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cosl <strong>of</strong> development increased from Rs. 0.06 lakhs to 0.23 lakhs per ha. Though the development cost <strong>of</strong> minor irrigation projects works out to be less than that <strong>of</strong> major irrigation project, it cannot be reckoned as the true development cost as it does not include the private farm level investments by individual farrners 26 . Thus, cost escalation and spill-over in time accounts for the important dnig on the performance <strong>of</strong> irrigation projects in the state. There have been many studies examining the various aspects <strong>of</strong> cost escalation, time over-runs and related issues in the irrigation projects highlighting the magnitude <strong>of</strong> the problem in Kerala among the 'other states (GOL 1973; Pant, 1982; Swaminathan 1990; Singh, 1997) as well as in Kerala's specific context (KSSP, 1988; Netto, 1990; Viswanathan 1997, 2000). Swami nathan (1990) shows that Kerala had the highest cost escalation <strong>of</strong> 675 per cent up to 1988. The reasons for cost escalation and time lag are many and varied 27 Netto (1990) finds that the rise in cost <strong>of</strong> labour and materials constituted the largest item (45.78%), followed by inadequate financial provision (22.61 %), land cost (17.25%), change in design (8.98%) and inadequate investigation (5.38%). Further, 26 Dhawan (1989) holds that major irrigation scores over minor irrigation on various counts. For instance, surface irrigation works may score over well irrigation by a margin <strong>of</strong> 3:2. Moreover, major works use the natural force <strong>of</strong> gravity in their operation, while minor works require energy for water lifting. which involves substantial investment. 27 These factors include the rise in prices, inadequate investigation and provisions, change in the scope and design, land acquisition, rehabilitation measures and poor performance <strong>of</strong> equipments, etc (GOI, 1973). Besides, the tendency to start too many projects results in proliferation <strong>of</strong> projects, thin spreading <strong>of</strong> resource, construction <strong>of</strong> water courses, allocation for preservation <strong>of</strong> environment and ecology and adoption <strong>of</strong> more sophisticated 175
the establishment expenditure (strictly administrative) increased from 38.23 per cent <strong>of</strong> the total expenditure in 1972-73 to 54.88 per cent in 1988-89. This indicates that the investment for actual infrastructure development was marginal and therefore, it is quite natural that it leads to under-performance <strong>of</strong> irrigation projects over time. The question <strong>of</strong> cost escalation and lag in the completion <strong>of</strong> irrigation projects need a proper understanding in the specific context <strong>of</strong> Kerala, in view <strong>of</strong> the physical features. socio-economic factors as well as the political rationale underlying the development strategies followed by the state since independence. The important physical features having bearing on cost escalation and time lag-in completion <strong>of</strong> irrigation projects are: (i) the undulating terrain which constitutes the command area <strong>of</strong> some <strong>of</strong> the ongoing irrigation projects: and (ii) high rainfall intensity causing damages to the irrigation structures. In the following sub-sections. some <strong>of</strong> the important region-specific facwrs leading w cost and time over-runs in irrigation projects are examined in some detail, mainly to highlight the undesirable tendencies that have crept into the realm <strong>of</strong> irrigation development involving major chunk <strong>of</strong> financial resources <strong>of</strong> the state without any corresponding effect on performance efficiency. 5.3.2.1 Socio-economic factors The socio-economic factors leading to cost escalation and time over-runs in the specific context <strong>of</strong> Kerala arc: (a) the substantial decline in area under paddy in the and expensive critcria for the projects catering to thc requlrcmcnts <strong>of</strong> external aid agencies. 176
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, ECONOMICS OF ON-FARM DEVELOPMENT:
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DEC LARA TION I declare that the th
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I thank Dr. KM Varadan, CWRDM. Kozh
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CONTENTS Chapter 1 1.1 1.2 1.3 1.4
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4.9 Occupational Status of<
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5.3 5.4 5.6 5.7 Financial Investmen
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Figures 6.1 6.2 Chart 6.1 Appendix
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Abbreviations used ASMO BFA's CADA
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An attempt has been made in this ch
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among the people and the process <s
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the Indian state had followed a pol
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water harvesting 7 by arguing that
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(World Register of
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Eighth Plan has been estimated by t
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One of the most im
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integrated development of</
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inadequate attention given to OFD w
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performance of irr
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created. According to the Central W
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7 lagoons, 901 tanks and over 30 la
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competent and responsible agency wi
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physiographic conditions of
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(14 completed and 15 ongoing) proje
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interventions to improve the operat
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a summary of findi
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economic analysis of</stron
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een brought out by many scholars in
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While the economic benefits <strong
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sources, wasteful utilisation <stro
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such as rise in pnces, inadequate i
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the completion of
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of rainfed croppin
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areas being 8 per cent (GO!, 1998).
