Development Projects

Indo-German Watershed Development Projects

Objectives

The Indo-German Watershed Development Programme (IGWDP) is an integrated programme for rehabilitation of watersheds for the regeneration of natural resources. The programme is implemented by the Village Watershed Committees (VWC- a body nominated by villagers), in association with Non-Governmental Organisations (NGOs). IGWDP which was operationalised in December 1992 under the bilateral aid agreement between the German and Indian Governments, was visualized and initiated in 1989 by Fr. Hermann Bacher of Social Centre, Ahmednagar, the guiding spirit behind the Programme.

The objectives of the Indo German Watershed Development are :

1. To develop micro-watersheds in a comprehensive manner, so as to create adequate and sustainable livelihood opportunities for the inhabitants of that area.

2. To catalyse to form village groups into mobilising their degraded environment through participatory self-help initiatives.

3. To facilitate the arising and unfolding of a people’s movement for sustainable economic development along watershed lines.

Guiding principles

1. Poverty can be alleviated and eradicated when people realize their creative potential, come together and organize themselves based on self-help and community objectives.

2. Often a catalyst either from within the community or from outside e.g. a NGO, is required for such a transformation. A watershed is not just a naturally occurring hydrological unit. More importantly, it is the area of survival and base of sustenance of all those living within it. It, thus, becomes necessary to draw the inhabitants together, generate a common interest and foster a common purpose. Participatory and well-managed watershed development enhances the ecological resource base of a rural economy and creates sustainable livelihood opportunities for the watershed community. A participatory approach involving all concerned, i.e. the watershed community (village), NGOs and Technical Support Organizations, is necessary, as integrated watershed development involves a variety of skills, disciplines and competencies. To make an appreciable and lasting impact both on the incidence and the extent of poverty, a large scale effort involving the government, banks, agriculture universities must be made.

3. The coming together of people’s initiative and supportive institutional and policy framework could create conditions favourable to the unfolding and establishment of a people’s movement for environmental regeneration on watershed basis.

Main strategies adopted under IGWDP:

• While a micro-watershed is identified by its physical characteristics, it is the peoples' commitment that decides for inclusion or otherwise in the programme. It is in effect a "self-selection" process.
  
  

• People are asked to demonstrate their willingness/eagerness to undertake the watershed project by visiting nearby watershed for experience / exposure and agreeing to contribute 4 days of shramdan (voluntary labour) initially without any support from the programme.
  
  

• Villagers agree to bring down the cattle population within the carrying capacity of the land, ban free grazing and tree felling  and eschewing water intensive crops.
  
  

• A pilot project called Capacity Building Phase (CBP) - 50 to 100 ha - is taken up for treatment measures where the competence and willingness of the community / villagers and the ability of the NGO to mobilise and work with the villagers are put to acid test This project lasts for 12 - 18 months period and affords the right opportunity for learning while doing. Technical skills required in soil and water management are demonstrated, practised and refined in the field itself.
  
  

• A peoples' organisation called "Village Watershed Committee" (VWC) with adequate representation of women is formed for planning, implementing and eventual maintenance of the treatment measures / structures. VWC is responsible to Gram Sabha or entire village community. Village community is asked to partner the process of watershed development through it's contribution of one-day-a-week free labour contribution (shramdan of nearly 16% of project measures). Of course, as an incentive for it's participation, the programme envisages ploughing back 50% of free labour contribution to the maintenance funds of VWC.
  
  

• The treatment measures follow a "ridge to valley approach". The "net-planning" approach adopted demands survey of each of the plots in the watershed and suggests appropriate technical measures for conservation and improvement in consultation with the farmer and his family.
  
  

• The women in the community, besides being represented in the VWC, are encouraged to form SHGs and undertake project related activities like raising a nursery, kitchen gardens, in addition to inculcating the habit of thrift and funds management / rotation of funds amongst themselves. Besides, women promotion/development activities are undertaken from a "Women's development Fund" set up by earmarking 5% of project measures.
  
  

• The village community and NGO are allowed to implement the full scale watershed project only on successful completion of Capacity Building Phase (CBP) of the project. This strategy has to a large extent eliminated the incidence of failure at a later stage.
  
  

• The village community in association with NGO manages the entire fund meant for project measures. The management costs of NGOs are funded separately.

• A maintenance fund is created out of peoples' contribution, ploughing back 50% of voluntary labour and also an end-of - the- project incentive for future repairs and maintenance of structures.
  
  

• The village community is made aware of the exit requirements of NGO towards the later part of the project to allow the equipped VWC to take charge of maintenance, development and possibilities.
  
  

Partners and their roles

• The Gram Sabha, the body representing the entire village, accepts and ratifies the project.
  
  

• The VWC plans, implements and supervises the project.
  
