Final Report Volume 1 Karnataka TA FINAL - KNNLknnlindia.com/kaveri2/KISWRMIP/Documents/Final Repo… · · 2017-01-10Final Report for the Karnataka Integrated and Sustainable Water

Final Report for the Karnataka Integrated and Sustainable Water Resources Management Investment Program Volume 1: The Report

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TABLE OF CONTENTS

TABLE OF CONTENTS ..................................................................................................................... i

ABBREVIATIONS .......................................................................................................................... vi

EXECUTIVE SUMMARY ................................................................................................................. 1

1. BACKGROUND .................................................................................................................... 15

1.1 Location .............................................................................................................. 15

1.2 Climate ............................................................................................................... 15

1.3 Geomorphology ................................................................................................... 18

1.4 Soils .................................................................................................................... 18

1.5 Surface Water Resources ...................................................................................... 18

1.6 Ground Water ..................................................................................................... 20

1.7 Climate Change and Water Resources .................................................................... 22

1.8 Description of Program Irrigation Areas .................................................................. 22

1.9 Integrated Water Resources Management .............................................................. 25

1.10 IWRM Institutional Framework .............................................................................. 25

1.11 Irrigation and IWRM ............................................................................................. 26

1.12 IWRM and Climate Change .................................................................................... 27

2. KARNATAKA WATER SECTOR ASSESSMENT ......................................................................... 28

2.1 State Water Vision and Policy ................................................................................ 28

2.2 National Water Policy and National Water Mission .................................................. 29

2.3 12th Five Year Plan ............................................................................................... 30

2.4 Karnataka Water Sector SWOT .............................................................................. 30

2.5 Water Sector Objectives ....................................................................................... 31

3. OVERVIEW ......................................................................................................................... 33

3.1 Introduction ........................................................................................................ 33

3.2 Program Rationale ............................................................................................... 33

3.3 SGOK Water Sector Roadmap ................................................................................ 37

Water Resources Management Vision .................................................................... 37

Water Services Delivery Vision ............................................................................... 39

River and Ecosystem Health Vision ......................................................................... 41

Review of Karnataka Water Sector Assistance ......................................................... 44

4. THE KISWRMIP ................................................................................................................... 48

4.1 The MFF Roadmap ............................................................................................... 48

4.2 Program Impact and Outcome ............................................................................... 50

4.3 Program Outputs ................................................................................................. 50

Output 1: State and Basin Level Institutions Strengthened for IWRM ................................... 50


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Output 2. Management of Irrigation Schemes with IWRM Principles .................................... 55

Output 3: Efficient Program Management Systems Operational .......................................... 60

4.4 Summary Program Investment and Financing Plan ................................................... 63

4.5 Procurement Requirements .................................................................................. 66

Civil Works .......................................................................................................... 67

Goods and equipment .......................................................................................... 68

Consultant Services .............................................................................................. 68

Procurement Plan ................................................................................................ 68

4.6 Environmental and Social Safeguards ..................................................................... 68

4.6.1 Environmental Safeguards ......................................................................... 68

4.6.2 Social Safeguards ...................................................................................... 75

4.6.3 Social Safeguards: Indigenous People .......................................................... 81

4.6.4 Summary Poverty Reduction and Social Strategy (SPRSS) .............................. 84

4.6.5 Gender Action Plan (GAP) .......................................................................... 84

4.7 Governance ......................................................................................................... 85

National Water Policy and Framework .................................................................... 85

State Water Sector Policy and Legal Framework ...................................................... 88

State Water Institutions ........................................................................................ 92

Program Involvement and Capacity Building Needs of Water Agencies ....................... 94

Stakeholder Consultation and Communication ........................................................ 97

4.8 Program Implementation ...................................................................................... 98

Implementation Arrangements .............................................................................. 98

Staffing Requirements and Organisation ............................................................... 106

4.9 Financial Management and Disbursement ............................................................ 110

5. PROGRAM BENEFITS ......................................................................................................... 112

5.1 Approach and Major Assumptions ....................................................................... 112

5.2 Economic Benefits .............................................................................................. 112

5.2 Financial............................................................................................................ 113

5.3 Social, Poverty and Gender ................................................................................. 113

5.4 Environmental ................................................................................................... 115


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LIST OF FIGURES

Figure 1: KISWRMIP Roadmap ............................................................................................... 3

Figure 2: Tungabhadra Sub Basin ......................................................................................... 16

Figure 3: River Basins of Karnataka ...................................................................................... 19

Figure 4: Sub Basins of the Krishna River Basin ...................................................................... 20

Figure 5: Status of Groundwater ......................................................................................... 21

Figure 6: Project locations .................................................................................................. 23

Figure 7: Locations of Vijayanagara and Tungabhadra Left Bank Canal Systems ........................ 23

Figure 8: Gondhi Command Area ......................................................................................... 24

Figure 9: Vijayanagara upstream canals ............................................................................... 24

Figure 10: Example of the IWRM Institutional Framework ........................................................ 26

Figure 11. Trend in operational farm holdings (1970‐2006) ...................................................... 34

Figure 12: Strategic framework for IWRM in Karnataka............................................................ 49

Figure 13: WUCS Institutional Strengthening Strategy ........................................................... 103

Figure 14: KISWRMIP Implementation Framework ................................................................ 108


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LIST OF TABLES

Table 1: River Systems and Yields ........................................................................................ 18

Table 2. Strengths, Weaknesses, Opportunities and Threats of Karnataka Water Sector ............ 31

Table 3: Projected sector water demands in 2025 (Karnataka State) ........................................ 35

Table 4: Summary of Flow Measurement Locations ............................................................... 58

Table 5: Proposed training for irrigation service institutions ................................................... 60

Table 6: Cost Estimates (US$ million) ................................................................................... 64

Table 7: Financing Plan (US$ million) .................................................................................... 64

Table 8: Expenditure Accounts by Components ‐ Base Costs (US$ '000) ................................... 64

Table 9: Cost Estimates and Financing Plan (Tranche 1, US$ million) ........................................ 65

Table 10: Categorisation according to EPA, 2006 for River Valley Projects .................................. 69

Table 11: Environmental Compliance Requirements Legislative Needs ‐ India ............................. 71

Table 12: Sub‐project Administrative Jurisdictions and ST Population ........................................ 82

Table 13: Land Holding amongst STs in Project Districts ........................................................... 83

Table 14: Average Land Holding Pattern amongst STs in Project Districts ................................... 83

Table 15: State water institutions and their roles .................................................................... 92

Table 16: Agencies involvement in KISWRMIP ......................................................................... 94

Table 17: Stakeholders and planned training approach ............................................................ 96

Table 18: Person Month Requirements for Project Support Consultancy .................................. 107

Table 19: Staffing of PMU Monitoring and Communication and Budget and Administration cells 108

Table 20: Staffing of PMU Irrigation cell ............................................................................... 109

Table 21: Staffing of SST ..................................................................................................... 110

Table 22: Summary of Financial and Economic Analysis.......................................................... 114


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LIST OF APPENDICES

VOLUME 2

APPENDIX 1: DESIGN AND MONITORING FRAMEWORK ................................................................ 1‐4

APPENDIX 2: KISWRMIP IWRM ROADMAP .................................................................................. 5‐11

APPENDIX 3: WATER GOVERNANCE .......................................................................................... 12‐38

APPENDIX 4A: OUTPUT 1 PROJECT IMPLEMENTATION PLAN ...................................................... 39‐96

APPENDIX 4B‐1: OUTPUT 2 PROJECT IMPLEMENTATION PLAN (MANAGEMENT OF IRRIGATION SUB PROJECTS IS MODERNIZED) ................... 97‐122

APPENDIX 4B‐2: OUTPUT 2 PROJECT IMPLEMENTATION PLAN (WUCS AND AGRICULTURE DEVELOPMENT) .................................................... 123‐134

APPENDIX 4C: OUTPUT 3 PROJECT IMPLEMENTATION PLAN .................................................. 135‐148

APPENDIX 5: TERMS OF REFERENCE FOR WUCS SUPPORT SERVICE TEAM (SST) ................. 149‐153

APPENDIX 6: IWRM CAPACITY ASSESSMENT .......................................................................... 154‐187

APPENDIX 7: PROCUREMENT CAPACITY ASSESSMENT .......................................................... 188‐202

APPENDIX 8: STAKEHOLDER PARTICIPATION & CONSULTATION ........................................... 203‐214

APPENDIX 9: COMMUNICATIONS STRATEGY ......................................................................... 215‐220

APPENDIX 10: RESETTLEMENT FRAMEWORK .......................................................................... 221‐291

APPENDIX 11: DRAFT SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY ................... 292‐295

APPENDIX 12: GENDER ACTION PLAN ..................................................................................... 296‐297

APPENDIX 13: PROCUREMENT PLAN ........................................................................................ 298‐305

APPENDIX 14: DEVELOPMENT COORDINATION ....................................................................... 306‐310

APPENDIX 15: DETAILED TRANCHE 1 FUNDING COSTS ............................................................ 311‐327

APPENDIX 16: ECONOMIC AND FINANCIAL ASSESSMENT ....................................................... 328‐347

APPENDIX 17: OUTLINE OF FACILITY ADMINSTRATION MANUAL ............................................ 348‐349

LIST OF ANNEXURE

ANNEXE 1: ENVIRONMENTAL ASSESSMENT REVIEW FRAMEWORK

ANNEXE 2: INITIAL ENVIRONMENTAL EVALUATION

ANNEXE 3: FEASIBILITY REPORT

CIRCULATED UNDER SEPARATE COVER, NOVEMBER 2012

FEASIBILITY REPORT‐ VOLUME 1: MAIN REPORT

FEASIBILITY REPORT‐ VOLUME 2: ANNEXURE


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ABBREVIATIONS

AC‐IWRM Advanced Centre for Integrated Water Resource Management

ADB Asian Development Bank

AIBP Accelerated Irrigation Benefit Program

APs APs Affected Persons

BATNEEC Best Available Technology Not Entailing Excessive Costs

BCM Billion Cubic Metres

BPL Below Poverty Line

CAD Command Area Development

CADA Command Area Development Authority

CCA Culturable Command Area

CDTA Capacity Development Technical Assistance

CMO Central Mechanical Organisation

CNNL Cauvery Neeravari Nigam Limited

CPCB Central Pollution Control Board

CWC Central Water Commission

DMF Design and Monitoring Framework

DPR Detailed Project Report

DPs Displaced Persons

EA Executing Agency

EARF Environmental Assessment and Review Framework

EIA Environmental Impact Assessment

EIRR Economic Internal Rate of Return

EMMP Environmental Management and Mitigation Plan

EMP Environmental Management Plan

FFA Framework Financing Agreement

FGD Focus Group Discussion

FIRR Financial Internal Rate of Return

FTP Full Technical Proposal

FY Fiscal Year (April 1 – March 31)

GAP Gender Action Plan

GCA Gross Command Area

GIS Geographic Information System

GOI Government of India

GRC Grievance Redress Committee


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GSDP Gross State Domestic Product

IA Implementing Agency

ICB International competitive bidding

ICCs Irrigation Consultative Committees

IEE Initial environmental examination

INR Indian National Rupee

IP Indigenous People

IPC Irrigation Potential Created

IPCC Intergovernmental Panel on Climate Change

IPPF Indigenous Peoples Planning Framework

IPU Irrigation Potential Utilized

IRBM Integrated River Basin Plan

IT Information Technology

IWRM Integrated Water Resources Management

JNNURM Jawaharlal Nehru National Urban Renewal Mission

JSYS Karnataka Jala Samvardhane Yojana Sangha

KCBTMP Karnataka Community Based Tanks Management Project

KERC Karnataka Engineering Research Centre

KISWRMIP Karnataka Integrated and Sustainable Water Resources Management Investment Program

KNNL Karnataka Neeravari Nigam Limited

KUIDFC Karnataka Urban Infrastructure Finance Corporation

KUWSDB Karnataka Urban Water and Sewerage Drainage Board

KWDT Krishna Water Dispute Tribunal

LAA Land Acquisition Act

LDO Land Development Officer

litres/p/d Litres Per Day

LWMP Land and Water Management Plan

MCM Million Cubic Metres

MFF Multi‐Tranche Financing Facility

MGNREGA Mahatma Gandhi National Rural Employment Guarantee Act

MI Minor Irrigation

MIS Management Information System

MMI Major and Medium Irrigation

MOA&C Ministry of Agriculture and Cooperation

MORD Ministry of Rural Development

MOUD Ministry of Urban Development


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MOWR Ministry of Water Resources

NAPCC National Action Plan on Climate Change

NCB National Competitive Bidding

NGO Non‐government organization

NLBC Narayanpur Left Bank Canal

NRDWM National Rural Drinking Water Mission

NRRP National Resettlement & Rehabilitation Policy

NWM National Water Mission

O&M Operation and maintenance

OFD On‐Farm Development

PIM Participatory Irrigation Management

PIO Project Implementation Officer

PM Prime Minister

PMU Program Management Unit

PPP Public Private Partnership

PPTA Project Preparation Technical Assistance

PSC Program Support Consultancy

QCBS Quality and Cost Based Selection

R&R Rehabilitation and Resettlement

RB River Basin

RBO River Basin Organization

RF Resettlement Framework

RoW Right of Way

RPs Resettlement Plans

RRR Repair, Renovation and Restoration

RTI Right to Information

SCs Scheduled Castes

SEZ Special Economic Zones

SGOK State Government of Karnataka

SoR Schedule of Rates

SPCB State Pollution Control Board

SPRSS Summary Poverty Reduction and Social Strategy

SPS Safeguard Policy Statement

SST WUCS Service Support Team

STs Scheduled Tribes

SW South West


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TAC Technical Advisory Committee

TB Tungabhadra sub‐basin

TLBC Tungabhadra Left Bank Canal

TMC Thousand Million Cubic Feet (1 TMC = 28.317 MCM)

TOR Terms of Reference

TSC Total Sanitation Campaign

UKP Upper Krishna Project

UWSS Urban Water Supply and Sanitation

VJN Vijayanagara

VNC Vijayanagara Channels

WALMI Water and Land Management Institute of WRD

WRA Water Regulatory Authority

WRD Water Resources Department, Government of Karnataka

WRDO Water Resources Department Organization, Government of Karnataka

WSS Water Supply and Sanitation

WUCS Water User Cooperative Societies

WUE Water Use Efficiency


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EXECUTIVE SUMMARY

Background and Rationale

1. The State of Karnataka lies in the south of India and covers an area of 191,976 square kilometers, or 5.83% of the area of India. It is the eighth largest Indian state by area with over 61 million inhabitants. The two main river systems of the state are the Krishna and its tributaries (Bhima, Ghataprabha, Vedavathi, Malaprabha, and Tungabhadra) in the north, and the Cauvery and its tributaries (Hemavati, Shimsha, Arkavathi, Lakshmana, Thirtha, and Kabini). Both these rivers flow eastward and fall into the Bay of Bengal.

2. Karnataka is one of India’s most progressive states and home to one‐third of the information technology (IT) and back‐office service industries. As a result, the state economy is one of the fastest growing however, of the approximately 61.1 million people in Karnataka, about 14.23 million people (23.6%) lived below the poverty line in 2009‐10.

