supply
4.13 At full development of the 100,000 ha which it would be feasibleto bring under irrigation during the 5-year project period, there would bea 75% probability that the water demand at the reservoir would be lessthan about 880 Mm3 (31 TMC) annually. This demand would be less than halfof the utilization of 1,870 Mm3 (66 TMC) which has been sanctioned by GOI.River flows have been gauged daily on the Godavari river near Pochampad formore than 20 years, and rainfall data have been recorded for 78 years in thecatchment area. Figure 1 shows that the river flow far exceeds project demandsfrom June through November, but that it must be supplemented by releases fromreservoir storage to meet demand during the dry season. On completion of thepresent project in 1976, up to 200 Mm3 (7 TMC) must be released from Januarythrough May. The project provides for construction of the dam to a levelwhich will provide 270 Mm3 (9.5 TMC) of storage, adequate to meet irrigationneeds and losses, as shown in Figure 2. Full irrigation development upstreamcould, if sanctioned, eventually reduce river flow to the point when releaseof 340 Mm3 (12 TMC) from storage would be needed for the project during theperiod December through May. Figure 2 shows that, even if no further work iscarried out after 1976, the 425 Mm3 (15 TMC) of storage capacity eventuallyneeded for 100,000 ha could be provided by raising the dam by a further 2 m.
Water Quality and Drainage Requirements
4.14 For irrigation purposes, the quality of the river water is goodin the 6-month high flow season and adequate in the low flow season. Itwould be satisfactory for continuous irrigation, even in the black claysoil areas, provided that the water table is not permitted to rise excess-ively and cause salt accumulations.
4.15 It is likely that irrigation, especially in the rabi season,would raise the water table, possibly to a level where it would causedrainage problems and reduced yields. Pre-irrigation groundwater levelswere studied during the soil survey but detailed observation of water table
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fluctuations, and of their effect on drainage, would be needed when large-scaleirrigation starts. Provision was made in the Agricultural Credit Project(226-IN) for three experts to strengthen the State Groundwater Directorate(SGD), who would be competent to advise PWD on location of test sites andinterpretation of data. Assurances were obtained during negotiations thateither SGD or PWD would prepare and initiate a groundwater monitoring programin the project area by April 1972, and that further studies of field drainageneeds would be carried out according to terms of reference satisfactory tothe Association (see Annex 2, para 6).
C. Construction Schedule
4.16 The dam, which is already 50% completed, would be constructed toits first phase height in 1976. The main canal (except for 20 km of lining),the branch, distributary and minor canals would be completed throughout theproject area in 1975. All other works, notably outlets, watercourses androads as well as the remaining 20 km of the lining of the main canal, wouldbe completed by June 1976, and the whole of the 100,000 ha would be irrigatedby the kharif and rabi seasons of 1976. The construction schedule is shownin Annex 6, and includes the program of irrigation development.
D. Cost Estimates
4.17 Overall costs of the first phase of the project are estimated atRs 944 million (US$127 million). About Rs 262 million, or 28% of the totalcost, had been spent by the end of March 1971. The balance, Rs 682 million(US$91 million), would be required for remaining first phase works includ-ing the cost of land levelling and bunding. The cost of thiss-on-farm devel-opment work is estimattd at Rs 129 million (US$17 millinon) of which aboutRs 37 million would be required for loans to farmers through the LMB. Thecost of the project to the Central and State Governments would be Rs 553million (US$74 million) including contingency provisions. Details -of thecosts are given in Annex 7. The remaining costs to complete the first phaseof the project by June 1976 are summarized in the table below:
- 1 1 -
COST ESTIMATES
ForeignItem Local Foreign Total Local Foreign Total Exchange
/1 To be financed partly by Agricultural Credit Project (226-IN).
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4.18 Cost estimates for Pochampad Dam are based on unit rates andprices obtained from contractors on the dam and on rates for similar workselsewhere in Andhra Pradesh. Estimates for canal constructioni are based onactual costs of work so far completed. Allowances for physical contingenciesvary from 5% to 20% on individual items, depending on the nature of avail-able estimates, averaging 8% on construction works. Allowances for futureprice escalation (7% per annum for imported equipment and 5% for localmaterials, supplies and labor) increase the overall contingencies to 12%.The estimated foreign exchange costs of the project are US$10 million, equi-valent to 18% of construction costs, or 14% of the overall costs, excludingon-farm development.
E. Financing Plan
4.19 The project would be financed from the Andhra Pradesh developmentbudget with the help of grants and loans from GOI and by farmers. TheRevenue Department of the State Government would advance the funds needed forfield channels (Rs 7.5 million) and obtain repayments from farmers. LMB isexpected to provide loans of about Rs 37 million for land levelling andbunding: providing that criteria are met, LMB could seek reimbursement, atthe rate of 66%, under the Agricultural Credit Project 226-IN. GAP wouldfinance both foreign and local costs of roads (para 4.11). The financingplan for the period April 1971-June 1976 would be as follows:
Rs million US$ millionequivalent equivalent
IDA Credit
Foreign exchange, 100% of requirements(other than roads) 73 9.7Local currency expenditures on projectworks, approximately 46% of requirements 220 29.3
Subtotal 293 39.0
Andhra Pradesh State and GOI
Foreign exchange for roads 2 0.3Local currency expenditures on project works,approximately 54% of requirements 258 34.4
Total (without on-farm costs) 553 73.7
Farmers and Credit Institutions
Land levelling and bunding 129 17.2
Total 682 91.0
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4.20 The proposed IDA Credit of US$39 million (Rs 293 million equiva-lent) would finance 100% of foreign currency requirements and 46% ofthe remaining local currency items other than roads, land levelling andbunding. The Association's share of the items other than on-farm financingdevelopment would be about 55%, large enough to bring about necessary improve-ments in organization, funding and execution of the project. The AgricultureCredit Project (226-IN) will also provide a share of the financing, throughassistance to on-farm development.
4.21 Assurances were obtained during negotiations that GOI would relendto Andhra Pradesh an amount equal to the proceeds of the Credit (except forthe amount provided for the photographic mapping equipment for SOI), whichwould be allocated specifically to the project.
4.22 Assurances were obtained that GOI and the Government ofAndhra Pradesh would review annually with the Association the proposedconstruction schedule for the following fiscal year and the budgetaryallocations necessary to meet this schedule.
Procurement
4.23 Equipment and materials costing about Rs 23.5 million (US$3.1million) would be purchased by international competitive bidding in whichlocal manufacturers would receive a preference of 15% or the actual customduty, whichever is lower. Photographic mapping equipment and spare parts forexisting equipment, as well as supplementary spares for new equipment, wouldbe purchased from the manufacturers or their agents at an estimated cost ofRs 12.5 million (US$1.7 million).
4.24 Contracts amounting to about Rs 35 million have already beenawarded, after local competitive bidding, for most of the remaining works onthe dam; the balance of about Rs 20 million (US$3 million) would be carriedout mainly by force account. For other major civil works (totalling aboutUS$30 million) consisting of the main canal and its lining, a branch canal,and most village roads, international competitive bidding would be a techni-cally appropriate procurement procedure. There are Indian contractorscapable of carrying out this type of work to acceptable standards in accord-ance with the construction schedule, and they would most probably submitlowest bids. For this project, the Association would agree that, as anexception to its Guidelines, procurement of civil works, other than forceaccount, would be by competitive bidding limited to Indian firms (i.e.,those registered in India and in which Indian concerns hold a majorityinterest). However, international bidding, where appropriate for civilworks in its future irrigation projects in India, is under active discussionwith GOI.
4.25 To ensure efficient construction of the main canal lining, syphonand tunnel by contractors, assurances were obtained during negotiations that
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the terms, conditions and procedures for award of these six cont-racts wouldbe acceptable to the Association and would TIclude, inter alia:
(a) adequate provision for advances for the purchase andmobilization of equipment required by contractors asstated in their bids;
(b) provision of licenses and foreign currency allotments forthe import by contractors of equipment and spare parts ifnot available in the country and required for carrying outthe works as bid, or if the necessary Indian-made equipmentcannot be delivered by dates specified in their bids;
(c) provision for bonus payments for early completion wherethere is a quantifiable advantage to be obtained, as inthe lining of the main canal; and
(d) general conditions of contract which would suitably defineand restrict the supervisory and arbitration functions ofPWD.
The latter provision is necessary since under existing procedures PWDengineers retain substantial powers to direct and control the contractors'work and exclusive power to arbitrate in any claims or disputes. Withoutsuch changes to existing contract provisions, substantial local contractorsmay not be willing to bid for civil works contracts administered by PWD.
4.26 For the remaining contracts for excavation of the main canaland of the largest branch canal, assurances were obtained during negotia-tions that the works would be divided into contracts estimated to costat least Rs 2.5 million each. Bids would be invited in groups of atleast three such contracts, and provision would be made for tenderers tochoose to submit bids for one or more contracts or to bid for a combina-tion of any or all in the group. The contracts would be awarded to thelowest bidder for each contract unless a combination bid were lower thanthe sum of the individual bids.
4.27 Minor civil works, including distributary canals and drains, canonly be awarded in small contracts to avoid interference with crops and tocircumvent delays due to unavoidable difficulties over land acquisition.These contracts would be awarded after local bidding.
Disbursement
4.28 Disbursements would cover the full CIF cost of imported equipment,spares and materials (US$4.8 million) or the FOR cost of Indian-made goods,aind an agreed percentage, presently estimated at 80%, against the cost ofcivil works for the dam, main canal (including lining), and the distributionanid draiiage systems. The documentation for disbursement would consist of(n) norm.ail shipping documents for imported items; (b) certified and receiptedprogress payment vouchers under contracts whose total value exceeds Rs 300,000;and (c) monthly summaries, signed by the Superintendent Engineer and Budget
- 15 -
Officer, for small contracts and force account costs including labor, fuelsand lubricants, miscellaneous materials and payments to SOI for maps and airphotography. The cost of roads, land acquisition, overheads and administra-tion, duties, and costs not directly related to civil works would not be
eligible for reimbursement from the Credit account. Any savings in equipmentand spares categories resulting from the procurement contracts not approvedby the Association would be cancelled. Other savings would be used only tomeet increases in costs. Withdrawals for force account work would be limited
to Rs 30 million.
4.29 The estimated schedule of project costs is given in Annex 7, andis summarized as follows (excluding on-farm development costs):
Government Fiscal Year19117/72 1972[73 1973/74 1974/75 1975/76 1976/77 Total
The estimated schedule of disbursements from the Credit is given in Annex 16.
Auditing of Accounts
4.30 PWD maintains separate accounts, which are subject to internalaudit, for the Pochampad Project. Assurances were obtained during negotiationsthat the Accountant General of the State of Andhra Pradesh would send the
Association copies of the audited PWD accounts, together with certifiedstatements of expenditures on the project by Agriculture, Revenue and otherdepartments, within six months after the close of the fiscal year.
V. ORGANIZATION AND MANAGEMENT
A. Project Coordination and Management
5.01 The organizational arrangements established by the Governmentof Andhra Pradesh for irrigation projects in the state generally consistof four levels of committees; a High Power Committee under the Minister forIrrigation as chairman; a State Level Committee under the Commissioner forDevelopment of Ayacuts (areas under irrigation); District Level Committeesunder the District Collectors; and a Rehabilitation Committee under theMember in charge of rehabilitation of persons displaced from reservoirareas (Annex 8). For the Pochampad project, the first three of thesecommittees were formed in 1970, and the last was constituted in 1968.
