Agriculture:- Model Bankable Projects in India | Minor Irrigation : Dugwells Part - 1 --- www.nabard.org

Agriculture:- Model Bankable Projects in India Minor Irrigation : Dugwells Part 1

CHAPTER 1 : REQUIREMENTS OF A MODEL SCHEME FOR FORMULATION BY BANKS

1.0. GENERAL

This document gives broad guidelines for scheme formulation by banks for financing of dugwells in hard rock areas. The aspects that are necessary in scheme formulation are groundwater availability, well design, cost estimates, cropping pattern, pumpset selection and scheme economics.

It is always desirable to formulate a scheme giving the resource availability, physical programme and financial aspects over a fixed time frame for completion of the project. Scheme formulation helps in the following ways. Planned and sustainable development of groundwater resources. Proper planning and fixing of targets on area specific basis under a given time frame. Ensuring quality of lending, systematic development, assured income to the beneficiary, assured repayment and recycling of credit. Quality control of minor irrigation works and equipments for efficient and economic use. Systematic monitoring. Periodical review about achievements and shorfall and taking timely remedial measures for successful implementation of the programme. In view of the above NABARD recommends proper scheme formulation and its techno-economic appraisal by banks before extending any refinance facilities. 3.0. SCHEME REQUIREMENTS Scheme formulation for construction of dugwells in hard rock areas against bank loans requires both technical and financial details. The important items that should be included in a scheme for dugwells are indicated below. 3.1. Introduction This should briefly give the present status of agriculture, irrigation and need for increasing irrigation for improving the socio-economic conditions of the area, location of the scheme area, its areal extent and topographical features. Infrastructure availability like power, roads, etc should be described here. 3.2. Selection of Area Guidance of the state groundwater department should be taken to select the project area for minor irrigation development so that adequate groundwater potential is available for future development and that the area does not come under over-exploited or critical category. The area selected should be a compact block / taluka or a watershed with adequate groundwater potential, easy accessibility by road and adequate outlets for sale of agricultural produce. This information can be obtained from the state groundwater department and local district authorities. Brief details about the area selected and the project benefits should be given in the scheme. 3.3. Soils The general nature of soils prevailing in the area should be indicated. These can be classified as sandy, loamy, clayey or black cotton, red soils etc. Soils have a bearing on irrigation scheduling and depth of irrigation required to meet the water requirement of crops. Type of soils also helps to select a suitable cropping pattern and the fertilizer doze. 3.4. Climate and Rainfall Rainfall is the main source of recharge to groundwater and groundwater availability largely depends upon it. It also governs the supplementary irrigaion requirement of crops. The scheme should therefore, indicate the monsoon and non-monsoon rainfall as per data recorded by the India Meteorological Department (IMD). This should also give the minimum and maximum temperatures during different seasons. 3.5. Hydrogeology The geological formations in the area, nature and types of aquifers and their water yielding capacity, average depth to pre-monsoon and post-monsoon water table and well design suitable for the area should be indicated. The aquifers in hard rock areas suitable for tapping groundwater are generally weathered zones, joints, fractures etc. Their availability in depth and areal extent from the point of view of groundwater development may be indicated in the scheme. This information is available with the district geologist of the state groundwater department. 3.6. Groundwater Availability Before any programme of groundwater development is taken up, it is essential to ascertain whether adequate potential is available in the blocks covered under the scheme. The state groundwater department estimates groundwater resources on a blockwise, taluka wise or watershed wise basis and also keeps a record of the status of groundwater development at a given period of time. The categorisation of blocks as dark (critical and over-exploited) , grey (semi-critical) and white (safe) is made on the basis of stage of groundwater development expressed as a ratio of draft to utilisable resources,as well as trend of groundwater table. For over-exploited areas it is greater than 100%, for dark(critical) areas it is greater than 90%, for grey (semi-critical) areas it is greater than 70% but less than 90%, and for white (safe) areas it is less than 70%. This information is available with the NABARD regional office and state groundwater department. Banks can obtain it from them. Since long term behaviour of water table is a manifestation of the long duration availability of groundwater resources, it is necessary to ensure that there is no declining trend of water table in the area selected for the scheme. Information on pre-monsoon water table is also necessary to decide the depth of well and to ensure that the yield of well is not affected due to depletion of water table. Keeping these in view and for sustainability of the structure and investment, new well schemes should not be formulated in dark (critical and over-exploited) areas. 