  

• The NGO motivates and mobilizes the watershed communities and plays the role of facilitator and guide to the VWC during the project period.
  
  

• Concerned Government Departments, Technical Support Organisations and Agricultural Universities provide extension support during the implementation process as and when sought for.
  
  

• NABARD gives technical training and managerial support, besides monitoring the programme.
  
  

• The German Technical Cooperation (GTZ) and German Development Bank (KfW) provide financial assistance to the Capacity Building Phase (CBP) and Full Implementation Phase (FIP) of Indo-German Watershed Development Programme through the GoI, NABARD and WOTR.
  
  

• The Programme Coordination Unit with representation from NABARD and WOTR coordinates the implementation of the programme.
  
  

Structure of the programme : The Programme consists of two Phases :

Capacity Building Phase (CBP):

During CBP village communities and NGOs prepare, plan, implement and supervise watershed projects. It enables village communities and NGOs to acquire the necessary skills and competency and qualify for inclusion in Full Implementation Phase. Normally CBP is taken in 50 to 100 ha of the watershed area.

Full Implementation Phase (FIP):

After successful completion of CBP, the project enters FIP which is the main phase administered by NABARD in association with support organizations like Resource Support Organisations (RSOs) and other NGOs.

Major learnings under IGWDP:

1. People's participation is an essential component of watershed development. With commitment and conviction, people can discipline themselves for their betterment.

2. Villagers need to contribute their stake/share(voluntary labour etc.) and feel the ownership of the project. Creating people's organisations like VWC for planning, implementing and maintenance is a must for success and sustainability.

3. Having a pilot phase for proof testing the abilities and motivation of community and NGO during the CBP phase insures against most of future chances of failure.

4. Women and landless need to be integrated into the project design appropriately.

5. Technical considerations and skills for soil and water management, based on "ridge-to-valley" principle can be understood by villagers through learning-by-doing, demonstration/exposure visits, etc.

6. The village community should manage the funds for project measures through the VWC for total transparency and cost effectiveness. However, timely availability of funds in adequate measure in advance is a critical requirement for watershed projects

At present Indo-German Watershed Development Programme (IGWDP) is under implementation in Maharashtra, Andhra Pradesh, Gujarat and Rajasthan. A brief overview of the programmes is discussed in the below given paragraphs.

A. IGWDP Maharashtra

The Indo-German Watershed Development Programme (IGWDP) is an open-ended programme of soil and water conservation projects for the rehabilitation of watersheds in Maharashtra. The programme in Maharashtra State started in phased manner in the early 1990s, has successfully completed two phases viz. Phase I during 1999-2000 and Phase II during 2006-2007. A total number of 95 projects were completed under Phase I and Phase II. At present, the Phase III of the programme is under implementation, which was started in January 2005. Under Phase III, 10 projects have been completed.

IGWDP Maharashtra Phase I (Completed)

Phase I of IGWDP-Maharashtra commenced in 1990-91 with the sanction of 266.66 million (Euro 6.14 million) assistance. It was completed in 1999-2000 with the successful implementation of 26 projects. Five projects were terminated at various stages of implementation. Total area of 38,180 ha of land was treated completely by utilising the sanctioned grant portion of 266.66 million.

IGWDP Maharashtra Phase II (Completed)

IGWDP Maharashtra Phase II commenced in 1999-2000, but ran concurrently with the IGWDP Maharashtra Phase I. A grant amount of 568.40 million was sanctioned under this phase. In all, 69 projects have been completed under this phase in various districts of Maharashtra. Total area treated against 69 completed projects was 64,205.77 ha as on 30 September 2010. The total grant amount of 574.86 million was received under Phase-II, which has been fully utilised. Seven projects were terminated prematurely, however, out of which one project i.e., Kalamb watershed in Ahmednagar has been revived in August 2008 in view of the willingness shown by the villagers and Gram Panchayat.

IGWDP Maharashtra Phase III (Ongoing)

IGWDP Maharashtra Phase III commenced in 2005-2006. The total commitment under this phase is for approximately 1,100 million. As on 31 March 2011, 10 projects have been completed, one project is prematurely closed and 100 projects are under implementation (in FIP stage). As on 31 March 2011 the grant amount of 842.42 millions has been utilised.