5.02 The High Power Committee meets every six months and can makerapid decisions at ministerial level to assist in removing difficultiesin implementation of the project. The State Level Committee performs theimportant functions of allocating and coordinating departmental activities
- 16 -
on the project, and enisuring that progress is maintained according to thedevelopmeat program. In addition to the Ayacut Development Comnmtssioner,the members of this committee include the Secretaries and heads of alldepartments and agencies concerned with the project (Annex 8). In view ofits importarit role in implementing the project, assurances were obtainedd1aring negotiations that the terms of reference of the State Level orDevelopment Cortmittee would be acceptable to the Association, and that theCommittee would have responsibility for the policy direction of the planningand managemenit of the project.
5.03 The IDistrict Level Committees formed for Nizamabad and KarimnagarDistrict:s, are intended to deal with matters connected with the developmentof irrigated 2gt iculture under the project in each district. Project areasdo not however coincide with district boundaries so that responsibility foragricultural development, which is organized on a district basis, is oftenobscure within a project. The more extensive agricultural. support programsanUd the increased tempo of civil works construction proposed for the projectwill require the collection of data, planning, coordination, budgeting andreview of all activities on the basis of the project area rather thandistrict-wise. Assurances were therefore obtained during negotiationsthat a Project Working Committee would be established before November 1971,with tetms of reference acceptable to the Association, to ensure full liaisonbetween departments working on the project, and with responsibility for theiraplementation and operation of the project.
5.04 The Project Working Committee would operate under the chairmanshipof a senior official in a new key post, Project Coordinator, who would alsobe a member of the State Level committee. Because of the importanceattached to this appointment, assurances were obtained that the Governmentof Andhra Pradesh would consult with the Association with respect to theexperience and qualifications required for the post of Project Coordinatorbefore appointing an officer to the post. It would be a condition ofeffectiveness of the Credit agreement that a Project Coordinator had beenappointed with suitable rank, powers and responsibilities.
5.05 A committee consisting of representatives of the GOI Ministriesof Irrigation, Agriculture and Finance, is responsible for the coordinationof data collection on irrigation projects to be presented by the GOI to IDA.This liaison should be continued during the implementation of the project tocoordinate project programs with those conducted by the GOI. Assuranceswere obtained during negotiations that arrangements would be made to ensureGOI's continuing association with the implementation of the engineering andagricultural aspects of the project through its coordinating committee.
B. Supervision of Works
5.06 A Chief Engineer of PWD is presently responsible for the executionof all project works. He is assisted by Superintending Engineers in chargeof four construction units and by the Executive Engineer in charge of aquality control unit. This arrangement is adequate for the canals and
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structures designed by PWD provided that adequate staff are posted to theproject. The present arrangement is not however satisfactory for the dam.Responsibility for the adequacy of the dam as constructed should rest withthe design agency (CWPC). The construction agency (PWD) is not in a positionto determine the inter-action between actual site conditions encountered andCWPC's design criteria. Therefore to ensure the safety and proper functioningof the dam, all changes and additions to the original design should be drawnup or approved by CWPC, whose staff should also maintain surveillance overthe construction standards. Assurances were obtained that CWPC would assigncompetent and experienced staff as necessary to review work at the dam site,including design changes and quality control, and that CWPC would certifythat the major components of the dam, when completed, have been carried outin accordance with their designs and specifications.
5.07 Occasional independent maintenance inspections would be needed toensure that the dam continued to be in a safe and satisfactory condition.Assurances were obtained that arrangements would be made satisfactory to theAssociation to inspect the dam at intervals not exceeding five years todetermine whether there are any actual or potential deficiencies in thestructure or earthworks, quality and adequacy of maintenance, or methods ofoperation that might endanger the safety or affect the satisfactoryfunctioning of the dam.
C. Operation and Maintenance
5.08 Dam and Canals: The construction staff would be responsiblefor the operation and maintenance of the dam until its completion. There-after a separate operation and maintenance division would be formed. Thecanal operating and maintenance division, based at Jagtiyal, would takeover from the construction division in 1975. The main canal would beoperated from June through April and closed in May for repairs and annualmaintenance. Distributary canals would be opened continuously in kharifand intermittently opened in turn during rabi, according to an operatingprogram to be established annually by PWD in collaboration with the Departmentof Agriculture and the Panchayats (local administrative councils). Farmerswould take their supplies from field channels in turn according to a timedroutine.
5.09 Roads. Existing feeder roads which are under the jurisdictionof the District authorities would be maintained by the maintenance organi-zation of those authorities, and the project includes some equipment forthis purpose. The existing and new village roads would be maintained by thePublic (Roads and Buildings) Department with machinery to be provided underthe project. The State Government has agreed that adequate funds will beprovided for maintaining these roads.
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5.10 Operation and Maintenance Costs. Traditionally, all irrigationprojects in Andhra Pradesh have been allocated Rs 10 per ha annually foroperation and maintenance costs. To keep Pochampad reservoir and canalsystem in efficient order, it would be necessary to increase the annual rateto at least Rs 20 per ha. Assurances were obtained during negotiations thatthe allocation of funds for maintenance of the project would cover 0 & Mcosts and that they would be reviewed every five years. Farmers are respon-sible for maintenance of field channels and the cost is included in farmproduction costs.
D. Agricultural Support Program
5.11 The State's Joint Directors of the Departments of Agriculture andCooperatives would be responsible to the Project Coordinator for agricul-tural development and supporting agricultural services for the project.Deputy Directors of Cooperatives, Agriculture and Animal Husbandry, engagedfull time on the project, would be responsible for supervision of all theirdepartments' activities at the project level. They would be assisted bytechnical staff from their respective departments and by subject matterspecialists from the Agricultural University at Hyderabad. The presentagricultural staff in the area, however, cannot meet the requirements of anirrigation project.
5.12 A general outline of a basic support program, and an estimate ofthe staff required, are given in Annex 10. Assurances were obtained thatthe State Government would finalize a comprehensive program, satisfactoryto the Association, within six months of signing the proposed Credit andthereafter would post the necessary staff to the project area.
5.13 While the present demand for production credit is negligible,it would rise to perhaps half of production costs - or Rs 50 million perannum - when the project area is fully developed. This would be four orfive times the present capacity of existing cooperative societies in theproject area. The agricultural support program would therefore includeprovision for strengthening and expanding the societies.
5.14 Marketing, storage and processing facilities will not be adequatewhen the project reaches full development. Present estimates of therequirements, and their financial implications, are given in Annex 9. How-ever in order to ensure orderly development, the project would includeprovision for carrying out a comprehensive study of the optimum size,location and timing of construction of the new facilities required and theirfinancial and administrative implications.
5.15 Assurances were obtained during negotiations that this comprehensivestudy would be carried out and that, by December 1972, the State Governmentand GOI would discuss the implementation of its recommendations with theAssociation.
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E. Agricultural Taxes and Recovery of Project Costs
5.16 The Land Revenue Act lays down different scales of land taxes,cesses and levies for rainfed and irrigated farming land. The Act makesprovision for changes but rates are rarely revised at intervals of less thanabout 20 years. Revenues from rainfed farming in the project area are verysmall - the average for the whole State is only about Rs 10 per ha. More-over, collections are erratic partly because taxes are reduced or waivedif the rains are poor.
5.17 The rates are higher, and collections more consistent, fromirrigated land. Land tax, a local cess equivalent to about 25% of the tax,and a water cess are general revenues which contribute to the State's annualbudget and finance local development projects. The actual rates vary fromproject to project and within projects, depending on soil fertility andthe type of irrigation provided (Annex 12). In the present project, thecombined rate would be about Rs 62.50 per ha (US$3.40 per ac) for irrigatedkharif crops and about Rs 42.10 per ha (US$2.30 per ac) for irrigated rabicrops.
5.18 A betterment levy is the only means of recovering government'sinvestment in the project but the levy is based on the increase in landvalue resulting from irrigation and not on actual project costs. The LandRevenue Act provides that the betterment levy should be equal to half theincrease in land values and should be paid in 20 equal annual instalmentswithout interest. The levy would be about Rs 625 (paid in 20 instalmentsof Rs 31.20) for land irrigated in the kharif, and about half that amountfor land irrigated in rabi.
5.19 Allowing for the proportion of different types of land, theannual revenue collections at existing rates in the fully-developed projectwould be:
Rs million per annum
Land Revenue and Water Cess 4.3Betterment Levy 2.1
6.4Local Cess 0.6
Total 7.0
The land revenue and water cess would cover the annual operation andmaintenance costs of Rs 2 million (para 5.10). However, under presentland, the betterment levy would recover only Rs 42 million of the totalinvestment of about Rs 300 million. 1/ While additional taxes or leviesmight prove a disincentive to small farms, owners of holdings of 4 ha or
1/ Project cost with reservoir and main canal costs allocated to thepresent and future phases in relation to area served.
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more could contribute to the full recovery of project costs without adverselyaffecting their incentives. Assurances were therefore obtained that theGovernment of Andhra Pradesh would:
(a) collect the authorized charges payable on irrigated landby the end of 1972, or as soon thereafter as water isallocated to any land in the project;
(b) complete a study by the end of 1974 on arrangements forthe recovery of:
(i) the full cost of operation and maintenanceof the irrigation system, and
(ii) as much as practicable of the capital cost of thereservoir and the irrigation and drainage systemwhich would be attributable to the project area,taking into account the incentives and repaymentcapacity of farmers, and would then discuss theresults of the study with the Association; and
(c) implement arrangements for recovery of the costs describedin (b), by the end of 1976.
5.20 Farmers would repay the cost of field channels (Re 75 per ha) tothe Revenue Department. LMB loans for land levelling would be repaid over10 years, with 9% interest (see Credit 226-IN).
VI. PRODUCTION, MARKET PROSPECTS AND FARM INCOME
A. Production
6.01 Present yields are erratic and low, reflecting the vagaries ofthe imonsoon. Without the project, new technology would be expected to bringabout some improvement in years of good rainfall, but the long term averageyield would remain low. The assured, regulated water supply; the on-farmdevelopments, especially land levelling; and the inputs and extension serviceprovided by the project would raise yields markedly. Thus paddy yields areexpected to increase from 1.2 to 4.0 tons per ha and groundnuts from 0.7 to1.5 tons per ha. Maize, which yields less than 1 ton per ha as a rainfedcrop, is expected to yield 3.7 tons per ha under irrigation. These increaseswould, of course, be accompanied by increases in production costs. Proj-ections of annual requirements in the project area for improved seed,fertilizers and agricultural chemicals indicate that these inputs wouldbe available in adequate quantities, from existing sources of supply, toachtieve the expected yield levels. Details of yields, production, prices,;iiJ costs ure given in Annex 11.
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6.02 During kharif, about one-third of the project area (the "Wet" lands)would grow paddy, the most popular crop with farmers. Rainfed grains, pulsesand oilseeds will be grown on the unirrigated land but overall there may bea slight reduction in cropping intensity during kharif. However, there wouldbe a major increase in maize and groundnuts grown under irrigation duringrabi when irrigation would be available for the other two-thirds of theproject area ("Irrigated Dry").
6.03 Overall, the cropping intensity in the 100,000-ha area wouldincrease from the present 110% to 155% as summarized below:
Cropped Area ProductionPresent Future Present Future Increment
/1 Mostly chillies and turmeric under irrigation from shallow wells.
