MAHARASHTRA WATER SECTOR IMPROVEMENT PROJECT FINAL EVALUATION REPORT · MAHARASHTRA WATER SECTOR...

MAHARASHTRA WATER SECTOR IMPROVEMENT PROJECT

FINAL EVALUATION REPORT

Submitted To

Project Preparation and Monitoring UnitWATER RESOURCES DEPARTMENTGOVERNMENT OF MAHARASHTRA

By

SHELADIA ASSOCIATES, Inc, USA

In Association With

AGRICULTURAL FINANCE CORPORATION LTD.Mumbai, India

AUGUST, 2014



Submitted To


By


In Association With


AUGUST, 2014



Submitted To


By


In Association With


AUGUST, 2014

FINAL REPORT


ON

MAHARASHTRA WATER SECTOR IMPROVEMENT PROJECT(MWSIP)

Part I

MAIN REPORT

MWSIP

FinalReport

August, 2014

MWSIP Final Evaluation Report, March, 2014

Preface

The National Water Policy adopted by the Govt. of India in the year 1987 highlighting theneed for farmers participation underwent revision in the year 2002 laying down moreemphasis on Water Use Efficiency, Community Participation and Participatory IrrigationManagement. The Policy recommended adoption of participatory approach in themanagement of water resources and as well as establishment of Water User Associationsfor transferring the water management task ultimately to the user groups. In accordanceto these recommendations, the Maharashtra State Water Pol icy was framed in the year2003 in order to ensure a sustainable development and optimal use and management ofwater resources in the State for maximizing the social and economic benefits for the State.Subsequently the enactment of the Maharashtra Management Irr igation Systems byFarmers Act in the year 2005 gave statutory recognition to the constitution and ope rationof Water User Associations for enabling the farmers to act collectively to improve theproductivity of irrigated agriculture.

It was at this juncture the World Bank assisted Maharashtra Water Sector ImprovementProject was launched in the State in the year 2007 with the twin objectives ofstrengthening the State's capacity for multi -sectoral planning, development & sustainablemanagement of the water resources and secondly for improving the irrigation servicedelivery and productivity of irr igated agriculture. The initial duration of the project wasupto March2012 which was subsequently extended to March2014. The projectinterventions included rehabilitation of canal wor ks and establishment of water userassociations for transferring the operation and maintenance of the systems to WUAs andensuring volumetric supply of water to them in 12 Major schemes, 11 Medium schemesand 212 Minor schemes with a delineated command area of 6.45 lakh hectare spread overin 33 districts of the State. A dedicated Project Preparation and Management Unit (PPMU)was established within the Water Resources Department for successful implementation ofthe project.

M/s Sheladia Associates Inc USA in association with M/s AFC India Ltd (formerlyAgricultural Finance Corporation Ltd) had the privi lege of being a part of this prestigiousassignment having been designated as an External M&E Agency for the complete period.The assigned tasks included preparation of fourteen half -yearly Monitoring Round reportsfor providing periodic feedback to the PPMU on the qualitative and quantitative aspects ofprogram implementation. As a part of the Monitoring & Evaluation exercise, three Mid-term Evaluation Studies were also undertaken during 2009, 2011 and 2013 respectively forassessing the outcome and impact of the project interventions. This Report pertains tothe Final Evaluation which was proposed towards the end of the project i.e. March2014.The Report briefly brings out the outcome and impact of the project components onvarious performance indicators.

We are deeply indebted to the Water Resources Department, GOM for giving us anopportunity to provide our services for the project. We are also very grateful to theAgriculture Department, GSDA and all other project stakeholders with whom we hadfruitful interactions during the course of our monitoring and evaluation exercise.

Jan Twarowski A.K.GargDirector Managing DirectorSheladia Associates, AFC India LtdU S A Mumbai, India


Table of Contents

Sheladia Associates, Inc., USA & AFC India Ltd., Mumbai

INDIAMAHARASHATRA WATER SECTOR IMPROVEMENT PROJECT

(Ln4796-IN)Final Evaluation Report (March 2014)

TABLE OF CONTENTS

Page No.

Preface i

Table of Contents ii vi

Executive Summary vii xix

Chapter 1 BACKGROUND 1 71.1 International context for Integrated Water Resource Management 11.2 International Context of Participatory Irrigation Management/Irrigation Management Transfer 21.3 Challenges facing the Maharashtra State water sector at the onset ofMWSIP 41.4 Laying down the groundwork activities in Maharashtra to spurIWRM and IMT/PIM 51.5 Project Preparation by the World Bank and Govt. of Maharashtra 7Chapter 2 INTRODUCTION TO MWSIP INTERVENTION 8 122.1 MWSIP 82.2 Project Area 82.3 Project Development Objectives 82.4 Scope and Description of main activities 92.5 Financial Progress 102.6 Implementation Arrangements 112.7 Implementing Partners and their role 12Chapter 3 FINAL EVALUATION APPROACH & METHODOLOGY 13 183.1 Study Design 133.2 Study Sample 133.3 Methodology for selection of sample households under randomlyselected schemes 143.4 Scheme category-wise selected sample number 163.5 Coverage of CCA in the Sample schemes 163.6 Region-wise distribution of sample schemes against total 163.7 Data Generation 173.8 Definitions used for evaluating Irrigation System Performance,Financial Performance and Social Indicators 18


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Page No.

Chapter 4 PROJECT DESIGN AND ACHIEVEMENTS 19 424.1 Project Design and Relevance 194.2 Project Benefits 204.3 Project Components & Achievements 214.4 Component A-1 : Establishment of Maharashtra Water ResourcesRegulatory Authority (MWRRA) 214.5 Component A-2 : Restructuring and capacity building of IDCs 224.6 Component A-3 : Restructuring and capacity building of WRD 234.7 Component A-4 : Strengthening and capacity building of WALMI 244.8 Component A-5 : Integrated Computerised Information System (ICIS) 244.9 Component B-1: Participatory rehabilitation and modernization 254.10 Component B-2 : Dam safety works 264.11 Component B-3 : Formation and capacity building of WUAs 274.12 Component B-4 : Improved Water Management Practices in SelectedProjects 334.13 Component B-5 : Strengthening Agricultural Support Services 344.14 Component B-6 : Environment and Social Management Plan: 374.15 Component C-1 : Groundwater Management Pilot 384.16 Component C-2 : Piloting commercialization of irrigation servicemanagement 394.17 Component D-1 : Project Preparation and Management Unit 404.18 Component D-2 : Monitoring and Evaluation 414.19 Component D-3 : Information, Education and Communication 42Chapter 5 PROGRESS UNDER IRRIGATION SYSTEM PERFORMANCE INDICATORS 43 - 695.1 Introduction 435.2 System Performance Indicators

(I) Storage 45

(II) Irrigation 45

(III) Water Delivery Efficiency (WDE) 51

(IV) Water Use Efficiency (WUE) 53

(V) Transit losses in canals of major, medium and minor schemes 61

(VI) Equity Performance 61

(VII) Water Delivery Capacity Index 625.3 Financial Indicators(I) Cost Recovery Ratio 63

(II) Revenue Collection Performance 63

(III) Revenue Collection Per Unit Volume of Water Supply (for Irrigation) 665.4 Annual Agricultural Income 67


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Page No.

Chapter 6 CAPACITY BUILDING, TRAINING AND AWARDS 70 - 856.1 Introduction 706.2 Capacity Building & Training Facilities, Functionaries and Activities 706.3 State Needs in IWM Modernization beyond MWSIP 706.4 Training Objectives, Faculty and Facilities at META 716.5 Training Calendar, Trainees level and Courses at META & RTCs 726.6 State Training Policy (2011) 736.7 Gap Analysis in Planning, Design and Implementation of TrainingPrograms Suggestions 746.8 Specific Recommendations on META Training Courses 756.9 Training Objectives, Faculty and Facilities at Water and LandManagement Institute (WALMI), Aurangabad 776.10 Training Calendar, Training Level and Training Courses at WALMI 776.11 Gap Analysis in Planning, Design and Implementation of TrainingPrograms of WALMI Suggestions for Action Points 816.12 Specific Recommendations on WALMI Training Courses 826.13 Foreign Trainings and Study Tours 836.14 Punyashlok Ahilyadevi Holkar WUA Award 85Chapter 7 SOCIO ECONOMIC IMPACT 86 - 1147.1 Introduction 867.2 Study Sample 867.3 Demographic Details of Households 877.4 Occupation 907.5 Asset Ownership 927.6 Dwelling 967.7 Household Income 977.8 Reach wise distribution of Sample households 1017.9 Net household income of households Reach-wise 1017.10 Scheme-wise percentage share in net average annual hh income 1027.11 Reach-wise percentage share in net average annual household income 1027.12 Average Land Holding of Farmers 1037.13 Land Development 1037.14 Cropping Pattern 1047.15 Crop yield per hectare 1077.16 Cropping Intensity 1087.17 Irrigation Intensity 1097.18 MWSIP - Economic Analysis 1107.19 Farmers practicing IPM, INM, Organic farming & Bio-fertilizer use 1107.20 Farmers seeking advice on agricultural practices 1117.21 Benefit derived by farmers through Consultations 112