3.7. Groundwater Quality Groundwater quality in the scheme area as indicated by the state groundwater department should be given. Its suitability for irrigation may be indicated in terms of total dissolved solids, sodium adsorption ratio etc. 3.8. Physical Programme This is desirable to assess the demand for new wells in the area before formulating the scheme either by interaction with the farmers or the state agencies like DRDA, SCSTDFC, ITDA or other organisations involved in groundwater development programme. This facilitates fixing the physical targets for wells and pumpsets. If the demand is more and targets assessed are large, the programme could be phased over 2 to 3 years instead of envisaging entire programme for one year. Such a phasing helps better monitoring and leaves scope for mid term correction wherever required. Normally single design of well is uniformly followed in block suitable for the geological formation. However , if different designs of wells are considered necessary for differnt geological formations, physical programme should be given for each type of well design. 3.9. Well Design An optimum well design suited to local hydrogeological conditions is important for success of any minor irrigation scheme. The well diameter should be based on hydraulic conductivity of the aquifer and the well depth or thickness of the saturated zone available during the peak demand. At least a 2m of water column in summer is desirable. Guidance from the state groundwater department should be taken for this. The recommended well diameter and depth should be indicated in the scheme. Unit Cost Committee constituted by regional office of NABARD also recommends average design of well in different formations. The same should be adopted. 3.10. Well Siting Normally, the state ground water department provides the map or list of villages within the block or watershed which are ground water worthy. For actual siting of well, further assistance/advice could be sought from the local hydrogeologist of the SGD. However, Annexure I gives the broad guidelines for financing institutions to enable them to decide the suitability or otherwise of the site for new wells. 3.11. Spacing In absence of any groundwater legislation, institutional agencies exercise technical discipline in the form of spacing between two ground water structures for proper and efficient development of groundwater resources. Spacing is determined by aquifer performance tests conducted by the state groundwater department. However, to avoid over-capitalisation, economic spacing should also be considered and higher of the two spacings adopted for financing of minor irrigation works under a scheme. Spacing between two ground water structures is recommended by the state groundwater department. Therefore any variation or changes in the spacing stipulated has to be authenticated by that department. 3.12. Unit Cost Based on the average design of well in the scheme areas, unit cost of well should be estimated adopting district schedule of rates and the total financial outlay of the scheme should be worked out for the physical programme envisaged. However, actual cost of well may vary from location to location and loan should be sanctioned for actual cost of well. It is important to avoid under financing of well that may render the investment infructuous. 3.13. Pumpset Proper selection of pumpset in conformity with BIS 10804-1994 is important to achieve maximum output at minimum capital and operation cost. The scheme should give the type of pumpset (diesel / electric), requirement of horse power of the pumpset, size of suction / delivery pipes for the required discharge and operating head as per average agronomical practices and hydrogeological conditions in the scheme area. If site conditions require construction of a pit or provision of a platform in the well steining for placement of the pumpset at different levels , these should also be given in the scheme and its cost provided for. (Please refer to NABARD publication on Selection and Financing of Agricultural Pumpsets). 3.14. Economics The economics of investment should be given in detail to justify the loan. The scheme should also give details about subsidies, repayment schedule, rate of interest etc. 3.15. Check list A checklist should always accompany the proposal. This would help to check at a glance whether or not the details or essential items of scheme formulations have been incorporated. A check list is given in Annexure - II.

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