B. Market Prospects
6.04 Foodgrains production in Andhra Pradesh during the 1952-69 periodincreased, on an adjusted basis allowing for weather conditions, at about1.9% per annum. Over two-thirds of the production growth was due to anincrease in the area under cultivation and the rest as a result of improvedyields. This trend was heavily influenced by paddy production, which accountsfor nearly two-thirds of all foodgrains produced in the State. Despite theslow increase in production, the State had some surplus grains during mostyears in the 1960's. Using a projected per capita demand for foodgrains of
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about 165 kg per annum, and an annual population growth rate of 2.5%, demandin Andhra Pradesh (including 12.5% allowance for stock feed, seed requirementsand waste) would amount to about 9.6 million ton annually in 1975. Bycomparison, the highest annual production on record was the 1966/67 crop of7.7 million tons. Andhra Pradesh would therefore have to increase its foodproduction by at least 4.5% annually until 1975, Just to meet rising demandwithin the State. Even if per capita demand should turn out to be lower,the annual incremental foodgrains production from the project of around255,000 ton should find a ready market in the State.
6.05 During the 1960's, Andhra Pradesh accounted for about 15% of totalgroundnut production in India and had large exportable surpluses. Demandfor groundnuts in India by 1975, according to GOI projection, will be about9.0 million tons per annum. Assuming that Andhra Pradesh is to retain itsshare of the total production in the country, groundnut output in the Statewould have to increase from the present level of around 750,000 tons annuallyto 1.8 million tons by 1975. The annual incremental production from theproject area of about 20,000 tons would not be difficult to market underthese circumstances.
C. Prices
6.06 The food zone policy in the country - under which the movementof major agricultural commodities between the States is controlled byGovernment - has caused differences in foodgrain prices between the States.Furthermore, chronic shortage of foodgrains in the past resulted in un-usually high grain prices, especially in those States that are not self-sufficient. With the prospect of India reaching self-sufficiency in foodproduction during the 1970's, it is assumed that prevailing price differ-ences for foodgrains between the States, caused in part by present market-ing restrictions, would gradually disappear; and furthermore that pricesin India by the end of the 1970's, when the project would be reaching fullproduction, would generally correspond with projected foodgrain prices onthe world market. Similarly, the prices for groundnuts were assumed onthe basis of projected world market prices. Due to its current surplusposition in foodgrains and groundnuts, Andhra Pradesh already has relativelylow prices by comparision with other parts of the country.
D. Farmers' Income
6.07 Computation of farm income is based on returns from irrigatedand rainfed crops in the area commanded by the irrigation system. It doesnot include returns from paddy cultivation under tanks, even though theseareas would benefit from increased inflow due to seepage losses on theproject, nor returns from dry farming lands not commanded by the project'sdistribution system. Future farm prices used are based on projected 1975
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world market prices, valued at the current exchange rate. All figuresrelate to income at full development, four years after the introduction ofirrigation. Based on these assumptions, cash farm income 1/ in the projectarea would vary between Rs 1,100 and Rs 1,300 per ha, depending on farmsize and the cropping pattern, and averaging about Rs 1,200 per ha for theproject area as a whole. By comparison, the average cash income for theproject area, based on prevailing prices, is presently only Rs 250 per ha.Representative sample farm budgets for farms of different sizes and croppingpatterns are presented in Annex 13 and summarized below:
Cash Income Project ChargesFarm Size Without With Project as % of(ha) Project Prect Increment Charges Increment
------------ Rs-----------------------
0.6 Nil 655 to 840 655 to 840 55 to 75 8 to 94.0 995 5,140 4,145 405 9.79.0 2,515 10,710 8,195 905 11
6.08 After irrigation is introduced, cropping intensities and netreturns per unit of land before deductions for family subsistence areexpected to be higher for smaller farm units than for larger ones. Cashincome per ha would, however, be lower on smallholdings since these mustfeed a larger number of persons per unit of land by comparison with thelarger holdings. However, since farming activities under the project wouldnot absorb the entire family labor in smallholdings, small farmers couldcontinue to supplement their income as casual agricultural laborers andthus be in a position to pay all the project charges. On the other hand,there is considerable leeway for increasing charges on the larger holdings.
6.09 The annual repayment of loans for land levelling and bundingwill vary considerably. On small farms, it is expected that most, if notall, of the work would be done by the family so that no credit will benecessary. As noted in para 4.10, medium and large farmers are expectedto seek credit for levelling 40% of the "wet" and 25% of the "dry" land.The maximum repayment likely to be incurred by a typical 4-ha farm wouldbe Rs 650 per annum, or less than 18% of the incremental income after paymentof project charges. For a 9-ha farm, the maximum repayment would beRs 1,460 per annum, or 20% of incremental income after taxes.
1/ Cash farm income is equal to gross value of production less familysubsistence allowance and production costs in which management andfamily labor contributions are costed at zero and before payment of"project charges". Project charges assume that the full cost of theproject, over 45 years, and operation and maintenance costs arerecovered on a uniform basis, proportional to area irrigated.
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VII. BENEFITS AND JUSTIFICATION
7.01 Through the introduction of irrigation, the project would enableagricultural activities to be intensified and stabilized in an area pre-sently dependent upon an erratic rainfall and would bring about a substan-tial increase in farm income. It would also contribute to India's effortsto attain self-sufficiency in foodstuffs and improve the balance of paymentby reducing import needs. Assuming all incremental foodgrain productionfrom the area to be import substitution, foreign exchange savings throughthe project at full development would amount to about US$18 million annually.Aside from these direct benefits, the project would also permit a morerapid development of subsequent stages, thereby improving their economicprofitability. Labor intensive construction methods and the increasedcropping intensity will create additional employment.
7.02 In the economic analysis of the project (Annex 14), payments forfami:Ly labor have been excluded from farm production costs, but those forhired labor have been included. This is justified not only because thereis a general surplus of agricultural labor in the State, but also becausefami:Ly labor in the area already receives what amounts to a subsistencewage. Fuller utilization of available family labor, as a result of theproject, would not, therefore, give rise to substantial additional economiccost.
7.03 The present project would bring 100,000 ha under irrigation andincrease the gross value of production from the present level of Rs 60 mil-lion to Rs 250 million. After allowance for increases in production costs,the annual incremental net value of production, at projected world marketprices, would be Rs 117 million when full agricultural development isreached in 1980. Loss of production due to inundation of the reservoirarea is estimated at Rs 3 million per year. The estimated economic rate ofreturn, over the 50-year life of the project, is over 14% when sunk costsare excluded. The sensitivity analysis (Annex 15) shows that the economicrate of return of the project is sensitive to delays, either in constructionor in effective use of the irrigation water, rather than to crop prices. Adelay of two years would reduce the economic rate of return to about 13%: offour years, to 12%. Particular attention has been paid in formulating theproject to aspects which are liable to cause delays.
7.04 However, the present project includes some costs which are incurredbecause it is the first phase of a system which will extend to about 400,000ha, and which is expected to have an economic rate of return of 24%, excludingsunk costs. If these first phase costs are allocated between the present andfuture projects the economic rate of return for the investments solely forthe present project is about 26Z, again excluding sunk costs.
7.05 As has been seen, work on the Pochampad irrigation system startedin 1962 but progress has been slow due to inadequate financing. About aquarter of the cost of completing the first phase will have been incurred
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before the start of the present project. If these sunk costs are included,the economic rate of return of the project is about 9% if all costs areincluded, or about 19% if joint costs are allocated to future phases.
Environment
7.06 The Pochampad reservoir will be shallow and is not likely to causeany siesmic nor other adverse effects. The main effect of the project onthe ecology of the area would be the gradual rise in the water table levelbrought about by increased irrigation. Provided this is controlled, itshould prove beneficial not only to the annual crops but also to the naturalvegetation and perennial tree crops, enabling them to take advantage of anextended growing season. It is possible that a more equable provision ofavailable groundwater would bring about a change in the composition of thenatural vegetation which would increase supplies of fuel and building timber.The increasing use of insecticides with project development will bring withit the usual dangers of pollution. However, insecticide use is being closelycontrolled in government programs and should not become a serious danger tothe environment in Pochampad.
VIII. RECOMMENDATIONS
8.01 During credit negotiations, agreement was reached on thefollowing principal points:
(a) the construction schedule, estimates and budgetallocation of funds for the project would be re-viewed each year with the Association (para 4.22);
(b) CWPC, after assigning staff to review work at thedam site, would certify that the dam had beenconstructed in accordance with their designs andspecifications; and the State Government would makearrangements satisfactory to the Association to havethe dam inspected for defects every 5 years (paras 5.06and 5.07);
(c) Development and Project Working Committees would beestablished before November 1971 with membership andterms of reference acceptable to the Association(paras 5.02 and 5.03); and
(d) the authorized charges payable on land irrigated underthe project would be collected by the government; astudy would be made by the end of 1974 of the means ofrecovery of operation and maintenance costs, and as muchas possible of the attributable capital cost of the
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irrigation system; and arrangements for recovery of thesecosts would be implemented by the end of 1976 (para 5.19).
8.02 The only additional condition of effectiveness of the proposedCredit is the appointment of the Project Coordinator (para 5.04).
8.03 The proposed project constitutes a suitable basis for aDevelopment Credit of US$39 million on standard terms. There would bea Project Agreement with the Government of Andhra Pradesh.
Karimnagar Nizambad Recorded Recorded Probability(with year) (with year) _
---- millimeters ------------------------
January 5 6 75 (1943) _
February 22 19 97 (1901) -
March 12 13 111 (1944) -
April 22 16 119 (1937) - -
May 23 1.2 128 (1918) - 2
June 137 i14 398 (191h) - 7L
July 234 285 545 (1958) 57 (1899) 196
August 177 231. 589 (1963) 92 (1909) ,_67
September 179 219 512 (1928) 24 (1899) 133
October 64 53 192 (1939) - 9
November 23 16 96 (1936) --
December L 5 49 (1918) -
Year 902 1,016 1,720 (1893) 495 (1899)
ANNEX 2Page 1
INDIA
POCHAMPAD IRRIGATION PROJECT
Soils
1. Soils in the project area have been surveyed by the State'sAgriculture Department and classified on the basis of surface soil textureand structure, effective depth, salt content, nutrient status, suitabilityfor irrigation and, in some cases, surface drainage needs. The Departmenthas prepared the following maps for use in the project's land classificationand development program: soils; salinity index; soil fertility index; limestatus; salinity and alkalinity; irrigation suitability; soil depth; andwater table depth. Recommendations have been made regarding drainage needs,crop adaptation, land treatment, special problems concerned with specificareas and soil-water management.
Soil Types
2. There are two main types of soils, consisting of several sub-classes, in the project area; light, sandy, red soils; heavy, clay,black soils. Both soils are inherently suitable for irrigation. Particularsof these soils are presented in Table 1 and are discussed below.
3. The red soils, which account for about two-thirds of the projectarea, include loamy sands, sandy loams and sandy clay loams. They rangefrom brown to red in color; are non-saline because of good internal permea-bility; have a near neutral reaction (pH - 7.0) and a relatively low claycontent; and occur mostly near the hills, on hillsides and on elevated butsloping lands. Rock outcrops occur throughout the area where the red soilsare found. In most places, the red soils rest on disintegrating rockmorrum or on the parent rock itself. Due to their shallowness and occurrenceon sloping terraces with diverse slopes of over 2%, irrigation developmentof these soils must include erosion control and land leveling for betterdistribution of water over the surface and to retain rainfall. Most ofthe red soils are low in organic matter and plant nutrients but theyrespond rapidly to the addition of both.