Physical Progress : Phase wise status of projects as on 31 March 2011 is given below:

Cumulatively, as on 31 March 2011, 220 watershed projects were taken up under the programme. Out of the 220 projects, 105 projects have been completed, 100 projects are ongoing, one is in Interim Phase (IP) stage and 12 were terminated at DF/FR stage and 2 projects are in CBP phase. As of now, a total area of 1,71,795.38 ha has been treated under IGWDP-Maharashtra

CCT work in Gondi Mohgaon Watershed Dryland Horticulture in Nidhal Watershed

Paper Plate Making unit in Amli watershed

B. IGWDP - Andhra Pradesh

The Indo German Watershed Development Programme- Andhra Pradesh (IGWDP-AP) was initiated to address the issues concerning the rehabilitation of degraded watersheds in the districts of Karimnagar, Medak, Warangal and Adilabad in Telangana region of Andhra Pradesh. The objective of the programme is to stabilize and increase the agricultural production based on the resources in the villages in a sustainable and equitable manner. KfW has committed a grant assistance of 486.6 million (Euro 8.69 million) for the programme.

IGWDP-AP traversed a long path since launching of the programme in the year 2003. The number of watersheds being developed under IGWDP-AP is 36 covering about 41634 ha and presently all the projects are in Full Implementation Phase (FIP). The cumulative expenditure under IGWDP-AP as on 31st March 2011 stood at Rs. 21.14 crore, thereby achieving about 43% of committed grant. Out of total 41634 ha in 36 watersheds, so far about 14570 ha (35%) has been effectively treated with low cost soil and water conservation measures.

Various innovative practices such as System of Rice Intensification (SRI), low cost water harvesting gabion structure, Trench cum Bund , Dug out Earthen Gully Plugs etc have been implemented under the programme.

Luxurious Paddy grown under SRI in Battulapalli Low Cost Water Harvesting Gabion Structure in Laxmipur watershed,

Trench cum Bund Dug out Earthen Gully Plugs

C. IGWDP-Gujarat

The objective of Gujarat programme is stabilisation of agricultural production in at least 32 watershed projects as well as maintenance of soil and water conservation works and minor irrigation infrastructure. The basic features of the programmes are community self-help, NGO involvement, environmental regeneration and poverty reduction. The programme under IGWDP- Gujarat envisages rehabilitation of watersheds in 4 districts viz. Dahod , Panchmahal, Vadodara and Sabarkantha of Gujarat State. KfW, Germany has committed Euro 9.2 Million ( 515.2 million) for the purpose.

As on March 2011, there are a total of 34 projects under implementation, of which 16 are in FIP, 9 each are IP/FSR and CBP/Pre CBP stage. Cumulative grant released stands at 678.33 lakh against total sanction of 2302.62 lakh.

Trellis System of Creeper vegetable (Mandva System) Smokless Chulah

D.IGWDP-Rajasthan

The programme aims at improving the livelihoods of the rural poor and at rehabilitating the highly degraded natural production base in the south-eastern parts of Rajasthan (Udaipur, Dungarpur, Banswara, Chittorgarh and Pratapgarh districts). The purpose of the Programme is to stabilize agricultural and livestock production in at least 30 watersheds with a total of approximately 30,000 ha (1000 ha per watershed). The total programme cost is approximately Euro 12.24 million, of which KfW has committed Euro 11.00 million ( 616 million ) and the beneficiaries’ contribution is approximately Euro 1.24 million. As on 31st March 2011, 36 watershed projects are under implementation, of which 20 are under FIP, 9 under FSR/IP and 7 under Pre CBP. Cumulative grant released stands at 843.28 lakh against total sanction of 2458 lakh.

Watershed Development Fund

1.Genesis

The Union Finance Minister, in his budget speech for 1999-2000 had announced the creation of a Watershed Development Fund (WDF) in National Bank for Agriculture and Rural Development (NABARD) with broad objectives of unification of multiplicity of watershed development programmes into a single national initiative through involvement of village level institutions and PFAs. In pursuance thereof, WDF has been created in NABARD with a contribution of Rs.100 crore each by MoA, Government of India (GoI) and NABARD.

2.Objectives

The objective of the Fund is to spread the message of participatory watershed development. The Fund will be utilised to create the necessary framework conditions to replicate and consolidate the isolated successful initiatives under different programmes in the government, semi-government and NGO sectors. Thereby, all the partners involved viz., watershed community, central and state government departments, banks, agricultural research institutions, NGOs and NABARD can act in concert to make a breakthrough in participatory watershed development. WDF is proposed to be operationalised in close coordination with the Central and State Ministries as a continuum of their efforts but with a distinct identity.

3. Importance of Participatory Approach

The Watershed Development Program to be successful must involve the participation of the concerned people and must be related to the environment in which they live, and on which they depend for their needs. This involves the following :

• It has to be focused on the regeneration and equitable use of the resources in the particular environment on which the village depends for its needs. A watershed provides a naturally occurring hydrological unit and is also the area on which the inhabitants depend for survival. It thus becomes a common issue drawing the people together, giving rise to a common interest and fostering a common purpose.

• The people voluntarily must come together and accept full responsibility for regenerating their environment from concept to planning, implementation, supervision, maintenance of project measures and associated practices. This would imply consensus in arriving at a common understanding regarding rules and regulations and the setting up of mechanisms for organisation of works, sharing of benefits and resolution of conflicts.