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Sheladia Associates, Inc., USA & AFC India Ltd., Mumbaiv

Page No.7.22 Awareness among Farmers about Water related Govt. policies 1137.23 Awareness among Farmers about agriculture related issues 1147.24 Conclusion 114Chapter 8 OPERATIONALISATION OF PIM 115 - 1228.1 Introduction 1158.2 PIM Policy Reform Initiatives 1158.3 State Water Policy, 2003 1178.4 Maharashtra Management of Irrigation System by Farmers Ordinance,2004 1178.5 Maharashtra Management of Irrigation System by Farmers Act, 2005and Rules 2006 1178.6 Maharashtra Water Sector Improvement Project (2006-2014) 1178.7 Institutional Structure for Operationalization of PIM 1188.8 Implementation of PIM Action Plan 1188.9 Focus on Agro Entrepreneurship Development 1198.10 SWOT Analysis 1198.11 Nature of Awards Instituted by GOM to Encourage and InviteCompetition among WUAs 1218.12 Recommendations 121Chapter 9 PROJECT IMPLEMENTATION AND MANAGEMENT EFFICIENCY 123 - 1339.1 Project Activities Implementation Efficiency 1239.2 Institutional Reforms in Water Sector (Component A) 1239.3 Structural Reforms in Water Sector (Component B) 1259.4 Innovative Pilots (Component C) 1309.5 Project Management (Component-D) 1319.6 Overall Implementation Efficiency of MWSIP 133Chapter 10 LESSONS LEARNT 134 - 13910.1 Introduction 13410.2 Project Implementation Plan 13410.3 Sector Reforms 13410.4 Inter Coordination and Collaboration 13410.5 Water Resource Regulation and Management 13510.6 Enhancement of Dam Safety 13510.7 Effectiveness of rehabilitation 13510.8 Effectiveness of Farmers Participation in Irrigation Service DeliveryFunctions 13610.9 Womens Role in Irrigation Service Delivery and Management 13710.10 NGOs role in Capacity Building and Training of Participatory Farmersand Farmers Organizations 137


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Sheladia Associates, Inc., USA & AFC India Ltd., Mumbaivi

Page No.10.11 Strengthening of Agricultural Support Services 13710.12 Farmers Fiscal Responsibility in Project Implementation Program 13810.13 Effective Implementation of Innovative Groundwater Pilots 13810.14 MWSIP on Long Time Frame Need for Phase-II Reforms 13810.15 Conclusion 139Chapter 11 CASE STUDIES 140 - 15611.1 A successful and Self Sustainable WUA Demonstrating best practicesin PIM 14011.2 Sustainable Water Management Experiences from the IrrigationSector 14211.3 A Case Study on Increase in Final Share value to Farmer (Producers)through Agri-Entrepreneurship Department Project (EDP) activityDal Mill under MWSIP 14711.4 Case study on Pomegranate cultivation under Horticulture promotion 14911.5 Case study on Crop Diversification 15111.6 Growing of Exotic vegetables : A success story 15311.7 Case study on Rose cultivation under Floriculture promotion 15411.8 Case study on Gerbera cultivation in Polly House 155PART II 157 - 247

Annexure 3.1 Region wise and district-wise distribution of selected schemes againstProject, Control and Random sample 157Annexure 5.1 Live Storage Capacity versus Designed Storage Capacity by Scheme Category(All Schemes) 159Annexure 5.2 Culturable Command Area, Irrigable Command Area and Area Irrigatedthrough Canals during IY 2012-13 in ha for all MWSIP 166Annexure 5.3 Water Delivery Efficiency (WDE) for 24 BLS Schemes 170Annexure 5.4 Water Delivery Efficiency (WDE) for All 235 Schemes 171Annexure 5.5 Water Delivery Efficiency (WDE) for 39 Final Evaluation Schemes 178Annexure 5.6 Water Use Efficiency (WUE) at Scheme Level for 24 BLS Schemes 180Annexure 5.7 Water Use Efficiency (WUE) at Scheme Level for All 235 Schemes 182Annexure 5.8 Water Use Efficiency (WUE) at Scheme Level for 39 FE Schemes 189Annexure 5.9 Water Use Efficiency (WUE) at Distributory Level for 24 BLS Schemes 191Annexure 5.10 Water Use Efficiency (WUE) at Distributory Level for All 235 Schemes 192Annexure 5.11 Water Use Efficiency (WUE) at Distributory Level for 39 FE Schemes 193Annexure 5.12 Water Use Efficiency (WUE) at WUA(m) Level for 24 BLS Schemes 194Annexure 5.13 Water Use Efficiency (WUE) at WUA(m) Level for All 235 Schemes 196Annexure 5.14 Water Use Efficiency (WUE) at WUA(m) Level for 39 FE Schemes 204Annexure 5.15 Results of WDE and WUE At A Glance for 39 FE Schemes 206Annexure 5.16 Scheme-wise Water Delivery Capacity Index for IY 2012-13 207Annexure 5.17 Recovery Collection Performance and Cost Recovery Ratio 213Annexure 5.18 Agricultural Income (Rs./ha) for BLS Schemes 229Annexure 5.19 Agricultural Income (Rs./ha & Rs./TCM) for BLS and All Schemes 230Annexure 5.20 Agricultural Income (Rs./TCM) for BLS Schemes 233Annexure 7.1 MWSIP Economic Analysis 234*******


Sheladia Associates, Inc., USA & AFC India Ltd., Mumbai

Executive Summary

I. Background

The World Bank funded Maharashtra Water Sector Improvement Project is being implemented inthe entire State of Maharashtra with the aim to increase the irrigation potential (3.86 millionha. during IY 2003-04) and to increase the utilization (43% in 2003). The program, with a projectoutlay of Rs. 18623.20 million, covered selected 235 schemes in the state mainly to address canalrehabilitation and modernization along with dam safety measures. Further, the projectcontemplated handing over the systems to the farmers in the command area (comprising 6.45lakh ha.) for which around 1700 Water User Organizations were proposed to be positioned in theproject area.

The Water Resources Department initiated these interventions under the Project in 2005 forwhat was initially planned as a six years implementation period, but which was subsequentlyextended up to March 2014. The hierarchy of the implementation machinery is the ProjectPreparation and Management Unit established within the Water Resources Department,Government of Maharashtra, Ten Regional level (headed up Chief Engineers) set-ups catering to17 circles which supervises the grass-root level implementation of 235 executing bodies at districtlevel headed by the Executive Engineers of the Department.

Financial Progress: Original base cost of MWSIP is US $ 351.28 million (Rs.16,580.42 million) andthe revised cost is Rs.18,623.20 million as per the review meeting held during October 2013. Thetotal cumulative expenditure incurred up to March 2014 on the project components andactivities is Rs. 17,774.41 million, which constitutes 107.20% of the original base cost and 95.44%of the revised cost.

This Final Evaluation Report is intended to provide a better understanding of to what extent theproject development objectives have been achieved and the levels of impact attained by theproject interventions. This analysis and evaluation is facilitated by the baseline values establishedat the beginning of the project through a Base-line Study.

II. Maharashtra Water Sector Improvement Project (MWSIP)

The project development objectives are: (i) to strengthen the states capacity for multi-sectoralplanning, development and sustainable management of the water resources and (ii) to improveirrigation service delivery and productivity of irrigated agriculture. The four project componentsare : Institutional Restructuring and Capacity building; Improving Irrigation Water ServiceDelivery and Management; Innovative Pilots and Project Management.


Executive Summary

Sheladia Associates, Inc., USA & AFC India Ltd., Mumbaiviii

III. Project Achievements

Component A : Institutional Restructuring and Capacity Building

3.1 Component A-1:

Establishment of Maharashtra Water Resources Regulatory Authority (MWRRA)

The State of Maharashtra has become the first state in the country to possess a Regulator for theissuance of water tariff order. The water entitlement program included for 232 out of 235projects covering 1341 WUAs under MWSIP and 25 projects (other than MWSIP) covering 27WUAs of non-MWSIP schemes. The MWRRA has been successful in accomplishing all of theenvisaged tasks under this component which included providing water entitlement, evaluation ofthe entitlement program, establishment of a database system, development of water tariffregulation, organizing stakeholders consultation for water tariff determination, appointment ofregulators, preparation of a technical manual (bilingual) and preparation of an integrated statewater plan to facilitate preparation of basin plans by the River Basin Agencies. The authority wasalso successful in bringing out Annual Reports on water accounting, auditing and bench markingperiodically. Awarding entitlements to WUAs has enabled them to know the quantum of wateravailable post rainy season for Rabi and Hot Weather. Since the quantum of water availableduring the year is known, planning for various Rabi and Hot Weather crops has become easier forWUAs.