3. The relative importance of agriculture the Gross State Domestic Product (GSDP) is reducing quite quickly and the demand for water by non agriculture sectors is increasing rapidly (eg. water diversions/demand for industry is expected to almost triple from 2000 to 2025). Agriculture accounted for about 84% of water diversions in 2000 and estimated water demands in the State may reach 52,366 Million m3 (1,850 TMC) by 2025 from 37,419 Million m3 (1,321 TMC) in 2000. Agriculture will remain by far the largest water user and the major source of employment for about 55% of the total population and about 75% of the rural population.

4. Karnataka is one of the most water‐stressed states in India, with about 61% of the State, the 5th highest percentage, in the drought prone area or desert development programs in 2003. Irrigation water use is important as Karnataka has limited water resources (1,608 m3/person/year overall and approximately 1,072 m3/person/year in eastward flowing rivers).

5. The Tungabhadra sub‐basin (TB), the main pilot area for this project, lies within the Krishna River Basin and largely within Karnataka. Rainfall for the sub‐basin follows a monsoonal pattern, and roughly reflects elevation which ranges from 1,200 m to 500 m. Annual rainfall is from 300 cm in the south (Western Ghats), and to less than 50 cm in the northeast. Droughts are frequent. During the southwest monsoon of June to September, the sub‐basin receives on average about 70% of the annual rainfall, with September being the wettest month. The average annual runoff from the sub‐basin is about 6.6 km³.

6. There is a long term warming trend and negative trend in rainfall for Karnataka. Climate Change studies of Karnataka have indicated with a high degree of confidence that the area affected by drought will increase. In the Kharif season, most northern districts are projected to have an increase in drought incidences by10‐80% with the Districts of Koppal and Yadgir projected to have almost a doubling of drought frequency.

7. Integrated Water Resources Management (IWRM) aims to ensure water for health, food, and energy, while maximising sustainable economic, social and environmental outcomes. Its principal features are to coordinate the management of water by sectors and water users (both quantity, quality; surface water and groundwater) in taking a scientific and planned approach so that water resources are used and managed, including by the environment, within the total available quantum of the resource. IWRM is a critical requirement that will enable a smoother and more effective adaptation to climate change when compared to alternative approaches and in particular business as usual.

8. International experience shows that effective IWRM includes:

An institutional framework that is both robust and flexible, and includes modern legislation that supports an integrated and adaptive policy approach,

Water resource assessment, planning and management being knowledge driven.



Integration that is built into institutions, resource management, and policy and the environment is recognised as a legitimate water user,

Stakeholder and community awareness raising and participation as a key part of water resources management so that communities understand and contribute to solutions through local management and actions.

Regular monitoring and evaluation that provides information to determine whether river management and investment are achieving planned outcomes.

9. Irrigation is the major user and consumer of surface and groundwater in Karnataka. Traditionally, irrigation areas were seen to be individually inefficient and so major programs were undertaken to increase water use efficiency at this scale. However, this mostly results in runoff from one irrigation area being substantially reduced thereby reducing the availability of water to downstream users such as irrigation, urban or environmental users. It is critical that an IWRM approach is taken where water availability and efficiency is considered from an overall river basin perspective. In this way, inter system linkages and dependencies are considered and managed. In river basins where there are existing or potential water shortages; clear plans, rules and regulatory arrangements are required if water supply and security of access is to be sustained for all water users. A strong water information, regulatory and river basin management system will underpin management of the water resource for all users and including protection of the environment.

10. Climate Change requires an even stronger emphasis and application of IWRM principles and approaches and particularly strong water resource modelling and decision support systems. A robust water sharing approach is required which is resilient when faced with the extremes of droughts and floods. Climate change increases the urgency and rigour with which IWRM needs to be adopted and evolved.

11. The State Government of Karnataka’s (SGOK) Water Policy and various water related visions, responds to this scarcity of water and in declaring 2011 to 2020 as the irrigation decade shifts focus from yield per acre to yield per unit of water consumed. Although there is no standalone, IWRM based, water resources law; SGOK policies, plans and objectives place a high priority on the sustainable and improved use and development of its water resources.

12. At a national level the National Water Policy 2002, the current draft National Water Policy and 12th Five Year Plan provide directions consistent with IWRM and strong support for this Program. Conversely these arrangements give confidence that the lessons from the KISWRMIP will be extended more widely throughout India. Additional governance arrangements relevant to water resources management in Karnataka that have been reviewed here are:

National Water Resources Program Framework – Approach to 12th Five Year Plan (2012‐17)

National Water Resources Program Framework ‐ National Water Mission under the National Action Plan on Climate Change

State Water Policy and Vision

State Water Legislations

State Water Institutions

Capacity building needs of Water Agencies

13. While there are constraints to water resources management, such as fragmentation of water resources management between agencies and resistance to change at some levels of government and civil society, there a great number of enabling factors for IWRM in Karnataka. For example, recognition of the scarcity and threats to the water resource, progressive policy statements, a willingness and history of large investments in water resources management, a capable technical workforce, and new and semi‐independent institutions such as the Advanced Centre for Integrated



Water Resources Management (AC‐IWRM) which is established to study and advise on new IWRM based approaches to water resources management.

14. The AC‐IWRM was established in February 2012 and it will engage in policy analysis and research, development of an updated water sector knowledge base, and, assist the Water Resources Department in introducing IWRM into Karnataka.

15. The SGOK has requested financing from the Asian Development Bank (ADB) to enhance water security in selected basins where there is increasing water stress due to rapid economic growth and future competing needs for water supply.

16. The Government of India, SGOK and ADB have agreed to prepare the Karnataka Integrated and Sustainable Water Resources Management Investment Program (KISWRMIP) for this purpose. It will be financed through a Multi‐tranche Financing Facility (MFF) so as to enable flexibility in investment decisions and timing based on the needs and constraints of the project, instead of a precise definition of investments up front as conventionally required.

Karnataka IWRM Roadmap

17. The Government of Karnataka declared the period 2011 to 2020 as the Irrigation Decade, with an objective of increasing the State’s agricultural income and achieving food security. It has adopted an IWRM vision of: “Water resources planning, development and management that will be carried out by adopting an integrated approach for a hydrological unit such as river basin as a whole or for a sub basin, multi‐sectorally, conjunctively for surface and ground water incorporating quantity, quality and environmental considerations …”

18. A framework for the road map for the KISWRMIP and introducing IWRM into Karnataka is shown in Figure 1.

Figure 1: KISWRMIP Roadmap

19. The IWRM Roadmap (appendix 2) is based on the assessment of the water resource institutions and policies in Karnataka as well as the study of the Tungabhadra river sub‐basin as a sub‐basin typical of conditions in Karnataka. The Roadmap and KISWRMIP has been developed and includes

IMPACT Enhanced access and security of water

resources and services in the river basins of Karnataka

SUPPORTING THEMES Data, Information, and Knowledge

Management Stakeholder Involvement

KEY THEMES Institutions and

Policies for IWRM

Cross-Sectoral Integration

IWRM Based Irrigation

Management

Integrated River Basin

Management

IWRM and Learning Processes



key areas for IWRM and a supporting ten year program consisting of 3 overlapping Tranches totalling investment of $ 225 million ($150 million ADB, $75 million SGOK).

Program Impact

20. The impact of the Program will be enhanced security of water resources in Karnataka river basins. Indicator targets from the Design and Monitoring Framework (DMF) for this are by 2028:

i. River basin management arrangements established in at least 3 sub‐basins

ii. Water quality in at least 90 % of river reaches maintained at or better than class for intended use in selected sub‐basins

iii. State gross value (2012 INR) of annual agricultural production increases from INR 62,057 crore (USD 11.28b) to INR 141,455 crore (USD 25.72b)

Program Outcome

21. The Outcome of the Program would be improved water resources management in the selected river basins in Karnataka. The indicator targets for this are:

i. By 2020 the State IWRM strategy will be under implementation

ii. By 2023 annual water resources monitoring and assessments in program sub‐basins and corresponding water allocations to users are being implemented

iii. By 2023 Infrastructure and management systems on 55,000 ha of irrigation is modernized (FAO 1996) within the K8 sub‐basin

Program Outputs

22. The KISRMIP comprises 3 Program Level Outputs, each with performance indicators, and these are:

i. State and basin institutions strengthened for IWRM

ii. Irrigation system infrastructure and management modernised

iii. Program management systems operational

23. The 3 Outputs will be conducted as follows:

TRANCHE 1 (years1‐4) TRANCHE 2 (years 3‐7) TRANCHE 3 (years 6‐10)

OUTPUT 1: AC‐IWRM STRENGTHENED TO SUPPORT STATE AND BASIN LEVEL INSTITUTIONS AND POLICIES

Project 1‐1: State and Basin Institutions Strengthened For IWRM

Studies involving policy and institutions, river basins, water resource information, water use efficiency


Continuation of Tranche 1 activities including trialing and implementation where relevant

LWMP pilot in 1 WUCS area


Continuation of Tranche 2 activities

Project 1‐2: Output Management and Coordination


Continuation of T1


Continuation of T2

OUTPUT 2: MANAGEMENT OF IRRIGATION SUB PROJECTS IS MODERNIZED

Project 2‐1: Modernisation of Gondhi irrigation system

Project 2‐1: Modernisation of Vijayanagara (VJN) and part of Tungabhadra Left Bank Canal (TLBC) Irrigation Systems

Project 2‐1: Modernisation of part of TLBC irrigation system




Project 2‐2:Flow measurement with Telemetry for Bhadra and key irrigation systems

Project 2‐2: Flow measurement with Telemetry


Project 2‐3: WUCS and Agricultural Development ‐ Gondhi Irrigation System

Project 2‐3: WUCS and Agricultural Development – VJN, TLBC, aftercare for Gondhi

Project 2‐3: WUCS and Agricultural Development ‐ TLBC plus aftercare for VJN

Project 2‐4: Strengthening of Nigams and CADA.

Project 2‐4: Strengthening of Nigams and CADA. On‐going and aftercare


OUTPUT 3: EFFICIENT PROGRAM MANAGEMENT SYSTEMS OPERATIONAL

Project 3‐1: Program Planning Project 3‐1: Program Planning Project 3‐1: Program Planning

Project 3‐2: Program Execution Project 3‐2: Program Execution Project 3‐2: Program Execution

Project 3‐3: Program Monitoring Project 3‐3: Program Monitoring Project 3‐3: Program Monitoring

Output 1: AC‐IWRM Strengthened to Support State and Basin Level Institutions and Policies

24. For Output 1 conducted by the AC‐IWRM, the sub‐outputs to be conducted are:

(i) Activities for Project 1‐1: State and Basin Institutions Strengthened For IWRM

Preparation of a State IWRM Strategy

- Task 1: Development of IWRM Strategy

- Task 2: Interim RBO Arrangements for K‐8 River Basin Developed

Strategy for Water Resources Information System

- Task 1: IWRM based Water Resource Information and Knowledge System

- Task 2: RB Planning and Decision Support System

- Task 3: Hydrological Monitoring for T2 and T3 Modernisation Projects

Inventory of State River Basins

- Task 1: Preparation of inventory of river basins

River Basin Plans in Selected River Basins

- Task 1: Preparation of River Basin Plan for Tungabhadra (K‐8) RB

- Task 2: River Basin Plans for 2 Additional RBs

- Task 3: RBO Arrangements

Water Efficiency and Productivity

- Task 1: Assessments of Basin scale WUE and Water Productivity

- Task 2: Improving WUE and Irrigation Systems

Preparation of Community Based Land and Water Management Plans

- Task 1: Preparation of pilot LWMP

(ii) Activities for Project 1‐2: Output Management and Coordination



Output Management and Coordination

IWRM Training and Capacity Building

Awareness Raising and IWRM Participation

Output 2: Management of Irrigation Sub Projects is Modernized

25. A progressive modernisation process is envisaged which will include a range of factors including: acceptance by all stakeholders of the challenges facing the sector; identification and evaluation of a full range of modernisation options that account for likely future cropping patterns and command area distribution systems; future operation requirements for improved service and efficiency; appropriate infrastructure to support improved service delivery; provision of automatic flow measurement and data transmission for monitoring and management purposes; volumetric monitoring of deliveries to underpin bulk water charging; and, capacity building of system operations staff and water user organisations.

26. Three existing irrigation systems have been identified for modernisation under this project and these activities will be conducted by the Karnataka Neeravari Nigam Limited (KNNL).

Gondhi Irrigation System which has a total command area of about 4,600 ha and this will be modernised in Tranche 1. This takes advantage of the multi‐tranche facility by starting with a relatively small Tranche 1 during which capacity building can be undertaken and, strategies and project sustainability trialed on a small and relatively uncomplicated subproject.

Vijayanagara (VJN) Channels which has a total command area of about 11,000 ha which would be modernised in Tranche 2

Tungabhadra Left Bank Canal System which has a command area of 244,000 ha. About 40,000 ha in total would be modernised in Tranches 2 and 3.

27. Detailed Project Reports (DPR) and detailed designs are being prepared for these projects by separate consultants under contract to KNNL. The DPR will then be passed to the Central Water Commission (CWC) first at the regional/State level and then the national level for approval of Technical Advisory Committee (TAC) of Ministry of Water Resources (MOWR) after which the work can be tendered by KNNL.

28. Detailed preparation of Feasibility Studies to meet ADB requirements for subsequent Tranche subprojects (VJN and TLBC) including rapid appraisal and FAO Masscote system diagnostics will be undertaken. It is anticipated that the preparation of these sub‐projects will commence about 1 year into Tranche 1.

29. Improved flow measurement and monitoring is one of the mechanisms to improve water management within the irrigation systems and also enable improved water resource management within the sub‐basin. In addition to improved flow measurement that will be provided as part of the irrigation modernisation sub‐projects, improved flow measurement will be provided at key points for all of the major irrigation systems within the sub‐basin.

30. A rigorous WUCS institutional strengthening process and agricultural training will be implemented under the program. The institutional strengthening process for each WUCS will be in four sequential phases implemented over a period of 60 months per sub‐project. As Gondi is a relatively small system with limited number of WUCS, this may be achieved in 36 months. The primary responsibility for implementing the WUCS institutional strengthening process is of the WUCS Support Service Teams (SST) to be recruited through the Program Support Consultants and placed with the PIO and reporting to the PIO Manager. The agricultural training includes strengthening of agricultural productivity and gender awareness and involvement.



31. Strengthening of the involved Nigams, the Command Area Development Authorities and Agriculture Department is planned in order to support the project in providing more effective water management where there is increasing water scarcity, taking a customer (water user) focussed approach, as well as improving agricultural productivity. Specific training for this purpose and including gender training is planned.

Output 3: Efficient Program Management Systems Operational

32. KNNL is proposed as the program Executing Agency by WRD, SGOK. The SGOK IWRM Steering Committee, chaired by the Chief Secretary, will be responsible for overall review of the program and to facilitate inter‐departmental coordination, especially for IWRM activities. The Implementing Agency for Output 1 will be the AC‐IWRM; Output 2, KNNL; and, for Output 3, the KNNL through its Irrigation Zones (Field Units) and the concerned CADAs.

33. A skills‐based expert advisory panel is proposed for Output 1. It would comprise international, national and SGOK representatives.

34. In order to promote linkages with national initiatives and expertise as well as to extend the benefits of the program nationally, the Central Water Commission (CWC) would be invited to be a member of both the IWRM Steering Committee and the international expert advisory panel.