• To make the project sustainable, it is necessary for all the key actors, like the Watershed Community, NGOs, Banks, Government Institutions and Technical Service Organisations, to participate actively and in close coordination with each other.

• Participatory watershed development must be implemented on a “large enough scale” at different places to create many success stories, each of which can act as nuclei, becoming a source of inspiration and demonstration for neighbouring villages. This would provide a major impetus for the unfolding of a “people’s movement” for regeneration of environment.
  
  

4. Utilisation of WDF

The Fund will be utilised mainly for the following purposes :

• Promotional efforts with Communities, NGOs, SHGs, Panchayats, Bankers and Government Departments on grant basis.
  
  

• Taking up "capacity building" projects, on grant basis, with Communities, NGOs, SHGs and Panchayati Raj Institutions (PRIs) in different states.
  
  

• Selectively, full scale financing of collaborative watershed projects on a pilot basis, with grant and/or loan finance, with any of the partners mainly for trying out new institutional or other arrangements.
  
  

• Supplementary flexible financing (grant and/or loan) for watershed projects, on selective basis, in government programmes, to fill in the critical gaps perceived in the field but which are not met under the existing budgetary arrangements.

• Financing implementation of watershed projects through the state governments on loan basis.
  
  

• Supporting (on grant and/or loan basis) promotional activities for micro-credit; promotion of SHGs of women, land-less, members of the SC/ST communities and other weaker sections of the community and other related activities in the watershed development program.
  

• The WDF is to be operated flexibly and apart from the activities stated above, other related and essential activities will also be supported (on grant and/or loan basis).

The Fund has two components viz., loan and grant. Two-third of the Fund will be for loans to the state governments for watershed development and one-third will be for grant based activities covering promotional efforts, capacity building (implementing micro watershed projects), replication of Indo-German watershed development model (implemented in Maharashtra) in other states etc. In addition, NABARD will actively make efforts to intensify the credit flow in the developed watersheds through its general resources by providing refinance to the banks for all eligible activities, so that the watershed community could take full advantage of soil and water conservation measures undertaken.

5. Criteria for selection of watersheds

Watersheds covering villages with the following physical and socio-economic characteristics are preferred for inclusion in the programme:

Physical characteristics

a. Dry and drought prone villages. In any case the proportion of irrigated area may not exceed the average for the state or 30% which ever is lower.

b. Villages with noticeable soil erosion, land degradation, resource depletion or water scarcity problems.

c. Villages in the upper part of drainage systems.

d. The size of a watershed project should be around 1000 ha. (but not less than 500 ha.)

e. Well defined watersheds with the village boundaries coinciding to the greatest extent possible with the watershed boundary. As far as possible, Watershed encompassing one village is ideal.

f. Villages where the general cropping sequence does not include high water demanding and long duration crops like sugarcane, banana etc. and if such crops are grown in small pockets in the watershed, the villagers should agree that the area under such crops will not be extended during implementation or after completion of the watershed development project.

Socio-economic characteristics

a. Predominantly poor villages.

b. High proportion of SC/ST in the total population.

c There should not be much difference in the size of the land holdings.

d. Villages with a known history of coming together for common causes.

e. Villages that have shown concern for resource conservation.

f. Villages with alternative sources of employment must not be selected as the past experience indicates that the programme in such areas would not pick up.

g. Villages that are willing to commit themselves to the following conditionalities :

• to ban clear felling of trees
  
  

• to ban free grazing and in treated areas for protecting vegetation.
  
  

• to reduce the livestock population if in excess, and maintain the same at the carrying capacity of the watershed (number which can be supported by the watershed).
  
  

• to ban cultivation of water intensive crops like sugarcane and banana or at least not to increase the area under such crops from the present position.

• to contribute initially four days of “shramdan” on watershed treatment works by the entire village community and later, once selected for the programme to contribute by way of “shramdan” or otherwise 16% of the unskilled labour costs of the project and also to collect such contribution EQUITABLY (impartially and in a just manner) from the village community. The landless and poor single parent households are excluded from such a contribution.
  
  

• promote equity for women and poor through preferential allocation of usufruct rights in common lands.
  
  

• to start and contribute to a Maintenance Fund, from the second or third year onwards to maintain and upgrade the treatments and assets created under the project, at a rate of Rs.100/- per land owning families.

• to take all such steps as are necessary for achieving and maintaining a sustainable production system.
  
  

• to constitute, at the village level, a body called the Village Watershed Committee (VWC) which would have to be registered during the implementation phase within 6 months of the commencement of the work, so that it can undertake responsibility for maintenance of all the valuable assets created and generated by the project.
  