It is worth noting that the incumbent designated as MWRRA Chairman during the inception ofthe project in 2005 continued for more than six years until all activities could be put in place fortaking forward in the future. Planning Commission in their 11 midterm appraisal mentioned thatthe most sweeping institutional reforms have been introduced in Maharashtra through theMaharashtra Water Resources Regulatory Authority (MWRRA) Act, 2005

3.2 Component A-2 :

Restructuring and capacity building of IDCs

The MWRRA Bill provides the authority to establish RBAs to mandate river basin wise planningand management of the states water resources in an integrated manner. The Bill calls for theadministration of water use entitlements to be delegated to RBAs. To carry out the expandedresponsibilities to be assigned by the authority, the already existing Irrigation DevelopmentCorporations were proposed to be restructured into River Basin Agencies. Accordingly this sub-component of MWSIP addresses conversion of one IDC viz. Krishna Valley Irrigation DevelopmentCorporation at the first stage on a pilot basis which would be followed by the remaining IDCs. Theproject was successful in re-defining the role of the existing IDCs to take up the envisagedactivities as a River Basin Agency to provide support to MWRRA. The superimposition of RBAfunctions onto the IDC structure may be tested for a period of approximately 2 years at whichtime the effectiveness of this approach may be assessed.


Executive Summary

Sheladia Associates, Inc., USA & AFC India Ltd., Mumbaiix

3.3 Component A-3 :

Restructuring and capacity building of WRD

The Government resolution for Restructuring of Water Resources Department including METAand MERI was issued by the State Government in October 2010 and the restructuring has beencompleted as envisaged under the component. With regard to capacity building, the Departmentfunctionaries underwent training at NCCBM, Faridabad related to construction material in use ondams and canal structures. Three courses on construction materials have been organized for 90engineers during the inception of the project. META, Nashik of GoM is the principle institutionimparting training programs periodically to direct recruits of Maharashtra Service of Engineersand to in-service Engineers in the Water Resources Department and the Public WorksDepartment since July 1964. The Regional centers at Aurangabad, Nagpur and Pune startedfunctioning since 1983. During 2007-08 to 2013-14, META has organized 1389 courses for 52,559trainees both for WRD and PWD. The trainee engineers from WRD constitute more than 80percent of the total. MERI at Nashik is principally a research institution, occasionally engaged inconducting training on GIS and use of remote sensing technique (June July 2011).

3.4 Component A-4 :

Strengthening and capacity building of WALMI

WALMI was established in the year 1980 as autonomous registered society under the WaterResources Department. A dedicated cell within WALMI for imparting training to the farmers fromWUAs has been created under this component of MWSIP. The intervention has helped in thecapacity building of the stakeholders on the project objectives and issues related to theimplementation through the dedicated Cell. WALMI has organized 315 training programs for23,489 WRD functionaries and WUA trainee participants during April 2005 to March 2014.WALMI has five faculties to cater to the training programs on different subjects.

3.5 Component A-5 :

Integrated Computerised Information System (ICIS)

This sub-component envisaged introduction of information technology in the Water ResourcesDepartment with networking of computers and development of suitable ManagementInformation System (MIS) Model coupled with training to the end users. Procurement of requiredGoods and Services has been completed. Server set-up at State Data Center was completed inMarch 2013. Training for the hardware, Linux operating system and Open Office has beencompleted. Regarding networking, agreements have been signed with BSNL / MTNL andimplementation has started. VPN has been successfully activated at 178 Locations. Applicationtraining for 660 users and for 649 master trainers has been completed in the trainings conductedat META, Nashik. User ids have been issued to all the 3000 users. The ICIS is now considered asan e-Governance initiative by the WRD and has been recently christened as eJalseva. Forsuccessful implementation of eJalseva a dedicated Project Management Office has beenestablished at Pune.


Executive Summary

Sheladia Associates, Inc., USA & AFC India Ltd., Mumbaix

Component B: Improving Irrigation Water Service Delivery and Management

3.6 Component B-1 :

Participatory rehabilitation and modernization

The Canal Rehabilitation works have been completed fully in 216 schemes and partially in 14schemes covering CCA of 6,08,007 ha (94%) against total CCA of 6,45,604 ha as on March, 2014.In the remaining out of 235 i.e. five schemes have been dropped due to certain limitations.Contract Management Committees (CMCs) were a highly effective method for contractmanagement and supervising the physical works provided that they were supplied with thecontract documents and aware of the schedule for the works. CMCs also engender ownership bybeneficiaries and should continue to be used.

3.7 Component B-2 :

Dam safety works

The objective of the dam safety component was to undertake and implement remedial worksrelated to the safety of dams and appurtenant structures to ensure that all distress-relatedfeatures are appropriately tackled for sustainability of the delivery system. This intervention wasaddressed in 281 dams of 278 schemes and the progress made as on March 2014 was that theworks of 266 dams in 263 schemes were physically completed. These works are essential toassure the supply of water and at the same time avoid catastrophic flooding by averting damfailure. Some farmers understood and appreciated that dam safety works would assure thesupply of water. In remaining 15 dams of 15 schemes, the works are either terminated orcontracts were not awarded and currently not under implementation.

3.8 Component B-3 :

Formation and capacity building of WUAs

The envisaged target for promoting WUOs at different levels in the command area of theselected 235 MWSIP schemes was 1708 WUOs. The project achieved formation of 1678 WUOscomprising of 1508 WUAs (100%), 99 DLAs (82%), 30 CLAs (88%) and 41 PLAs (93%). Theformation of remaining higher level WUOs are under way and are expected to be completed verysoon. The existing 1508 WUAs are on an average having about 15,080 MC members (10 perWUA) and around 3000 office bearers (one President and one Secretary/per MC). Under MWSIP,820 office buildings for WUOs (49%) were constructed and handed over. The training provided tothe WUAs comprises of Initial and Refresher training. The Training of Trainers (TOT) programwas organized by WALMI, for the selected officers of WRD and other implementing partners inthe discipline of Irrigation, Agriculture, Sociology and Accounts, who in turn imparted the abovetwo levels of training program to Members/Directors of MC of all WUAs in their jurisdiction. Inall, Initial training has been provided to 91.0 percent of WUAs. NGOs were initially appointed forcapacity building of WUOs for a period of 2 years. Prescribed-entitlement has been sanctioned to1341 WUAs (89%) by MWRRA. As on March 2014, the system has been handed over to 1096


Executive Summary

Sheladia Associates, Inc., USA & AFC India Ltd., Mumbaixi

WUAs (72.68%) for operation and maintenance. The WRD is yet to provide office building to 303WUAs as per the target envisaged and the work at all the sites is under way for completion byMarch, 2014.

3.9 Component B-4 :

Improved Water Management Practices in Selected Projects

The program was undertaken in six schemes viz. two major (Ghod & Kukadi), one medium(Mangi) and three minor schemes (Diwale, Hiware and Benikre). The volumetric supply started inthe year 2007. Measuring Devices have been installed and the State Report on water auditing andbenchmarking published annually also includes these six schemes. After successful completion ofthe Pilot phase, the Water Entitlement Program has been expanded to other schemes.

3.10 Component B-5 :

Strengthening Agricultural Support Services

The Agricultural Support Services (ASS) programme was implemented by the Department ofAgriculture in 66 irrigation projects of which 9 are Major Irrigation Schemes, 13 MediumIrrigation Schemes and 44 Minor Irrigation Schemes in the State. The Component was successfulin fulfilling the targets envisaged under its activities that include : the establishment of VillageSupport Groups (VSGs) & Krishi Vigyan Mandals (KVMs), Providing training to Master Trainers &Extension Service Providers, Organizing farmers Training & Exposure Visits, CropDemonstrations, Strengthening of Agro-polyclinics & District Training Centers, Strengthening ofSAMETI & RAMETI, Mainstreaming of ATMA model for Agricultural Support Services and finallyAgro-entrepreneurship Development through implementation of innovative projects. The ASSintervention was effective proved with improved productivities and overall production.

3.11 Component B-6 :

Environment and Social Management Plan

The Govt. of Maharashtra had undertaken an Integrated Socio-Environmental Assessment (ISEA)Study which identified water sector related social &environmental issues which may result fromthe proposed rehabilitation and modernization of canals and dam safety works andrecommended suitable Socio-Environmental Management Framework (SEMF) along with samplemitigation plans. The assessment of Social & Environmental issues for all 235 schemes has beencompleted. No R & R plans were required for any of the schemes. All concerns raised in the studyhave been addressed through respective Components and sub-components of MWSIP. In orderto address the gender issues and increase womens participation in the WUA activities,WALMI has organized 36 courses for women WUA members. Under the Agriculture supportservices component Training and Demonstration programs on IPM/INM were organized.Compensatory tree plantation is required in 29 schemes. Plantation has been carried out in 6schemes (Ghod, Kukadi, Pench and Itiadoh Major schemes, Kanholi Medium & Zilpa Minor). Inorder to address the environmental issues, particularly with respect to water logged and salinesoils, 234 drainage schemes have been completed in the six selected major schemes. Draft


Executive Summary

Sheladia Associates, Inc., USA & AFC India Ltd., Mumbaixii

Guideline document for field engineers for Social & Environmental Mainstreaming have beenfinalized. Training workshops have been organized for field engineers for providing orientation onSEMF and SMP.

