Master of Science - ETD | Electronic Theses and Dissertations of ...

conservation measures on watershed basis including check dams, nala bunding, farm ponds etc., on
resource conservation and productivity.
2.3 Feasibility of investment on various rwhs including farm ponds
Agnihotri et al. (1986) estimated the economics of small storage dams at village Nada in
Shivalik foot hills. The analysis showed that the B:C ratio is 1.23:1 at 10% discount rate and IRR 20%
further opined that these values indicate water resources appears to good possibility and such
projects also provide insurance against drought, floods and sedimentation of reservoirs and also
reported that the availability of fodder and grasses have increased considerably due to protection of
catchment area.
Anonymous (1988) on an evaluation of soil conservation works of Nalabunds in the
catchments of three River Valley Projects, viz. Matatila, Nizamsagar and Ukai, which was done by
Agricultural Finance Corporation Ltd., Bombay. And reported that the benefit cost ratio and the
internal rate of return was 1.38:1 and 32 %, 1.3:1 and 48 % & 1.23:1 and 33% respectively in Matatila,
Nizamsagar and Ukai catchments of three River Valley Projects of Nalabunds for 12 year life span.
Selvarajan et al. (1984) reported that even with the 50 per cent decrease in crop benefits
under farmers management, the investment on farm-ponds was found economically feasible as
revealed by high Internal Rate of Returns (IRR) with highest Benefit-Cost ratio of 3.4 which was
obtained when five cm of water was applied to crops as protective irrigation from the ponds.
Palanisami (1991) reported that the investment in percolation ponds in Tamil Nadu state has
been increasing over years. Financial evaluation of the ponds showed that ponds with moderate
maintenance had a B:C ratio and IRR of 1.14 and 14.83 per cent while those with good maintenance
had a B:C ratio and IRR of 1.89 and 20.42 per cent respectively.
Sandhu et al. (1991) attempted to evaluate the development works done by the forestry,
animal husbandry, and soil conservation and engineering components of the project. The economic
analysis indicated that the rate of return was 15.2 percent for forestry, 13.1 percent for livestock and
12.6 percent for soil conservation and a benefit –cost ratio of more than unity at 12 percent discount
rate. The overall rate of return was found to be 14.5 percent, which could be considerably stepped up
by proper maintenance and increase in area under the various components of the watershed.
Singh et al. (1991) evaluated two watershed development projects for Shivalik hills in Punjab.
The Benefit cost ratio worked out was more than unity at 12 percent discount rate with an IRR of more
than 15.5 percent for both the watersheds. This study also reported that the horticultural sector was
the most beneficial with a B-C ratio of 4.65 and 5.01 at 15 percent discount rate for Maili and Chohal
watersheds, respectively.
Dhayani et al. (1993) concluded from their study that adoption of soil and water conservation
technologies on farmers field on watershed basis in the outer Himalayan region was economical with
B:C ratio of 1.93.
Basavaraja (1999) evaluated the economic feasibility of vegetative and mechanical barriers
used for soil moisture conservation in the medium black soils of the northern dry zone of Karnataka.
The study showed that the net present value of the conservation measured was not only positive but
also appealing, the IRR was more than 100 per cent and B:C ratio being more than two.
Naik (2000) conducted study on economics of soil and water conservation structures in
Kanakanala and Indawar-Hullalli watersheds in the Northern Dry Zone of Karnataka and analysed that
the payback period was less in both vegetative bund (2.34) and contour bund (2.77), B:C ratio was
found highest in farm ponds (3.59) followed by contour bunds (3.34). NPV was positive and highest in
farm ponds (16,506) and IRR was more in case of vegetative bund (35%) contour bund (34%) and
farm ponds (29.5%) and overall indicated that the adoption of soil and water conservation structure at
farmer’s level were economically viable and financially feasible.
Reddy et al. (2003) reported that the conservation of natural resources on watershed basis in
semi arid region with B:C ratio 2.29 in Andhra Pradesh and proved to be economically viable and
environmentally sustainable.
Chandrappa (2004) studied economic evaluation of percolation tanks in Chitradurga district of
Karnataka and summarized that the net present worth of investment on percolation tanks was Rs.
12.56 lakhs with 15 per cent discount rate. While the B:C ratio was 1.47. The pay back period with 15
per cent discount rate was 7.36 years and the internal rate of returns was 26 per cent.