  

6. Who will Participate in the Programme ?

State Governments willing to execute a Memorandum of Understanding (MoU) to avail loan out of the Fund and agree to furnish a mandate in favour of Reserve Bank of India (RBI)/ letter of undertaking for repayment of principal and payment of interest, with NABARD shall be eligible to participate in the programme.

Based on the criteria prescribed in para 5, following States have been identified eligible to participate - Andhra Pradesh, Bihar, Chattisgarh, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Tamilnadu, Uttar Pradesh, Uttaranchal, and West Bengal.

The loan to state government is provided on softer terms with an interest rate of 4.5% per annum. The repayment period is 9 years including a grace period of 3 years.

7. Criteria for Selection of Districts

The Budget announcement envisages coverage of 100 districts in three years.  The districts will be selected in consultation with the concerned State Government. For selecting districts, preference is given where the percentage of irrigation is less than 30%, where there is a concentration of SC/ST population and where the extent of rainfed farming & potential for watershed development is large. Priority will be given to the districts having the lowest proportion of irrigated area in the state, subject to the availability of basic ingredients needed for successful implementation of watershed development projects.

8. Commitment of Village Community

To enable the village community to have first hand experience of watershed development and to demonstrate their commitment for implementing a watershed project, they should be willing to :

a. Visit other developed watersheds (exposure visits)
b. Appoint selected village youth and key persons and sending them for specific training programmes
c. Prepare and implement a demonstration or pilot project for a small area of the watershed of about 50-100 ha.

9. Criteria for selection of NGOs

The nodal agencies of the State Government may implement watershed development projects through NGOs which are funded out of WDF loan. Even if the Project Facilitating Agency (PFA) is other than NGO the same criteria could be utilised with necessary modifications. The following shall be the criteria for selection of NGOs.

a. Reputation and financial management capacity- Three years Annual reports of the PFA shall be submitted [ IV Project Sanctioning Committee meeting held on 26 March 2004].

b. Method of operation and rapport with people and local government agencies.

c. Perspective on watershed development.

d. Nature of projects handled in the past.

e. Technical and managerial capability.

f. Sensitivity towards group action /conflict resolution and equity for poor and women.

g. Ability to motivate the community for providing ‘Shramdan’ in the village where they propose to work.

The PFA should have been active in the area for a significant period before proposing a watershed project for the area. PFAs and watershed communities willing to implement a watershed project, if selected, have to go through a Proofing Stage and meet the qualifying criteria before they undertake a large scale project.

Progress as on 31 March 2011:

As on 31 March 2011, a total of 579 projects covering an area of 4.86 lakh ha in 14 states, with total commitment (loan and grant component) of 220.57 core are under implementation. Of this, 255 projects are under Full Implementation Phase (FIP). During the year (2010-11), 152.26 crore and 3.18 crore were disbursed under watershed projects as grants and loans respectively; the cumulative disbursements under these components were 350.03 crore and 33.18 crore respectively.

Implementation of watershed development projects in distress districts

Under the Prime Minister”s Relief Package for 31 distressed districts in the four States viz. Andhra Pradesh, Karnataka, Kerala and Maharashtra (for developing 15,000 ha of watershed annually over two years in each of these districts), 71,127 ha were taken up for implementation during 2010-11, taking the cumulative area and financial commitment to 9.42 lakh ha and 1023 crore, respectively.

Initiatives / Policy Decisions

i. In order to showcase the unique features in watershed development, projects on grant basis in 2 clusters (of 3 to 5 projects) with an aggregate treatable area of 3000 ha in each cluster may be considered  in each state.

ii. In participating states effective from 01 January 2005 for every 5 projects ( of an aggregate area about 3000 ha) in a cluster under loan component, one additional watershed would be covered under grant on satisfactory progress of loan projects.

iii. In the fifty Pilot Project for Integrated Development (PPID) blocks in Andhra Pradesh, Gujarat, Karnataka, Maharashtra,Tamil Nadu, Chhattaisgarh, Jharkhand, Orissa, Uttaranchal and West Bengal one project per block will be covered under grant.

The other initiatives / policy decisions are:

i. The rate of interest has been reduced to 4.5% p.a. with a view to increase the credit flow.

ii. revolving Fund Assistance is sanctioned to NGOs on pilot basis from the fund to encourage post Watershed Development activities.

Monitoring Mechanism :

A systematic monitoring mechanism is kept in place at Regional Office levels (with the Watershed Development Fund Cell) for effective monitoring of watershed projects. Each watershed under CBP in visited once in 3 months. Visits are also made to watersheds prior to release of grant, sanction of CBP, FSRs and FIP. The concerned District Development Managers (DDMs) of NABARD are also involved in the monitoring visits. The Project Facilitating Agencies (PFA) are required to send Half Yearly Progress Reports which are desk monitored by the WDF cells at RO levels. Regional Offices send monthly progress reports to HO indicating the details of releases, monitoring visits, training, etc which are scrutinized and consolidated at HO level

During FIP, monitoring visits are conducted every six months. The monitoring mechanism is also supported by the involvement of the Resource Support Organizations (RSO) / Technical Support Organizations (TSO).