35. A Program Management Unit (PMU) with the requisite staff will be established in the Tungabhadra Basin, under the KNNL Chief Engineer, Central Irrigation Zone, Munirabad, who is designated as the Program Director. The PMU will have overall responsibility for Output 3. The PMU will be responsible for overall program management, coordination, monitoring and reporting. Communications will be managed consistent with GOI and ADB requirements for transparency The PMU will be supported by a Program Support Consultancy (PSC) team in its work.

36. A Project Implementation Office (PIO) under a Project Manager of a rank of Superintending / Executive Engineer will be established for field implementation of each irrigation modernisation project. Depending upon the command area and quantity of works, dedicated Irrigation Sub‐divisions will be established under the PIO. CADA staff will be deputed to the PIO and also include the WUCS Support Service Teams described above. A PIO will be located at the AC‐IWRM in Bangalore under the supervision of the Director AC‐IWRM for Output 1.

37. The program will be monitored according to the Program Design and Monitoring Framework and a Program MIS will be established in the commencement phase of the project.

38. Program coordination at Headquarters will be the responsibility of the Program Director. For interagency coordination, the Program Director will have the support of the KNNL / WRD and the IWRM Steering Committee.

39. Transparent and effective external relations and disclosure of information will be undertaken consistent with the ADB, Public Communications Policy 2011 and the Government of India, Rights to Information Act, 2005. The PMU will establish a specific communication strategy consistent with these policies.

Program Resourcing and Administration

Staffing, Contract and Consulting Services

40. The proposed assistance for the respective Outputs are:

Output 1: AC‐IWRM Strengthened to Support State and Basin Level Institutions & Policies

41. Output 1 is planned to be implemented in 2 parts. Support for the foundation part (part 1) that runs throughout the 3 Tranches is provided by ADB funds and this will support basic international consulting services for Tranche 1. The foundation part would support all activities although the level of training and support from international consultants would be limited. The loan to SGOK would support government staff on contract and national consultants for all Tranches and would also



support training Courses; international, regional and national Study Tours; 2 way international work placements and fellowships; and a tri‐ennial international conference.

42. Funding of international consultants for Tranches 2 and 3 would be by yet to be identified international partners and/or the loan component of the Program.

43. Part 2 includes additional services and activities to provide additional training and support from international and national consultants for the Tasks listed above. This would be funded by international partners and/or the loan component of the Program.

44. The SGOK would provide government staff for all Tranches. Staffing and consulting requirements for the foundation activities of both (project implementation office and IWRM technical activities) projects of Output 1 are: government staff 2,400 person months (T1 1,186 pm, T2 876 pm, T3 886 pm); government staff on contract 1,200 pm (T1 480 pm, T2 360 pm, 360 pm); national consultants 91 pm (T1 45 pm, T2 18 pm, T3 28 pm); international consultants 42 pm (T1 24 pm, T2 9 pm, T3 9 pm).

45. For the additional activity based support to be funded by additional partner involvement or from the project loan proposed staffing and consulting requirements are: national consultants 86 pm (T1 85 pm; T2 67 pm; T3 179 pm); international consultants 86 pm (T1 49.75 pm, T2 54.5 pm, T3 14.25 pm).

Output 2: Management of Irrigation Sub Projects is Modernized

46. The Output 2 staffing and consulting support requirements are for the Project Support Consultancy and comprise national consultants 686 pm (T1 225 pm, T2 258 pm, T3 203 pm); international 96 pm (T1 30 pm, T2 36 pm, T3 30 pm).

47. Requirements for WUCS Support Service Team are 1,516 pm (T1 216 pm, T2 696 pm, T3 624 pm).


48. Requirements for PMU recruited staff are 120 pm over all tranches.

Financing

49. The program investment cost is estimated at $US 242 million, including: physical and price contingencies of $ 39 million; and taxes and duties of $10 million to be financed by the Government, and minor financial charges as shown in the following table.

Foreign Local Total % of Baseline

Integrated Water Resource Management 5.9 20.9 26.8 13

Irrigation & Agricultural Support 0.1 158.0 158.1 78

Project Management 3.1 15.0 18.2 9

9.1 194.0 203.0 100

Physical Contingencies ‐ 15.6 15.6 8

Price Contingencies 0.9 22.4 23.3 11

10.0 231.9 241.9 119

Financial Charges During Implementation ‐ 0.1 0.1 ‐

TOTAL 10.0 232.0 242.0 119

50. The Government has requested financing of up to $150 million from ADB’s ordinary capital resources to finance the Program. The facility may extend to three Tranches to implement the Program, under a framework financing agreement (FFA) with ADB. The financing plan (USD million) for the Program is shown in the following table. Grant aid is being sought for IWRM support. A US$ 1 million facility for irrigation scheme design and US$ 0.5 million for impact monitoring studies have been included. There are no land acquisition or resettlement requirements.



Foreign Local Total Percent

The Government 1.3 77.5 78.7 33

Asian Development Bank 5.1 148.4 153.5 63

Grant Finance (IWRM) 3.7 0.8 4.4 2

Beneficiaries ‐ 5.4 5.4 2

Total 10.0 232.0 242.0 100

51. The following table shows detailed expenditure (USD million) by component.

Expenditure Account Water Resource Management

Irrigation & Agricultural Support

Project Management

Total

Civil Works ‐ 155.1 ‐ 155.1

Equipment & Supplies 0.2 0.2 0.1 0.6

Training 4.1 ‐ ‐ 4.1

Community Development ‐ 2.7 2.7 5.4

Surveys and Studies 0.3 ‐ 1.5 1.8

Implementation Consultants 3.3 ‐ 10.5 13.8

Staff Costs 9.9 ‐ 3.3 13.2

IWRM Grant 8.9 ‐ ‐ 8.9

Total Baseline Cost 26.8 158.1 18.2 203.0

Physical Contingencies ‐ 15.5 ‐ 15.6

Price Contingency 2.6 18.7 1.9 23.3

Total Cost 29.5 192.3 20.1 241.9

(of which taxes) 9.8

52. The following table indicates the cost estimates (USD million) for Tranche 1. The first Tranche is estimated to cost the equivalent of US$ 47 million, including taxes and duties of US$ 1.9 million. It will cover the initial implementation of one medium scheme (including flow measurement), four years of IWRM development (including studies), social support costs, project management and consulting services.

SGOK ADB Grant Aid

Benefic‐iaries

Total

US$m % US$m % US$m % US$m % US$m %

IWRM 6.3 52 3.5 29 2.4 20 ‐ ‐ 12.1 26

Irrigation & Agricultural Support 8.5 30 19.9 69 ‐ 0.4 1 28.9 61

Project Management 1.2 19 5.0 81 ‐ ‐ ‐ 6.1 13

Total 16.0 34 28.4 60 2.4 5 0.4 1 47.1 100




53. The program is ten years, starting in 2013 and consists of three overlapping Tranches of three or four years, depending on the activities, for example irrigation scheme design and WUC awareness activities may start in the Tranche prior to infrastructure investment.

Procurement

54. Procurement is to be financed from the ADB loans under the MFF and will be carried out in accordance with ADB’s Procurement Guidelines for goods, works, services and consultants (April 2010), as amended from time to time.

55. State level procurement approaches are not fully aligned with ADB procurement procedures. Bidding documents will need adjustments in line with ADB’s standard bidding documents to be used for procurement of goods and works by NCB. For ICB, ADBs SBD may be adopted. For consultant selection SGOK SBD may be used with minor adjustments to meet ADB requirements.

56. Procurement for the MFF will be carried out by WRD, AC‐IWRM and KNNL using e‐Procurement for goods, works and services costing more than $4000. E‐Procurement is the default mode of procurement for WRD and its agencies. A procurement capacity assessment was conducted on KNNL and this found and recommended that since it is mandatory to use e‐Procurement and KNNL is well versed in the process, ADB may agree to e‐procurement subject to assessment of the e‐Procurement system in terms of safety, transparency and competitiveness. The recently formed AC‐IWRM being a nascent organization will be assisted by WRD and KNNL in carrying out procurement.

57. The PMU will monitor and report on the implementation of the Procurement Plan and will organize the procurement activities. Measures to strengthen the capacity of the PMU and Project Implementation Office (PIO) staff in undertaking procurement activities will be implemented.

58. The Karnataka Transparency in Public Procurements Act, 1999 governs all public procurement in the state and aims for transparency in public procurement of goods and services. It is clear and closely aligned with ADB’s procurement guidelines. The Act indicates that in case of inconsistencies, ADB procurement guidelines would prevail.

59. The project will finance three consulting services packages. International firms will be recruited as Project Support Consultant and AC‐IWRM strengthening consultant to support PMU and AC‐IWRM respectively for the duration of first tranche. A national civil society organization will be hired as WUCS Support Service Team for the first Tranche. It will be procured through FBS procedure since the TOR is clearly defined and the work requires continuous handholding and support to build capacity of WUCS which is a farmers’ organization.

Program Impacts and Safeguards

Environmental

60. An Environmental Assessment Review Framework (EARF) has been developed and used to assess the possible impacts of projects during design and detailed planning, construction, and operation and maintenance to minimise the risk of environmental impact from the Tranche 1 (Gondhi) project. This EARF provides the foundation for the Initial Environmental Evaluation (IEE) that will be conducted during Tranche 1 for the Tranche 2 and Tranche 3 modernisation projects.

61. Under the GOI EIA Notification requirements Gondhi project is likely to be considered a Category A project as it is within 10 km of the Bhadra Wildlife Sanctuary and within 10 km of a critically polluted area, namely Bhadrawati. Thus the Detailed Project Report (DPR) may require clearance from the central government. Similarly, the Daroji Bear Sanctuary is near the VNC system and this should be specifically considered by the DPR and IEE for this Tranche 2 project.

62. ADB’s 2009 Safeguard Policy Framework is applicable for this project. According to this policy framework a Multi‐tranche Financing Facility (MFF) is required to prepare an Environmental Assessment and Review Framework (EARF) and this has been prepared to provide guidance to the assessments of the subprojects of the subsequent tranches.



63. The ADB categorisations, differ from GOI categorisations and are:

Category A. If impacts likely to have significant adverse environmental impacts that are irreversible, diverse, or unprecedented. These impacts may affect an area larger than the sites or facilities subject to physical works.

Category B. If potential adverse environmental impacts are less adverse than category A projects, are site‐specific, few if any of them are irreversible, and in most cases mitigation measures can be designed more readily than for category A projects.

Category C. If project is likely to have minimal or no adverse environmental impacts.

Category FI. A proposed project is classified as category FI if it involves investment of ADB funds to or through a FI (Financial Intermediary).

64. Of the four subprojects, 3 have been classified as Category B. These are Gondi, TLBC and VJN. Therefore an IEE is to be undertaken for these three projects. Bhadra, due to the very limited nature of the work, is categorized as a Category C project and no further assessment is required.

65. An IEE and Environmental Management Plan (EMP) was prepared for the Tranche 1 project (Gondhi modernisation). It identifies a list of activities/subprojects which need to be undertaken during design and detailed planning, construction, and operation and maintenance to minimise the risk and control any environmental impacts. This will form a template for Tranche 2 and 3 modernisation projects.

66. Both TLBC and VJC have been identified as Category B subprojects. Therefore, they will require an IEE each as a part of project preparation. For Tranche 2 and 3 projects the IEE should be completed as a part of the project design and needs to be fed into the final project design (DPR), to ensure that possible adverse environmental impacts identified through the assessment are adequately addressed in the design stage itself.

67. As required by State and National legislation, clearances and permissions should be identified and taken. These would include the Environmental Protection Act, 2006 and the various legislations under it; the forest, tree protection and the Hampi Heritage Area HWHAMA (for the VJN project) acts.

Resettlement

68. An assessment for involuntary resettlement impacts has been made for Gondhi, Vijayanagara and TLBC Irrigation/ Canal Systems based on the feedback from the WRD and CADA officials about their experience of implementing similar interventions as part of their on‐going projects, observational field visits, and consultations with the communities to validate and elicit their views on the involuntary resettlement issues.

69. The key finding was that impacts would be minimal as interventions are mostly planned within the established canal right of way as well as in consultation with the local community. A very minimal extent of temporary impact may be involved, especially if there are establishment of construction camps, although this is not envisaged at this stage and would be confirmed with detailed planning as there are existing construction camp sites available in the command area.

70. Given the overall nature of the project no action is needed with regard to Involuntary Resettlement Safeguards for Tranche 1. However based on the final set of design interventions which would be evolved and planned for subsequent tranches (especially if night storage reservoirs or online storage reservoirs are planned), the project could require preparation of Resettlement Plans (RPs). Such impacts can be assessed only once the technical feasibility for these interventions is established and design interventions are firmed up for the subsequent tranches. In this context, a Resettlement Framework (RF) is required to guide the involuntary resettlement safeguards that will be followed for the subsequent Tranches and to screen for involuntary resettlement safeguards.



71. A Resettlement Framework (RF) has been formulated to guide the preparation of subproject Resettlement Plans (RPs), if required, during subsequent Tranches of the Program planning and implementation. The Executing Agency (EA), KNNL, will be responsible for conducting the social assessments and formulating RPs for subsequent sub‐projects, where involuntary resettlement impacts are expected. The draft RPs will be disclosed to the Affected Persons (APs) in local language (Kannada) and submitted to ADB for review and approval, and public disclosure.

Social Safeguards: Indigenous Peoples

72. The total population of Karnataka, as per the 2001 Census was 52.85 million. Of this, 3.46 million people fall under the category of Scheduled Tribes (STs) constituting nearly 6.6 percent of the state population. The percentage of ST population (Indigenous People) ranges between 2.27% in Hospet Taluka to 34.49% in Devdurga Taluka.

73. The significance of impacts on Indigenous Peoples has been determined according to the ADB SPS. Considering the nature of interventions proposed under the program, no specific adverse impacts are anticipated for the STs (Indigenous People) compared to other communities. ADB IP safeguards are not triggered because the project directly or indirectly does not affect the dignity, human rights, livelihood systems, or culture of the STs and the project will not affect territories claimed by the STs as their ancestral domain. During the community consultations also, it has been found that there is no specific uniqueness with regard to the economic status, livelihood systems or cultural practices amongst the STs as compared to other communities in the villages.

74. In this context, for the purpose of this Program, an IPPF is not required. In addition, as part of the WUCs strengthening, special focus shall be made to ensure the participation of STs (indigenous) and SCs (vulnerable) in the planning and decision making process. It will also be ensured that under no circumstances will the STs/ SCs be deprived of the benefits from the program. However, if there is any physical relocation of STs in any future Tranche, a combined plan including Resettlement Plan and Indigenous Peoples Plan will be prepared in consultation with ADB.

Summary Poverty Reduction and Social Strategy

75. The poverty reduction and social strategy under the program is aligned with the GOI’s current policy (11th and Draft 12th Five Year Plan) and ADB’s Strategy (2020) on promoting inclusive growth and achieving rural poverty reduction. The Program focuses on adopting of pro‐poor and gender inclusive mechanism within the overall program design. The project interventions will have positive impacts on the women and socially excluded groups.

Gender Action Plan

76. The Project is proposed to be classified as Category II: Effective Gender Mainstreaming, (EGM) following ADB’s gender categorization of projects (ADB’s Policy on Gender and Development 1998 and ADB’s Gender Mainstreaming Criteria Guidelines; 2010). The gender strategy under this program is expected to mainstream gender in the context of irrigation management.