4. The black soils are fine textured soils found on gently slopinglands with slopes of 1% or slightly more. The surface soil (0-60 cm) issomewhat lighter in color due to cultivation and is well drained; however,with an increase in depth, the clay content increases and internal drainagebecomes more restricted. Drainage restrictions are further indicated bymottled pockets at various depths in the lower subsoil. The soil reactionis slightly alkaline, ranging from pH 8.0 at the surface to pH 8.5 in the lowerlayers. Although no deleterious effects on crop growth are now apparent,fact that the subsoils are dense, slowly permeable and contain mottledlayers, clearly shows adequate drainage facilities must be provided toprevent waterlogging and, eventually, salinity.
iXNN!TX 2I ;-' ge 2
5. About one-third of the area, the "wet" lands, would receive irriga-tion during kharif for rice cultivation. Thie rema-iinIng two-thirds, whichwould be irrigated during rabi, are designated as "irrigated dry' lantds.Origin:ally, two--thirds of the "wet" lands w're to be concentrated on the redsoils and the balanec oza the black soilis tiowever, seepage losses on redisoils used for rice cultivation are su'stantially hlighier than those experi-enced on the black soils and, to tlle extent possible, rice production shouldbe limited to black soils. This, aowever, would be in conflict withi a basicpremise of the State that, for social as well as project reasons, rice cul-tivatLon should not be concentrated in large homogeneous areas but ratherthiat it should be distributed througihout the area. Thie State authoritieshave agreed to revise the selection of "wet" lanids in the project area s j
that at least two-thirds of the lands whichi will be under rice cultivationare located on black soils and thiat not more than one-third are on red so -s.Thlis revision in irrigated land use has been reflected in the estim,ates ofproject irrigation water requirements (Annex 5, Table 2).
6. While the presently sanctioned water allocation for the PochampadProject is about double the estimated requirement for the first phase, properplann:lng of subsequent stages requires detailed knowledge of seepage losseson the red soils and the extent to which they would be used for rice cultiva-tion. Seepage losses would also have a considerable bearing on drainage re-quirements in the area. In order to collect the necessary data on seepageand drainage needs over so large an area, the following studies would beneeded:
(a) Evaluation of permeabilities of subsoil and substrata(seepage losses).
(b) The introduction of piezometric or open well studies ofexisting irrigated areas of different textured soils.The profile permeability studies and water table investigationsshould be conducted simultaneously in order to derive maximumbenefits from both; and
(c) Establishment of observation stations to record water tablefluctuations by means of piezometers or open wells. Thesestations should be located on irrigated land of known soilconditions and irrigation schedules. Continued records ofthese data will aid greatly in securing a better understandingof water table fluctuations due to rainfall and irrigation.Stations must be carefully selected in order to securerepresentative conditions.
7. All three studies described above should be closely linked to thestratum survey (soil profile textural characteristics) to be made of each lo-cation of piezometric or water table study. Once sufficient information iscollected from these studies, a program of application to drainage and/orseepage problems can be started. Irrigation efficiency and crop consumptiveuse factors which would also be under study, would be incorporated into anoverall drainage program.
June 7, 1971
INDIA
POCHAMPAD IRRIGATION PROJECT
Characteristics of Soils Found in the Project Area
RED SOIIS BLACK SOILSLoamy Sandy Sandy Clay Clay Silty ClaySands Loams Loams Loams Loams
_,Area Covered ha (%) 5,000(5%) 45,000(45%) 17,000(17%) 32,000(32%) 1,000 (1%)
Depth of Soils
Extremely shallow (less than 20 cm) ha 200 8,000 600 20C -Very shallow (20-30 cm) ha 1,100 18,000 4,000 1,400 -Shallow (30-60 cm) ha 900 17,000 9,500 4,000 100Medium deep to very deep (more than 60 cm) ha 2,800 2,000 2,900 26,400 900
2/
Water Holding Characteristics inch available/ft of soildepth 0.75-1.0 1.0-1.5 1.5-1.8 1.8-2.2 -
These areas are derived "pro ratal" from the distribution of soils surveyed over the original gross project area.
/ Estimated from soils of similar texture - T'hxas Agricultural Experiment Station Bulletin No. 937.
'!
ANNEX 3Page 1
INDIA
POCHAMPAD IRRIGATION PROJECT
Agriculture
General
1. The Pochampad project area is part of the Deccan plateau, anopen, rolling plain in central and southern India ranging in altitude from300 to 1,000 m above mean sea level. Grassland is the natural climaxvegetation of the area except where rainfall increases to about 1,000 mm,when scrub teak forest is found on uncultivated hills. All grasslandsare heavily grazed by cattle, but due to the very high porosity of thered soils which dominate the area, soil erosion is not at present aserious problem. Consequently, fields growing dry-land crops tend to belarge, and apart from cultivating and row cropping across the slope ofthe land, no soil conservation measures are employed by farmers. Primarycultivations as well as drilling and weeding of row crops are carried outby bullock draft utilizing traditional implements. The standards ofcultivation achieved by these means are impressive and diligent handweeding of rice fields and of other crops that cannot be weeded by bullock-drawn implements produces crop growth of high potential for increasedyields under improved conditions of water supply. Rice is the preferredgrain for consumption but under existing conditions in the project areathe staple is sorghum and maize.
Crops
2. Kharif crops grown under monsoon rain-fed conditions in the projectarea are mainly sorghum (Sorghum vulgare) and pulses. Most of the sorghumsare long-strawed varieties, and can be divided generally into grain andfodder types. The main pulses grown are red grams (Cajanus indicus),usually interplanted with the sorghum and black and green grams (Phaseolusradiatus and P. Mungo). Bengal grams (Cicer arietinum) and llorse grams(Dolichos sp) are grown for fodder on residual soll moisture in the rabiseason. Where irrigation water is available from tanks, rice is grown inthe kharif and again in the rabi season if the water supply is sufficient.Irrigation from wells is largely devoted to growing high value crops suchas chillies, turmeric, and castor and sometimes hybrid maize undersownto grams. Minor rain-grown crops include local varieties of yellow maize,sesamum, groundnuts and a little wheat, together with small millets suchas Bajra (Pennisetum typhoideum) and Ragi (Eleusine indica) and leguminousfodders such as Mucuna (or Stizolobium) and cluster bean (cyamopsis psora-loides). Small areas of ginger, cotton, and tobacco are also grown in thearea. Sugar cane is grown on quite a large scale on the Nizamsagar projectadjoining the project area.
ANNEX 3Page 2
3. Future cropping patterns (see Annex 11) envisage continuation of
the growing of the existing cereal varieties under rainfed conditions. Under
irrigation hybrid maize and sorghums will be grown. These hybrids areproduced under existing programs that operate effectively within the State.New paddy varieties are being produced in India at various centers and
those considered potentially suitable for the project area, together with
introductions from Taiwan and the Philippines, are being tested at Rudrur
(an experimental station adjoining the project area) and will be grown
under irrigation in the area. Dietary protein and oil requirements willbe largely met by groundnuts which will replace much of the present gramand sesamum acreage.
Yields
4. In view of the general standard of cultivation, present yields in
the project area are surprisingly low. The very low sorghum yields recorded
reflect in part the failure to differentiate between grain and fodder sor-ghums. In the case of other rain-grown crops, the low yields reflect both
the large variations in total monsoon rainfall from year to year and theunreliability of rainfall within a season. Recorded paddy yields in the
area include both the kharif and rabi crop. Since the tanks' water
supply is rarely adequate for a second crop, the presentation of yields as
an annual average is misleading. However, even during kharif present paddyyields are not very high. This is in part because farmers in the areahave not yet adopted the improved varieties but due also to the low level
of fertilizer application in the past.
5. The projections of yields to be attained four years after the
introduction of irrigation (Annex 11) are conservative and could probably be
exceeded as farmers gain experience with improved cultivation teclniques and
with better water management. The yields assume higher levels of fertilizers
and pesticides application than those prevailing in the area at present forall irrigated crops and the adoption of hybrid grain varieties. In the case
of rice it was assumed that no more than two thirds of the cropped area would
be planted to the new high yielding varieties, largely because the varietiesnow available are not entirely suitable for the area. However, with further
research new varieties especially tailored to suit the project conditions arelikely to be developed.
Irrigation
6. About 7% of the project area to be provided wtth an irrigationsystem is already being irrigated from shallow wells utilizing either
traditional methods of lifting water, mainly bullocks, or electric and
diesel driven pumps. The wells are used for irrigating holdings of 0.4to 0.8 ha. Existing inundation canals irrigate a small area of paddy alongthe- Godavari River. By far the largest area irrigated, however, is
riceland irrigated from "tanks". These tanks have been made by constructingearth dams across the numerous drainage channels found in the area, andproviding stone spillways and canal offtakes for up to;120 ha from theimpounded water. Many tanks date back several hundreds of years. They
are! used, as are the wells, for rabi irrigation, in addition to irrigation
ANNEX 3Page 3
during the kharif season, for so long as the water supply is sufficient.One of the non-quantifiable but significant benefits of the project wouldbe the improvement of water supply to the tanks and wells as a result ofseepage to the groundwater and surface drainage.
Pests and Diseases
7. The main rice pests are gall midge and stem borer (also affectingmaize and sorghum). Some virus infection does occur, but is not seriouswith the present varieties. Trials to control gall midge and borers arebeing carried out at the Agricultural Research Station at Rudrur, closeto the project area. At present, the most successful measure seems to beto control planting dates. Crops planted after July 15 are heavilyattacked.
8. Aniother major factor affecting cropping patterns is the prevalenceof fungus and insect attack on sorghum heads that flower during the humidmonsoon months. This severely reduces yields from irrigated crops plantedbefore the advent of the rains, or from early maturing varieties plantedat the beginning of the monsoon season. Both factors have been taken intoaccount in arriving at a recommended cropping pattern for the project.
9. The existing program of plant protection whereby farmers purchaseinsecticides from cooperatives or from private distributors for applicationthemselves appears to be working satisfactorily. The range of productsavailable is rather wide, covering such formulations as BIIC, DDT, Endrin,Malathion, Parathion, Dimecron, Nucron and Diazinon, and sulphur and coppercompounds for horticultural crops. The projected requirements atdevelopment are estimated to be 1,800 tons of dusts and 160,000 litersof liquid. This compares with present consumption of 70 tons and 1,000liters, so that considerably increased storage will be required toaccommodate these amounts. Existing supply arrangements would be able tomeet this demand satisfactorily.
Fertilizers
10. Present potash sales in the area are negligible since its use isonly recommended in the production of tobacco, chillies and the newhigh-yielding varieties of rice. The average rate of nitrogenous andphosphatic fertilizers application per hectare cultivated in the State is12.5 kg N. and 4 kg P205 respectively. A similar pattern can be found inthe project area indicating that many of the crops grown, and particularlysorghum, are not adequately fed. Nitrogen is presently applied in the formof Ammonium Sulphate and Urea in almost equal proportions with someAmmonitim Sulphate Nitrate, Calcium Ammonium Nitrate and Ammonium Chloridealso being used. The principle phosphatic fertilizer utilized is singlesuperplhosphate (16% P2 05) and a considerable amnount of compounds are soldin the form of Ammonium Phosphate Nitrate, Nitro-phosphate, AmmoniumPhosphate, Diammonium Phosphate and a mixture containing 14 N-14 P205and 14 K20.