Integrated Watershed Development in South Bihar

The participatory watershed development programme being implemented by NABARD under the Special Plan for Bihar component of Rashtriya Vikas Yojana (RSVY), aims to develop 80,000 ha of wasteland in Aurangabad, Banka, Bhabua, Gaya, Jamui, Munger, Nawada and Rohtas districts of Bihar with an allocation of 60 crore. Under the programme, a total of 79 projects in an area of 84,444 ha had been sanctioned, of which six are at CBP stage and 73 at FIP stage. A sum of 20.18 crore was disbursed during 2010-11 and the cumulative disbursement as on 31 March 2011, stood at 34.17 crore.

Credit intensification in Rainfed Areas:

India is one of the few countries in the world which has a significant arable area of 142 million hectares (43%) out of the total geographical area of 329 m.ha. The irrigated area is about 53 m.ha. and it produces about 55% of the food grains. The area under rainfed farming is about 89 m.ha. It is estimated that the rain fed areas contribute approximately 90% of oilseeds & pulses, 70% of coarse cereals and supports 66% of our cattle & 40% of our population. At present about 4 m.ha. are being brought under irrigation in every five years. Even at this pace, we may bring in 20 m.ha. by 2025 and still 69 m.ha, which is around 50% of the arable area will continue to be under rain fed agriculture. As stated in the foregoing paragraph, further increase in agriculture production needs to some through an increase in gross cropped area (multiple cropping) and improvement in the productivity, which are largely possible from the rainfed tracts of the country. Thus, rainfed farming has a prominent role to play in the economy of the country.

Rainfed areas are characterized by very low income per capita of agricultural population and small land holdings. Rainfed farmers usually require low amounts of credit which could increase the transaction cost of bankers. These areas receive inadequate attention from the credit institutions because of the inherent risks involved in financing crop production and high transaction costs. Development of rainfed areas and intensification of credit have been areas of concern for NABARD since inception. Several efforts have been made to break this cycle through various approaches. One of the approaches was development of rainfed areas on watershed basis. The approach has met with good amount of success in improving production/productivity, improvement in economic conditions, increased credit worthiness of farmers etc. Not withstanding these successes, much headway could not be made in dovetailing credit per se to the dry land tracts of the country. It was precisely for this reason, NABARD has been involved in implementation of watershed programmes.

The Task Force to study the Cooperative Credit System and suggest measures for its strengthening (2000)" headed by Shri Jagdish Capoor, Deputy Governor (Retd.), Reserve Bank of India have inter-alia recommended NABARD to introduce an institutional mechanism to ensure that the farmers in the rainfed areas do not face any resource constraints for pursuing their enterprises, by ensuring the financing agency stands by them in providing the required credit.

The Radhakrishna Expert Group set up by RBI, had stated that liquidity constraints of farmers in rainfed areas should be mitigated through a cyclical credit system of treating crop loan as an weather cycle long intervention rather than annual feature. It could be initiated on a pilot basis in a few rainfed districts. The Group had also stated that banks should be directed to simplify procedures and help in providing small and marginal farmers with timely access to credit.

Accordingly, NABARD has taken several measures in the past such as extending cent percent refinance facilities for credit purveyed in dry land areas, cyclical credit etc

After implementation of participatory watershed development programme, it is envisaged that, the watershed community should be in a position to reap the fullest benefit of watershed development in a sustainable manner, as basic inputs for risk mitigation of rainfed area such as improved water/moisture regime, diversified cropping pattern, higher crop productivity, multiple livelihood options, vibrant CBOs, better knowledge base etc have been put in place. Development of this infrastructure in dry land areas, is expected to trigger increased demand for the credit flow and consequently better opportunities to banks for their increased involvement in the watershed areas, which in turn will ensure sustainable development.

In order to create awareness about watershed development programmes implemented by NABARD more than 20 on-site training programmes were conducted during 2010-11 through BIRD, Lucknow; BIRD, Mangalore and various Regional Offices of NABARD. Similar programmes are being organized during the current year also (2011-12).