Component C: Innovative Pilots

3.12 Component C-1 :

Groundwater Management Pilot

The project has supported aquifer level user centered groundwater management in three pilotaquifer areas in Khatav Panchayat Samiti in Satara district, Bhokardan and Badnapur PanchayatSamiti in Jalna district and Ashti Panchayat Samiti in Beed district, representing different hydrogeological conditions in the state. Supply side management interventions accomplished 116 Civilstructures as groundwater recharge systems in all 3 pilots. Demand side management throughlow water consumption crops has been adopted and is on increase gradually.

The success of this Pilot project has given confidence and acceptability in the minds of allstakeholders and also creating political will for introducing legal control to arrest depletion ofgroundwater levels and eventually the Groundwater (Development & Management) Act, 2009has been enacted and enforced through its publication in the Gazette of Maharashtra on 3rd

December 2013. Based on the success of the MWSIP pilots, GSDA reports that some community-level groundwater projects are being taken up on the new Maharashtra Rural Water Supply andSanitation Jalswarajya Phase 2 Project.

3.13 Component C-2 :

Piloting commercialization of irrigation service management

The purpose of this intervention was to convert present day agriculture into a commerciallyprofitable business through integration of small holdings into commercial agricultural Companyextending benefits of large scale farming, professional skills and investment by a competentprivate agency. Due to very less response received from the private agencies when tenders wereinvited this sub-component was dropped subsequently. Further it was noted that large scaleadoption of innovative and improved agriculture production, diversification, micro irrigation, postharvest management & marketing practices and operationalization of over 200 AEDPs under theAgricultural Support Services Component (B-5) has given a big boost to commercial high techirrigated agriculture in several schemes and has unleashed creativity and innovations by thefarmers. In view of these developments and to avoid repetition, it has been decided to drop thepilot on innovative agriculture at all the four locations as originally planned under this Subcomponent.


Executive Summary

Sheladia Associates, Inc., USA & AFC India Ltd., Mumbaixiii

Component D : Project Management

3.14 Component D-1 :

Project Preparation and Management Unit

The PPMU had been successful in coordinating with all the Stakeholders and accomplishing theenvisaged Project Development Objectives of Strengthening the Institutions in the Water Sectorfor undertaking long term assignments to bring out reforms in line with the State Water Policyand also the rehabilitation of the 235 irrigation schemes for increasing irrigated agricultureleading to better agriculture productivity, and in-house monitoring. It also monitored the work ofpublicity of State Water Policy with a view to create mass awareness among farmers forparticipation in irrigation management and for integrated water resources management. Theexperiences gained could be much helpful in designing similar projects in the water sectorreducing the time frame in Project Preparation and Planning since systems are already in place.


Monitoring and evaluation

As external M & E Agency viz. M/s Sheladia Associates, Inc., USA in association with M/sAgricultural Finance Corporation, Ltd. Mumbai which was appointed to address the monitoringand evaluation component of the assignment, has successfully prepared 14 half-yearlyMonitoring Round Reports, Three Mid-term Evaluation Reports and One Final Evaluation Report.These Reports helped PPMU/WRD to monitor the progress, evaluate the works/performance ofthe irrigation systems and ensure the output and outcome results as envisaged in the ResultsFramework of the Project Appraisal Document. WRD may consider establishing an internal M&EUnit for generating a knowledge base that can inform future programming. WRD should considerdeveloping a web-based MIS system for collection of routine progress monitoring information,leaving more time for an M&E unit or agency to focus on field visits and evaluation


Information, education and communication

This sub-component facilitated in educating the farmers on issues relating to water sector in theState and creating mass awareness on the necessity of farmers participation in operation andmaintenance of the systems. Several initiatives have been undertaken by the Water ResourcesDepartment to disseminate and publicize the State Water Policy, the concept of farmers'participation in irrigation management and integrated water resources management throughorganizing Workshops & Seminars, printing of IEC material and Media coverage.

IV. Impact under System Performance Indicators

The table below illustrates the impact levels under the System Performance Indicators, whichwere defined during project preparation, and compares these with the targets envisaged for eachindicator. The figures relating to pre-project value pertains to the 24 Schemes selected beforeinitiating the project for establishing base-line. The post project value indicates the currentsituation in those 24 schemes (i.e. irrigation year 2012-13) as well as among the schemes selected


Executive Summary

Sheladia Associates, Inc., USA & AFC India Ltd., Mumbaixiv

for Final Evaluation and for the total project area which helps in knowing to what extent theproject was able to achieve the proposed targets under each indicator.

Results under System Performance Indicators during Final Evaluation (IY 2004-05 versus IY 2012-13)

SlNo

Indicator

Pre ProjectValue

Target Post Project Value

Baselinevalues

% ValueBaseline

(24Schemes)

All 235MWSIP

Schemes

FinalEvaluation

(39Schemes)

1% Live Storage againstDesigned

69.00 - - 85.90 83.43 91.10

2 % ICA against CCA - - - 88.46 80.27 85.66

3Area Irrigated throughCanal, ha (All Schemes)

300,504 100,000 400,504 115,984 350,081 238,277

4 WDE at Scheme Level 31.19 100% 62.38 60.94 60.96 56.53

5WUE at Scheme Level,ha/Mm3

96.00 30% 125 133 147 137

6WUE at Distributory Level,ha/Mm3

146 30% 190 178 265 230

7WUE at WUE(m) Level,ha/Mm4

183 30% 238 209 270 265

8 Cost Recovery Ratio(CRR) 1.00 0.00 1.00 3.09 1.89 1.88

9Revenue CollectionPerformance from CanalIrrigation, %

45.00 20% 54.00 54.00 61.72 57.10

10Overall Revenue CollectionPerformance (Irrigation+non-Irrigation), %

52.28 20% 62.74 80.00 79.49 71.31

11Revenue Collection per unitof water, Rs/TCM

25.34 20% 30.41 18.42 33.41 23.07

12Annual Agricultural Income,Rs/ha

29,245 30% 38,019 54,180 61,462 64,220

13Annual Agricultural Incomeper unit of Water, Rs/TCM

3,532 30% 4,592 8,049 9,035 8,798

V. Socio economic Impact

5.1 Study of Farmers: The Final Evaluation included a study of farmers for assessing the projectimpact on the target group in terms of agricultural productivity, quality of life and income levels.The sample comprised of 3315 farmers in the Project area and 540 farmers from the Controlgroup. The sample was spread over in 39 MWSIP Schemes and 9 Non-MWSIP schemesrepresenting all the agro-climatic zones of the State.


Executive Summary

Sheladia Associates, Inc., USA & AFC India Ltd., Mumbaixv

5.2 Land holding Category : The Marginal and Small farmers comprised 78.0 per cent of theproject sample while percentage composition of Medium and Large farmers were 17.0 and 5.0per cent respectively.

5.3 Poverty line : Compared to the Baseline, 7 percent more families of the target populationare above the poverty line following the project interventions. (Base-line: APL-74% : FE : APL-81%).

5.4 Employment : The total number of household members in the project sample comprised of0.16 lakh persons. The project interventions have resulted in creating additional person-daysemployment for the targeted families which is evident from the decrease in percentage ofhousehold members engaged in domestic work by 9.5% (BLS: 18.7 %; FE: 9.2 %). The percentageof unemployed members in the sample households also decreased from 1.30 % to 0.20 %.

5.5 Household Assets: With regard to possession of household assets by the sampledhouseholds, a major impact was observed in the extent of households owning Mobile phones,Color TVs , DVD players, Refrigerators, Stoves and Tables revealing considerable improvement inthe quality of life due to increase in income levels (see item 5.8 below on Annual HouseholdIncome). Availability of Drip Irrigation systems was observed in 22.0 per cent households in theproject sample. Likewise those owning Electric Pumps and Mixer Grinder accounted 30.0% and42.0% pf the total project households respectively.

5.6 Quality of Dwelling : All the families were found owning their own dwelling except for anegligible number. With regard to quality of construction, the percentage of households usinggrass as roof material decreased from 7.0% to 4.0%. Likewise, those households possessingflooring made of Mud/Gobar paste reduced in percentage from 61.0% to 23.0%. The percentageof houses has electrification increased from 73.0% during pre-project situation to 86.0% duringthe end evaluation.

5.7 Sources of Income : The figures relating to sources of income of the project householdsrevealed that all the households were deriving income from farm activities. Further income fromon-farm and non-farm labour was observed in 62.0% households.

5.8 Annual Household Income : The average net annual household income among the projecthouseholds worked out to Rs.0.64 lakh per household which indicates 41.0% increase over pre-project situation. The corresponding figures pertaining to Non-MWSIP sample indicated negativetrend. The income figures were arrived at, after applying discounting factor.

