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Revitalization of Rivers in India Draft Policy - Isha Guru Jaggi Vasudev

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<strong>Revitalization</strong> <strong>of</strong> <strong>Rivers</strong> In <strong>India</strong><br />

<strong>Draft</strong> <strong>Policy</strong> Recommendation<br />

From the government’s perspective, even if one were to look at the <strong>in</strong>ternal<br />

rate <strong>of</strong> return on these costs for society as a whole, then the societal return on this<br />

<strong>in</strong>vestment is a handsome 41% per annum (see Table 10).<br />

TABLE 10: INORGANIC MULTI-FRUIT CROP MODEL WITH LIVELIHOOD SUBSIDY AND<br />

ESTABLISHMENT COST<br />

Mango + Guava + Pomegranate:<br />

Inorganic farm<strong>in</strong>g, with establishment costs, with livelihood subsidy<br />

Variety Mango Guava Pomegranate<br />

Trees per<br />

Acre<br />

65 150 88<br />

Years Return per crop per Year Total (Rs)<br />

Expenses<br />

per Annum<br />

(Rs)<br />

Income<br />

without<br />

Livelihood<br />

Subsidy<br />

Govt<br />

Livelihood<br />

Subsidy<br />

(Rs)<br />

Net<br />

System<br />

Surplus<br />

(Rs)<br />

1 0 0 0 0 123891 - 123891 -74988 -198879<br />

2 0 6000 12540 18540 17901 639 -74349 -73710<br />

3 0 27000 51300 78300 17901 60399 -14589 45810<br />

4 9600 45000 107160 161760 35929 125831 125831<br />

5 21120 57750 142500 221370 37725 183645 183645<br />

6 34560 72000 188100 294660 39611 255049 255049<br />

7 64000 72000 188100 324100 41592 282508 282508<br />

8 84600 64800 169290 318690 43672 275018 275018<br />

9 128000 58320 152361 338681 45856 292825 292825<br />

10 176000 52488 137125 365613 48149 317464 317464<br />

Total 517880 455358 1148476 2121714 452227 1669487<br />

Note 1.Expenses per acre with drip will go up by 5% each year start<strong>in</strong>g from Year 5<br />

2. Internal rate <strong>of</strong> return: 41%<br />

As an alternative to provid<strong>in</strong>g a livelihood subsidy, a livelihood loan could be<br />

considered, which the farmer returns after five years <strong>in</strong> three annual tranches. This<br />

would reduce the effective cost <strong>of</strong> the program to the government, but would entail<br />

168

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