ANNEX 3Page 4
1:L. Annual project requirements at full development are estimated at9,000 tons of N, 6,000 tons of P205 and 2,500 tons of K20. This compareswith the present sales of 500 tons of N and about 60 tons of P205 andindicates the necessity for a considerable increase in storage capacityin the area. The existing organizations for the supply of fertilizersthrough cooperatives and through the pri.vate sector would be adequate tomeet this increased demand.
Jtne 7, 1971
ANNEX 4Page 1
INDIA
POCHANPAD IRRIGATION PROJECT
Description of Project Works
1. The project includes the construction of a storage dam to provideirrigation supplies for 100,000 ha on the right bank of the Godavari River,the completion of the first 113 km of the main Godavari South canal, thedistributary canals, watercourses and drains within the irrigated area, to-gether with extensions to the road system in the area.
A. Pochampad Dam and Reservoir
2. Purpose: To store monsoon flows in the Godavari River for releasewhen required to provide assured and timely irrigation supplies for the proj-ect. Provision would be made for releases for present and future downstreamrequirements and for the later installation of a minor hydro-electric plantat the dam, as well as a future canal on the left bank.
3. Location: Global coordinates, latitude 18°58'N, longitude 8°20'E.175 km north of Hyderabad, the capital of Andhra Pradesh, and 5 km west (up-stream) of Soan Bridge across the Godavari River on the HLyderabad-Nagpurnational highway. The reservoir would be located in Nizamabad and AdilabadDistricts, where the river elevation is 280 m (950 ft) above sea level.
4. Hydrology:
Catchment area at dam site: 92,000 km2
Maximum flood discharge, observed: 25,700 m3/sec(909,000 cusecs)
Maximum flood discharge, designed: 45,000 m3/sec(1,600,000 cusecs)
Annual yield: 7,100 Mm31
(250 TMC -)Dependable yield: 4,000 Mm3
(140 TMC)(further details, Annex 5, para 12)
/1 TMC (thousand million cubic feet) is the normal Indian unitfor large quantities of water. I TMC - 28.31 million m3.
5. Dimensions: The dam would consist of a masonry central sectionin the malni river chlannel, flanked by an earth dam on each bank. The totallengtht of the darn would be 14.6 km, and it would be one of the longest con-tinuous dams ln Asia.
ANNEX 4Page 2
Dam: Length of masonry spillway section: 704 m (2,310 ft)Length of masonry non-overflow, power,
canal regulator and core sections: 253 m ( 831 fj)Total length of masonry dam: 957 m)3,14l ft)Length of left earth dam: 7,559 m (24,80() ft)Length of right earth dam: 6,083 m (19,959 ft)Total length of earth dam: 13,642 m (44,759 ft9Total length of the dam: 14,599 m (47,900 ft)
First phase Completion
Maximum height of earth embankments, m 33.5 m 36 mMaximum height of masonry dam, m 39.1 m 42.6 mVolume of earthwork, m3 10.5 million 11.3 millionVolume of masonry, m3 490,000 570,000Spillway opening length, m -765-----
gates, no. None 42crest elevation, m abovesea level 318.5 322.5
Reservoir: Storage capacity, total TMC 40 112cApacity, live TMC 9.5 82capacity, useful, TMC 7 75silt capacity, TMC ---------30-----------
ReserVoir atea at maximum flood level km2 … -_450…---_------
6. Other des.ign features: A curtain of cement grout Would beinjected 40 m into the tock to prevent seepage and uplift beHeath the damfoundations. The dam site is located about 150 km from the nearestpotentially active seismic zone, and the designs of the masonry dam andthe earth embankments have been checked fbt safety in relation topossible earthquake forces due to a hdtii6titai aeteletation of t0,5g andfound to be satisfactory.
7. The spillway capacity to be provided during the first and aubse-quent phases would be adequate to pass the estimated max,timum probable floodof 45,000 m3/ sec without encroachment Upoh the designed freeboard of thedam, even if only 39 of the 42 spillway gates to be installed at a latetstage are fully open. Minimum provisions for a future hydro-electric plantwould be incorporated in the masonty sedtion of the dafl.
8. Czn,s.txrctIon: Work started on site investigations in 1963, anddit the consttuetf o df the dam in 1966. About 30± of the total co8t ofthe dam has been expefided. Using cofittaet forces and labor intensive,ttaditional mieth6ds, the tfiasonry bl-cIs have been taised to 3 m abovethe whole width of river bed and the flank blocks ate 12 m high. Theeartli embanktents hcte been taised to abiut 20 tfi above bed level using
tiii ly dtpartmenti11 eiarth-mioving eqtuiifielit on the left bank, and conttactotsoii tlh right hlink. Is-v employing about five local contractors in addition,
ANNEX 4Page 3
the first phase of the dam would be completed by 1976. To provide sufficient
storage for increasing dry-season irrigation requirements, the crest levels
of the masonry and earth sections of the dam would have to reach the
following elevations by the last month (June) of the construction seasonsindicated:
(Stage II, 245 m3 /sec (8,600 cusec))Capacity at 113 km (70 mi) limitof first phase, 110 m 3/sec (3,800 cusec)
Bed width at head: 37.7 m ( 124 ft)
Full supply depth, 3.9 m (12.75 ft)(Stage II, 4.3 m (14.0 ft)
11. Excavation and structures are complete for about the first 37 km
(23 mi) and are under construction up to 77 km (48 mi). The terrain is
undulating, and rock outcrops are frequent. A considerable amount of blast-
ing is necessary, and the shortage of explosives has been a limiting factor
to progress, although construction is presently on schedule. Work is carried
out by labor-intensive methods which are appropriate in the varIable condi-tions of rock occurrence. Engineering planning, quality control and super-
vision are noticeably good.
12. The design of the main canal calls for the perimeter to be linedwith concrete to permit the 25% higher velocities and discharges required atlater stages of development and to redtuce heavy seepage losses. Forinstallation of the lining, which could only be carried out in the dry
iANNEX 4.- <ig, C,
season, It would be necessary to close each exayil reachi under construction,and temporarily cut off rahi irrigati.on sup!Ie;es to project areas frirth'eralong the canal. T5he ensuing loss of benefits would become increasinglygreater in proportion to the delay In iin!n;, construction. The effe Lswould be reduced to tlhe grcatest possibic extent if the proposed progt-aTnS Or
canal excavation and lining are followed:
Year 1971 1971/72 1972/73 1973/74 1974/75 1975/7f
tixcavatlon and
st:ructures, km Up to 35 35-56 56-67 67-82 82-113Lining, km - 0-23 23-45 45-68 68-90 90-113
13. The appropriate material for canal lining in the project areawould be concrete. To carry out the lining construction satisfactorilyat the required rate, it would be necessary for the contractors to haveavailable or to procure fully proven, mobile concrete aggregate crushing,screening, stockpiling and handling equipment, and mobile concrete batchingand idxing plants to provide high-quality concrete in several locationssimuLtaneously. Concrete handling and special compaction equipment wouldalso be required, possibly with suppliers' technicians continuously residento(n siLte to assist with proper assembly, use and maintenance, so as to obtainthe necessary quality of lining.
14. Branch distributary and minor canals and field channels: Theirrigation distribution system in the project area has been partly constructedin about 17,000 ha. To achieve the development objective, the constructionOf branches, distributaries and field channels would be carried out as follows:
15. This program would require a considerable increase in PWD stafffor its implementation as well as a significant improvement in the topograph-ical maps available for the design of the system and its execution. Combineduse of 1:10,000 scale air photos and plane-table surveys offer the quickestand lowest-cost method of providing the essential maps, and the cost hasbeen allowed for in the project. It would be necessary to install water-courses, crossing structures and field channels of adequate dimensions tostand up to local conditions without frequent maintenance, and the standardsfor their design and construct:ion would be agreed between the AgricultureDepartment and PWD.
16. I)rnlnae: DAe to the nature of the soils, topography and sub-strata in thin prolect area, it would be essential to investigate, design
ANNEX 4Page 5
and construct a suitable drainage system throughout muchl of tIie rrojlctarea from the start of large-scale irrigation, if unsatisfactory erosion,surface runoff and groundwater conditions are to be prevented. The programof implementation for the drainage system would follow after the installationof watercourses as scheduled in para 13 above. The design and constructionof interceptor drains above the low-lying "wet" lands would be particularlyimportant, and would receive early attention after the levelling of farmlands.
17. Roads: The Public Works (Roads and Buildings) Department willbuild up about 460 km of new village roads. Roads will be on a raised em-bankment and have a single carriageway. Further design details will be de-termined after completion of additional surveys. Field offices will beestablished in the project area to look after design and construction of thenew roads.
June 7, 1971
ANNEX 5Page 1
INDIA
POCHAUMPAD IRRIGATION PROJECT STAGE I
Water Demand, Supply and Ouality
1. This Annex outlines the methods adopted to estimate the irrigationwater demand in relation to the supplies available and the storage neededfor the Project. Due to the absence of direct field data on the use ofirrigation water by crops in the area, empirical methods (based on Penman)were used to obtain the probable levels of monthly water demand at the headof the main canal, as shown in Table 1, using the data described in thefollowing paragraphs.
A. Field Irrigation Requirements
2. Consumptive use of water (evapotranspiration) by the plants wasestimated for each crop by months, on the basis of evaporation togetherwith coefficients relating to the stage of crop growth (crop factors), asstated in Table 1. The probable losses due to percolation of irrigationsupplies below the crop root zone were taken into accotnt, since these wouldbe significant in much of the project area. The proportion of rainfallwhich would be effective for plant growth was also allowed for, togetherwith the anticipated field irrigation efficiencies likely to be experiencedat farm level on each major soil type and crop, as shown below.
Evaporation Data
3. Values for evaporation, corrected for rainfall effect, werederived from seven years of record from the Indian Meteorological DepartmentClass "A" pan at Warangal, as follows:
Jan. Feb. March Apr. May June July Ag. Spt. Oct. Nov. Dec. Total--------------------------------------mm---------------------------------------
Paddy rice 0.00125 mm/hr (0.0005 in/ihr) 0.0125 mm/hr (0.005 in/hr)Maize, jowar, wheat 15% of CUR /a 20% of CURGrourndnuts - 20% of CURChillies, Turmeric 10% of CUR 15% of CUR
/a CUR = consumptive use rate.
Rainfall Data
5. From the Indian Meteorological Department station records forNizamabad 1901-66, 75% probability monthly rainfall were derived as follows:
Jan.-April May June July Aug. Sept. Oct. Nov./Dec. Total--_.---------------------------------lin -------------------------------
nil 2.5 75 196 167 133 9 nil 582.5
The percentage of rainfall effective to plant growth was taken to be:
June, July, August: 85%September/October: 90%
Field Irrigation Efficiencies
6. The field irrigation efficiency which is applicable is related tothe soil infiltration rate and the surface waste. It is a function of severalvariables including the type of crop, the soil type, the slope of the landand the formation of field bunds. The efficiencies adopted for the estima-?ion of irrigation requirements were as follows:
7. The net monthly irrigation requirements of the crop plants, whenmodified by the field irrigation efficiencies, provided an estimate of thefield irrigation requirements for each crop as shown in detail in Table 1and sumarized below:
ANNEX 5Page 3
Field Irrigation Requirements
Season, Crop and Soil May June July Au_i Sept. Oct. Total
/a Pre-irrigation requirement./b Including nursery period.