Study on Flow of Institutional Credit in Completed Watersheds under IGWDP- in Maharashtra

Association for Social Transformation and Human Advancement (ASTHA), a NGO, conducted the captioned study during 2010-11 with the main objective of assessing institutional credit flow in areas of watershed projects developed under Indo German Watershed Development Programme (IGWDP). In addition to the main objective, feedback was also obtained on status Self Help Groups and their linkage with banks. The study was conducted in four districts of state of Maharashtra covering 10 projects as where watershed treatments were completed. The major findings of the study are given below:

• The number of farmers accessing crop loans increased substantially in six out of ten projects covered under the study. There was 111% increase in number of farmers having access to crop loans. However, still only 58% of total farmers in project area were having access to crop loans.

• The production credit flow showed marked increase from 2005-06 which can be attributed to GoI policy of doubling agriculture credit in three years.

• The flow of investment credit for activities such as dug wells, pipelines, horticulture and dairy activities was found to be inadequate.

• The overall share of Commercial banks, District Central Cooperative Banks (DCCBs) and Regional Rural Banks (RRBs) was 54%, 43% and 3% in respect respectively. The DCCBs had major share in production credit.

• Lack of exposure to watershed projects, long distance of branches from area of the projects, poor repayment of earlier loans especially under erstwhile IRDP loans etc. were main reasons for poor credit flow from commercial banks.

• As regards SHG bank linkage under watershed projects, 20 SHGs out 97 were reported to have been credit linked. SHGs in watershed have received comparatively higher bank credit.
  
  

Watershed Development Projects implemented by NABARD has resulted in creation replicable models of participatory watershed development has helped in augmentation of natural resources and improvement in livelihood of watershed communities. Major impact of the watershed implementation in various prrogrammes as observed based on impact evaluation studies are given below:

1. Rise in ground water level

2. Drinking water scarcity in villages has been overcome

3. Local employment generation has improved, reducing off season migration

4. Increase in agricultural productivity and production - maize (28%), jowar / bajra (50%), ground nut (18%), pulses (36 to 42%)

5. Dairy activity has received a fillip

6. Demand for credit has gone up (estimated potential Rs.6420 crore)

7. Women empowerment and reduction in drudgery; large number of women SHGs formed and credit linked (about 12840 SHGs)

8. Secondary impact – improved housing, health and education (schools)

Major findings of the impact evaluation studies conducted by reputed external agencies / institutions and results of concurrent evaluation study are briefly given below:

Major findings based on the various studies conducted by external institutions are presented below:

(A) Teliki, Nethigutlapalli, Kothapalli, Kosuvaripalli watersheds in AP - Study by Action for Food Production (AFPRO)Watershed Profile:

Teliki watershed - area 871.5 ha, 137 families, cost - Rs. 57.23 lakh, Implementation period - 2006 to 2010; Nethigutlapalli watershed - area 907 ha, 284 families, cost - Rs. 57.24 lakh, Implementation period - 2005 to 2009; Kothapalli watershed - area 645 ha, 208 families, cost - Rs. 44.72 lakh, Implementation period - 2004 to 2009; Kosuvaripalli watershed - area 1443 ha, 428 families, cost - Rs. 76.58 lakh, Implementation period - 2005 to 2009.

Major Findings :

1.Area under sweet orange has increased from 20 acre to 58 acre and 30% increase in net irrigated area.

2.Reduction in distress migration from the area due to improved agricultural production and farm productivity (seasonal migration reduced to 14 families to nil in Teliki watershed)

3.Indigenous cows have been replaced with buffaloes & hybrid cows.(Population increased from 10 to 48) Fodder availability increased.

4. Increase in Agriculture income (19%), non farm sector (2%) and other sources (12%)

(B) Chipni- Bandhoin and Lodhwara Watershed Projects in Chitrakoot District of Uttar Pradesh- Dhan Foundation

Watershed Profile:

Chipani Bandhoin watershed - area 689 ha, 256 families, cost - Rs. 42.10 lakh, Implementation period - 2004 to 2009;

Lodhwara watershed - area 794 ha, 228 families, cost - Rs.37.35 lakh, Implementation period - 2004 to 2009.

Major Findings :

1. Ground water levels in both the watersheds raised between 12 to 18 feet during monsoon season compared to pre-development works.

2. In case of Chipni - Bandhoni watershed the wheat area during Rabi season increased by 75 ha and 8.5 ha area was brought under vegetable cultivation.

3. In case of Lodhwara watershed about 25 ha single crop area was converted into double cropped area and 6 ha area was brought under vegetable and pulses cultivation...