77. The scope for raising the level of women’s participation in decision–making and project management processes will also be strengthened. In addition, a Gender Action Plan (GAP) has been systematically designed to ensure that women, vulnerable and landless households are mainstreamed within the overall program design and have equitable access to the project’s resources and benefits. The GAP also provides specific actions and responsibilities to ensure full participation of women in project activities.

Program Benefits and Spin‐offs

78. The Program will renovate and extend major and medium irrigation systems which are low‐performing at present, potentially benefiting about 1.5 million people. An additional 57 TMC of water saving (1,700 million m³) of water would be released for new irrigation on up to 160,000 ha. The quantifiable benefits will be incremental crop production from modernised irrigation



infrastructure and water management. Incremental labour demand will particularly benefit the poor. Non‐quantified benefits include improved irrigation and water management at river basin level, improved institutional performance, multiplier effects in agricultural supply, marketing and processing, and local economic activities and minor improvements in local transport, access to water and health resulting from infrastructure improvements and drainage activities.

79. An economic and financial analysis was carried for the Tranche 1 sub‐project. Water charges are to be paid by farmers according to crop and season. In future, collection of water charges will be undertaken by the WUCs, and used for O&M, 30% being passed on to WRD for overheads. Water charges are included in the crop budget models, but even at 100% collection the water charges are only about 30% of the total O&M cost.

80. Crop budgets were prepared for Kharif & Rabi rice, other semi dry crops (maize), sugarcane and arecanut. Yield rates with the project increase by 20% over three years and by‐products are directly linked to yield. Inorganic fertilisers and harvest labour are linked to the yield rate. SRI rice is being adopted in Karnataka1, and it is envisaged that this will be introduced into the subproject.

81. Farm models were prepared for marginal, small and medium farmers using the average farm size for each and assuming a farm family labour rate. Analysis shows that retained farm income is expected to increase by 53%, 41% and 41% respectively for marginal, small and medium farm households.

82. The economic viability of the sub‐project is assessed by estimating its economic internal rate of return (EIRR) and benefit‐cost ratio over an expected scheme life of 25 years. Sensitivity analysis was undertaken for the key perceived risks. An assessment of the impact of the subproject on poverty reduction is also undertaken. The social discount rate for NPV is assumed at 12%, which is high compared to other investment opportunities, but is the rate normally assumed for development projects in India. Project benefits relate to delivery of water beyond km 44 of the canal as the current supply from Bhadra is planned to cease reducing a total production loss of 20%, changed cropping patterns and improved yields, and the transfer of 0.5 TMC to the Upper Bhadra scheme. A series of scenarios were tested including canal rehabilitation without lining. The economic returns are estimated as follows:

Scenario

Without Yield

Reduction (%)

Saved Water Net Return

(%)

EIRR (%)

NPV (Rs million)

B:C ratio

With Lining

A1a: Gondhi scheme, 100% lining 0 9 ‐138 0.8

A1b: Add avoided end of Gondhi loss 20 17 274 1.2

A2: Add diverted water value 20 25 22 631 1.4

Without Lining

B1a: Gondhi scheme, no lining 0 15 102 1.2

B1b: Add avoided end of Gondhi loss 20 26 514 1.4

B2: Add diverted water value 20 25 32 871 1.7

‘Gondhi Subproject Base EIRR Report’, ‘Financial & Economic Analysis: Markets And Prices’ and ‘Crop Physical and Financial Budgets’ are provided In Volume 2.

83. The Program will have positive poverty reduction impacts on income, employment opportunities, and food security in particular for marginal farmers (under 1 ha) and landless households (68% of the households in Gondhi). The remaining schemes are likely to have a higher

1 Karnataka State, under the Accelerated Rice Production Programme – (ARPP) has plans to improve productivity in about 2,00,000 hectares in 13 districts through SRI/mechanized farming (Page 2 of Agriculture Production Programs 2011‐12 published by Department of Agriculture, GoK). It is planned for 40 per cent of the prevailing paddy area to use SRI and improved paddy cultivation methods.



proportion of poorer households, and benefits to poorer households should also be considerable in areas receiving new irrigation water.

84. The analysis of the costs and benefits of the Tranche 1 sub‐project implies that a relatively large percentage of benefits will accrue to larger farms. Poor households, especially landless households will benefit from increased hired on‐farm labour, though expected increases are relatively small (14,000 days a year). Retained farm income for marginal farm households is expected to increase by 53% including the value of family labour retained by the family. Income levels remain below the poverty threshold, at about INR 30 per person per day, but return to family labour is attractive, and adequate to provide incentive to participate.

85. The project interventions will lead to increased agriculture opportunities and crop diversification in command areas and correspondingly improve income opportunities and enhance overall living standards, benefiting both men and women. The program is expected to mainstream gender within the gambit of irrigation management by strengthening landless/tail end farmers’ and women’s participation at grassroots (WUCS) level.

86. The project is likely to result in a number of positive environmental impacts including reduction in salinity, waterlogging and improved soil health; reduced rates of malaria and dengue, filarial and Japanese encephalitis due to better water management reducing vector habitats; reduced transmission rates of cholera, hepatitis and variety of other gastrointestinal diseases through better water management. Improved water and agricultural management will also reduce run‐off induced non point source pollution and contamination of surface and groundwater from fertilisers and pesticides. Environmental flow requirements will be explicitly addressed via the IWRM activities and this is expected to at least protect and possibly improve environmental river flows. Similarly water quality in rivers will be addressed and approaches to improve water quality assessed and where possible implemented.

87. There are many Central and State assisted programs in the water sector in Karnataka that are under execution with different water sector organizations and these were important elements of the just released Karnataka State budget. The KISWRMP will have a significant direct influence, through the WRD as well as the IWRM Steering Committee and National Water Mission, on the approaches taken in implementing water related projects with budget commitments of more than USD 17.8 billion in Karnataka as well as more widely in India.



1. BACKGROUND

1.1 Location

1. The State of Karnataka, in the southern part of India is confined roughly within latitude 11°35’ North and 18°30’ North and, 74°5’ East and 78°35’ East. It is situated on a tableland where the Western and Eastern Ghat ranges converge into the Nilgiri hill complex. The state covers an area of 191,976 square kilometers, or 5.83% of the total geographical area of India. It is the eighth largest Indian state by area. With over 61 million inhabitants (2011), Karnataka is the ninth largest state by population and comprises 30 districts. Kannada is the most widely spoken and official language of the state. Karnataka is bordered by the Arabian Sea to the west, Goa to the northwest, Maharashtra to the north, Andhra Pradesh to the east, Tamil Nadu to the southeast, and Kerala to the southwest. The state extends to about 750km from North to South and about 400km from East to West.

2. The two main river systems of the state are the Krishna and its tributaries (Bhima, Ghataprabha, Vedavathi, Malaprabha, and Tungabhadra) in the north, and the Cauvery and its tributaries (Hemavati, Shimsha, Arkavathi, Lakshmana Thirtha and Kabini) in the south. Both these rivers flow eastward and fall into the Bay of Bengal.

Tungabhadra Sub‐Basin (K‐8)

3. The Tungabhadra Sub‐basin (Figure 2), the main pilot area for this project, lies within the Krishna River Basin and largely within Karnataka. It contains three river systems; Bhadra, Tunga and Varada. Each of these rise in the Western Ghats and flow eastwards. The Tungabhadra River is an eastern‐flowing river of southern India in the State of Karnataka. It is the chief tributary of the Krishna River and is formed by the confluence of two rivers, the Tunga and the Bhadra, at Koodli in Shivamogga District. These rivers rise in the eastern slope of the Western Ghats at Gangamula which has an elevation of 1,198 metres. The Tungabhadra flows east across the Deccan Plateau for a distance of 530 km, joining the Krishna River in Andhra Pradesh state, from where the Krishna continues east to empty into the Bay of Bengal. There are three major reservoirs formed by dams in the sub‐basin: Bhadra, Tunga and Tungabhadra Reservoir which were constructed for large irrigation projects. The Vadara River joins the Tungabhadra just before it flows into Tungabhadra Reservoir. The catchment area upstream of the Tungabhadra reservoir is 25,820 km² and the river flows a further 170 km from the reservoir to Andhra Pradesh and a further 90 km to the Krishna river.

1.2 Climate

4. Karnataka experiences four seasons the winter in January and February is followed by summer between March and May, the monsoon season between June and September and the post‐monsoon season from October till December.

5. The Rabi (dry season) and Kharif (wet season) agricultural seasons correspond to the months of November to April and May to October respectively.

6. For meteorological purposes, the State has been divided into three zones namely (a) Coastal Karnataka (Dakshina Kannada and Uttara Kannada Districts), (b) North Interior Karnataka (Belgaum Bidar, Bijapur, Dharwad, Gulbarga and Raichur Districts) and (c) South Interior Karnataka (the remaining Districts of Bangalore Rural, Bangalore, Bellary, Chikmagalur, Chitradurga, Kodagu, Hassan, Kolar, Mysore, Mandya, Shivamogga and Tumkur Districts). Of these, the coastal zone receives the heaviest rainfall with an average rainfall of about 3,638.5 mm (143 in) per annum, far in excess of the state average of 1,139 mm (45 in). Agumbe in the Shivamogga district receives the second highest annual rainfall in India. The highest recorded temperature was 45.6 °C (114 °F) at Raichur and the lowest recorded temperature was 2.8 °C (37 °F) at Bidar.



Figure 2: Tungabhadra Sub Basin

7. The annual rainfall in the state varies roughly from 50 to 350 cm. In the districts of Bijapur, Raichur, Bellary and Southern half of Gulbarga, the rainfall is the lowest varying from 50 to 60 cm. The rainfall increases significantly in the Western part of the State and reaches its maximum over the coastal belt. The South‐West monsoon is the principal rainy season during which the State receives 80% of its rainfall. Rainfall in the winter season (January to February) is less than one percent of the annual total amount, about 70% of the summer seasonal total (March to May), and for the post‐monsoon season about 12%.



8. For the Tungabhadra sub‐basin, rainfall follows a monsoonal seasonal pattern, and in terms of annual average rainfall, follows roughly according to the topographical elevations. While annual rainfall in the sub‐basin, reaches more than 300 cm in the south (Western Ghats), it falls to less than 50 cm in the northeast and droughts are frequent. During the southwest monsoon months of June to September, the sub‐basin receives on average about 70% of the annual rainfall, September being the month with the highest rainfall. The variations in the annual rainfall from year to year are large. The average annual runoff from the sub‐basin is estimated at about 6.6 km³.

9. The command area of Gondhi Anicut canals is located in Bhadravathi Taluk (a group of villages forming an administrative sub‐division of the District division) which has an average annual rainfall of 769.4 mm and enjoys a tropical climate throughout the year. The relative humidity ranges from 27% to 88% and June to September are wet months with October and November experiencing little rainfall from the NE monsoon.

Projected Climate Change

10. The Intergovernmental Panel on Climate Change (IPCC) predicted with high confidence that the area affected by drought will increase in South Asia, including India (IPCC, 2007)2. A recent study3 specifically conducted on Karnataka found that:

there is a long‐term negative trend of about 6% in precipitation over Karnataka for the period 1951‐2004.

rainfall variability is very high in Chikballapur, Chitradurga, Gadag, Kolar, Mandya and Tumkur districts.

there is considerable decrease in precipitation over the Coastal and North Interior Karnataka districts during the period 1951‐2004.

annual mean minimum and maximum temperatures are highest in Raichur, Gulbarga and Yadgir districts of North Interior Karnataka.

Bidar and Gulbarga districts indicate a larger inter‐annual variability with respect to annual mean minimum and maximum temperature.

a steady warming trend is observed in both the minimum and maximum temperature over Bijapur, Gulbarga and Raichur.

most of the areas in the state are projected to experience a warming of 1.8 to 2.2 ºC by the 2030’s with the cooler being coastal and the hottest (>2.2 ºC) being northern inland Districts.

according to a global climate model study, the Indian subcontinent could be subjected to an average of over 4 ºC increase in temperature by 2085

The north‐eastern and south‐western parts of the state are projected to experience decrease in the quantum of rainfall, annually

In the Kharif season, most northern districts are projected to have an increase in drought incidences by10‐80% with the Districts of Koppal and Yadgir projected to have almost a doubling of drought frequency

In the Rabi season, drought frequency is projected to increase in most of the eastern districts of the state.

2 IPCC (2007) Climate Change 2007: Working Group II Report: Impacts, Adaptation and Vulnerability. WMO and UNEP, Geneva.

3 Bangalore Climate Change Initiative – Karnataka (BCCI‐K) (2011) Karnataka Climate Change Action Plan. Final Report Submitted to the Government of Karnataka, May 2011. pp 183. Funded by the World Bank



1.3 Geomorphology

11. The state has three principal geomorphological zones: The coastal region of Karavali, the hilly Malenadu region comprising the Western Ghats, and the Bayaluseeme region comprising the plains of the Deccan plateau. The bulk of the state is in the Bayaluseeme region, the northern part of which is the second‐largest arid region in India. The highest point in Karnataka is the Mullayanagiri hills in Chickmagalur district which has an altitude of 1,929 metres (6,329 ft).

12. The topography of the Tungabhadra sub‐basin ranges from hilly to mountainous in the extreme south of the basin, with elevations up to 1,200 m, to the flat terrain of the lower (northeast) part of the catchment at around 500 m elevation. Large areas of national park and conservation areas exist in the upper part of catchment and notably Kudremukh National Park (600 km²) and Bhadra Tiger Sanctuary (490 km²).

13. The Gondhi command area is uneven and undulating with moderate slopes of 0.5% to 3% with a medium slope from canal to the river.

1.4 Soils

14. Eleven soil orders groups are found in Karnataka, viz. Entisols, Inceptisols, Mollisols, Spodosols, Alfisols, Ultisols, Oxisols, Aridisols, Vertisols, Andisols and Histosols. Depending on the agricultural capability of the soil, the soil types are divided into six types, viz. Red, lateritic, black, alluvio‐colluvial, forest and coastal soils.

15. The Gondhi command area largely comprises red sandy loam mixed with red soil to an extent of 80%. Clay soils are in 18% of the command area and black cotton soils in about 2% of the command area.

1.5 Surface Water Resources

16. Karnataka accounts for about 6 per cent of the country's surface water resources of 1,869 thousand million cubic meters (thousand Mcum)4 or 66,000 thousand million cubic feet, (TMC). About 40 percent of this water is in the east flowing rivers and the remaining in the west flowing rivers. There are seven river basins with which their tributaries drain the state(Figure 3)

Table 1: River Systems and Yields

River systems Drainage area in thousand Sq.km.

Average Annual Yield in MCM (TMC)

Krishna 111.74 27,451 (969.44)

Cauvery 34.27 12,034 (425.00)

Godavari 4.43 1,415 (49.97)

North Pennar 6.94 906 (32.00)

South Pennar 3.76 906 (32.00)

Palar 2.97

West flowing rivers 26.39 56,600 (1998.83)

Total 190.50 98,406 (3475.24)

4 http://www/wrmin.nic.in



Figure 3: River Basins of Karnataka

17. As per the master river basin plans, the total utilization likely under major, medium and minor irrigation projects using surface water is 48,000 MCM (1,690 TMC). In the Tungabhadra sub‐basin, water sharing and allocation is based on the Krishna Water Dispute Tribunal (KWDT) award which prioritizes drinking water as first followed by irrigation, industries and environment. Total water allocation across the sectors is 230.31 TMC out of which, agriculture sector gets the major share of 94.3%, 3.72% for industrial usage and 1.96% for drinking water use.