B. Canal Head Demand
8. Based on the above field irrigation requirements and the croppingpattern described in Annex 11 and adopting the GAP's localization of one-third of the project area for rice ("Wet") and two-thirds for rabi crops("Irrigated Dry"), the monthly irrigation water demand for the 100,000 haproject was estimated, taking into account the distribution losses from thefield to the head of the main canal. Details are shown in Tables 1 and 2.
Distribution Losses
9. The overall losses from seepage, evaporation, escapage and opera-tion waste in field channels, watercourses and canals, were estimated to beas follows (assuming that the main canal would be concrete-lined):
Jan. Feb. March Apr. May June July A!& Sept. Oct. Nov. Dec.
25 25 35 40 45 35 30 30 25 25 25 25
These percentage losses were applied to the quantities of water entering, themain canal at Pochampad Darn. The figures were based on experience elsewhere,
ANNEX 5Page 4
since no data were avallablle locally. A hy'rologic;al study would be cairried
out by the PWI) in adjacent aiLas and in the project itself to verify theassumptions .
Main Canal Head Demand
10. The resulting monthly demand at the head of the main canal was de-
rived in thousand million cubic feet (TMC) and is shown in Table 2 of this
annex. There would be ample capacity in the main canal to provide for the
peak irrigation demand in the project. There would also be sufficient capa-
city in the canal system to allow for considerable flexibility in the crop-
ping pattern, with consequent changes in the irrigation demand. The total
canal head demands for the year, for December through May, and for Januarythrough May, are estimated to be 883 Mm3 (31.2 TMC), 521 Mm3 (18.4 TMC)
and 410 MmZ (14.5 TMC) respectively, as shown in Table 2 and Figure 1.
C. Water Su 1
Ll. Although the total catchment area of the Godavari River upstream
of the Project is about 92,000 km2 , the "free" catchment area below any po-
Icential storage or major diversion scheme on the river is about 27,000 km2.
The river has been gauged at Soan bridge for 24 years and metered at a site
about 80 km upstream for 5 years, while rainfall data have been availablefor 70 years and flood levels recorded for over 50 years. These records
hlave been used in conjunction with observations from the adjacent Nizamsagar
project to estimate the dependable water supplies for the project from the"free" catchment. The average annual yield of the Godavari attributable to
the "free" catchment and which would flow into Pochampad reservoir has been
estimated at 7,100 Mm3 (250 TMC). After allowances for projected major and
rninor scheme utilization and return flow at full upstream development, the
net yield equalled or exceeded in 75% of the years of record has been pro-
visionally estimated to be 3,980 Mm3 (140 TMC). Of this amount the mean
aonsoon runoff from June to October would be 3,580 Mm3 (126 TMC), and 400
Mm3 (14 TMC) in the remainder of the year. The quantity authorized, however,
by the GOI Ministry of Irrigation and Power in 1963 for annual utilization
writhin the project was 1,875 Mm3 (66 TMC), and this volume has been adopted
ats the maximum available. It is more than double the estimated annual main
canal head demand for the project shown in Table 2 to be 885 Mm3 (31.2 TMC).
only limited schemes for water diversions are planned upstream of Pochampad
in the near future, and during the project construction period there is only
a remote possibility that the dry season inflow to the reservoir would be
less than tile lowest recorded winter flows measured in 1966-67. In that
season, although the annual flow was 15,700 Mm3 (554 TMC), the flow from
January through May was only 221 Mm3 (7.8 TMC), and this has been adopted
for the estimation of storage requirements for the first phase (see para 13,
anid Figure 1).
ANNIEX 5Page S
D. Reservoir Storage Requirement
12. The provisional 75%-probability monthly distribution of the inflowto the reservoir at full upstream development, and the lowest dry-season riverflow on record, are approximately as follows in TMC and in Mm3:
With full upstream development Lowest recordedAccumulated _ Iry sasor_
Monthly Accumulated dry season Monthly AccumulatedInflow inflow inflow, Inflow Inflow
13. The accumulated inflows are shown in Figure 1. To meet crop waterdemand at full development of 100,000 ha, the net storage requirement in thereservoir would be as follows, using the dry season demands derived inTable 2 of this Annex:-
(dry season demand) - (dry season inflow*) + (dry season evaporation)
and - (14.5 - 7.8*) TMC + evaporation )or (410 - 220) Mm3 + evaporation ) during project3 6.7 TMC + 1.2 metres surface loss ) construction period.or 190 Mm3 + 1.2 metres surface loss )
Reservoir characteristics indicate that this requirement would be met with anungated spillway crest elevation of 318.5 m, (1045 ft) after due allowance foroperational losses, as shown in Fig. 2.
ANNEX 5Page 6
1. 1!ater Oualitv
14. Chemical analyses made over three years indicate that while thesoditum values were invarinblY low, the condluctlvity of the (odavarf riverwater sometimes rises to over 1,000 micro-mhos/cm for not more than threemonths. The quialitv of the water Is, therefore, good in the high flowseason of about six months In the year, and adeqtuate for irripation use inthe remaininsg low flow seasotn. It would be satisfactory for contintuousirrigation provi(led that the water table 1s not permitted to rlse excessivelythrough lack of drainage and thus prevent the removal of salt accumtulations,particularlv In the clav loam soil areas.
June 7, 1971
INDIA: POCHAMPAD IRRIGATION PROJECT
IRRIGATION REQUIREMENTS & WATER DEMAND
(1WP (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)CROP Dates Pan Crop Cons- Deep CU plus Effective Irrigation Field Gross Field Distrib- Canal Head Requirement
and Evap'n Factor umptive Percol- DP rainfall Requirement Irrig.Reqt. Irrig.Reqt. ution TMC/40,000 ha
Soil type use, ation (5F(6) losses % (100,000=ac)mm mm mm mm mm mm mm mm '000 M cu ft
Field period 608 728 750 1049 15.02 Field C -s155-day total 702 396 1,098 453 T513 19.27 Total o
(DH
/ Field irrigation requirement rounded-up to practical minimum of 75 mm H H In* Pre-irrigation (cultivation) requirementx** Nursery rice area tak~en to be 1/10 of field crop area.
INDIA: POCHANPAD IRRIGATION PROJECT
IRRIGATION REQUTIREMENTS & WATER DEMAND
(1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14)CROP Dates Pan Crop Cons- Deep CU plus Effective Irrigation Field Gross Field Distrib- Canal Head Requirementand Evap'n Factor umptive Percol- DP rainfall Requirement Irrig.Reqt. Irrig.Reqt. ution TMC/40,000 ha
Soil type use, ation (57)(6) losses % (100000 ac)mm mm mm mm mm mm mm mm '000 M cu ft
Accumul ted total canal head demand, year: 2.8 4.6 6.5 7.9 9.8 12.7 16.6 22.1 27.4 29.0 29.0 31.2if II if It Dec-f5ay 2/ 3.9 9.4 14.6 16.2 16.2 18.4I I I I I Jan-May 3/ 5.5 10.7 12.3 12.3 14.5
1/ TMC = thousand million cubic ft. 1 TMC -8.31 Mm3 and = 23,000 ac ft. 5 f7/ Dry season demand at fall development, see iigure 1'. 1/ Dry season demand in period of lowest recorded inflow (reservoir storage release period), see Figure 1.
INDIA
POCHAMPAD IRRIGATION PROJECTCONSTRUCTION SCHEDULE
INDIAN FISCAL/PROJECT YEAR 4 - I - D 2 -3- - 3 4 --- 5-
1 971 1 972 1973 1974 1975 1976
z z z z Z zPOCHAMPAD DAM 9 0 0 Z _ Z
MASONRY SPILLWAY ...................... _ CREST ELEVATION, a o o o o METERS ABOVE DATUM .--.--.- 309 Z 311 Z 313 0 313 0 316 O 318.5 Z
z z z EARTH EMBANKMENT 0 0 0. Z... - Z -°- Z TOP ELEVATION, MIN. I0METERS ABOVE DATL T .323 325 327 329 332 334
Expenditure April '71 April '72 April '73 April '74 April '75 April '76 April '71 Local Foreign Cost Remarks
prior to through through through through through through through Cim rency Exchange first phase
April, 1971 March '72 March '73 March '74 March '75 March '76 June '76 June '76--------------------------------------------------- Rupees Million ---------------------- ---------
(k) High-tensile structuralsteel parts and sections 1,000 tons 1,990 265
(1) Concrete curing compound Lot 1,125 150
(m) Contingencies 1,495 200
Sub Total (i) to (m) 13,610 1,815
Sub Total for II 23,550 3,140
III. Spare Parts unsuitable forInternational Competitive Bidding
(a) Supplementary spares forequipment listed in II aboveduring project period 4,160 555
(b) Spares required for existingplant and machinery 4,500 600
(c) Contingencies 1,090 145
Sub Total for III 9,750 1,300
Total of I, II and III 36,000 4,800
June 7, 1971
ANNEX 8
INDIA
POCHAMPAD IRRIGATION PROJECT
Organization
1. (i) Composition of High Power Committee (by Government Order 190, 2 Ju.ne, 1970):
1. Minister for Irrigation Chairman2. Secretary, Public Works Department Member3. Member, Board of Revenu.e & Commissioner
for Development of Ayacu.ts Member4. Financial Advisor Member5. Chief Engineer, Pochampad Project Member6. Depu.ty Secretary, PWD., Projects Wing Convenor
In addition to the above members, the Secretaries to Governmentin the Planning, Food and Agriculture and Finance Departments will bepermanent special invitees for the meetings of the High Power Committee.
Heads of the Departments whose presence is considered necessaryby the Member, Board of Revenue in charge of Development of Ayacu.ts,and the Special Collector, Pochampad Project, may also be invited forthe meetings of the Committee.
(ii) Functions of High Power Committee
(a) Review of programme and progress on (i) construction works(Dam and Canals system) (ii) Schemes for development ofAyacu.t.
(b) Consideration of measures to ensure the creation of irriga-tion potential and its utilization as per programme.
2. (i) Composition of State Level Committee (by Government Order 26, 24 Jan, 1970):
1) Member, Board of Revenue and Commissionerfor Development of Ayacuts, Hyderabad Chairman
2) Secretary to Government, PWD Member3) Secretary to Government, Food and Agriculture
Department -do-4) Secretary to Government, Finance Department -do-5) Financial Adviser, Pochampad Project -do-6) Director of Agricu.lture -do-7) Registrar of Co-operative Societies -do-8) Chief Engineer, Pochampad Project -do-9) Special Collector, Pochampad Project -do-10) Collector, Karimnagar -do-11) Collector, Nizamabad -do-12) Chairman, Zillaparishad, Nizamabad -do-13) Chairman Zillaparishad, Karimnagar -do-14) President, A.P.Central Co-operative Land
Mortgage Bank -do-15) Joint Registrar of Co-operative Societies/
Liaison Officer for Projects Member/Convenor.
ANNEX 8Page 2
Secretary, Board of Revenue, Chief Conservator of Forests,Director of Animal Husbandry, Inspector General of Registrationand Stamps and any other official or non-official connected withthe development of Ayacut may be invited as and when their pre-sence is considered necessary.
