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escalatio.n in the process o.f irrigation develo.pment The \arious components In cost escalation in the case 0.1' f!\t: irrigatio.n projects han: been compared as sh,'" n in table 5.16. Table 5.16: Majo~ factors causing cost escalation ("!o) SQurces <strong>of</strong> cosl escalatioll ! , Periyar Chittur Pa::hassi Kalljlru· Kuttiadi "ulley -pu=ilO project Pu=hll Rise in cost <strong>of</strong> labour & material 48.1 38.7 47.0 43.0 52.1 Inadequate financial provision 44.1 ~0.7 20.6 8.1 22.4 Inadequate investigation 1.7 4.0 5.1 11.9 4.2 Chanue in design 4.7 1.6 I 13.7 21.2 3.8 Cost <strong>of</strong> land 0.1 20.2 13.5 15.8 7.S Others 1.3 14.8 0.1 0 10.0 Total ]00 100 100 100 100 Source: Compiled from Netto (1990). It is evident that the costs o.f labo.ur and materials have been the maJo.r so.urces <strong>of</strong> cost escalation in these five projects. ranging between 38 per cent in Chitturpuzha project \(1 52 per cent in Kanjir~lpuLha irrigation pWJt:ct \\'hik inadequate financial pro.vision has been the second major factor leading til cost escalatio.n in projects. viz .. Periyar Valb (44 %). KanjirapuLha (22 %j. Chitturpuzha (20.7 %) and Kuttiadi (20.6 %). tht: cost o.f land acquisition has been significant in rcspt:ct <strong>of</strong> Chitturpuzha (20.2 %J. l'aLhassi (15.8 %) and Kuttiadi (I ~.5 %). Other factors contributing to cost escalation have been change in design and inadequate investigatio.n <strong>of</strong> the schemes. Upward revision in estimates As an outco.me <strong>of</strong> the rise in costs <strong>of</strong> land acquisition. labour and material costs. it is ob~ious that frequent revisions in the estimates <strong>of</strong> irrigation projccts had takt:n 183
place. There were three revisions J ( in estimates in almost all the projects since the projects were initiated and these revisions were made at different time points (table 5.17). Table 5.17: Revision 0 f Estimates <strong>of</strong> irri!!ation proiects (Rs. Lakhs) I Project Original Revisioll ill estimates % escal. Approl'ed by eSlimate / II III (Orig. tu III) Plan. ('omm. Periyar valley 348.00 1795.00 3971.00 6305 1711.78 3971 (II) Chinurpuzha 105.63 624.14 2063.29 2080 1869.14 624.14 (I) Kallada 1328.00 16357.00 45780 69800 515602 16357 (I) Pamba I 384.00 2015.97 4297.00 6340 155104 4297 (II) , Pazhassi 442.40 1481.85 4200 7735.94 1648.63 4200 (II) Kuttiadi I 496.04 1520.00 4485.00 5500 1008.78 4485 (II) Kan i irapuzha 365.00 1052.20 4307.73 1000 173.97 1052.20 (I) Karapuzha 760.00 4042.00 22500 0 0 760· Chimony 632.11 2951.21 3615.29 0 0 3615.29 (II) Muvanupuzha 208600 4808.15 8925.02 45500 2081.21 4808.15 (I) Vamanapuram 1982.00 3640.00 26000 0 0 3640 (I) . . Note: • The Planning Commission has approved only the Original estimate . Source: Compiled from Performance Budget <strong>of</strong> the Irrigation Department, 1991 and 2000. :'1.5 alread~ discussed. cost escalation has been the highest in the Kallada irrigation project. ie .. 5156 per cent and the lowest in respect <strong>of</strong> Kanjirapuzha (174 %). An important point that emerges out <strong>of</strong> the table is that the revisions have been made without the approval from the Planning Commission. The Planning Commission has approved only the first re\'isions in the estimates <strong>of</strong> the projects such as Kallada. Chitturpuzha, Kanjirapuzha. Muvattupuzha valley and Vamanapuram. Whereas. the projects. viz .. I'eriyar Valley. Pamba. Pazhassi, Kuttiadi and Chimony have received appro\ ,j for second revision. In fact. the 31 A project estllnate. when changed after getting approval from the Planning Commission at least once. is called a revised estimate. 184
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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.
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lands. The average holding size is
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The characteristics of</str
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size group is the highest in the mi
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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 and 190: project, they tend to undertake yie
Page 191 and 192: the establishment expenditure (stri
Page 193 and 194: a CriSIS. As the works involved In
Page 195 and 196: (ii) In the Karapuzha project. the
Page 197: 5.15). The table indicates that the
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
Page 241 and 242: Hence. it may be argued that since
Page 243 and 244: It is mainly due to scarcity <stron
Page 245 and 246: project. where it is very high at R
Page 247 and 248: 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
Page 341 and 342:
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
Page 363 and 364:
The institutional paradigm evolved
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of India to be rel
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economically viable. This underscor
Page 369 and 370:
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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