Figure 4: Sub Basins of the Krishna River Basin

18. The Gondhi Anicut is allocated 3.10 TMC (87.80 MCM) of water in the Krishna Water Dispute Tribunal (KWDT) award.

1.6 Ground Water

19. Groundwater resources are estimated with the watershed/catchment as a unit. Karnataka state has been divided into 234 watersheds in 13 catchments; 10 watersheds fall fully in command area and another 76 watersheds fall partially in the command areas. Krishna basin code is 4D and the catchment codes for Tungabhadra sub‐basin are 4D3 (Lower Tungabhadra) and 4D4 (Upper Tungabhadra).

20. The net annual groundwater availability in the State in 2009, as per the assessment of the Department of Mines and Geology and the Central Ground Water Board was around 14.81 billion cubic metres (BCM), which is less than the 15.30 BCM as per the 2004 assessment and 16.30 BCM as assessed in 1992. Since the first survey in 1986‐87, the number of tube wells in Karnataka has increased nearly 20 fold by 2006‐07 to 733,227 while the number of dug wells has decreased by 40% to 244,475. More than 95% of groundwater pumps are powered by electricity

21. With over 1 million wells, the increase in bore wells and over extraction has led to rapidly falling groundwater levels. The total store of groundwater has reduced from 16.3 BCM in 1992 to 15.3 BCM in 2004, with the draft of groundwater increasing from 4.1 BCM to 10.7 BCM during the same period. Groundwater sources that include open wells and bore wells have emerged as the largest source of irrigation in the State irrigating 45% of the net irrigated area. In order to provide the legislative environment as envisaged in the Water Policy, the State enacted the holistic Karnataka Ground Water (Regulation and Control of Development and Management) Act, 2011.

22. The 2004 report on groundwater resources5 of Karnataka reports that the groundwater development stage for Bhadarvati Taluk (675 km²) is classified as safe with only about 30% of

5 Department of Mines and Geology (2005) Report on Dynamic Groundwater Resources of Karnataka as of March 2004. June 2005. pp 132



groundwater potential being developed. The specific situation for the project area is not indicated. The Minor Irrigation Census for Shivamogga District6 reports groundwater statistics across the whole District but does not differentiate between surface water irrigation district and rainfed areas. For Shivamogga, there are a total of 24,608 groundwater schemes, with 5% being of depth 0‐20m, 1% 20‐40 m, 8% 40‐60m, 48% 60‐80 m, and 39% greater than 80m. Of the nearly 30% reporting constraints to utilization, 75% were due to lack of water. This high proportion of groundwater pumping from great depths (>80m) is likely to be a consequence of the 100% government subsidy on the cost of power for operating pumps for groundwater extraction.

Figure 5: Status of Groundwater

23. In Tungabhadra Sub‐basin, the aquifers in about half of the catchments are categorised as either “semi‐critical”, “critical” or “over exploited” 7 (Figure 5). In the south and southwest of the

6 Department of Minor Irrigation (2011) Report on Fourth Census of Minor Irrigation Schemes 2006‐07

7 ‘Semi critical areas’ are those where stage of groundwater development is 70 – 90% & water table during either pre or post monsoon shows a significant long term declining trend.

‘Critical areas’ are the areas where the stage of groundwater development is more than 90% and long term water level trend of either pre‐monsoon or post monsoon shows a falling trend



sub‐basin, the “safe” catchments are predominantly located in the areas that receive greater precipitation. Most of the districts Chikmagalur, Shivamogga and Uttar Kannada are considered “safe”, but also the semi‐arid parts of Dharwar, Gadag and the northwest of Haveri. The “over exploited” catchments are generally located in Bellary, Davangere and Chitradurga and Western Haveri.

24. For the Gondhi project area and subject to hydrogeological conditions, groundwater could be an important source of water for perennial crops during the periods of canal closure although groundwater availability is not well understood.

1.7 Climate Change and Water Resources

25. The impacts of the projected climate changes described above on the water resources of Karnataka and related river basins are8:

Climate change impact assessment indicates increased moisture stress in Krishna basin, especially in the north‐eastern districts, and marginal impact on Cauvery basin.

The water yield analysis indicates an increase in average water yield in the Krishna basin, while indicating a decrease in average water yield in the Cauvery basin.

The precipitation analysis indicates:

- Decrease in precipitation annually in the Krishna as well as Cauvery basins. The decrease in precipitation is similar, around 0.25% in the Krishna and Cauvery basins

The runoff analysis indicates:

- An increase in average annual runoff projected for both the river basins

- The projected increase in average annual runoff is much higher for the Krishna basin, when compared to the Cauvery basin

- This indicates that water stress in Krishna basin would be much higher and farmers residing around the Krishna basin may suffer reduced crop yields.

The evapotranspiration analysis indicates a decrease in evapotranspiration projected annually for both the river basins

1.8 Description of Program Irrigation Areas

26. The KISWRMIP is to include modernization of 3 irrigation areas: (i) Gondhi Irrigation system, which is a sub‐area of the Bhadra irrigation system (Tranche 1), (ii) Vijayanagara (VJN, Tranche 2) and (iii) part of Tungabhadra Left Bank Canal (TLBC, Tranche 2 and 3). The Program areas are:

Gondhi Irrigation System: This irrigation system of about 4,600 ha was constructed between 1916 and 1954. It lies within the larger and more recent Bhadra irrigation system but has its own supply from the Gondhi anicut.

Vijayanagara Channels: This system comprises 16 canals, most of which were originally constructed during the Vijayanagara Empire about 400 years ago.

‘Over exploited areas’ are the areas where stage of groundwater development is more than 100% and long term water table trend show significant declining trend.




Tungabhadra Left Bank Canal System; This system has a command area of 244,000 ha supplied from the Tungabhadra dam via a 227 km long main canal. Construction commenced in the 1960s.

27. These areas are shown in the following Figures.

Figure 6: Project locations

Figure 7: Locations of Vijayanagara and Tungabhadra Left Bank Canal Systems



Figure 8: Gondhi Command Area

Figure 9: Vijayanagara upstream canals



1.9 Integrated Water Resources Management

28. Important attributes of IWRM include:

recognising that the volume of water that can be managed and used is finite

coordination of sectors that manage, use and impact (eg. via pollution) sectors such as utilities, irrigation, manufacturing industry, mining, watershed management (forestry, rainfed agriculture), environmental users, etc;

planning and managing water according to river basin, sub‐basin and irrigation water supply boundaries and the extent of the available resource;

integrating the management of land, water and vegetation;

integrating the management surface water and groundwater;

integrating the management of water quantity and quality;

taking scientific approaches to planning and management;

using a balance of policy and investment measures to achieve outcomes; and,

involving water users government, non‐government, civil society and the private sector

best coping with climate change by taking an adaptive and comprehensive approach.

29. This differs from the traditional forms of water resources management where individual water using and impacting sectors such as irrigation, urban water supply, sanitation and industrial discharge, hydropower, etc, plan act independently which often results in over commitment and pollution of the resource.

30. Based on international experience9, effective IWRM has been found to have fairly common features where:

(i) The institutional framework is both robust and flexible, and includes modern legislation that supports an integrated and adaptive policy framework,

(ii) Water resource assessment, planning and management is knowledge driven.

(iii) Integration is built into institutions, resource management, and policy and the environment is recognised as a legitimate water user,

(iv) Stakeholder and community awareness raising and participation is a key part of water resources management so that communities understand and contribute to solutions through local management and actions.

(v) Regular monitoring and evaluation provides information to determine whether river management and investment are achieving planned outcomes.

1.10 IWRM Institutional Framework

31. The institutional framework arrangements for water resources management in an IWRM context are shown in (Figure 10) River basin authorities, through consultation with stakeholders, are responsible for advising government and then organising water sharing and bulk entitlements and pollution discharge arrangements for water service providers in compliance with government policies.

9 ANZEC (2011) Integrated Water Resource Management and Sustainable Water Service Delivery in Karnataka. Component 1: Institutional

Analysis and Proposed Reforms for IWRM. Final Report. ADB TA 7418‐IN p5‐6.



Figure 10: Example of the IWRM Institutional Framework

32. These water service providers, such as irrigation and drainage authorities, urban water supply and sanitation authorities, hydropower operators, dam and river operators, catchment managers, flood management authorities, etc; are responsible for providing water related services to their respective clients consistent with these entitlements.

33. The service providers in turn should consult with and respond to the requirements or their water service users such as irrigators, tank users, dryland farmers, fishers, recreationalists, catchment users such as dryland farmers and foresters, navigational users. Specifically for Irrigation and Drainage Authorities they would consult and involve water users in advisory committees that are focused on service requirements and standards. The Authorities would involve themselves in supplying services to meet client/WUCS/farmer needs; water planning according to seasonal water availability; maintaining a register of water users and their water user accounts; water ordering and supply systems and their operation and maintenance; asset management; and measurement and recording of water supply.

1.11 Irrigation and IWRM

34. Irrigation is a major user of water and this affects other water users in a river basin by reducing the amount of surface and groundwater available; changing river flows thereby affecting the environment; and, causing non point source pollution through the use of agri‐chemicals. In some cases, irrigation may contribute to the raising groundwater levels causing groundwater discharge, waterlogging and concentrating salts in soils and drainage waters. In other cases, as irrigation intensity increases it often leads to overdraft of groundwater and falling groundwater levels.

35. A series of inefficient irrigation areas along a river, although each might be inefficient and where the river receives no further tributary inflow, can lead to closure of the Basin water balance. For example, a series of 9 irrigation areas with Water Use Efficiency (WUE) of 45% result in a Basin WUE of 84% (refer to diagram). As WUE is increased which inevitably occurs as management improves and further development takes place water to downstream users reduces considerably. For example, if the irrigation area WUE is increased to 75% which will tend then after only 4 irrigation areas Basin closure with virtually no river outflow is

Governments

River Basin Authority

Water Service Agency A

Irrigation and Drainage Authority

Urban Water Supply Authority

Water Service Agency B/etc

Clients Water User

Associations Clients Clients

Irrig. Area WUE = 40%River Basin WUE 94%

5.76

24

Inflow 100 units

ET 40

Return flow60

24

9.6

5.8

14.4

IA 1

IA 2

IA 3

IA 4

Irrig. Area WUE = 40%River Basin WUE 87%

12.96

36

Inflow 100 units

ET 40

Return flow60

24

14.4

8.6

21.6

IA 1

IA 2

IA 3

IA 4



achieved.

36. In river basins where there are water shortages; clear plans, rules and regulatory arrangements are required if water supply and security of access is to be sustained for water users and businesses. It is only with this security that water users will be willing to make investments to increase their returns from their water supply and to use available water most efficiently.

37. A strong water information, regulatory and river basin management system will enable management of the water resource for all users and including protection of the environment. It would also enable trading (temporary or permanent) between users or the other common approach where government or industry pays to improve irrigation systems and then recover the water saved. This approach, without a strong IWRM approach, will inevitably result in an even more stressed and less secure water resource for users.

1.12 IWRM and Climate Change

38. Managing climate change requires an even stronger emphasis and application of IWRM principles and approaches and particularly strong water resource modelling and decision support systems, a robust water sharing approach which is resilient when faced with the extremes of droughts and floods. Climate change increases the urgency and rigour with which IWRM needs to be adopted and evolved.



2. KARNATAKA WATER SECTOR ASSESSMENT

2.1 State Water Vision and Policy

39. Karnataka State Government's overall water resource management strategy, reflected in its "Vision 2020," shifts focus from yield per acre to yield per unit of water consumed10. More recently, the government has announced 2011 to 2020 as the irrigation decade.

40. The Karnataka State Water Policy (2002) notes that Karnataka has limited surface and ground water resources that need to be systematically developed and properly utilized adopting new approaches for the overall development of the State. It indicates that unless water resources are properly developed and managed, the State will face acute crisis within the next two decades with serious destabilization of the water sector affecting the hydrology, economy and ecology of the State. In order to prevent this and to achieve the Policy objectives (refer section below), the policy takes an Integrated Water Resource Management (IWRM) approach and identifies a series of enabling visions including:

Institutional arrangements and governance.

Multi‐sectoral integrated water resources management using hydrological boundaries.

Water allocation, rights and cost recovery for O&M.

Participatory water resources management as well as the involvement of the private sector

Catchment and command area management

Disaster management

Research and training

41. An assessment of the Karnataka Water Policy 2002 against IWRM Principles shows that the Policy incorporates many IWRM features principles. On the other hand, IWRM principles not addressed explicitly relate to: (i) service delivery; (ii) decentralization and subsidiarity; (iii) effective integration of rain, surface and groundwater management; (iv) target based management actions; (v) explicit provision of water for the environment; (vi) management of water supply security; (vii) organizational restructuring to separate regulatory, management and operational functions; (viii) recognition and involvement of the wide range of stakeholders; and, (ix) provision of forums for identifying issues, establishing priorities and resolving conflicts.

42. There is no specific IWRM based water resources law in Karnataka. Rather water resources are addressed in terms of the specific sectoral water use. A review of water related legislation11 observed that there is a need for laws on natural resources generally and that in general existing laws deal with exploitation rather than conservation of the resource. There is no State environmental protection law, this is under the National Environment Protection Act 1986 which regulates environmental impacts. The State Water Resources policy and overview of water related laws in the State are described in more detail in a later section and Appendix 3.

43. Based on international experience, successfully achieving such wide ranging changes and reform will require long term effort with an on‐going commitment of successive governments.

10 January 2010. Government of Karnataka, Vision 2020, p. 21 para. 66.

11 CDTA Report (January 2011) Component 1: Institutional Analysis and Proposed Reforms for IWRM. Final Report. ADB TA No. 7418‐IND. pp 150



2.2 National Water Policy and National Water Mission

44. The National Water Policy 2002, described in more detail later, provides a comprehensive framework to guide States in setting their own policies and in developing their water resources and key features include:

water resource planning should be undertaken for each river basin and include both surface and groundwater, and consider water quality, quantity, and environmental needs.

information systems should be standardized to include water availability, actual water use and projections of future demand;

institutional mechanisms appropriate to river basin planning should be established taking into account all water users;

groundwater should be sustainable and conjunctively developed with surface water;

irrigation should be developed on the basis of holistic project planning, with water allocations established considering equity and social justice;

command area development should be incorporated into all irrigation projects;

participatory approaches to water resources management should be adopted by involving rural water user groups and other local bodies in O&M and management of water infrastructure and facilities, with a view to management transfer;

water charges should at least cover O&M costs and subsidized water rates provided to the poor and disadvantaged and well targeted and transparent;

emphasis should shift to improving performance of existing irrigation facilities;

private sector participation should be encouraged in water resources management; training of staff and farmers in information systems, sector planning, project planning and formulation, project management and operation and management; and,

resettlement and rehabilitation policies should ensure that project‐affected persons share in the benefits of water investments. While the policy is comprehensive it has limited coverage of the need for institutional change and lacks targets.

45. The National Water Mission (NWM, 2010) and approved by the GOI in April 2011 covers various aspects of the water sector for effective adaptation to climate change. The five goals proposed by the Mission are:

comprehensive water data base in the public domain and assessment of the impact of climate change on water resource;

promotion of citizen and state actions for water conservation, augmentation and preservation;

focused attention to over‐exploited areas;

increasing water use efficiency by 20%; and,

promotion of basin level integrated water resources management.