4. Yield from millets like bajra/jowar and pulses increased from 1.2 to 1.8 tonnes/ha (50% increase) and paddy yield showed increase from 3.0 tonnes to 4.3 tonnes per ha (43% increase)

5. Income level analysis for households showed that there was incremental income of Rs.1500/- per ac in r/o 35% house holds

6. In case of Chipni - Bandhoni watershed cross bred population increased from 12 to 37 (200% increase) whereas in case of Lodhwara watershed the same was increased from 21 to 57 during the watershed implementation (170% increase)

(C) Thimmapur and Fazulgagar watersheds, Karimnagar Dist. Andhra Pradesh by Central Research Institute for Dryland Agriculture (CRIDA)

Thimmapur watershed (area 1661 ha, 384 families, cost - Rs. 70.46 lakh, Implementation period - 2006 to 2010)

1. Cropping intensity increased by 10 %

2. Average water table increased by 25 %

3. Maize productivity increased from 35 to 45 q /ha (28.5% increase)

Fazulgagar watershed (area 932 ha, 485 families, cost - Rs. 42.69 lakh, Implementation period - 2006 to 2010)

1. 122 ha of culturable waste land brought under cultivation

2. Maize productivity increased from 18 to 33 q / ha. (83% increase)

3. Cropping intensity increased from 106 to 121 %

(D) Chaitanya, Mabbugutta, GB Thanda, Gramajyoti watersheds study by CRIDA

Watershed Profile:

Chaitanya watershed - area 1248 ha, 463 families, cost - Rs. 53.36 lakh, Implementation period - 2004 to 2009;

Mabbugutta watershed - area 924 ha, 363 families, cost - Rs.47.93 lakh, Implementation period - 2004 to 2009,

G B Thanda watershed - area 924 ha, 726 families, cost - Rs.48.79 lakh, Implementation period - 2005 to 2009,

Gramajyoti watershed - area 1372 ha, 650 families, cost - Rs.71.55 lakh, Implementation period - 2004 to 2009

Major Findings :

• Significant yield increase for Jowar (33%), Black gram (32%) & Greengram (24%) -Chaitanya watershed, Medak District

• 70 Acres of fallow/cultivable wastelands brought under cultivation and Productivity increase in Green gram (36%) & red gram (42%) during Kharif; Bengal gram (45%) & Ground nut (18%) during rabi - Mabbagutta watershed, Warangal Dist.

• Milch animal population increased from nil to 294 –Area under horticulture increased to 16 ha from 2.50 ha - GB Thanda watershed, Warangal Dist.

• Rabi cropped area increased from 136 ha to 404 ha (about 200% increase) - Gramajyoti watershed, Medak Dist.

(E) Results of Concurrent Evaluation Study by NABARD are presented below:

(A) Findings of quick study on farmers' suicide in distressed districts- Maharashtra

1. Of the 141 project villages covered in the study, no incidence of suicide due to agrarian crisis was reported (except two in Asoli village of Ghatanji Taluk of Yeotmal district who committed suicide due to other reasons).

2. Water table, in all project villages, has gone up by 2 to 3 meters and availability of drinking water is ensured.

3. The land which was fallow before commencement of project has now been brought under cultivation. On an average 50 ha. of additional land is brought under cultivation in each village. (approximately 7050 ha area)

4. As a result, distress migration has been totally stopped in most of the villages and Employment opportunities increased in project villages

5. Yield of soyabean, cotton, gram and jowar has gone up by 20 to 30 %.

Watershed Profile: Area 1258 ha, 717 families, cost - Rs. 67.52.46 lakh, Implementation period - 2005 to 2009.

1. Gross cropped area increased from 250 ha to 700 ha (300 ha under flower cultivation) – 180% increase

2. Cross Bred cow population increased from 240 to 367 (53% increase)

3. Reduction in the migration – average six months of employment for landless

(C) Gunj Babalad Nala watershed, Gulabarga Dist. – Karnataka

Watershed Profile:

Area 1077 ha, 690 families, cost - Rs. 58.9 lakh, Implementation period - 2004 to 2010.

Major findings of the study are given below:

• Ground water level increased by 3 to 5.5 m and 8 defunct dug wells rejuvenated
• Rabi area increased by 78.85 ha. area under pulses shown substantial increase (72.33 ha to 174 ha – rabi green gram) – 140% increase
• The highest increase in the yield was recorded in respect of bengal gram (118 %), followed by green / black gram (80 % each) and red gram (71 %)
• CB cow population increased to 183 from 9.

(D) Thummanahalli watershed, Chikkaballapur Dist., Karnataka

Watershed Profile: Area 1514 ha, 384 families, cost - Rs. 65 lakh, Implementation period - 2006 to 2010.

• An area of 136.7 ha of fallow and uncultivable waste land brought under dryland horticulture crops like cashew and mango.
• Area under mango increased from 200 to 348 ha; cashew from 50 to 182 ha; and forestry species from 58 to 158 ha. A total of 15094 man-days of employment generated due to the project.
• Federation of 9 SHGs have been formed in the watershed

• Income Generation Activities such as dairy animal (44 nos.), sheep (107 nos.), goat (33 nos.), chandrika for raising silk worms (50 nos.) were taken up by SHGs out of RFA.