5.9 Farm Income : The annual net farm income per household after discounting works out toRs.0.41 lakh revealing 158% increase over the pre-project situation. The percentage proportion ofFarm income in the total household income has increased from 35.0 to 65.0 per cent.

5.10 Average land holding : The average land holding of the farmers was 1.70 ha. in the projectsample.


Executive Summary

Sheladia Associates, Inc., USA & AFC India Ltd., Mumbaixvi

5.11 Cropping pattern : The cropping pattern adopted by the farmers after intervention ofMWSIP reveal increase in area under cultivation of perennial crops i.e. from 11.0 per cent to 28.0per cent of the total area cultivated.

5.12 Crop diversification : In comparison to pre-project situation, the households during post-project period have started introducing several new crops such as Horse gram, Kidney bean, Cowpea, Custard apple, Sweet orange, Pomgranate, Guava, Cashew nut, Citronella, Turmeric, Gingerand several vegetable varieties due to assured water availability (refer Success Stories).

5.13 Crop Yield : The crop yield rate among the major crops grown had considerably increaseddue to timely availability and minimal water losses in transit. The yield under wheat increasedfrom 13.9 quintal per ha. to 17.9 quintal per ha.. The yield under Maize increased from 22.0quintal to 26.0 quintal per ha. More or less cent per cent increase in yield was noticed in case ofpulses. The per ha. yield under Sugarcane increased from 75 tons to 91 tons after the projectinterventions.

5.14 Cropping intensity : The overall cropping intensity in the MWSIP area increased from 120per cent (pre-project) to 130 per cent (post-project) against a decrease from 125 per cent to 122per cent in the Control area.

5.15 Irrigation Intensity : The overall irrigation intensity in the project area was 121 per centwhich includes irrigation through Canal and Ground water alone.

VI. Project Highlights

The project has resulted in increase of irrigation potential in the command area.

Assurance of water availability facilitates advance planning by the farmers.

The project outreach in terms of number of farming households benefitted under theprogram is 6.21 lakh farming families as evident from the following statement.

CategoryNo. of

schemesNo. ofWUAs

CCA, haMembers Total

MembersAve. Landholding

Size, haMen Women

Major 12 1,083 4,73,772 3,62,348 88,594 4,50,942 1.05

Medium 11 150 54,685 48,442 12,431 60,873 0.90

Minor 212 276 1,17,147 90,272 19,219 1,09,491 1.07

Total 235 1,509 6,45,604 5,01,062 1,20,244 6,21,306 1.04

VII. Indirect Benefits

(i) Job Creation : The project has generated 24.76 million person days of employment inthe project area in construction activities.


Executive Summary

Sheladia Associates, Inc., USA & AFC India Ltd., Mumbaixvii

(ii) Outreach of ASS component : The benefits of Agricultural Support Services componentextended outside the MWSIP command area since villages were considered as unit forprogram planning by the Agriculture Department.

(iii) WUA Capacity Building : WUA capacity building boosts skills and confidence of themembers which provides benefits in daily lives outside of WUA work.

(iv) WUA formation : The net-work of WUAs created in the State by the Water ResourcesDepartment could be utilized by the Department as a platform for launching anypromotional program or for propagating any message from time to time. Infrastructure /institutional set-up in Maharashtra and more general benefits to water sector in thestate.

(v) Water entitlement concept-upscaling : MWRRA has also started issuing andadministering water entitlements in a number of other water/irrigation schemes tovarious bulk water users entities which are outside the project area (26 WUAs of 24 nonMWSIP schemes).

(vi) Other states adopting WRM legislation : As a consequence to the establishment ofMWRRA in Maharashtra through enactment of MWRRA Act, two other states (AP andRajasthan) have enacted similar legislation to establish a regulatory Authority /commission in their state in the water sector.

(vii) Spread of Water Sector Institutions to other states : The Planning Commission, GOI,has advised all the States in the country to establish water sector regulator in their stateson the pattern of Maharashtra by enacting similar legislation. The States of ArunachalPradesh, Gujarat, Jammu & Kashmir, Kerala and Uttar Pradesh have followedMaharashtra in moving toward establishment of independent Water RegulatoryAgencies.

VIII. Key Recommendations

1. With respect to MWRRA going forward, after preparation of River Basin Plans by therespective RBAs, the Water Resources Department will initiate the process of preparing StateWater Plans to submit to the State Water Board for onward submission to the State WaterCouncil. Therefore, IDCs working as RBAs need consider the preparation of integrated riverbasin plans as a priority action.

2. WALMI training activities should continue to receive support as they are of immense use tothe farmers as well as to the Departmental personnel. This needs to be a continuous on-goingactivity with an enhanced focus on Participatory Irrigation Management.

3. On the ICIS, any remaining task need to be expedited to enable the MIS model developed aspart of the project interventions to further improve efficiency of the Department. To sustainthe activities of the unit, it is critical to ensure that all sanctioned positions are filled-in,avoiding any vacancies. Modernization would be required after sometime to keep phase withthe latest developments in the IT field. Periodic additional training and orientation of the


Executive Summary

Sheladia Associates, Inc., USA & AFC India Ltd., Mumbaixviii

functionaries would be also required for being aware of these new technologicaldevelopments.

4. With respect to canal rehabilitation works, the installation of measuring structures at everyoff-take of the canal network is yet to be put in place in all the schemes. Like-wise proposalfor using CTF in fiber glass reinforced plastic (FRP) measuring devices in the entiredistribution system (minor) to enable quick on-site monitoring of the quantum of water hasbeen ensured about 70% of the WUAs schemes. Similarly quite a few reservoirs alone havebeen provided with automatic water stage recorders. Self-regulated outlets (fixed dischargeof one cu sec) have been provided only in Mangi Medium Irrigation project. Standing waveflumes provided in most of the schemes on main canals and distribution system needsrecalibration.

5. During project implementation, WRDs focus concerning farmers organizations was primarilygeared towards rehabilitation of the WUA minor level system, the formation of WALMI, DLA,CLA and PLA, and training and capacity building of WUA (m). Major achievements were alsomade on providing water entitlement and volumetric supply of water to WUAs as well ashanding over of the system. Going forward, attention need to be focused further on thefollowing activities:

a. Training and capacity building for upper level WUOs viz., DLAs, CLAs & PLAs topromote pro-active involvement of the management committee members.

b. Greater take up of providing water entitlement to WUA members.

c. WUAs need to take up preparation of irrigation program independently at their level.

d. WUAs need to do advance planning for efficient maintenance management ofirrigation system as well as strengthening of field channels

6. Based on the experience gained the successful implementation of the pilot phase of thewater entitlement program, the exercise needs to be expanded in the State to cover all theschemes in a phased manner as per MWRRA Act.

7. With respect to activities of the Agricultural Support Services component:

a. Given that Water Users Associations are important stakeholders of VSG, the groupswill need continuous handholding from the Department on similar lines to KVM inorder to enhance their functional utility.

b. The farmers especially those who have additional sources of irrigation like bore wellneed to be oriented on crop water budgeting and consumptive use of water forconservative use of canal water.

c. Farm mechanization need to be promoted in the command area, as it was found thatproduction has improved significantly. To begin with, especially harvesting and postharvest threshing may be given priority due to the prevailing labor demand in thecommand areas.

d. Convergence with other departmental program like IWMP, State Rural LivelihoodMission, etc. need to be encouraged for promoting livelihood activities.


Executive Summary

Sheladia Associates, Inc., USA & AFC India Ltd., Mumbaixix

8. The Groundwater Pilot could be now replicated both within the State and elsewhere in thecountry. The experiments made in these pilot projects have produced encouragingcommunity based aquifer level groundwater management model. The success message ofthis venture needs to be propagated across the state, the country and abroad to attract theattention of the Planners, Policy makers and those using groundwater in the interest ofsustainable management of this valuable resource.

9. The sixth chapter dealing with Capacity Building, Training and Awards provides informationabout Institutions wherein the Department officials and other Policy makers could bedeputed for training both within the country and as well as abroad.

10. It is also suggested that the present practice of providing Awards to WUAs at State andRegional level could also be extended to District-level by Scheme category in order to createmore competition among the WUAs.

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Chapter 1

Sheladia Associates, Inc., USA and AFC India Ltd., Mumbai 1

Chapter 1

BACKGROUND

1.1 International context for Integrated Water Resource Management

Inter-sector competition over water resources is a common concern for all countries across theworld. Demand for water has increased dramatically as populations and economies worldwidehave grown, leading to increased wealth and increased demand for food and energy.Competition between users has increased resulting in difficult allocation decisions. Findings froma 2012 UN-Water Task Force analysis of data from over 130 countries show that water-relatedrisks and the competition for water resources are perceived by a majority of countries to haveincreased over the past 20 years. The rapidly accelerating pressures on freshwater systemsarising from increasing demands, as well as emerging impacts from climate change, areexacerbated by local management, which is not equipped to adapt and respond adequately. As aresult the resilience of water resources and ecosystems is threatened, as is the well-being ofcommunities and the economic growth of countries and industries that are dependent on theirrelated services.