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investment In irrigation developmen
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Subsequently, an Expert Committee w
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highlighted the problems related to
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2.3.1 Studies on tbe impact <strong
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command area has reduced the labour
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Nanjundappa (1988), while examining
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y the CADA have led to low producti
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agents as against 90 per cent or mo
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among their members; c) insisting t
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Ansari (1989) shows that there have
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unit of land culti
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subgroup increased from 40 per cent
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1) The maIn activity being undertak
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which are unique in several ways, t
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across the states in different agro
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and social setting In which a proje
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The indepth study to examine the fa
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\,;nar~ .NO. ~.~: .t"rocesses ana s
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understand the problems related to
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of the crop produc
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greater differences between the the
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Chart ~o J.2 'Vater Institutions an
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specific promotional programmes und
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Chart No. 3.3 Explaining failure <s
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3.3.2 Crop specific promotional ins
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non-viable paddy. Even the farmers
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'- K01HIKOO --', , .-- :,' , \. ,.'
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strictly adhered to the directions
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4.1.2 Financial aspects The total e
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4.2 The Kallada Irrigation and Tree
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Map 4.4: Kallada Ayacut , IItIJrt ~
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in lands having slopes less than 3
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Table 4.1. Envisa~ed Croppin~ Patte
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in terms of underg
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meters. The end of
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and Kayamkulam branch in Phase II.
Page 139 and 140: lands. The average holding size is
Page 141 and 142: The characteristics of</str
Page 143 and 144: size group is the highest in the mi
Page 145 and 146: Table 4.10: Occupational status <st
Page 147 and 148: Appendix 4.1: Physical and technica
Page 149 and 150: Chapter 5 Dynamics of</stro
Page 151 and 152: plan. annual plans (1966-69) and th
Page 153 and 154: gt:ographical concentration <strong
Page 155 and 156: Concerted efforts were also made fo
Page 157 and 158: T a bl e 5 3 Ph . I d Ii . I - - vS
Page 159 and 160: expenditure and p~ysical achievemen
Page 161 and 162: the state cannot be treated as a pu
Page 163 and 164: in gross irrigated area. While cana
Page 165 and 166: development of lan
Page 167 and 168: The annual compound growth rates in
Page 169 and 170: 5.2.1 Dynamics of
Page 171 and 172: area and yield of
Page 173 and 174: A micro level study by Narayanan (1
Page 175 and 176: ubber cultivation. in Kallada. the
Page 177 and 178: The debate on conversion of
Page 179 and 180: (Table 5.10). The table indicates t
Page 181 and 182: eqUires substantial investment for
Page 183 and 184: Source: Govt. of K
Page 185 and 186: the period 1985-86 to 1997-98. For
Page 187 and 188: The overall scenario suggests that
Page 189: project, they tend to undertake yie
Page 193 and 194: a CriSIS. As the works involved In
Page 195 and 196: (ii) In the Karapuzha project. the
Page 197 and 198: 5.15). The table indicates that the
Page 199 and 200: place. There were three revisions J
Page 201 and 202: Revenue vis Capital expenditure The
Page 203 and 204: Let us now examIne the intensity <s
Page 205 and 206: Cost escalation due to arbitration
Page 207 and 208: Another source of
Page 209 and 210: process would be very high. This al
Page 211 and 212: construction for more than 20 years
Page 213 and 214: are mainly concentrated in Thrissur
Page 215 and 216: ApMndlJ ~.1: ProjKI-wlw Ihne tn Tot
Page 217 and 218: ArlPcndil: ~.J: "'inanchtllnnstmrnl
Page 219 and 220: Chapter 6 Economics of</str
Page 221 and 222: conditions of the
Page 223 and 224: Chart: 6.1 Organisational Chart sho
Page 225 and 226: and Palakkad together occupy 10 <st
Page 227 and 228: Table 6.2. Physical and financial t
Page 229 and 230: the total allocation has been for t
Page 231 and 232: per cent achievement in physical te
Page 233 and 234: Besides. it has been reported that
Page 235 and 236: I , MalamDuzha 387 7.39 1908.53 13.
