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expenditure due to change <strong>of</strong> specificationi defective estimation: (c I nonrecovery <strong>of</strong> advances, cost <strong>of</strong> materials from contractors: (d) extra expenditure due to departmental delays: (e) defective formation <strong>of</strong> canal systems: (vi) change in scope <strong>of</strong> the scheme in the course <strong>of</strong> execution: and (f) irregular additional payment for earthwork excavation. The rise in factor costs, namely, land, labour and materials also contributed to cost escalation <strong>of</strong> irrigation projects. Since the opportunity Cllst llf land is high in Kerala due to the high density <strong>of</strong> population as well as agricultural and non-agricultural demand, land has become an important asset rather than input in the agricultural production process. This resulted in high transaction cost <strong>of</strong> land even in the command areas. The rise in labour costs as well as material costs have been substantial in nominal terms. While wages increased almost 2 to 3 times across categories during the period between 1960 and 1999. the material costs also have increased. Maximum rise in costs <strong>of</strong> materials has been noticed in the prices <strong>of</strong> sand (11199 %), bricks (7900 %) and cement (2245 %) during the entire period. Another important source <strong>of</strong> cost escalation has been the abnormal rise in revenue (establishment) expenditure. According to the norms fixed by ewe in September 1990, the establishment expenditure in irrigation projects should not to exceed 15 per cent <strong>of</strong> the capital expenditure including expenditure on investigation. But. it was found that establishment expenditure has been more than the stipulated norm <strong>of</strong> 15 per cent in the case <strong>of</strong> eight irrigation schemes. It ranges from as high as 78 per cent in Meenachil project to 57 per cent in Chamravattom. Among the projects, the escalation in revenue expenditure has 340
een the highest in Kallada project at 5666 per cent against escalation in capital expenditure, ie., 3148 per cent. In the case <strong>of</strong> Pamba irrigation project. the escalation in revenue expenditure has been 4171 per cent compared to 1432 per cent escalation in capital expenditure. Only in the case <strong>of</strong> Kakkadavu irrigation project that the capital expenditure exceeded revenue expenditure by more than three times. Thus, the disproportionate increase in revenue expenditure might have affected the actual development <strong>of</strong> irrigation potential. The negative externalities in terms <strong>of</strong> adverse effects on soli like waterlogging, salinity and alkalinity have been widely reported in some <strong>of</strong> the irrigation projects. A realistic estimate <strong>of</strong> the environmental problems are yet to be made. These problems not only make the land unfit for cultivation but also entail huge cost <strong>of</strong> reclamation. For instance, in the Kuttiadi command area, about 64 per cent <strong>of</strong> the original ayacut <strong>of</strong> 14568.70 ha. has been degraded and became less productive. Timely measures to reclaim could have saved about 41 per cent <strong>of</strong> the command area which has been degraded. The waterlogged area unfit for irrigation has been 19.46 per cent, followed by area left unirrigated due to lack <strong>of</strong> field channels (2.6 %) and uneconomic holdings (1.16%). Sedimentation problems have also been found in some <strong>of</strong> the reservoirs. For instance, the original capacity <strong>of</strong> the Malampuzha reservoir was 228.40 million cU.m, according to the project report, which, lateron, has declined to 220.15 million cU.m as a result <strong>of</strong> sedimentation. In Peechi, average annual sedimentation rate has been 0.91 per cent, higher than that <strong>of</strong> the sedimentation rate <strong>of</strong> 0.25 per cent found in Malampuzha project. 341
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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
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Appendix 4.1: Physical and technica
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Chapter 5 Dynamics of</stro
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plan. annual plans (1966-69) and th
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gt:ographical concentration <strong
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Concerted efforts were also made fo
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T a bl e 5 3 Ph . I d Ii . I - - vS
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expenditure and p~ysical achievemen
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the state cannot be treated as a pu
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in gross irrigated area. While cana
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development of lan
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The annual compound growth rates in
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5.2.1 Dynamics of
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area and yield of
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A micro level study by Narayanan (1
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ubber cultivation. in Kallada. the
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The debate on conversion of
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(Table 5.10). The table indicates t
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eqUires substantial investment for
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Source: Govt. of K
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the period 1985-86 to 1997-98. For
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The overall scenario suggests that
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project, they tend to undertake yie
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the establishment expenditure (stri
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a CriSIS. As the works involved In
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(ii) In the Karapuzha project. the
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5.15). The table indicates that the
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place. There were three revisions J
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Revenue vis Capital expenditure The
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Let us now examIne the intensity <s
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Cost escalation due to arbitration
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Another source of
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process would be very high. This al
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construction for more than 20 years
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are mainly concentrated in Thrissur
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ApMndlJ ~.1: ProjKI-wlw Ihne tn Tot
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ArlPcndil: ~.J: "'inanchtllnnstmrnl
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Chapter 6 Economics of</str
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conditions of the
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Chart: 6.1 Organisational Chart sho
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and Palakkad together occupy 10 <st
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Table 6.2. Physical and financial t
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the total allocation has been for t
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per cent achievement in physical te
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Besides. it has been reported that
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I , MalamDuzha 387 7.39 1908.53 13.
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~~- ~- --~ In all others. the BC ra
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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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Page 313 and 314: involving farmers as active members
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Page 317 and 318: factors l8 . As a result. the agric
Page 319 and 320: The rise in price of</stron
Page 321 and 322: may be observed that the canal seep
Page 323 and 324: process of paddy l
Page 325 and 326: Table 7.19: Productivity and gross
Page 327 and 328: The technical constraints In the de
Page 329 and 330: 2) Lack of irrigat
Page 331 and 332: manure or fertilisers are also do n
Page 333 and 334: according to the conventional basin
Page 335 and 336: Registration Act, 1860 in the erstw
Page 337 and 338: The pattern of act
Page 339 and 340: eported by CADA of
Page 341 and 342: Appendix 7.2: Paddy land conversion
Page 343 and 344: d,l!llS in the post-independence pc
Page 345 and 346: all(lcatioll ill the absence <stron
Page 347 and 348: irrigation commands. Th;; stud) was
Page 349 and 350: comparative COSI .:conomlcs <strong
Page 351 and 352: time lag involved in completion uf
Page 353 and 354: the state has increased by about 46
Page 355 and 356: cultivation of com
Page 357: through the effective implementatiC
Page 361 and 362: It was noticed that among the vario
Page 363 and 364: The institutional paradigm evolved
Page 365 and 366: of India to be rel
Page 367 and 368: economically viable. This underscor
Page 369 and 370: The intensity and spread of
Page 371 and 372: of allocation and
Page 373 and 374: shows that filed realities have not
Page 375 and 376: as water management related factors
Page 377 and 378: 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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