Agriculture:- Model Bankable Projects in India | Minor Irrigation : Sprinkler Irrigation Systems Chapter 4 --- www.nabard.org

Agriculture:- Model Bankable Projects in India | Minor Irrigation : Sprinkler Irrigation Systems Chapter 4 --- www.nabard.org

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Chapter IV

Illustrative Model For Sprinkler Irrigation Scheme

4.0       Introduction  Formulation of a scheme for sprinkler irrigation is explained in the following paragraphs through an illustrative example of a block situated in the central Indian plateau. 4.1       Climate  The local economy of the scheme area to a large extent depends on monsoon rainfall. The normal annual rainfall is about 1350 mm and most of the rainfall occurs during July to September. The climate of the area is characterized by hot summers with maximum temperature above 4400 C. May is the hottest month and January is the coldest month, with daily minimum temperature reaching 1400 C. The Indian Meteorological Dept.(IMD) data reveals that the frequency of moderate to severe drought in the state is around 6 to 7 years and the recurrence of drought on a lower scale is in every 3 to 4 years. In view of recurrence of droughts, it is essential to develop ground water resources through construction of dug wells and bore wells to provide irrigation for sustainable agriculture. Also there is need to conserve and use ground water resource efficiently by installation of sprinkler irrigation system for long-term sustenance of the resource. 4.2       Cropping Pattern  Paddy is the main crop in the State. Apart from Paddy, farmers also grow cereals such as maize, pulses and oil seeds. There is a tendency among the local farmers to take mono crop (single crop) i.e. only paddy in Khariff. However, due to the interventions of the State Government, the area under Rabi crop is increasing where irrigation facilities are available. Under crop rotation program, the State Government has been encouraging the farmers to grow Irrigated Dry (ID) crops like wheat, ground nut, gram, soybean, sunflower, etc., which has resulted in increase in the area of ID crops. Post development cropping pattern has been accordingly proposed. 4.3       Scheme Area : The scheme envisages financing of sprinkler irrigation system in the area with main emphasis on rain shadow areas, where suitable cropping pattern is being adopted and the ground water development is high. In general, the local topography is plain with gentle regional slope towards North-West and North direction. In this case, 01 ha area is considered. 4.4       Soil : The area is covered predominantly by sandy silts, sandy loam and clayey soils and generally the soils of the area are fertile in nature. Therefore, the area is considered favorable for installation of sprinkler irrigation systems. 4.5       The Sprinkler Scheme  The system mainly consists of a main line and a lateral line with sprinkler Nozzles. The lateral line is shifted from one place to another in an orderly manner and accordingly the entire field is covered. The system is fitted to an existing delivery pipe of the pumping system, with no extra requirement for pumping capacity. The design for 01 ha model of Sprinkler irrigation system is given in Annexures –I 4.6       Unit Cost  The unit cost as worked out for 01 ha & 2 ha models of Sprinkler irrigation system are given in Annexures IIrespectively. The cost for 1 ha and 2 ha work out to Rs.23900 and Rs.39200 respectively.  Further, the following should be ensured. The bank should insist upon the installing agency to prepare layout plan and design of the system and also indicate cost of each item separately. The sprinkler Irrigation system components to be installed should conform to the prescribed B.I.S Specifications. 4.7  Security  The financing bank may take a decision on security against the loan as per RBI guidelines. 4.8  Rate of interest for ultimate borrowers  Banks are allowed to decide the rate of interest within the overall RBI guidelines. For the purpose of working out repayment from the farmer, an interest rate of 12% has been adopted in this scheme. 4.9    Subsidy  With a view to improve the irrigation efficiency and to make optimum utilization of the potential created, a Centrally Sponsored Scheme for Installation of micro Irrigation system(CSSMI) viz., National Micro Irrigation Project was launched by Ministry of Agriculture in January 2006 and is ongoing. The total cost of the scheme is to being shared between Central Government, the State Government and the beneficiary either through his/her own resources or soft loan from financial institutions in the ratio of 40%, 10% and 50% respectively i.e., 50% of the total cost is subsidy. 4.10     Rate of interest on NABARD refinance  As per circular of NABARD issued from time to time. 4.11     Economics Pre and post development farm income for 1.0 ha sprinkler irrigation model are indicated in Annexure-III, and the economics worked out in Annexure-IV.

Command (Ha) Cost of Investment (Rs.) BCR @ 15%          IRR             (%) 1 26000.00 1.34:1 >50

The model is found to be economically viable. 4.12     Repayment Period :  One year gestation period can be considered while fixing the repayment period. The repayment of interest shall commence from the second year onwards. For 01 ha model of sprinkler irrigation system, the repayment period of principal commence from second year and repayment shall complete in eleventh year. The details are given in Annexure-V. 4.13     Conclusion Sprinkler irrigation is a financially viable proposition and banks may consider extending financial assistance for installation of drip irrigation system in both existing and new orchards.

Appendix- I

CHECK LIST FOR SPRINKLER IRRIGATION SCHEME

(To be completed by the Officer forwarding the scheme)

1 Specification of types of development in the scheme area. 2 Financing bank and its branch / network in the scheme area. 3 Implementing agency 4 Background information on land use pattern, sources of irrigation, cropping pattern, yield rates per acre, cultural practices, size-wise distribution of agricultural holdings, in the scheme area. 5 Detailed representative cost estimates 6 Year-wise physical programme and financial outlay. 7 Availability and arrangements for procurement and distribution of materials 8 Financial returns on investments with reference to representative size of holdings in different agro-climatic zones in the scheme area. 9 Lending terms : rate of interest, loan maturities (inclusive of grace period),down payment , nature of security source and extent of subsidy, if any, available 10 Agencies providing crop loans and adequacy. 11 Supervision and monitoring arrangements. 12 Technical guidance in specifications and designs, selection of pump/equipment, etc 13 Infrastructure facilities: a. Extension guidance b. Availability of improved seeds/fertilisers, pesticides and adequacy of distribution arrangements c. Storage, processing and marketing 14 Government Support a. Extension on guidance and technical support b. Whether necessary budget provision has been made/proposed, if any, required? 15 Technical Aspects: a. Existing ground water development - Dug Wells, filter points, tubewells & others b. Availability of dealers for sprinkler sets and facility available for after sales service.  c.Nature of rock formation. d. Cultural practices - Soil condition, cropping pattern, irrigation practices, crop varieties, yield rate e. Chemical quality of underground water. f. Design and specification of sprinkler machinery.

Sprinkler system Annexure I Sprinkler system Annexure II Sprinkler system Annexure III & IV Sprinkler system Annexure V