Among the major international water management events of the past few decades the 1992United Nations Conference on Environment and Development (UNCED) held at Rio de Janeirostands out as an event of outstanding importance. UNCED covered a very broad range ofdevelopment issues and from a water resources perspective was informed by the InternationalConference on Water and the Environment with its highly influential Dublin Principles. UNCEDproduced Agenda 21 which in Section 2 of Chapter 18 on Freshwater Resources emphasizedThe holistic management of freshwater and the integration of sectoral water plans andprograms within the framework of national economic and social policy, are of paramountimportance for action. Chapter 18 called for the application of an integrated approach to thedevelopment, management and use of water resources. This integrated approach, oftenshortened to IWRM, is now being adopted universally.

Another major international conference on development was the UN Millennium Assembly in2000, which resulted in agreement on a set of Millennium Development Goals (MDGs). Waterresources management underpins all 8 of the MDGs and is directly linked to the realization ofGoal 7 on ensuring environmental sustainability. The MDGs have had a major strategic influenceon development policy in the last decade. Ten years after the UNCED a major impetus toimproving water management through the adoption of the Integrated Water ResourcesManagement (IWRM) approach was provided by Governments at the 2002 World Summit onSustainable Development (WSSD), held in Johannesburg, South Africa. One hundred and ninetythree countries agreed to the Johannesburg Plan of Implementation (JPOI), in which Article 25calls for the development and implementation of IWRM and water efficiency strategies, Plansand Programs at National and at Regional levels, with national-level IWRM plans to be developedby 2005.


Background Chapter 1


IWRM rests on the following principles as an overall framework:

Social equity: ensuring equal access for all users (particularly marginalised andpoorer user groups) to an adequate quantity and quality of water, necessary tosustain human well being.

Economic efficiency: bringing the greatest benefit to the greatest number of userspossible with the available financial and water resources.

Ecological sustainability: requiring that aquatic ecosystems are acknowledged asusers and that adequate allocation is made to sustain their natural functioning.

Since 1992, 80% of countries have made progress with water sector reform to adopt principles ofintegrated management of water resources and are working through the process from policy tolaws, strategies and plans.

Some countries face challenges to get agreement on new policies or laws that reflect integratedapproaches to water management (Sri Lanka, Pakistan, Namibia, Guatemala, Costa Rica,Cameroon, Antigua and Barbuda) or have adopted new water laws that remain fettered byvested interests (Mexico). Yet others, even with complex federal/ state structures have managedto agree and implement sweeping reforms (Brazil, Australia). Countries that have made progresswith their water policies and laws may still struggle with full operationalization and particularlywith the issue of integrating water resource management across water using agencies andstakeholders (Jamaica, Bangladesh, Armenia, Tunisia). Whether getting the enabling environmentright or rolling out national systems to manage water resources on the ground, it is common forthere to be problems slowing down or even stalling progress. Whether due to inadequateconsultation, political priorities, resistance to change or fear of losing benefits these are naturalobstacles that have to be overcome. Some countries are already demonstrating that better watermanagement can be achieved while others may need more support and shared lessons to moveforward at a faster pace. There is no quick fix for sustainable water management and so theNational and International leaders have to demonstrate their commitment for the long haul.

1.2 International Context of Participatory Irrigation Management/Irrigation ManagementTransfer

Parallel to the concern about water resources management, two other major movements havebeen emerging across the globe and shaping policy: (i) liberalism; and (ii) a call for a moreparticipatory development approach. The participatory movement has advocated that the size ofgovernment should be reduced and that people should participate more in governance,management and financing resource development in order to promote sustainable and equitabledevelopment. Participation promotes the subsidiarity principle of making decisions at the lowestlevel possible, thereby increasing stakeholder participation. In combination, liberalization andparticipation have led to the concept of self-reliance coming to the forefront of the developmentstrategy. Moreover, in order to comply with the structural adjustments required by theinternational financing institutions in the last few decades, governments have devised ways todecrease public spending in most sectors. This disengagement has not spared agriculture (inparticular, the irrigation sector).




Within the above context, governments across the world have responded and embarked on aprocess of irrigation reform meant to tackle the increasing demands on irrigated agriculture andto enhance its performance while coping with both liberalization and participatory strategies.Among reforms in irrigated agriculture, irrigation management transfer (IMT) has appeared asthe most important and far-reaching reform thus far.

The emergence of IMT as a process for subsector reform can be traced back to the early 1970s,when a general disappointment with the performance of irrigation systems (following hugeinvestments by governments and international agencies in the 1950s and 1960s) began to takehold. More often than not, irrigation agencies established with the purpose of supplying water tothose systems under a rigid, top-down approach failed in their objectives. Farmers who weremeant to pay for these services in order to keep the operation sustainable began to falter in theirobligations and to demand better services tailored to their needs. A vicious cycle of non-paymentand infrastructure deterioration ensued. By the 1980s, the world economic downturn had forcedgovernments to revise their policies of trying to keep the irrigation systems running from theirmeager budgets after lack of payments of water charges by farmers had only increased. The needfor reform was ripe. Thus, typical objectives of IMT programs became:

Eliminate or reduce recurring government expenditures for operation andmanagement of irrigation systems.

Establish financially self-reliant water service providers to replace the public agencyin the management of systems.

Reverse the increasing rate of deterioration of infrastructure.

Provide transparency in management and accountability of the service provider towater users.

As an end-result, the main objective of IMT was to achieve improvements in theperformance of the irrigated agriculture sector, including both productivity andfinancial and physical sustainability.

The concept of IMT normally refers to the process that seeks the relocation of responsibility andauthority from the controlling government agencies managing irrigation systems (under thepublic sector) into the hands of non-governmental organizations (NGOs), such as WUAs, or otherprivate-sector entities. Usually, these are established as recipients of the transfer or handover ofmanagement.

In dealing with IMT issues, a second, interrelated concept, referred to as participatory irrigationmanagement (PIM), is often encountered. Normally, this refers to the increased involvement ofwater users in irrigation management, along with the government; thus, it consists more of abehavioral or attitudinal change than a reform process per se. Thus, while the IMT conceptintends to replace the role of the government, PIM seeks to strengthen the relationship betweenwater users and government by adding farmer participation to government management. Theconcepts intersect at the co-management stage of IMT, where, before a final transfer takesplace, the government agency and the recipient organization agree to share responsibilities. Thepoint here is that, while having intersecting elements, the two concepts are not exactly the sameand, therefore, they should not be interchangeable. However, owing to a number of factors,




mostly related to the acceptance of terms, PIM is widely used in many circumstances andcontexts that really correspond to the concept of IMT.

Irrigation management transfer is taking place in five continents. This type of reform began to beimplemented as far back as the 1960s in Taiwan Province of China, Bangladesh and United Statesof America; in the 1970s, in Mali, New Zealand and Colombia; and in the 1980s, in the Philippines,Mexico, Tunisia and the Dominican Republic. The bulk of the irrigation reform peaked in the1990s, when countries such as Morocco (1990), Australia (1994), Turkey (1994), Peru (1995),Albania (1996) and Zimbabwe (1997) initiated the process. The new century already showsexamples of interventions taking place in the Sudan and Pakistan (2000), India (2001) and China(2002), each of which has experienced a unique process and result. Today, more than 57countries have embarked on some type of irrigation sector reform that has IMT. This correspondsto 40 percent of countries reporting more than 10 000 ha under irrigation. These represent 72percent of the world population as they include among others China, India, the United States ofAmerica, Indonesia, Pakistan and Bangladesh, and represent 76 percent of the irrigated area ofthe world (FAO, 2007). To make these reforms work, its often necessary to accompany theirimplementation with infrastructure rehabilitation work to provide an incentive for stakeholdersto fully buy-in to the changes and be willing to take on O&M responsibility.

1.3 Challenges facing the Maharashtra State water sector at the onset of MWSIP

During identification and preparation of the MWSIP in 2004-2005, the water sector inMaharashtra was facing an array of critical challenges. The first among them was an increase incompetition among different sectors, giving rise to disputes and conflicts over water use withrapid urbanization and industrialization in urban centers, more demand is being placed on watersupply for domestic and industrial use, as well as thermal and hydro power. Over the long-term,ensuring efficient and equitable intra and inter-sectoral management of the States scarce waterresources would become an increasingly critical issue. Given the limited institutional capacity tocarry out integrated water resources planning, allocation and management at State & River Basinlevels and inter-sectoral co-ordination, the competing demands placed on Maharashtras waterresources required to be dealt with more effectively.

Poor quality irrigation service delivery undermining the performance of irrigated agricultureposed a second challenge for the water sector in the state. In many command areas, theefficiency of water use was very poor, often due to deteriorated conditions of the canal anddistribution system which had not received adequate maintenance. Farmers have tended to usefar more water than needed for the crops, which does not lead to greater yield but rather causeswater logging and salinity problems. In many instances, this is partly due to ignorance on the partof the farmers of optimum water uses and a reluctance to adopt modern irrigation techniquessuch as pressure irrigation and volumetric measurement.