(ii) Function of State Level Committee
The main functions of the State Level Committee shall beallocation of specific tasks to the various departments connectedwith the development of Ayacut, coordination of the executivemeasures undertaken by the Department concerned, and securing oftheir performance according to an agreed programme of developmentof Ayacut.
3. (i) Composition of District Level Committee for each of the Nizamabadand Karimnagar Districts: (by Government Order 26, 24 Jan, 1970):
1. District Collector Chairman2. Special Collector, Pochanpad Project Member3. Superintending Engineer, Godavari valley Circle,
Project -do-5. Joint Registrar/tiaison Officer for Projects -do-6. Joint Director of Agriculture -do-7. Deputy Director of Agriculture Member/Convenor8. President, A.P. Central Co-operative Land
Mortgage Bank or his nominee Member9. President of the Primary Land Mortgage Bank of
the areas in the concerned District -do-10. Members of the Legislature of the District under
Pochampad Project area Members11. Presidents of Panchayat Samithis of the
District in the Pochampad Project area Members
(ii) Function of District Level Committee
The District Level Committee shall review the various aspectsof development of Ayacuts and solve the various problems thatmight crop up during the course of review.
4. (i) Composition of Rehabilitation Committee for Pochampad Project(by Government Order 446, 27 Dec., 1968):
1. Member, Board of Revenue in charge ofRehabilitation Chairman
2. Superintending Engineer, Pochampad Dam Member3. Special Collector, Pochampad Project Member/Convenor4. Chairman, Zillaparishad, Nizamabad Member
5/7 3 Members of Legislative Assembly -do-
(ii) Function of Rehabilitation Committee
To review and ensure smooth and expeditious implemen-tation of the rehabilitation policy and program.
June 7, 1971
ANNEX 9Page 1
INDTA
POCIAMPAD IRRIGATION PROJECT
Grain Storage, Agricultural Processnand Lar keti
Grain Storatge
1. Major crops to be produced in the Project area are paddy, othlerfoodgrains, mainly maize and sorghum, and groundnuts. Total estimatedpaddy production from the Project would be around 136,000 tons. In addi-tion, some 60,000 tons of paddy would be produced on lands irrigated fromtanks. Other foodgrain production would amount to about 165,000 tons whilegroundnut output would be about 24,000 tons annuallv. Production from dryfarming lands on high-lying ground which cannot be commanded by the systemand from non-irrigated rabi lands was assumed to be used exclusively tomeet animal feed requirements in the area. All production figures presentedherein are at full agricultural development, four years after completion ofProject works.
2. The number of farming units in the gross Project area is esti-mated to be 67,000 and the projected population at full development ataround 300,000. Using a projected per capita consumption figure for cerealsand pulses of 200 kg per annum, consumption on the farm at full developmentwould amount to about 60,000 tons annually (100,000 tons of paddy equiva-lent). Marketable foodgrain and groundnut surpluses from the Project areawould thus be around 285,000 tons annually. Although it is impossibleto determine without further investigations the optimum size and locationof individual storage facilities, overall storage requirements in the areacan be conservatively estimated to be at least 90,000 tons. The only sig-nificant storage facility presently available in the area is a 15,000-tongodown at Karimnagar.
3. Storage facilities would be required at the district, taluk andvillape levels. At the district level large godowns required to build upthe national buffer stocks would be provided by the COT's Central Warelhous-ing Corporation and the Food Corporation of India. Requirements at thetaluk level would be met by the Andhra Pradesh State Warehousing Corpora-tion, an autonomous public corporation. Finally, small godowns would beconstrtucted at the village level by the panchayats (local administrativecouncils) and the cooperatives. There are no plans at present to expandstorape facilities at the district and village level. At the talulc levelit is proposed that the State Warehousing Corporation would constructduring the next five years 10 godowns of 2,000 ton capacity each at anoverall cost of Rs 2 million. Before undertaking such a constructionprogram it would be necessary to investigate in dletail the optimum size andlocation of future storage facilities and the likelv role of the privatesector in constructing godowns.
ANNEX 9Page 2
Agricultural Processing
4.. Rice Mills. It is expected that some 58 new rice mills of 1 tonper hour capacity would be required to handle the expected increase in paddyproduction. Assuming each mill to have an annual milling capacity of 1,500tons, the rate of new mill construction would have to be roughly as follows:
The State Government expects two-thirds of the required new mills to beconstructed by the private sector and the remaining by cooperatives. Thus,out of the 73 new mills reqjuired during the Project construction period,about 24 mills at an estimated total cost of Rs 7 million would have to beestablished in the cooperative sector.
5. Groundnuts Oil Mills. As proposed by Government, new oil millsto process the additional groundnut production in the area would each havea crushing capacity of 2,500 tons per annum. With this size mill and theexpected incremental groundnut production, the rate of new oil mill con-struction would have to be roughly as follows:
Area UnderGroundnuts Groundnuts New Oil Mill
Year Cultivation Production Requirements(ha) (tons) Annual Cumulative
Eight new oil mills would be required during the Project construction per-iod. Out of these eight, the Government proposes to construct five in thecooperative sector at an estimated cost of Rs 2.0 million.
6. Maize Processing. The Government proposes to establish a factoryin the area to manufacture starch from maize using a wet milling process
ANNEX 9Page 3
and to manufacture maize flour using a drv millitng process. 1lie factorvwould be able to process about 80 tons of maize daily and would cost aroundRs 6.0 million.
Marketin,
7. Farmers in Andhra Pradesh usuallv sell their surplus producethrough regulated markets established by Government. All products in thesemarkets are auctioned off under the supervision of a market committee thusensuring farmers a fair return for their produce. Despite the existence offive regulated markets in the area, farmers at present prefer to sell theirproduce in the two major marketing centers, Nizamabad and Warangal, locatedimmediatelv to the east and west of the Project area. This preference isdue in part to the fact that the existing markets are ill-equipped to per-form their function, and somewhat higher prices can be obtained in thelarger, better developed, markets. There is also a desire on the part ofthe farmers and their wives to combine their trip to the market with avisit to the "big city". As the volume of production increases, a largerportion of the surplus commodities would be sold in markets located insidethe Project area. In order to accommodate such an increase in sales, theGovernment nroposes to expand and to improve the five existing markets whilealso constructing secondary marketing facilities in smaller trade centers.Aside from the new marketing facilities, the Government would also appointadditional staff to the Marketing Department at the regulated market, taluk,district and State level.
June 7, 1971
ANNEX 10Page 1
INDIA
POCHAMPAD IRRIGATION PROJECT
Agricultural Support Program
1. Chapter V of this report outlines the need for agricultuiral ex-tension and research staff together with the demonstration, monitoring,training and service facilities considered necessary to enable farmers inthe project area to develop agricultural production to its full potentialas soon as possible after the provision of irrigation water to thelr fields.This Annex gives in greater detail the minimum suipport program required toachieve the benefits of the Project.
Agricultuiral Research
2. Although agricultural research is nowx the responsibility of theAgricultural University at Hlyderabad, the research staff on the 40 ha ex-perimental farm to be established in the area would be under the adminis-trative control of the Joint Director of Agriculture in charge of theProject. The research program on the farm would concentrate on problems ofirrigated agriculture peculiar to the Project and would he worked outjointly between the Joint Director and the Director of Research of theUJniversitv. It would include investigations of crop water andl drainagerequirements which would necessitate adequate monitoring of water tablebehavior throughout the Project area; testing of new crop varieties andtheir optimum fertilizer requirements, together with strict entomologicaland pathological observations; and testing of techniques for the efficientmanagement and control of irrigation water in the field. The team ofscientists to be posted to the farm would include experienced men in allrelevant disciplines, and particularly in irrigation agronomy. They wouldhave full liaison with and cooperation from the existing research staff atRudrur Research Station and on the Karimnagar experiment farm.
3. Subject matter specialists for work within the Project areashould also be stationed on the farm. These men wouldl be responsible fortranslating research results to the extension staff of the Project, andfor keeping them fully up to date with progress on the different probleTnsbeing stu(died. They would also be responsible for channeling back to theresearch staff problems that arise in the field that need further investiga-tion. Their main function would be to give expert advice in their disci-pline to field workers and farmers as and when problems arise that are beyondthe specific knowledge of the extension staff.
4. A further important function of the researchi farm staff would beto monitor progress in all aspects of agricultural production within theProject. In addition to groundwater and water table observations, informa-tion on yield levels of all crops and progress in the assimilation of the
ANNEX 10Page 2
various input programs and the adequacy of services such as credit, market-ing, processing and storage should be regularly obtained and recorded. Aseparate staff of economists and agronomists would be required for thisfunction.
Ext:ension Services
5. At present, extension work in the Project area is carried out bythe local district agricultural staff. These consist of one DeputyDirector, at Karimnagar; two District Agricultural Officers stationed atKarimnagar and Jagtial; two subject matter specialists, Plant Protectionand! Agronomy; Agricultural Extension Officers at the rate of about oneper 20 villages; and village level workers at the rate of one per 10 vil-lages. All these men are graduates with the exception of the village levelworkers. Those working at District level have responsibilities for thoseareas of the District outside the Project area as well as for those withinthe! canal command. The agricultural staff work in close liaison with theDistrict Administration under the District Collector, and with the localGovernment "panchayats".
6. In addition to the normal district staff, there are the followingstaff appointed for work specificallv within Pochampad Project:
-- 1 District Manager, Agro-Industries with 1 Assistant plusa unit of tractors and bulldozers.
7. The level of staff within the Project area would have to be in-creased at least to that of the Intensive Agricultural District Program(I.A.D.P.) level. This is a verv high level of extension staffing thathas been accepted by the Government of India for operation in speciallyselected areas of exceptional promise and potential.
1/ Localization is the term used for allocating lands to "wet" (rice), or"drv" (drv crops) areas for irrigation.
ANNEX 10Page 3
Training
8. The provision of additional staff for work on the Project willnot pose problems of basic training. The Agricultural University at Hyder-abad turns out annually 400 graduates at B.Sc. level and 100 M.Sc. grad-uates. At present, there are 1967 and 1968 graduates still seeking em-ployment. However, for specialized training in irrigated agriculture underPochampad conditions, it would be necessary to provide short courses forsuch entrants to the service as well as providing refresher courses forestablished staff. Such requirements would be met by providing a FarmInstitute attached to the experimental farm to be established within theProject, together with additional land for teaching purposes. The Institutewould also be able to provide selected farmers with irrigation and otherspecified training courses of a few weeks' duration throughotut the year whenstaff training had been completed, and it would provide a suitable venuefor periodic staff refresher courses throughout the life of the Project.It would require dormitorv and feeding accommodation for visiting farmers andstaff. The staff for such an institute would be under the control of theJoint Director of Agriculture for Pochampad Project.
9. In addition to the proposed Farm Instittute, three demonstrationfarms won1id be set up in the Project area to demonstrate irrigation tech-niques and new cropping practices to the farmers in their vicinity.
June 7, 1971
ANNEX I 1
- I N D I A
POCHAMPAD IRRIGATION PROJECT
Present Cropping Pattern, Yields, Production Costs and Returns (without project)
Gross Value Net Value Net Retu /.
Cropped Farm Gate of Production of fromArea Yield Price Production-/ Costs.2/ Production Project Area(ha) (ton/ha)(Rs/ton) ------------- Rs h -- _____-_ (Rs million)
1/ Based on a weighted average of maize and sorghum for kharif and rabi foodgrains; and chillies andturmeric for commercial crops.