46. The nodal agency for the National Water Mission is the Ministry of Water Resources which has established a National Water Mission Directorate for Mission implementation. The Directorate has initiated preparation of the State Water Mission Plans and the take up of a few irrigation projects as benchmark projects to demonstrate 20% improvement in water use efficiency. The State Government of Karnataka (SGOK) has identified Narayanpur Left Bank Canal (NLBC) under the Upper Krishna Project as the benchmark project for the State and has submitted a project to the Directorate for sanction.



2.3 12th Five Year Plan

47. The draft 12th Five Year Plan for India has been issued after the National Development Council meeting held in December 2012. The document makes a detailed assessment of water sector issues and priorities for the 12th Five Year Plan proposes the following water sector strategy for the 12th Five Year Plan:

A move away from a narrowly engineering construction‐centric approach to a more multidisciplinary, participatory management approach to our major and medium irrigation projects, with central emphasis on command area development and a sustained effort at improving water use efficiency;

Since groundwater accounts for nearly two‐thirds of India’s irrigation and 80 per cent of domestic water needs, we need a participatory approach to sustainable management of groundwater based on a new programme of aquifer mapping;

A massive programme for watershed restoration and groundwater recharge must be launched by transforming Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) into our largest watershed programme,3 giving renewed energy to the reformed Integrated Watershed Management Programme launched in the Eleventh Five Year Plan and launching a completely revamped programme on Repair, Renovation and Restoration (RRR) of Water Bodies;

A new approach to rural drinking water and sanitation;

All urban water supply projects to necessarily integrate sewage systems within them;

Definite targets for recycling and reuse of water by Indian industry to move in conformity with international standards;

Renewed focus on non‐structural mechanisms for flood management;

Vastly improved systems of water‐related data collection and management as also transparency in availability of data;

Adaptation strategies to mitigate the likely impact of climate change to be pursued under the National Water Mission (NWM); and

A new legal and institutional framework for water based on broader consensus among the States.

48. Once agreed by government, the national strategy is expected to flow through to an updated State Policy.

2.4 Karnataka Water Sector SWOT

49. An assessment of the Karnataka Water Sector was made during the CDTA project. Results of this analysis as well as assessments and experience of the PPTA team identifies that following range of Strengths‐Weaknesses‐Opportunities‐Threats for the Sector



Table 2. Strengths, Weaknesses, Opportunities and Threats of Karnataka Water Sector

Strengths

1. Progressive and comprehensive, if not complete, policy statements for water planning and management

2. Acknowledgement by WRD of water resource management weaknesses and need for change

3. Skilled technical workforce 4. Actions to establish AC‐IWRM and commence

institutional (ie not organizational) reform of water management

5. Commitment of funds and donor support for actions to strengthen water resources management

6. Leadership and support coming from central government with water resources management recognised as a critical issue

Weaknesses

1. Political awareness and support for implementing change.

2. Water agency predominantly an irrigation sector agency rather than a resource management agency.

3. Fragmentation and limited coordination of agencies, responsibilities and skills

4. Lack of effective operational level communication and coordination

5. Lack of public knowledge and hence support for better management

6. Rigid, outdated government service systems

7. Low priority afforded to improved governance and law enforcement (eg. of water abstractions)

Opportunities

1. Central government support for key actions to strengthen water resources management – data systems, groundwater and water quality management, subsidiarity in water management, creation of river basin management and state regulatory bodies, effective water pricing, modernization of irrigation projects to increase efficiency and effectiveness.

2. Alignment of agriculture and irrigation plans and actions to increase agricultural output and minimize water use through scientific and farmer centric planning and management,

3. Adoption of new technologies to leapfrog traditional water control infrastructure and systems

4. Use of local IT industries to develop water control systems, GIS based data systems and information sharing

Threats

1. Political instabilities; misunderstandings and misinterpretation of policy intent

2. Change of key leaders and loss of key drivers for change

3. Resistance to change and reform particularly by lobby groups

4. Water crises causing hasty but poor policy and planning decisions

5. Industry and hence employment to support rural to urban adjustment moves to other States where water is assured.

50. Overall there is a good and fertile environment for developing and trialing IWRM institutions, policies and plans for conditions in Karantaka and more widely in India. However, political will to accept these and then to follow through on their implementation will be the major determinant of successful reform. Therefore, as well as developing and testing IWRM approaches, the Program should ensure that efforts of awareness raising and emboldening change also targets and engenders support at the political policy making and wider community levels.

2.5 Water Sector Objectives

51. In order to achieve that State Water Vision and Policy described above, the State Water Resources Policy (2002) presents six objectives:



To provide drinking water at the rate of 55 litres per person per day in the rural areas, 70 litres per person per day in towns and 100 litres per person per day in the city municipal council areas and 135 litres per person per day in city corporation areas

To create an ultimate irrigation potential of 45 lakh hectares (4.5 million ha) in the state from the current created irrigation potential of 3.6 million ha; with 3.5 million ha under major and medium irrigation and 1 million ha under minor flow. Facilitate creation of an additional irrigation potential of 16 lakh hectares by individual farmers using ground water.

To improve performance of all water resources projects

To improve productivity of irrigated agriculture by involving users in irrigation management

To harness the hydropower potential of the State

Provide a legislative, administrative and infrastructural environment, which will ensure fair, just and equitable distribution and utilization of the water resources of the State to benefit all the people of the State

52. Overall these objectives lack an IWRM approach and have a strong project focus on further development and use of water resources. A balance for longer‐term sustainability or of living within the means of the available water resource is not stated as an explicit objective although elsewhere in the policy (and possibly in the last dot point), environmental sustainability is identified. Other IWRM issues such as a focus on the whole water resource (surface and groundwater), river basins, water sharing, water quality, participation, self funding and management are also gaps.

53. The Policy is however now 10 years old and is in need of review and where appropriate revision, to support the vision in the State’s 12th Five Year Plan and national policies and to include more contemporary concepts of water resources management.



3. OVERVIEW

3.1 Introduction

54. The State Government of Karnataka (SGOK) has requested financing from the Asian Development Bank (ADB) to enhance water security in selected basins where there is increasing water stress due to rapid economic growth and future competing needs for water supply and industry. An integrated water resources management (IWRM) approach is required to meet increasing water demand while promoting its judicious use and protecting human water needs and river environments. Greater efforts will be required to improve efficiency and sustainability in water use, particularly for irrigation (which uses 85% of abstracted water), urban water supply and sanitation (WSS), industry and the environment.

55. The SGOK, Government of India (GOI) and ADB have agreed on technical assistance for preparing the Karnataka Integrated and Sustainable Water Resources Management Investment Program (KISWRMIP).

56. The KISWMIP will be financed through a Multi‐tranche Financing Facility (MFF) so as to enable flexibility in investment decisions and timing based on the needs and constraints of the project, instead of a precise definition of investments up front as conventionally required. This can be made available in a phased manner subject to the eligibility and readiness of projects. The MFF will allow ADB and SGOK to develop a long‐term partnership for supporting the goals of the KISWMIP in a realistic timeframe. Procurement would be carried out according to the ADB’s Procurement Guidelines.

3.2 Program Rationale

57. Karnataka is one of India’s most progressive states and home to one‐third of the information technology (IT) and back‐office service industries. As a result, the state economy is one of the fastest growing with gross state domestic product (GSDP) growing by 6.4% in 2011‐12. However, of the approximately 61.1 million people in Karnataka, about 14.23 million people (23.6%) lived below the poverty line in 2009‐1012. Recorded poverty rates in rural districts averaged about 26.1% (9.74 million people) compared to 19.6% (4.49 million people) in urban conurbations.

58. Economic development and growth in Karnataka is reducing the relative contribution of agriculture to GSDP. Though the contribution to GSDP has declined from about 18% in 2005 to 15.9% in 2011‐12 agriculture remains the major source of employment for about 55% of the total population and about 75% of rural population. There is evidence of transitional change in the agriculture sector,13 e.g. the average age of farmers in Karnataka is increasing as improved education, supported by national and state policies, opens new employment options for the youth. From 2001 to 2011, the rural population in Karnataka has decreased from 66.0% to 61.4% with a corresponding increase in the proportion of urban population14 from about 34.0% to 38.6%15. However, the 2005‐06 Agricultural Census of India16 shows that the trend for increasing division of farm holdings continues and the proportion of land in operational holdings of less than 2.0 ha

12 2011 Census http://www.indiaonlinepages.com/population/karnataka‐population.html (accessed 9 June 2012).

13 Sharma, A 2007 The Changing Agricultural Demography of India: Evidence from a Rural Youth Perception Survey, International Journal of Rural Management 2007 3: 27, available at: http://irm.sagepub.com/content/3/1/27 (accessed on 10 June 2012).

14 The number of constituencies in Bengaluru has increased to 28 from 16 after revision of constituency boundaries for the 224 seat assembly in 2008. Chief Electoral Officer Karnataka ‐ http://164.100.80.163/ceokarnataka/ (accessed 9 June 2012).

15 Census 2011 http://www.indiaonlinepages.com/population/karnataka‐population.html (accessed 9 June 2012).

16 Government of India. Department of Agriculture and Cooperation, Ministry of Agriculture, New Delhi – see: http://eands.dacnet.nic.in/latest_2006.htm (Accessed 23 July 2012)



increased to about 35% from a little over 15% in 1970‐71, Figure 1117. National agricultural policies are promoting food security in place of food self‐sufficiency. This may further prompt transformation of the rural economy in Karnataka where new, higher value, crops can be expected to increase farm household incomes. However, production of staple grains will likely remain a major proportion of the crop mix.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

% o

f ar

ea (

ha)

in f

arm

siz

e cl

ass

Marginal <1 ha Small 1-2 ha Semi Medium 2-4 ha

Medium 4-10 ha Large >10 ha

Figure 11. Trend in operational farm holdings (1970‐2006)

59. Karnataka is one of the most water‐stressed states in India, with about 61% of the State, the 5th highest percentage, participating in the drought prone area (DPAP) or desert development programs (DDP) in 2003.18 The westward flowing rivers are well endowed with water resources, although rainfall is concentrated in the SW monsoon period (June to September). The major eastward flowing rivers rise in the high rainfall areas of the Western Ghats and flow through increasingly arid areas in Karnataka. Each of these rivers is shared with other states and effective management of the water resources is critical for irrigated agricultural production. 19

60. Irrigation water use in agriculture is important as Karnataka has limited water resources (1,608 m3/person/year overall and approximately 1,072 m3/person/year20 in eastward flowing rivers)21. Agriculture accounted for about 84% of water diversions in 2000 and estimated water demands in

17 Increasing division of operational holdings will make increasing household income increasingly difficult as farm sizes become small and marginal. The additional risks involved in these crops may militate against the adoption of higher value crops by small holder farmers. Further research will be required to establish farming models, such as farming clusters, to achieve viable household income levels for farms below 2.56 ha, estimated as the minimal economic size. http://raitamitra.kar.nic.in/rsg.html (accessed 23 July 2012)

18 Central Water Commission 2005. Water Data Complete Book, Central Water Commission New Delhi – available: http://www.indiawaterportal.org/sites/indiawaterportal.org/files/Water%20Data_Complete%20Book_CWC_2005.pdf (accessed 23 July 2012)

19 Cauvery with Tamil Nadu, Godavari with Andra Pradesh (AP) and Maharashtra, and Krishna with Maharashtra and AP. For these rivers each state has a defined water allocation determined by interstate rivers disputes tribunals. The Pennar flows through AP and Tamil Nadu, North Pennar through AP, and the South Pennar through Tamil Nadu.

20 Falkenmark Water Stress Indicator rates a country or region in “water stress" when annual water supplies drop below 1,700 m3/person/year. At levels between 1,700 and 1,000 m3/person/year, periodic or limited water shortages can be expected. When water supplies drop below 1,000 m3/person/year, the country faces "water scarcity". Source: http://en.wikipedia.org/wiki/Water_stress (accessed 12 June 2012)

21 The estimated total annual yield of the rivers in Karnataka is about 98,406 Million m3 – CDTA Final Report



the State may reach 52,366 Million m3 (1,850 TMC) by 2025 from 37,419 Million m3 (1,321 TMC) in 2000 (Table 3). Total demands are projected to grow at an average rate of 1.36% per year; but growth of agricultural water use is predicted to be 0.80% per annum while water use in the non‐agriculture sector will grow at 3.08% per annum. This will result in a decline in the proportion used for agriculture from 84% in 2000 to 73% by 2025 and a concomitant increase in non‐agricultural use from 16% in 2000 to 27% by 2025.

Table 3: Projected sector water demands in 2025 (Karnataka State)

Sector Water Diversions 2000 Water Demand 2025 Growth Rate

(%/y) Proportion of Total

Mill m3 TMC Mill m

3 TMC 2000 2025

Agriculture 31,431 1,110 38,397 1,356 0.80 84.0% 73.3%

Household 1,647 58 2,594 92 1.84 4.4% 5.0%

Industrial 1,347 47 3,542 125 3.94 3.6% 6.8%

Power 1,497 53 1,846 65 0.84 4.0% 3.5%

Others 1,497 53 5,987 211 5.70 4.0% 11.4%

Total 37,419 1,321 52,366 1,849 1.36

Notes: Million m3 = million meter cubed, TMC = thousand million cubic feet

Source: Karnataka Development Report 2007

61. Water resources are distributed unevenly in both time and space; increasing the requirement for effective management of water. Without effective management of the available water resources, water will become the binding constraint on economic development in the near future. Modernization of irrigation infrastructure and management systems is a central component of improved water resources management in Karnataka.

62. The SGOK Water Policy (2002) identifies the lack of appropriate arrangements at the State level to adequately consider water demands of different sectors and to plan and manage water as a key deficit in the state’s institutional setup. Responsibilities for water issues continue to be fragmented between different departments without a formal mechanism to ensure adequate coordination. The fragmentation of decision making was recognized as resulting in sub‐optimal management of Karnataka’s limited surface and ground water resources that need to be systematically developed and properly utilized to enable the overall development of the State. As the SGOK "Vision 2020" envisages eliminating poverty in all areas and the achievement of the Millennium Development Goals by 2015, achieving these goals will require enhancing human competencies and equitable growth for all people and regions throughout the state; institutionalizing good governance through increased transparency, accountability and participation in water resource management and utilization.

63. The SGOK Water Policy sets out the strategic goal of ensuring water resources planning, development and management is done for each hydrological unit, entire river basins or sub basin, integrating multi‐sectoral objectives, addressing conjunctive management of surface and ground water resources, and incorporating quantity, quality and environmental considerations. Development projects and investment proposals are to be formulated and considered within the framework of river or sub‐basin plans so that the best possible combination of options can be obtained for poverty alleviation, increasing incomes and productivity, equity, reduced vulnerability to natural and economic risks and costs. Solutions to water allocation, water planning and sharing issues will be found by rigorously adopting a demand management approach.



64. The quality of water in the rivers is deteriorating,22 and many watersheds and forest areas are reported to be degrading23 leading to rapid water runoff, soil erosion, and reservoir siltation. Groundwater is also over‐utilized in 37% of the districts and a further 10% of districts are assessed as critical or semi‐critical.24 However the annual water use in the State is anticipated to continue to increase by up to 40% by 2025 due to urbanization and increased use by industry, agriculture and mining (Table 3).

65. Predictions of climate change include increased frequency and severity of droughts and floods which would further reduce effective water availability.