Another common and widespread challenge was the considerable inequity in the distribution ofwater. The head reach areas usually consume a major share of the water, while the tail reachesoften do not receive adequate irrigation even though both pay the same irrigation charges. Acombination of political, caste and class pressures often lead to dominant groups or communities




consuming more than their share of precious water resources. In other instances, poor designand implementation of projects have also led to inequitable distribution.

Financially unsustainable water services resulting from high costs, low cost recovery and theconsequent low levels of expenditure on O&M, has led to the rapid decline of the physicalcondition of irrigation and drainage infrastructure. The method of charging an Irrigation Cess onthe basis of crop and cropped area has also contributed to inefficient use of water. A peculiarityof the present system of collection of water charges and the rate structure is that it does notincentivize farmers to save water if a farmer saves water, he does not pay less, while if he usesthe saved water to irrigate larger areas, he actually pays more, as irrigation charges are areabased. The farmer will also pay more if he switches to a more water intensive crop regardless offarmers water use efficiency.

Likewise, limited cost recovery in the irrigation sector has also contributed to inefficient on-farmuse of irrigation water and added to the fiscal burden of the state. More importantly, the largestate-guaranteed market borrowings by the Irrigation Development Corporations (IDCs) tofinance construction of storage infrastructure, which without distribution systems completedwere not generating any return and had been exacerbating a fiscal crisis in the state.

Lastly, planning and management of water resources in the state was seen as fragmented andun-coordinated and was not being done holistically, treating surface and groundwater as oneresource.

1.4 Laying down the groundwork activities in Maharashtra to spur IWRM and IMT/PIM

Recognizing the urgent need to begin addressing the challenges discussed above, theGovernment of Maharashtra (GoM) took a number of actions in the years leading up to theimplementation of MWSIP. To establish a more appropriate policy and institutional frameworkfor multi-sectoral and environmentally sustainable water resources planning, allocation andmanagement, and to separate over all water resources planning and allocation functions fromthe service delivery functions, the GoM carried out the following actions:

i. GoM adopted the Maharashtra State Water Policy 2003. The objective of theMaharashtra State Water Policy is to ensure a sustainable development and optimal useand management of the State water resources to provide the greatest economic andsocial benefit for the people in the State of Maharashtra in such a manner that maintainsimportant ecological values within the rivers and adjoining lands. The policy hasinnovative features such as water audit, benchmarking of water resource projects, waterentitlements, etc. The policy also directs to make 15% reservations for drinking waterpurposes and 10% reservations for industrial water use purposes in the forthcomingprojects.

ii. GoM passed the Maharashtra Water Resources Regulatory Authority Act (MWRRA Act)2005. The MWRRA aimed to carry out the following functions: to regulate the water tariffsystems and water charges for the use of these resources; to ensure that water resourcesdevelopment and management within the State is carried out as per the Integrated StateWater Plan prepared by the State Water Board and approved by State Water Council; to




review and ensure administration of water use entitlements: at the river basin / sub-basin, water using sectors (such as drinking water, industries, irrigation etc.), and atutility/project level between water using sectors, and also between various water userentities within each sector within the State; to assist and facilitate the development of aframework for the preservation and protection of the quality of surface and sub-surfacewater within the state, to decide the criteria for trading of water so as to maximize theefficiency of water use. As a sequel of these policy initiatives, a comprehensive sectorimprovement project was envisaged; and prioritization of water utilization for drinking,industries, farming and other users.

iii. GoM decided to restructure the existing IDCs into River Basin Agencies (RBAs). TheMWRRA Act provided the authority to regulate and administer river basin wise planningand management of States water resources in an integrated manner and to delegate theadministration of water use entitlements through River Basin Agencies. To carry out theexpanded responsibilities to be assigned by the authority, the existing IDCs had to berestructured in to RBAs.

In line with global efforts in water resource management and irrigated agriculture, theGovernment of India in 2002 revised its National Water Policy to stress water use efficiency,community participation and Participatory Irrigation Management. The Policy outline for farmerswas

Assured delivery of water; The right to fix and collect water rates; Freedom of cropping pattern within the allocated water; Participation in all decision making; Physical improvement in the irrigation system; Efficient reliable and equitable distribution of water; Quick resolution of conflicts; and Augmented farm productivity.

The Policy also recommended that irrigation, as the largest consumer of fresh water, should aimto get optimal productivity per unit of water. Scientific water management farm practice andsprinkler and drip systems of irrigation should be adopted wherever feasible. On communityparticipation, the National Water Policy 2002 recommends that the management of waterresources for diverse uses should incorporate a participatory approach in various aspects ofplanning, design, and development of the schemes.

At the state level, to promote more efficient, equitable and sustainable irrigation service deliverythrough effective involvement of Water Users Associations (WUAs) and to reduce the canalirrigation subsidies, the GoM also passed the Maharashtra Management of Irrigation Systems byFarmers (MMISF) Act 2005. Earlier the management of irrigation system was carried under theprovisions of irrigation Act, 1976. As per this Act the operation and maintenance of irrigationsystems, collection of irrigation revenues and equitable distribution of water was theresponsibility of Water Resources Department. GoM has decided to reverse this concept andprovide for transferring ownership and control of irrigation systems to WUA for purpose of




equitable distribution of water, maintenance of irrigation systems and collection of irrigationrevenue. The Water Resources Department shall act as a facilitator.

1.5 Project Preparation by the World Bank and Govt. of Maharashtra

The project, in line with the GoMs and the Banks strategy, was the first operation of a long term(12-18 years) engagement and partnership with GoM on water sector reform within theframework of the Maharashtra State Water Policy. This in recognition of the fact that all thewater sector issues cannot be addressed together at one time; in the short term and in a singleoperation. With the aim of prioritizing and supporting the appropriate sequencing of water sectorreform initiatives, the project was designed to be a six year first phase, with a strategic focus oncreating and supporting the enabling environment for the efficient, sustainable and equitabledevelopment and management of water resources in the state, beginning with establishing theappropriate policy, regulatory, and institutional framework in the water sector. The design of thesubsequent phases for possible Bank support will depend on the actual progress made with thereform initiatives and the lessons learned during the term of the current assignment.

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Chapter 2


Chapter 2

INTRODUCTION TO MWSIP INTERVENTION

2.1 MWSIP

The Maharashtra Water Sector Improvement Project commenced from the year 2005 with initialduration of six years up to March, 2012 which was subsequently extended up to March, 2014with the same scope of coverage. The Base Cost of the project was Rs.16580.42 million (US $351.28 million) and the proposed revised cost was Rs.18623.19 million.

2.2 Project Area

The Project covered 235 Schemes spread over the four River Basins of the State with a delineatedCultivable Command Area of 6,45,604 hectares. The Basin-wise number of Schemes with totalCCA is given in the following table.

Table 2.2River Basin-wise number of MWSIP Schemes and Area Coverage

River BasinNo. of Schemes Delineated CCA , ha

Major Medium Minor Total Major Medium Minor Total % to total

Godavari 5 6 114 125 269,425 27,070 67,817 364,312 56.4

Krishna 5 3 42 50 174,656 8,796 27,714 211,166 32.7

Tapi 1 2 30 33 21,761 18,819 17,830 58,410 9.0

WestFlowing

1 - 26 27 7,930 - 3,786 11,716 1.8

Total 12 11 212 235 473,772 54,685 117,147 645,604 100.0

The Godavari basin covered 56.4% of CCA with 125 schemes (5 major, 6 medium and 114minors), Krishna basin covered 32.7% of CCA with 50 schemes (5 major, 3 medium and 42minors), Tapi basin 9.0% of CCA with 33 schemes (1 Major, 2 Medium and 30 Minor) and WestFlowing 1.8% of CCA with 27 schemes (1 Major, 26 Minor).

The canal rehabilitation works were carried out in 235 schemes (12 Major, 11 Medium and 212Minor schemes) and dam safety works on 281 dams of 278 schemes (8 Major, 12 Medium and258 Minor schemes).

The administrative set-up for the implementation of MWSIP comprised of 40 Divisions of 18Circles under 10 Chief Engineers in the five Regions, namely Konkan (26 schemes), Marathwada(45 schemes), North Maharashtra (29 schemes), Vidarbha (91 schemes) and WesternMaharashtra (44 schemes) of the State.

2.3 Project Development Objectives

The MWSIP has been prepared to achieve the objectives of State Water Policy and to meet thechallenges being faced by the water sector in the Maharashtra state. The project is presumed to


Introduction To MWSIP Intervention Chapter 2


be the first phase of a long-term engagement with World Bank on water sector reform within theframe work of the state's Water Policy. The twin objectives of the project are (i) to strengthen theState's capacity for multi-sectoral planning, development, and sustainable management of thewater resources; and (ii) to improve Irrigation service deliveries on sustainable basis to increaseproductivity of irrigated agriculture and contribute to reduction of rural poverty.