Page 237 and 238: ~~- ~- --~ In all others. the BC ra
Page 239 and 240: possible in these lands during Khar
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Hence. it may be argued that since
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It is mainly due to scarcity <stron
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project. where it is very high at R
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proper coordination between variOUS
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deficiencies that help drawing less
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conjunctive use of
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3) Again. due to the high density <
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Table 6.13: Details of</str
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doubts about the senousness <strong
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practice IS more conspIcuous In the
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2.05 HP as compared to 1.68 HP in t
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large holders have spent two to thr
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Farming is considered mostly as a s
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The profitability
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noticed in the case of</str
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The Cobb-Douglas (CD) Function has
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· 13 Bank assistance programme and
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etween I to 2 ha. are to arrange fo
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Table 6.22: Status of</stro
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Though almost all the farmers repor
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3854 in the middle reaches. The pro
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The net income from vegetables and
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Appendix 6.1: Project-Wise Physical
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Chapter 7 On-Farm Development: Dete
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It can be seen from the survey data
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een made to examme as to how many f
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a farmer to use water from the dist
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The farmers were asked to reflect u
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evamping needed to reorient the MCS
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supplies. What is more interesting
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the knowledge of i
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All of the five ex
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It is evident from the table that t
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implications on the dynamics <stron
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competitive monocropl2 as no other
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of conversion thro
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involving farmers as active members
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The viability of p
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factors l8 . As a result. the agric
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The rise in price of</stron
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may be observed that the canal seep
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process of paddy l
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Table 7.19: Productivity and gross
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The technical constraints In the de
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2) Lack of irrigat
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manure or fertilisers are also do n
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according to the conventional basin
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Registration Act, 1860 in the erstw
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The pattern of act
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eported by CADA of
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Appendix 7.2: Paddy land conversion
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d,l!llS in the post-independence pc
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all(lcatioll ill the absence <stron
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irrigation commands. Th;; stud) was
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comparative COSI .:conomlcs <strong
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time lag involved in completion uf
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the state has increased by about 46
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cultivation of com
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through the effective implementatiC
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een the highest in Kallada project
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It was noticed that among the vario
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The institutional paradigm evolved
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of India to be rel
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economically viable. This underscor
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The intensity and spread of
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of allocation and
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shows that filed realities have not
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as water management related factors
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labour intensive farming operations
Page 379 and 380:
Given the dynamics, problems and co
Page 381 and 382:
ground realities associated with cr
Page 383 and 384:
Dhawan, B.D. (1989): Sludies in Irr
Page 385 and 386:
Kothari, Rajni, (1989): Politics an
Page 387 and 388:
Vaidyanathan, A (1999): Water Resou
Page 389 and 390:
Ghosh, Prabir De, Budhadeb (1998):
Page 391 and 392:
Nair, Sukumaran, M.K. (1999): 'Rura
Page 393 and 394:
Varadan, K,~ (1999): 'Estimation <s
Page 395 and 396:
GOK (1967b): Evaluation of<
Page 397 and 398:
Ferrer. A.M., .L.e. Lucero (1988):
Page 399 and 400:
Suresh, K.A. (2000): 'Group Managem
Page 401 and 402:
Tomlinson, B.R. (1992): 'The Indian
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