66. Without improvement in water resources and water services, achieving sustainable economic growth and poverty reduction for vulnerable groups including women will be problematic. IWRM that includes effective control of water use is urgently required to enable the SGOK meet the growing water needs while maintaining sound basin water balances and the environment and to be prepared for the impacts of climate change. In this context, improving the performance of irrigation remains a critical objective.

67. Approximately 2.46 million hectares (ha) of irrigation has been developed in Karnataka since 194725; but cropping intensity remains below design expectations and substantial gaps persist between the irrigation potential created (IPC) and that utilized (IPU) in many systems. In 2009‐2010 of 1.46 million ha of IPC, only about 59% was utilized.

68. Irrigated agriculture accounts for about 94% of water diversions, but suffers chronic problems of low distribution efficiency, low productivity, low farmer incomes, and poor sustainability. In a number of large schemes water distribution is inequitable, showing classic head to tail differences in irrigation services. In the head reaches, irrigation diversions often exceed the allocated design rates, leading to high return flows which are captured in drains and recovered by downstream farmers using pumps and informal weirs. While the proportion transpired by crops in the initial diversion is relatively low, some estimate as little as 40% of diversion is beneficially evaporated. It is also likely that in many systems the efficiency of water distribution and productivity can be increased by improvement of the infrastructure and operational management. Adoption of alternate crops and advanced irrigation technologies will contribute to increasing the beneficial utilization of water allocated to agriculture. However with this comes the risk that increasing beneficial utilization of water in one system may reduce the outflow and hence availability of water to existing downstream systems.

69. Improving the performance of irrigated agriculture will involve improved management of water resources, upgrading of irrigation infrastructure and control systems, strengthening of management capacity of responsible institutions, improving agricultural options and practices of farmers, and strengthening farm to market linkages. The SGOK has initiated a range of interventions to improve the irrigation services and increase agricultural production. These include State and National programs and schemes for development of improved agricultural and horticultural practices, crop insurance schemes, and efforts to accelerate completion of irrigation infrastructure developments.

70. The SGOK Water Policy and the Government of India’s 12th Five Year Plan emphasize the need to improve water use efficiency given limited scope for increasing water availability. The State has

22 Pollution from mining and other industrial activities has been reported by fishermen in Tungrabadhra. Source:

http://www.indiawaterportal.org/sites/indiawaterportal.org/files/Fisheries_and_livelihoods_in_Tungabhadra_basin_Current_status_and_future_possibilities_Working_Paper_ISEC_2009.pdf (Accessed 10 July 2012) and by the Central Pollution Control Board in Polluted River Stretches in India, Criteria and Status, Central Pollution Control Board, 2011

23 Degraded and wastelands in Karnataka cover 8.1 million ha (about 42% of the TGA). Highly degraded districts are Belgaum (0.81 million ha), Gulbarga (0.57 million ha), Bijapur (0.51 million ha), Koppal (0.49 million ha) and Bagalkot (0.45 million ha) Source: ICAR 2010 Degraded and Wastelands of India Status and Spatial Distribution. ICAR and NAAS, New Delhi June 2010.

24 Groundwater Scenario of India 2009‐2010, Central Groundwater Board, Faridabad, June 2010. Source: http://www.indiawaterportal.org/sites/indiawaterportal.org/files/ground‐water‐scenario‐of‐india‐2009‐10‐by‐cgwb‐mowr.pdf (Accessed 12 July 2012)

25 Data for 2009‐2010 seasons – source Economic Survey of Karnataka 2010‐11 and 2011‐12, Government of Karnataka.



progressively developed appropriate policy frameworks to address these challenges, including State Water Policy 2002 (envisaging holistic improvements in its water management systems and institutions) and irrigation reforms have been initiated with participatory irrigation management (PIM), the establishment of legally empowered WUCS and the progressive transfer of responsibility for operation and maintenance (O&M) of irrigation systems. The State’s 11th Five‐year plan (FYP: 2008‐12) reaffirmed these.

71. In support of the SGOK initiatives, the Asian Development Bank (ADB) provided a capacity development technical assistance (CDTA)26 in 2010 to assist in advancing sector reforms and operations, and to prepare a roadmap to guide a transition towards holistic water management. The roadmap includes outline designs for refining the institutional framework and clarifying the functions of agencies to separate regulation, management and service delivery from development and construction roles. The CDTA also advised on the strategy and priority programs for the two critical sectors–irrigation and urban water supply and sanitation (WSS). The main recommendations focused on: (i) enhancing irrigation performance from modernization of infrastructure and management systems; (ii) reforms facilitate increased “crop per drop” and strengthening of participatory irrigation management (PIM); (iii) expanding UWSS service standards (24/727); (iv) improved water distribution efficiency and management of O&M; and (v) exploration of the viability of alternate development and service models such as public‐private‐partnerships.

72. The SGOK has committed resources to establish the Advanced Center for Integrated Water Resources Management (AC‐IWRM), with the center being formally established in February 2012. The AC‐IWRM will engage in policy analysis and research, development of an updated water sector knowledge base, and assist the Water Resources Development Organization (WRDO) to provide leadership in the realization of IWRM in Karnataka.

73. In partnership with Water and Land Management Institute (WALMI), Karnataka Engineering Research Center (KERC), Central Mechanical Organisation (CMO) and relevant departments, AC‐IWRM will be the platform to facilitate pilot implementation of innovations in water resources management, modernization of irrigation infrastructure and management systems, development of appropriate basin management innovations, and increased stakeholder involvement in resource management. National and international partnerships will support critical analysis and updating during implementation of the IWRM road map. Implementation of the roadmap will follow the principles of: (i) informed participatory decision making; (ii) accountability and transparency; (iii) coordinated and integrated actions by involved organizations; (iv) knowledge‐driven decision making enabling adaptive management; (v) effective monitoring and evaluation against defined result targets; and (vi) efficient project implementation.

3.3 SGOK Water Sector Roadmap

Water Resources Management Vision

74. The Government of Karnataka declared the period 2011 to 2020 as the Irrigation Decade, with an objective of increasing the State’s agricultural income and achieving food security.

75. The SGOK has adopted an IWRM vision of: “Water resources planning, development and management will be carried out adopting an integrated approach for a hydrological unit such as river basin as a whole or for a sub basin, multi‐sectorally, conjunctively for surface and ground water incorporating quantity, quality and environmental considerations (and) Development projects and investment proposal will be formulated and considered within the framework of river or sub‐basin plan so that the best possible combination of options can be obtained for poverty alleviation, increasing incomes and productivity, equity, reduced vulnerability to natural and economic risks and

26 TA7418‐IND: Integrated Water Resources Management and Sustainable Water Delivery in Karnataka which was implemented between 2010‐2011

27 “24/7” indicates a service objective of availability of potable water 24 hours per day 7 days per week.



costs. Solutions to water allocation and planning issues will be found adopting a demand management approach.”28

Integrated Water Resources Management

76. IWRM is a concept promoting the coordinated development and management of water, land and related resources in order to maximise economic and social welfare equitably and without compromising the sustainability of vital ecosystems and the environment29.

77. The essence of IWRM30 is the integration and coordination of (i) management of surface water, groundwater and rainwater (ii) government and private sectors that are separately managing water resources; (iii) policy, resource management and service delivery of water; (iv) management, conservation, maintenance, scientific use of water resources; and integration of (v) economic, social and environmental outcomes; and (vi) issues related to food and energy security.

78. There are wide range of tools31 and attributes32 available to achieve IWRM. Importantly the process is adaptive rather than a one‐time intervention with a specified end point. The challenge is to turn the IWRM concept and process into a practical approach that is implemented effectively in Karnataka. This will involve a step wise process that focuses on key actions at any one time.

Advanced Centre for IWRM (AC‐IWRM)

79. Central to the further implementation of IWRM in Karantaka is the Advanced Centre for IWRM (AC‐IWRM). The AC‐IWRM was established to become a global Centre of Excellence by Government Order in February 2012. The role of AC‐IWRM is to facilitate adoption of IWRM principles, promote exchange of expertise, knowledge and experience, and to enable partnerships among various stakeholders and agencies to carry out policy analysis, action research, capacity building and networking. As proposed, the Advanced Centre would comprise focus groups covering hydrology, river basin planning and management, agricultural productivity, water use efficiency, climate change, dam safety, advanced technologies, research, consultancies, M&E of projects, and human resources management and capacity building.

Water security

80. The important outcome of an IWRM based approach is a secure and sustainable water resource that meets the needs and improves the livelihoods of society and rural communities. Societies enjoy water security when they successfully manage their water resources and services to:

i. Satisfy household water and sanitation needs in all communities

ii. Support productive economies in agriculture and industry

iii. Develop vibrant, liveable cities and towns

iv. Restore healthy rivers and ecosystems

v. Build resilient communities that can adapt to change.

81. To achieve this, available water resources (defined by quantity, quality, and reliability) under a range of pressures including drought and climate change, will need to be shared between users including the environment. This sharing would likely be best achieved through the IWRM process, particularly through the implementation of State policies and standards for river basin planning and management including development of appropriate organisations.

28 State Water Policy 2002 29 http://www.gwp.org/The‐Challenge/What‐is‐IWRM/ 30 Based on Government Order No. WRD 64 MBI 2011 Annexure – 2: Guiding Principles for AC‐IWRM Dated: 07.02.2012 31 The GWP describes such tools as enabling (policies, legal framework, investment and financing), institutional (appropriate and building),

and management (information, assessment, planning, water use efficiency, economic, conflict resolution) instruments. 32 The IWRM and Sustainable Water Service Delivery in Karnataka CDTA refers to 23 attributes leading to good IWRM.



Water Services Delivery Vision

82. The SGOK has33 as its vision ‘Integrated water resource management to achieve scientific and efficient management, to increase “crop per drop” through a mix of improved efficiency of water application and net water gains through crop yield enhancement, adopt the practices that are environmentally sustainable and economically viable, close the gap between the demand and supply of water and to maintain the quality of water.’

Irrigation services

83. The SGOK has as its objective to distribute water equitably and use water more efficiently. It wishes to create an ultimate irrigation potential of 4.5 million ha under major, medium and minor irrigation projects and to facilitate creation of an additional irrigation potential of 1.6 million ha by individual farmers using ground water. This implies the intention to provide irrigation to farmers cultivating at least 6.1 million ha of land in the State.

84. The overall vision for upgrading and modernising the irrigation systems is driven by the measures required to support increased crop production using less water thereby enhancing irrigation area sustainability by34:

i. Ensuring supply of sufficient water in a timely manner through (a) improvement of the irrigation distribution infrastructure and (b) better operation of this infrastructure,

ii. Working with water users in developing and implementing actions consistent with IWRM principles that will lead to sustainable irrigation systems,

iii. Working with the water users to improve their awareness of the value of water and developing their capacity to use it more efficiently,

iv. Improved flexibility of supply to encourage diversification of cropping aimed at providing maximum household income per unit of water used, and,

v. Providing irrigation infrastructure compatible with increased mechanisation of agriculture.

85. With this vision comes the challenge of sourcing additional water or by raising water efficiencies that does not further degrade the environment or reduce water availability for established users including other irrigation users but also towns, villages, households, stock, industries and other sectors.

Domestic water supply and sanitation

86. For domestic water supply SGOK is committed to providing drinking water at the rate of 55 litres/p/d in the rural areas, 70 litres/p/d in towns and 100 litres/p/d in city municipal council areas, and 135 litres/p/d in city corporation areas. In most areas water supply is not continuous but there is an intent to aim at 24 by 7 supply in municipal areas. There are no statements concerning objectives for the quality of water delivered or the drought reliability of supply but the Karnataka’s Water Policy indicates a first priority for domestic water that assures greater reliability.

87. Security of supply both quantity and quality is essential for meeting this vision as the water resources are developed further in Karnataka.

Industrial water services

88. The SGOK Industrial Policy 2009‐14 states the objective of creating an enabling environment for robust industrial growth in the State by ensuring inclusive industrial development and providing additional employment for about 1.0 million persons by 2014. It thereby intends to enhance the

33 Results Framework Document for Government of Karnataka (Department of Water Resources) (2011‐2014)

34 DHV BV (2012) PPTA Interim Report for Project ADB TA 7954‐IND, p31



contribution of manufacturing sector to the State’s GDP from the current level of 17% to 20% by the end of policy period. World class infrastructure is required to support and encourage investors.

89. For this, industrial water supply schemes are to be expedited and supply of recycled and treated waste water to industries explored to enable better cost recovery and project feasibility. It would also facilitate implementation of mega water supply schemes for industries in selected locations. However, due care is to be taken to save water bodies, ecology and greenery by adopting Integrated Environmental Plans for regions. Industries will be encouraged to adopt and implement appropriate measures for rational use of scarce resources and the conservation of water by adopting appropriate technologies including recycling of water and treatment of waste water.

90. To encourage rapid industrial growth SGOK has issued a State Policy for SEZ (Special Economic Zones) 2009. Under the Policy developers will be encouraged to use or set up infrastructure facilities and services including providing water supply and treatment, electricity and such other services according to SGOK guidelines and standards.

91. With industrialization comes inevitable pollution. Even with strong controls such as are evident in developed countries keeping water quality in particular is an on‐going challenge. A key aspect of management practices is to use highly water efficient processing systems including recycling, and to retain and process waste on site.

Waste water management

92. The National Policy Statement for Abatement of Pollution, 1992 and the National Environmental Policy 2006 speak of an integrated approach for the management of the environment, the polluter pays principle, the development of fiscal and economic incentives for the management of pollution, Best Available Technology Not Entailing Excessive Costs (BATNEEC), and increased use of clean and efficient technology and production systems rather than end‐of‐pipe waste management. The Central Pollution Control Board (CPCB) has developed industrial use zoning approaches and guidelines for both water quality management and water quality monitoring (2008)35.

93. These policies and the SGOK State Water Policy, 2002 suggest the use of an IWRM approach for the management of water and environmental quality including a cross‐sectoral vision for management of pollution.

94. Under State pollution policy, pollution control is to be enforced in a framework of “economically viability”. The Karnataka State Pollution Control Board (SPCB) plans that in future all effluents will require treatment to its standards for effluent water quality. No effluents will be allowed to discharge rivers even after treatment but may be used for agricultural irrigation. The SPCB36 retain the option of tightening water quality standards for industrial effluents according to local conditions such as river conditions (in general a dilution factor of 8‐10 is considered).

95. International experience indicates that to be successful in managing pollution water quality, political commitment is required along with the means to monitor and enforce standards and licensing agreements

Other uses, fisheries, navigation, tourism and multi‐use systems

96. There has been a significant decline in river based fisheries in the Upper Tungabhadra Sub‐Basin due to diversion of flows from rivers for irrigation and other purposes reducing flooding and fish breeding opportunities; weirs and reservoirs acting as barriers to fish migration, and pollution of streams37. Management of river health as described earlier is needed in the sub‐basin if river based

35 http://www.indiawaterportal.org/node/697

36 Chief Environmental Officer, SPCB

37 CDTA Report (January 2011) IWRM and Sustainable Water Delivery in Karnataka. Final Report. January 2011. ADB TA No. 7418‐IND. para 132, pp 156



fisheries are to recover. Fisheries in reservoirs, irrigation canals and tanks are significant however and these amount to important multi‐use systems. However water pollution problems that need control come with aquaculture. Water based navigation is unlikely to be significant in the study area and water related tourism is thought to be minor.