2/ Weighted averag& for all project farms excluding taxes, water charges and family labor contribution3/ Cropping intensity: 110% (total cropped area, 110,000 ha; net cultivated area, 100,000 ha).4! Cropping intensity: 155% (total cropped area, 155,000 ha; net cultivated area, 1QO,000 ha).5/ Projected yields four years after the introduction or irrigation.
June 7, 1971
ANNEX 12Page 1
INDIA
POCHAMPAD IRRIGATION PROJECT
Charges for Water and other Levies
1. Construction and maintenance of irrigation projects in India isa responsibility of the State Governments, which also exercise the right to
impose and collect water charges and other levies on agricultural activi-ties from the cultivators. In Andhra Pradesh, the level of these leviesvaries from project to project depending largely upon soil fertility and
the type of irrigation facilities available in the area. Actual rates aredetermined according to the season in which cultivation takes place, ratherthan the type of crop produced. As presently proposed by Government, fourseparate imposts would be in effect in the Project area. Annual collectionsthrough these imposts would be as follows:
Proposed Level of Charges EstimatedProject Area Land Local Water Betterment Total Annual
/1 The figure above represents 1/20 of the total betterment levy whichwould be collected in equal annual installments over a 20-year period.As presently proposed, the levy would amount to Rs 625.0 and Rs 312.5for kharif and rabi irrigated lands, respectively, per ha.
2. Based on the above figures, collections from the Project areawould amount to Rs 233 million over the assumed 45-year productive lifeperiod of the Project. After deducting annual operations and maintenancecosts of the irrigation system, this amount would enable recovery of about18% of Government monies invested in the Project (Rs 810 million). However,if the costs of the dam and of the lined main canal are proportionatelyallocated to sujbsequent stages of the Project, the respective cost of thesefeatures to be charged against the first phase is reduced by about Rs 510million, and recovery of the investment without interest increases to 52%of the proportional capital cost to Government (about Rs 300 million). Whileeven this recovery level is low, it would nevertheless result from increasedcollections of presently authorized taxes and levies in the project area,which would rise from the present level of Rs 10 per ha to Rs 70 per ha.
ANNEX 1 2Page 2
3. To recover the whole first phase pronortional capital cost ofabout Rs 30n million over 45 ye,trs without interest in addition to the onerationand maintenance cost, a further increase in annual charges of Rs 30 per hawou:ld be necessary throughiotit the sname period, producing total annualcol'lections averagLng Rs 100 per ha.
June 7, 1971
ANNEX 13Page 1
INDIA
POCHAMPAD IRRIGATION PROJECT
Farm Budgets
1. Farm budgets for typical small (0.6 ha), medium (4.0 ha) andlarge (9.0 ha) farms are given in Tables 1-5.
2. The cropping pattern and production shown are those which areexpected in the late 1970's "without" and "with" the project: in the lattercase, the production is that expected at full development, four years aftercompletion of the irrigation supply to the farm. Alternative croppingpatterns are given for the 0.6 ha farms since, even allowing for fragment-ation, it is unlikely that such a small unit would be distributed over "wet"and "irrigated dry" lands (see para 4.06). For the mediuim and large farms,the cropping pattern assumes that the holding is distributed between "wet"and "dry" lands in proportion to the average for the prolect (1/3 wet,2/3 dry).
3. The farmgate prices used in calculating the Gross Value ofProduction (GVP) are gi.ven in Annex 11 and are the same for the "without"and "wtth" project cases. The production costs include purchases of seed,fertilizer and other inputs, and hired labor: no cost is included in thisitem for familv labor, which supplies the following proportions of the totallabor requirement:
Farm Size Family Labor
0.6 ha 100%4.0 ha 50%9.0 ha 25%
4. Family labor is taken into account by deducting the familiessubsistence cost from the GVP. The average family is four adult equivalents,and the daily rations assumed are 10 oz paddy (equivalent to 6 oz rice) plus10 oz other foodgrains plus 3 oz pulses. No allowance is made for improveddiets in the "with project" budgets, nor for the fact that 9.0 ha farmsmight support larger families.
5. The farm production from the 0.6 ha farms is not sufficient toprovide the full family subsistence under "without project", rainfedconditions. In practice the deficiency would be made up by off-farm income(notably wages in cash or kind for work on larger farms) or from otherenterprises, such as paddy grown on land irrigated from "tanks", which wouldnot be affected by the project.
ANNEX 13Page 2
6. The farm budgets do not include payment of increased watercharges, taxes and levies. The impact of these charges (described in para5.1'Q) would be as follows:
ProjectCash Income Charges as
Farm Size Without With Projlect % of(ba) Project Project Increment Charges Increment
---------------- Rs---------------
0.6 Nil 655 to 840 655 to 840 55 to 75 8 to 94.0 995 5,140 4,145 405 9.79.0 2,515 10,710 8,195 905 11
June 7, 1971
ANNEX 1 3Table 1
INDIA
POCHAMPAD IRRIGATION PROJECT
Farm Budget for Typical 0.6 ha Farms
A. Localized tIWetit Land
WITHOUT PROJECT WITH PROJECT
Area Produc- GVP Prod'n Area Produc- GVP Prod'ntion Cost tion Cost
(7 h k) TT T) (Rs) (ha) (kg) (Rs) (Rs)
KharifPaddy - - - - 0.6 2,400 1,560 320
Foodgrains 0.2 160 90 10 - - - -
Pulses 0.2 80 65 20 - - --
Sesamum 0.1 30 45 5Groundnuts - - - -
RabiMaize - -
Groundnuts -
Chilli, turmeric - - - -
Foodgrains & fodder 0.2 160 90 10 0.5 400 225 25
0.7 290 45 1.1 1 ,785 345
WITHOUT PROJECT WITH PROJECTRs--- ------ Rs- -
Gross value of production 290 1,785
LESS Family subsistence 600 600
Income from sale of produce -310* 1,185
LESS Production costs - 345
Cash income 840
Incremental cash income Rs 840
* Part of family subsistence from off-farm incomeor from land irrigated from "tanks"
ANNEX 1 3Table Z
INDIA
POCHAMPAD IRRIGATION PROJECT
Farm Budget for Typical 0.6 ha Farms
B. Localized "Irrigated Dry"' Land
WITHOUT PROJECT WITH PROJECT
Area Produc- GVP Prod'n Area Produc- GVP Prod'ntion Cost tion Cost
1. When discounting the Project costs and benefits over a 50-yearperiod, the economic rate of return would be about 14%. These returns werearrived at using the following assumptions:
(a) All investments prior to April 1971 (Rs 262 million) weretreated as stnk costs and were ignored in the basic run.At the same time, no allowance was made for the fact thatif the costs of the dam and main canal were to be pro-ratedbetween the first phase and subsequent stages, the Rs 810million overall cost to government of the first phase works(including all sunk costs) would have been reduced to aboutRs 300 million, or to less than the cost of the Prolectexcluding past investments;
(b) Aside from the above investments the analysis also includesa weighted average cost of Rs 860 per ha for land levellingand bunding. This expenditure would take place within twoyears after water becomes available in a distributary;
(c) Full yields would be attained gradually over a 4-yearperiod following the introduction of irrigation while pro-duction costs would increase to their projected level inthe first year. All family labor contributions, averagingabout 70% of total labor requirements, were excluded fromthe farm production costs while hired labor costs were in-cluded at the rate of Rs 2.50 per day. A 507 net loss ofproduction was assumed in the area inundated by the reservoir,and the corresponding area resettled by the inhabitants;
(d) The rate of irrigation development in the area woutld be as
(e) Farm-gate prices for major commodities in the Projectarea were based upon expected 1Q80 world market pricesCIF Bombay. Allowance was made in the calculation forinland transportation charges between Bombay and theProject area in converting the CTF orices to farm-gateprices. The basic market prices used are as follows:
US$/ton CTF Bombay
Fine rice 122Maize 67Groundnuts 125
2. The Project cost and incremental net benefit stresans based onLhe above assumption and used in calculating the economic rate of returnare shown in the following table:
Project Incremental Net ValueYear Costs of Production
Note: Project costs from the eighth year onwards represent annual operationand maintenance costs.
June 7, 1971
ANNEX 15Page 1
INDIA
POCHAMPAD IRRIGATION PROJECT
Sensitivity Analysis
1. A sensitivity analysis was undertaken to examine variations inProject benefits arising out of various changes in the basic assumptionused in Annex 14 to calculate the economic rate of return. Several levelsof changes were examined for each of the following parameters: paddyprices; farm production costs; construction costs; rate of agricultural de-velopment (the time lapse between the introduction of irrigation and attain-ment of projected yield levels); commencement of irrigation; and the treat-ment of costs. The selection of parameters likely to be affected and thedegree of change was based on past experience with irrigation projects inIndia. In most cases only adverse changes were examined.
2. Compared with a basic run rate of return of 14.3%, the sensitivityanalysis results in rates of return ranging between 9.2% and 26%. De-tails are presented in the following table. A decrease in the rate ofreturn to below 12% or about a 15% reduction in benefits, is considered asignificant deviation and could arise due to changes in farm productioncosts, construction costs or commencement of irrigation. A change in farmproduction costs is largely outside the control of the Project exceptinasmuch as a higher production efficiency which would minimize costscould be brought about through improved extension services and additionaltraining and research and where a better transport network could reducethe cost of farm inputs. Arrangements to that end have been made underthe Project. The most likely causes of increased construction costs anddelays in the commencement of irrigation are, respectively, a slow-down inconstruction activities and delays in construction of field channels.The former usually occurs due to inadequate budgetary allocation and thelatter due to inadequate planning and the tendency to rely on farmers tocarry out the work. Provisions have been made under the project to overcomethese constraints on development.
3. Since the reservoir and main canal were designed ultimately toserve an area of over 400,000 ha, their costs could be allocated to eachpart of the commanded area developed, as a portion of the whole area served.Tf all future costs are allocated to the ultimate development of about400-450,000 ha (Stage TI), the rate of return would be 24%, or 16% if sunkcosts are included. For the first phase development of 100,000 ha, withthe costs of the dam, reservoir and 113 km of the maln canal allocated inproportion to full development (22%), the rate of return would be 26% or19% including sunk costs.
ANNEX 15Page 2
Project Economic Rate of Return Under Changed Assumptions
Assumption Rate of Return
(1) BIasic ruin 14.3
(2) Two years' delay in attainment of projected yield levels 13.2
(3) Four years' delav in attainment of projected yield levels 12.2
(4) 20% increase in construction costs 12.3
(5) 20% reduction in paddy prices 13.7
(6) 20% increase in farm production costs excluding family labor 13.2
(7) Two years' delav in start of irrigation 11.8
(8) 20% increase in construction costs (4) combined with )20% increase in farm production costs (6)20% reduction in paddy prices (5) and a four-yeardelay in attainment of projected yield levels (3) ) 9.2
(9) Costs (including past and future investments) of reservoirand main canal allocated to first phase project in proportionto area ultimately served (100,000 ha:450,000 ha) 19
(10) Same as (9), excluding sunk costs 26
(11) Total costs of ultimate development (Stage II). in-cluding sunk costs 16
(12) Same as (11), but excluding sunk costs 24
June 7, 1971
ANNEX 16
INDIA
POCHAMPAD IRRIGATION PROJECT
Estimated Schedule of Disbursements
IDA Fiscal Year Cumulative Disbursementand Quarter at end of Quarter
