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monitoring <strong>of</strong> the parameters <strong>of</strong> groundwater development, viz. average yield per well, the proportion <strong>of</strong> dried up wells, area irrigated per well, and the cropping intensity and crop pattern in well irrigated areas. 2.2.6 Studies on issues related to water pricing There are growing evidences suggesting that much <strong>of</strong> the problems <strong>of</strong> under performance <strong>of</strong> irrigation sector in India is due to under-pricing or non-pricing <strong>of</strong> irrigation water. Though the rationale for fixing up <strong>of</strong> water tariff was clearly spelt out in the report <strong>of</strong> the Second Irrigation Commission 8 (GOI, 1972), the states did not adhere to it, the result being that the actual receipts varied from less than one percent to a maximum <strong>of</strong> 2.9 per cent <strong>of</strong> gross income. The Sixth Finance Commission observed that the losses due to under-pricing or non-pricing went up nearly II times from 4.84 crores in 1955-56 to Rs. 56.59 crores in 1967- 68 (GOI, 1973a: 68). The National Water Policy (1987) also insisted on fixing up water rates to convey its scarcity value to the users as well as to cover annual operation and maintenance charges so as to recover part <strong>of</strong> the fixed cost. Accordingly, though a few states had revised the characteristically low water rates 9 during 1981-86, in some cases, the rates had been even withheld lO 8 The Irrigation Commission argued for fixing up water charges based on I) quantity <strong>of</strong> watet consumed by particular crops, 2) paying capacity <strong>of</strong> the irrigators, 3) assurances <strong>of</strong> water supplies, and 4) the need to cover the annual costs incurred in providing irrigation. Besides, the Commission also prescribed optimum level <strong>of</strong> charges for irrigation water such that it worked out to be around 5 and 12 per cent <strong>of</strong> gross income <strong>of</strong> food and cash crops respectively. • The Ninth Plan indicates that most <strong>of</strong> the northeastern states (except Assam and Manipur) do not even charge any water rate. Maharashtra is the only state where the irrigation water rates are announced for a five year period at a time with provision for yearly escalation so as to cover the full 0 & M cost as well as the interest payable on 53
Subsequently, an Expert Committee was appointed by the Planning Commission (GOI, 1992) in October 1991 under the Chairmanship <strong>of</strong>Vaidyanathan to review the irrigation pricing policy. The Commission proposed a three phased transition in the policy, viz., a) rationalisation <strong>of</strong> the existing system <strong>of</strong> individual assessment based on area under different crops to one <strong>of</strong> season and crop-specific area rates; b) shift to a full-fledged volumetric distribution system with necessary physical changes; and c) reworking <strong>of</strong> the operational rules and procedures for effective regulation <strong>of</strong> water allocation and deliveries. However, there was no attempt to implement the recommendations <strong>of</strong> the committee and the seriousness <strong>of</strong> the problem <strong>of</strong> non-pricing or under-pricing <strong>of</strong> water continue to perpetuate inefficiency. It was found that by 1993-94, the losses on account <strong>of</strong> irrigation had increased to Rs. 124 billion, about 2.3 times the plan outlay on irrigation (MundIe and Rao, 1997; Srivastava and Sen, 1997, as quoted in Vaidyanathan, 1999: p.1 0 I). There was also a marked decline in the cost recovery ratio from 12.60 per cent to mere 4.40 per cent. Thus, the problem <strong>of</strong> under-pricing or non-pricing <strong>of</strong> irrigation water acts as a major constraint in the effective utilisation <strong>of</strong> irrigation water in canal the public deposits raised through irrigation bonds. The state governments <strong>of</strong> Andhra Pradesh, Maharashtra, Haryana and Orissa have revised the water rates recently (GO!, 2000: 2.293). 10 The Expert Committee (1992) denotes that water rates in Tamilnadu were last revised 30 years back. In Punjab, Kerala, Haryana, Jammu and Kashmir and Himachal Pradesh, there has been no change in rates since the mid-70s. Several states (including Andhra Pradesh, Bihar, Gujarat, Karnataka, Madhya Pradesh, Orissa, Rajasthan, Uttar Pradesh and West Bengal) announced revisions during 1981-86, but in some cases (Gujarat and Karnataka), the implementation <strong>of</strong> the revised rates was held up by the governments, and in the case <strong>of</strong> Andhra Pradesh, because <strong>of</strong> stay orders from the courts (GOI, 1992). 54
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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
Page 17 and 18: An attempt has been made in this ch
Page 19 and 20: among the people and the process <s
Page 21 and 22: the Indian state had followed a pol
Page 23 and 24: water harvesting 7 by arguing that
Page 25 and 26: (World Register of
Page 27 and 28: Eighth Plan has been estimated by t
Page 29 and 30: One of the most im
Page 31 and 32: integrated development of</
Page 33 and 34: inadequate attention given to OFD w
Page 35 and 36: performance of irr
Page 37 and 38: created. According to the Central W
Page 39 and 40: 7 lagoons, 901 tanks and over 30 la
Page 41 and 42: competent and responsible agency wi
Page 43 and 44: physiographic conditions of
Page 45 and 46: (14 completed and 15 ongoing) proje
Page 47 and 48: interventions to improve the operat
Page 49 and 50: a summary of findi
Page 51 and 52: economic analysis of</stron
Page 53 and 54: een brought out by many scholars in
Page 55 and 56: While the economic benefits <strong
Page 57 and 58: sources, wasteful utilisation <stro
Page 59 and 60: such as rise in pnces, inadequate i
Page 61 and 62: the completion of
Page 63 and 64: of rainfed croppin
Page 65 and 66: areas being 8 per cent (GO!, 1998).
Page 67: investment In irrigation developmen
Page 71 and 72: highlighted the problems related to
Page 73 and 74: 2.3.1 Studies on tbe impact <strong
Page 75 and 76: command area has reduced the labour
Page 77 and 78: Nanjundappa (1988), while examining
Page 79 and 80: y the CADA have led to low producti
Page 81 and 82: agents as against 90 per cent or mo
Page 83 and 84: among their members; c) insisting t
Page 85 and 86: Ansari (1989) shows that there have
Page 87 and 88: unit of land culti
Page 89 and 90: subgroup increased from 40 per cent
Page 91 and 92: 1) The maIn activity being undertak
Page 93 and 94: which are unique in several ways, t
Page 95 and 96: across the states in different agro
Page 97 and 98: and social setting In which a proje
Page 99 and 100: The indepth study to examine the fa
Page 101 and 102: \,;nar~ .NO. ~.~: .t"rocesses ana s
Page 103 and 104: understand the problems related to
Page 105 and 106: of the crop produc
Page 107 and 108: greater differences between the the
Page 109 and 110: Chart ~o J.2 'Vater Institutions an
Page 111 and 112: specific promotional programmes und
Page 113 and 114: Chart No. 3.3 Explaining failure <s
Page 115 and 116: 3.3.2 Crop specific promotional ins
Page 117 and 118: 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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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
Page 325 and 326:
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
Page 351 and 352:
time lag involved in completion uf
Page 353 and 354:
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
Page 361 and 362:
It was noticed that among the vario
Page 363 and 364:
The institutional paradigm evolved
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of India to be rel
Page 367 and 368:
economically viable. This underscor
Page 369 and 370:
The intensity and spread of
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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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