2.4 Scope and Description of main activities

The MWSIP comprises of four components viz. (A) water sector institutional restructuring andcapacity building; (B) improving irrigation service delivery and management; (C) innovative pilots;and (D) project management . The project components are further divided into 16 sub-components which are briefly stated below. While Component A addresses the first ProjectDevelopment Objective Component B is directed towards accomplishment of Second ProjectDevelopment Objective. Component C was meant for piloting and demonstrating newapproaches & technologies, applied research and training in the water sector. Component Dtakes care of the Project Management and Awareness generation through Information,Education and Communication.

Component A: Water Sector Institutional Restructuring and Capacity Building

This component focuses on institutional reforms in the water sector with the objective ofstrengthening the states capacity for multi-sectoral planning, development and management ofthe water resources on a river basin basis. The Sub-Components of Component A supports: (i)the establishment and operationalization of MWRRA; (ii) restructuring of the existing MKVDC intothe MKVWRC as a river basin agency and its capacity building; (iii) restructuring and capacitybuilding of the WRD; (iv) capacity building of Water and Land Management Institute (WALMI);and (v) establishment of an Integrated Computerized Information System (ICIS).

Component B: Improving Irrigation Service Delivery and Management

This component contemplates on improving irrigation service delivery and productivity inirrigated agriculture through improved irrigation system performance, effective participation ofwater users in irrigation system management, increased cost recovery, implementation of waterentitlements, and improved agricultural support services delivery. The Sub-Components include:(i) participatory rehabilitation and modernization of 235 irrigation schemes (12 major, 11mediumand 212 minor) covering about 6.45 lakh ha. of cultural command area (CCA);(ii) enhancing thesafety of 281 dams in 278 schemes supplying water to the project area through rehabilitation andmodernization; (iii) formation and capacity building of around 1700 WUOs in 235 irrigationschemes; (iv) implementation of improved water management practices and instruments, such asbulk supply and volumetric charging of water to WUAs as per their water entitlements in 6selected irrigation schemes (2 major, 1 medium, and 3 minor) in the Krishna Basin during theproject; (v) strengthening of agriculture support services in the project area through theAgriculture Department; and (vi) implementation of social and environmental management plan,consistent with the Social and Environmental Management Framework (SEMF), that will addressthe social and environmental issues related to the project interventions, and strategies devisedfor enhancing the positive social and environmental impacts.




Component C: Innovative Pilots

This component covers the implementation of innovative pilots and supports: (i) three pilots ofuser-centered aquifer-level groundwater management; and (ii) four pilots of innovative irrigatedagriculture (subsequently dropped). The Aquifer Level User Centered Groundwater Pilots wasimplemented in the districts of Satara, Jalna and Beed,

Component D: Project Management

This component addresses the establishment of (i) a state-level Project Preparation andManagement Unit (PPMU); (ii) inducting an external agency for monitoring and evaluation of theproject and (iii) creating awareness among the stakeholders about the initiatives under taken bythe state in the Water Sector through an information, education and communication campaign.

2.5 Financial Progress

The component-wise fund utilization against the project base-cost as well as the revised cost ason March 2014 is depicted in the following Table. It may be observed that the project has beensuccessful in implementing the project interventions to the extent of cent percent of the base-cost and 95.44 percent of the revised cost.

Table 2.5 Project Component and Sub-Component wise financial Progress(as on March 2014)

(Rs. In Million)

Sl.No.

Project Components /Sub-Components

Base costRevised

CostExpensesincurred

% of Exp. toBase cost

% of Exp. toRevised cost

AInstitutional Restructuring andCapacity Building

996.39 818.70 658.32 66.07 80.41

1

Establishment &operationalization ofMaharashtra Water ResourcesRegulatory Authority

169.92 237.17 234.62 138.08 98.92

2Restructuring and CapacityBuilding of IrrigationDevelopment Corporation

47.20 0.00 0.00 0.00 0.00

3Restructuring and CapacityBuilding of Water ResourcesDepartment

236.94 66.89 64.82 27.36 96.91

4Strengthening and CapacityBuilding of WALMI

69.86 56.26 41.65 59.62 74.03

5Integrated ComputerizedInformation System.

472.47 458.38 317.23 67.14 69.21

BImproving Irrigation ServiceDelivery and Management

15167.73 17521.31 16,864.60 111.19 96.25

1Participatory Rehabilitation andModernization of selectedschemes

12278.14 14312.68 13,637.14 111.07 95.28

2 Dam Safety Works 1102.12 1810.63 1,839.49 166.90 101.59

3Formation and CapacityBuilding of WUOs

456.90 536.19 540.12 118.21 100.73




Sl.No.

Project Components /Sub-Components

Base costRevised

CostExpensesincurred

% of Exp. toBase cost

% of Exp. toRevised cost

4Improved Water Managementpractices in selected projects

49.56 0.00 0.00 0.00

5Strengthening AgriculturalSupport Services

1082.77 856.90 843.68 77.92 98.46

6Environmental and SocialManagement Plan

198.24 4.91 4.17 2.10 84.93

C Innovative Pilots 226.56 68.25 62.93 27.78 92.19

1Piloting Users-centered AquiferLevel Ground WaterManagement

127.44 68.25 62.93 49.38 92.19

2Piloting Commercialization ofIrrigation Service Management

99.12 0.00 0.00 - -

D Project Management 189.74 214.93 188.56 99.38 87.73

1Project Preparation andManagement Unit

82.13 89.39 91.55 111.47 102.42

2 Monitoring & Evaluation 68.91 111.70 90.67 131.58 81.18

3Information, Education andCommunication

38.70 13.84 6.33 16.36 45.74

Total Base Cost =(A)+(B)+(C)+(D)

16580.42 18623.19 17,774.41 107.20 95.44

2.6 Implementation Arrangements

The project was initially designed to be implemented over a period of six years. It involved theWRD working in partnership with other line agencies (e.g. agriculture, horticulture, GSDA, etc.),as well as with the WUAs, NGOs, and private sector. The main implementing agency is the WaterResources Department with management support provided by the multi-disciplinary PPMU. Thechief executive of PPMU reported to the Secretary, WRD, for day-to-day working. There is a statelevel PSC to provide inter-departmental co-ordination and strategic direction and take decisionsas needed to ensure timely and successful implementation of the MWSIP. The PSC is chaired bythe Chief Secretary and is comprised of the Principal Secretaries/Secretaries of the Departmentsof Finance, Planning, Water Resources, Agriculture, Water Supply and Sanitation, Industries andother participating departments. Principal Secretary/Secretary, WRD, is the Convener of the PSC.

The Water Resources Department, Agriculture Department and GSDA have been the mainexecuting Departments. The activities under the first component on institutional restructuringand capacity building were implemented by the WRD, WALMI, the MWRRA and IDCs who weredesignated to play the role of River Basin Agencies. The second component, relating to improvingirrigation service delivery and management, participatory rehabilitation and modernization ofirrigation schemes, formation of Water User Organizations, their capacity building and fostering,implementation of water entitlements, and Dam Safety, were carried out by the WRD in closeassociation with WUOs themselves. The Agriculture Department was vested with theresponsibility of implementing the agriculture support services activities. The third componentfeatured two innovative pilots (i) user-centered aquifer level groundwater management and (ii)innovative irrigated agriculture. The first pilot was carried out by the GSDA. The Innovative Pilot




on Irrigated Agriculture was planned with anticipated support of a private sector for whichextension activities did not proceed well. In view of the little progress made in this regard and thefact that similar initiatives are already undertaken under the on going Maharashtra AgricultureCompetitiveness Project (MACP) the World Bank agreed during 2011 to drop this activity fromMWSIP .

A detailed Project Implementation Plan (PIP) was prepared by the PPMU, WRD, in closeassociation with all the implementing agencies of the GoM, which provided more detailedinformation on implementation arrangements for the Components and Sub-components ofMWSIP.

2.7 Implementing Partners and their role

The organogram given below provides the details of the inputs given by all the implementingpartners under MWSIP.

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Chapter 3


Chapter 3

FINAL EVALUATION APPROACH & METHODOLOGY

3.1 Study design

The study design pre-supposes evaluating the project outcome and impact in line with the projectdevelopment objectives and the project developmental interventions undertaken. This Reportattempts to briefly state the physical and financial progress achieved under the sub-components ofthe project, their relevance, efficiency and resulting project outcome benefits. The exercise involvedsourcing of information in the following manner.

(i) The Results Framework indicated in the Project Appraisal Document has been asguidance for selecting the outcome indicators that have to be measured and assessed.

(ii) The Project Implementation Plan was consulted to know the mandate and theenvisaged Implementation arrangements for each of the Component and Sub-Componentto assess to what extent they have been achieved at the final evaluation stage.

(iii) The progress information received on the six monthly monitoring formats for theperiod ending Sept2013 from all the Scheme authorities were used to measure theachievement made under the system performance indicators during the irrigation yearJuly,2012-June,13 in all the 235 Schemes. In order to measure the net proje

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