Section - XIV - The Irrigation and the Cost recovery of Irrigation through Credit
Capital cost recovery for irrigation
The investment needs for irrigation are consider for various options. Labour costs are excluded since they can be met from EGA.
Let us first consider Irrigation for three crops of intensive vegetable cultivation in 1 ha area. It is assumed that grid connection is available & thus the energy requirements are met. A lined pond of 150 m3 capacity & delivery pipes would be required. 5mm/day water requirement is considered. So the pond can store 15mm of water. The cost of lining material at 50 Rs m3 works out to be Rs.75000.Thus the cost of pond & delivery pipes together would be around Rs.1 lakh or so excluding earthwork costs, which are covered by EGAssistance
Let us consider another case with limited water. Due to limited water, only two crops would be possible & the area requirement of land would be 1.5 & water= 3000m3/ Ha. In this case an unlined pond (4500m3 Capacity) & a lined pond (150m3 capacity) would be required. The water seeping from unlined pond will be collected through intercepted drains & shallow wells & there after filled in lined ponds The cost of unlined pond would be (4500m3XRs30/m3) =Rs 135000 to be covered under EG assistance. In this system lined pond and delivery system would cost around 1 lakh & in addition there will be costs of pumps, drains, wells & pipes as required. The conservative estimate for total cost can be within Rs 2 lakhs. The annual equated installment is taken at 5% of the capital & the corresponding cost recovery works of to Rs.10000 / year for a plot of 1/1.5 Ha (depending on the water availability) amounts to 100 Rs/ guntha/ year for a plot producing 500kg of salable vegetable / year. While estimating net income this liability is taken into consideration e.g. 2000/year for the 5 women group producing 10 t / year & farmers following Sharma's technique (producing 20 T / year) would have to pay Rs 4000 / year.
For the food grain and pulses, the lined pond capacity can be reduced to 60m3 / ha (the demands are staggered & pump capacity will also be reduced so also the investment for pipe line etc can also be reduced since the distance from the check dam or tank taken as Rs 1lakh/ ha to the line ponds will be shorter (the field for growing pulses an grains are of farmers having access to water. The investment excluding labour cost covered by EGA can be taken as Rs 40000/ Ha for pipes, pumps, lining etc.
The cost recovery work out to 2000 Rs/year/ha!!!!
a) Range of investment for irrigation ----Rs 40000 to Rs 60000/ha (Average cost/ha for the diversified production system which mainly consists of forestry & mixed crop with limited Irrigation.
The investment needs for irrigation are consider for various options. Labour costs are excluded since they can be met from EGA.
Let us first consider Irrigation for three crops of intensive vegetable cultivation in 1 ha area. It is assumed that grid connection is available & thus the energy requirements are met. A lined pond of 150 m3 capacity & delivery pipes would be required. 5mm/day water requirement is considered. So the pond can store 15mm of water. The cost of lining material at 50 Rs m3 works out to be Rs.75000.Thus the cost of pond & delivery pipes together would be around Rs.1 lakh or so excluding earthwork costs, which are covered by EGAssistance
Let us consider another case with limited water. Due to limited water, only two crops would be possible & the area requirement of land would be 1.5 & water= 3000m3/ Ha. In this case an unlined pond (4500m3 Capacity) & a lined pond (150m3 capacity) would be required. The water seeping from unlined pond will be collected through intercepted drains & shallow wells & there after filled in lined ponds The cost of unlined pond would be (4500m3XRs30/m3) =Rs 135000 to be covered under EG assistance. In this system lined pond and delivery system would cost around 1 lakh & in addition there will be costs of pumps, drains, wells & pipes as required. The conservative estimate for total cost can be within Rs 2 lakhs. The annual equated installment is taken at 5% of the capital & the corresponding cost recovery works of to Rs.10000 / year for a plot of 1/1.5 Ha (depending on the water availability) amounts to 100 Rs/ guntha/ year for a plot producing 500kg of salable vegetable / year. While estimating net income this liability is taken into consideration e.g. 2000/year for the 5 women group producing 10 t / year & farmers following Sharma's technique (producing 20 T / year) would have to pay Rs 4000 / year.
For the food grain and pulses, the lined pond capacity can be reduced to 60m3 / ha (the demands are staggered & pump capacity will also be reduced so also the investment for pipe line etc can also be reduced since the distance from the check dam or tank taken as Rs 1lakh/ ha to the line ponds will be shorter (the field for growing pulses an grains are of farmers having access to water. The investment excluding labour cost covered by EGA can be taken as Rs 40000/ Ha for pipes, pumps, lining etc.
The cost recovery work out to 2000 Rs/year/ha!!!!
a) Range of investment for irrigation ----Rs 40000 to Rs 60000/ha (Average cost/ha for the diversified production system which mainly consists of forestry & mixed crop with limited Irrigation.
b) For intensive vegetable cultivation three crops /year this cost would 1-1.5 lakhs/ha Labour component Rs 20000/ ha from EGA for which there is no capital cost recovery. For the balance Rs 20000 to Rs 40000,financed on concessional terms.i.e., 6% equated annual installment (recovery of interest and principal) This is about half of present terms for 15 years mortgage finance for home loans.
The annual liability of Rs 2000 /year for capital cost recovery can be met from biomass . For average rate of wood bamboo @ Rs.3.5 / kg. The women have to grow only 800 Kg / Ha / Year in order that the irrigation finance is recovered. But an average output of Wood bamboo/ Ha / year is 7.5 tons!!! The viability of irrigation financing is thus confirmed.
posted by Prasanna Saligram at 10:20 AM
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