economics of on-farm development - Institute for Social and ...

(ii)
In the Karapuzha project. the originally estimated ayacut <strong>of</strong> 4650 ha. (net) for
paddy cultivation had dcciined 2H to 3500 ha. in the revised projt:ct report. the
decline being almost 25 per cent. The BeR also had come down from
originally fixed 2.5 to 1. which was also below the ewe stipulated norm <strong>of</strong>
1.5. The original cost estimate <strong>of</strong> the project was Rs. 7.60 crores. which has
been revised later on to Rs. 225 crores. the cost escalation being 2861 per
cent (C\GI. 1997).
(iii)
In the Chimony irrigation project. the department claims that 13000 ha. <strong>of</strong>
Kole lands are being irrigated during monsoon after dewatering. But. the
actual achievement is only 1586 ha. (12 %j and that too for the third crop.
The t:stimated nCR for the project was 2.70. which. in reality. declined to
O.:'i making IS non-\labk (C-\Gl. 1999).
The above discussion brings out considerable er0SlOn 111
the anticipated
benefits from irrigation dut: to the dt:cline in paddy area. coupled with lower prices
for paddy. This has made many <strong>of</strong> the projects as economically non-viable based on
the BCR <strong>of</strong> 1.5. fixed by th.: ewe. As a major portion <strong>of</strong> the ayacut <strong>of</strong> irrigation
projects has been converted into commercial/ cash crops. reworking <strong>of</strong> the benefits
and costs <strong>of</strong> the irrigation scheme: Illay give a higher HCR. Since tht: projects arc not
~. The original project report (1978) cln is~ged only production <strong>of</strong> paddY in ·1650 ha (net). But in
the revised project rcport. out <strong>of</strong> IIIC nd ayacut area <strong>of</strong> 5221 ha .. paddY cilitivati()n was limited
It) 3500 ha and the balance J 721 ha. '"'' set apart for cultivation llf banana (1621 hal ~nd ginger
,llld vegetables ( 100 ha.).
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