97. These sectors, especially Fisheries and Tourism would be involved in development of river basin plans which would better identify their existing and possible water uses as well as where possible to provide for their future needs. As important water users a by‐product would be their development of water related visions and goals and input into in water resources management Karnataka.

River and Ecosystem Health Vision

98. Internationally river health refers to the ecological condition of a river that is important for maintaining the services that river systems (wetlands and forests) provide to society such as surface water supply, groundwater recharge, good quality water, fisheries and fish breeding, birdlife including for migratory birds, recreation and tourism. These services can be lost as a result of human interventions and so systems for monitoring river health are often used to assist implementing protection or remediation measures. As a result the health of rivers is a good indicator of the overall catchment health and environmental condition. Characteristics of river health are often measured by changes from natural conditions of river flow and the need to ensure a minimum flow, water quality, stream morphology, stream biodiversity and the condition of riparian land and its connectedness to the river.

99. The Action Plan for River Systems proposed in the National Environment Policy 2006 lists among other actions promoting integrated approaches to management of river basins by the concerned river authorities. Plans would consider upstream and downstream inflows and withdrawals by season; the interface between land and water; pollution loads and natural regeneration capacities to ensure good water quality; maintenance of adequate stream flows, in particular for maintenance of in‐stream ecological values; and, adherence to water quality standards throughout rivers in all seasons. This is incorporated in the Karnataka State Water Resource Policy as water resources planning and development and management and will be carried out adopting an integrated approach for a hydrological unit such as a river basin as a whole or for a sub basin, multi‐sectorally, conjunctively for surface and ground water incorporating quantity, quality and environmental considerations.

100. There are a range of factors contributing to poor river health in much of the Tungabhadra and other sub‐basins and these are as follow:

Water Quantity

101. River flow is an issue in the Tungabhadra sub‐basin. It appears38 no consideration has been given to river minimum flows in the design and operation of major and medium irrigation schemes and while there is high inter‐annual variation of the monthly discharge, all rivers downstream of major irrigation off takes are often dry during summer39.

102. Both the STRIVER 2006 studies and the CDTA reports express their concern about river flows though lack of flow monitoring makes assessment difficult. Furthermore, additional irrigation projects have been approved and this will considerably increase water demand and in all probability to reduce river flows further. The Upper Bhadra irrigation, which is under construction, in phase 1 (of 3) will add an extra 30% of the current consumptive water demand from that of the existing Bhadra Project.

38 IWRM and Sustainable Water Delivery in Karnataka CDTA, 2011

39 http://kvina.niva.no/striver/



103. Discussions by the CDTA project with both government and local populations suggested that in many months the waters in the TB river mainly consists of release of municipal sewage and other similar effluent and wastewater discharges, much of which is untreated.

104. Groundwater also can be important for the maintenance of river and ecological health. Groundwater may discharge into the river or its wetlands at certain times of the year and provide an important source of water. Groundwater might also be important for groundwater dependent ecosystems especially during extended dry periods where forests, shrubs and wetlands might live off groundwater. The overall trend in groundwater levels is declining and in some cases seriously so40.

Water Quality

105. The Ecology and Environment Department has the mandate of preserving and enhancing the quality of the natural environment, including water, air and soil quality; conserve and protect flora, fauna and other natural resources. The Indian Water Act provides for the prevention and control of water pollution and maintaining or restoring water quality. After the enactment of the Air (Prevention & Control of Pollution) Act, 1981 the enforcing responsibility at a State level was entrusted to the Karnataka State Pollution Control Board in 1985.

106. There are a large number of water quality issues in the TB river basin including both point and non‐point source. According to the SOE 2003 report on surface water quality in the Krishna basin, most hot spots were identified along the Tungabhadra or Bhadra rivers

107. SPCB monitoring data on the TB River suggests that the water in many months cannot be used for drinking because of poor water quality, while in other months it is only possible to drink after proper treatment. Major sources and future pollution risks are municipal wastewater and none of the major towns in the basin have complete sewerage collection and treatment systems and existing plants were poorly maintained and operated41. Bhadravati, a major town on the Bhadra River just downstream of the Bhadra Reservoir is classified as critically polluted by the CPCB one of 24 such areas in India42. Rural sanitation coverage is very low. At the state level 63% of the total population does not have sanitation facilities with the figure rising to 83% for rural areas and this causes point and non point source pollution.

108. Industrial pollution is also another serious problem with 27 large scale industries in the river basin with sponge iron, distilleries, sugar and paper mills, causing problems including loss of crops when their polluted waters were used for irrigation43. There are a further 50 factories under various stages of implementation and 2,543 small‐scale industries where the treatment of wastes is likely to be negligible.

109. The release of inadequately treated industrial effluents has affected fish breeding and caused fish kills particularly in summer. This problem is further exacerbated by inadequate water in the river to dilute or clean the polluted waters. Surveyed fishermen stated that pollution and fish kills have affected their health and reduced income. In Hale Ayodhya, a 2004 fish kill was so serious that fishing communities were unable to fish for the whole year. Fishermen also attribute reduced fish catches to the excessive use of agro‐chemicals44.

110. Mining too has an impact on the quality of surface water in the sub‐basin. More than 50 per cent of the suspended sediment load in both the Bhadra River and Bhadra Reservoir comes from

40 the 2003 State of the Environment report 72 Taluks were categorised either as overdeveloped. In 1999, 56 of the 380 watersheds of the

state were declared overdeveloped.

41 IWRM and Sustainable Water Service Delivery in Karnataka. CDTA, ADB TA 7418 IND, 2011

42 www.cpcb.nic.in/divisionsofheadoffice/ess/Bhadravathi.pdf; http://www.cpcb.nic.in/faq1.php

43 Field survey of villagers

44 Manasi S, Latha N and K V Raju, 2009 Fisheries and Livelihoods in Tungabhadra Basin, India: Current Status and Future Possibilities, Working Paper 217. The Institute for Social and Economic Change, Bangalore, India



upstream mining‐affected lands on less than one per cent of the total catchment area45. Waste/tailing and dumps are also a serious problem in some areas carrying dissolved metallic and non metallic chemical compounds including cyanide from gold mining/processing.

111. The groundwater is also affected by poor water quality due to anthropogenic and geogenic causes with salinity, fluoride, iron, and nitrate being problems in some locations.

Non‐point source agricultural discharges

112. Non Point Sources of pollution have been found caused by mercury based insecticides and pesticides used by paddy farmers. Rural sanitation coverage is very low and this also causes non point source pollution problems.

Watershed management and sediment management

113. According to the State of the Environment 2003 report, soil erosion is one of the major causes of siltation of reservoir and tanks in Karnataka. Of all the State’s basins, the Krishna and Lingamakki basins are considered the worst affected, with the Tungabhadra and Bhadra amongst the worst affected within the Krishna basin.

114. The two major causes of this are loss of vegetative cover (including deforestation) and mining as there are active mines in 3,862 ha of forest land in the basin46. The mine waste problem is exacerbated by abandoned and closed mines often not being rehabilitated and causing sedimentation and pollution long term. Erosion and sedimentation also results from overgrazing (eg. in Bellary) and nomadic grazers add to the grazing pressure.

115. Catchment treatment is a difficult issue in Karnataka as 80% of agriculture is rainfed and 70% of the state is categorised as arid or semi‐arid. It is also estimated that 57% of the total cultivated area in the state needs soil and moisture treatment. Some climate change models also predict that the Krishna basin will suffer much greater droughts47. As a result, watershed management is needed to assure livelihoods, protection of community infrastructure, and environmental conservation.

116. The SGOK watershed management mission is to develop, promote and implement through participatory approaches, a decentralized, cost effective, transparent and sustainable watershed treatment package to meet rural livelihood needs; to enhance employment and income opportunities for the poor; to improve the productive potential of natural resource base; and to reduce poverty and natural resource degradation.

117. The objectives of the watershed management programs of SGOK are to improve the productive potentials of selected watersheds and their associated natural resource base; sustainable alleviation of poverty; develop and strengthen community based institutional arrangements for sustainable natural resource management; improved skills and employment opportunities for non‐farm sectors; and involvement of village communities in participatory planning, implementation, social and environmental management, maintenance of assets and to operate in a more socially inclusive manner.

In‐stream water quality and management objectives

118. Achieving stream water quality and management objectives will require an IWRM based approach involving strong regulation of point source pollution from industrial and municipal effluents and wastewaters. Non‐point source pollution from mining, agriculture and rural and urban sanitation and solid waste is also needed although diffuse sources from agriculture are usually difficult to control. There would need to be (i) stringent norms and licensing requirements for mines,

45 Jagdish Krishnaswamy et. al. (2006) Impact of iron ore mining on suspended sediment response in a tropical catchment in Kudremukh

46 STRIVER 2006




including waste disposal, mine management, and mine rehabilitation along with enforcement of these; (ii) agriculture extension services to ensure appropriate agrochemical use and management; (iii) development of urban and rural sewerage and sanitation; and (iv) develop appropriate solid waste, hazardous and medical waste facilities including recycling.

119. Equally important would be the need to ensure environmental flows in the river systems. The Central Water Commission Report of 2007 – Working Group to Revise WQAA48 suggested that environmental flows should be made mandatory for all new infrastructure, and that remedial steps where possible should be taken for existing infrastructure too. It stated that – ‘Minimum flow of any ten daily period to be not less than observed ten daily flow with 99% exceedence. Where ten daily flow data is not available this maybe taken as 0.5% of the 75% dependable annual flow in cubic metres per second. One flushing flow during the monsoon of not less than 60% of 75% dependable annual flow in cubic metre per second’.

Review of Karnataka Water Sector Assistance

120. A number of Central and State assisted programs in the water sector in Karnataka are under execution with different water sector organizations. Some of these programs are:

Current Activities in the Sector

(i) Major and Medium Irrigation

121. Major and Medium Irrigation (MMI) schemes being developed in the State using State and Central funds. The Upper Krishna project, canal systems on Krishna River, and 5 barrages on the Bhima river are some of the important projects under construction. Of the potential irrigation area of 4.5 mha, 3.6 mha is completed. SGOK investment in the Upper Krishna Project III has an approved budget outlay of INR 17,200 crore (USD 3.25 million).

122. ‘Accelerated Irrigation Benefit Program (AIBP) initiative in Karnataka: Central assistance is being provided to all States to complete the ‘last mile’ of MMI projects funded under the program since 1996‐97. Under the program, the central government provides financial assistance to the states (some 50% assistance for all projects and 90% for projects in hilly and drought prone districts). Priority is given to those projects nearing completion. The program boosted in 2005 under the flagship of ‘Bharat Nirman’. Fifteen MMI schemes catering to 0.88 mha are taken up under the program in Karnataka.

(ii) Minor irrigation (MI)

123. MI tank projects in the state are taken up by Minor Irrigation Department, Zilla Panchayats and Gram Panchayats. Karnataka Jala Samvardhane Yojana Sangha’, (JSYS) a society established by the MI Department and registered under the Karnataka Societies Act (1960) develops and rehabilitates MI tank projects with local participation. The society promotes capacity building, provides strategic resources and logistic support for training and orientation, promotes and undertakes multi‐dimensional intervention and ensures timely and adequate funds flow from all possible resources. Currently, JSYS is implementing the World Bank assisted Karnataka Community Based Tanks Management Project (KCBTMP) under which it has formed and worked with 3,126 tank user groups to rehabilitate and manage 3,710 tanks with commend areas of <40 ha and >40 ha (ie not just minor irrigation). The Project finished in 2014.

(iii) Command Area Development and Water Management

124. With the objective to bridge the gap between potential irrigation area and that utilized under MMI projects, the Command Area Development and Water Management Scheme of Ministry of Water Resources is providing grants for ‘on‐farm’ development works to ensure farm gate delivery.

48 http://wqaa.gov.in/reports/Report_on_Min_Flow_in_River.pdf



Six Command Area Development Authorities (CADAs) have been established in Karnataka to implement activities under the scheme.

125. The CADAs undertake on‐farm development works (OFD) such as topographical and soil surveys, land leveling, construction of field channels & field drains, warabandi (scheduling and rotational supplies). The CADAs also undertake agricultural extension services, awareness and training of farmers and functionaries in research findings, adaptive trials and demonstrations. As per GoI directions, CAD activities in new MMI projects are to be undertaken as a part of infrastructure development and thus Krishna Bhagya Jal Nigam Limited (KBJNL), Karnataka Neeravari Nigam Limited (KNNL) and Cauvery Neeravari Nigam Limited (CNNL) are also carrying out OFD works in the new projects.

(iv) Watershed Development

126. About two thirds of Karnataka receives less than 750 mm of rainfall annually, with rain starved districts such as Bijapur, Raichur and Bellary having 569 mm. Karnataka is the second largest drought prone state in the country, a number of drought prone area schemes of various central ministries are being implemented through central grants for rain fed areas.

127. Soil conservation is one of the main programs undertaken by the state. About 61% of the State area requires watershed treatment and about 42% has been treated. The World Bank has the Watershed Development Project for water conservation and to enhance the agricultural productivity in the dryland/command areas.

(v) Other Central Schemes of Departments

128. A number of other important schemes of various central ministries provide funds for developmental works by their respective departments.

129. Ministry of Rural Development (MORD) include: (i) Accelerated Rural Water Supply Program (ARWSP) now restructured as ‘National Rural Drinking Water Mission’ (NRDWM) that is to provide safe drinking water for all people by 2012 with assistance of Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) funds, (ii) ‘Total Sanitation Campaign’ (TSC) scheme that includes individual household latrines (IHHL), sanitary complexes, toilets for schools, anganwadis (crèche), rural marts and production centers. This scheme also runs on MGNREGA funds and Jawaharlal Nehru National Urban Renewal Mission (JNNURM)

130. Ministry of Urban Development (MOUD) addresses the needs of water supply, sanitation, sewerage and solid waste management in 7 mega cities, 28 cities of one million plus populations, and 30 identified cities/urban agglomerations. The budget for the current (2013‐14) year for safe drinking water projects, including the Yettina Hole project, is approximately USD 2 billion.

131. Ministry of Water Resources (MOWR) also includes: (i) Schemes for ‘Repair, Renovation and Rehabilitation’ (RRR) of existing tanks, ponds and other water bodies from MGNREGA funds, (ii) Scheme for Artificial Recharge to Groundwater in 1180 overexploited, critical and semi‐critical blocks in 7 states including Karnataka.

132. Ministry of Agriculture and Cooperation (MOA&C) runs a scheme providing a subsidy to farmers for adoption of micro irrigation with the objective of judicious water use.

133. National Water Mission, Ministry of Water Resources, GOI supports the SGOK with a project in Narayanpur Left Bank Canal (NLBC) of one lakh hectares with the expected benefits of a 25% increase in water use efficiency through adoption of all indicated engineering and non engineering measures. The budget for this project is approximately USD 1 billion. Nationally the budget for this program is more than $10 billion and the KISWRMIP will have influence on this.

(vi) Government of Karnataka Budget 2013‐14

134. The SGOK has made significant political and financial commitments to taking an integrated and much strengthened approach to water resources management. The following are the excerpts from the SGOK’s Agriculture Budget 2013 – 14.



“Water Resources Management and Increase in Water Potential: In the State for the last 6 decades, priority has been accorded to the construction of new irrigation projects and the importance of maintenance has come down. In addition during recent years, there is a growing competition in the demand for water among people, agriculture, industry and environment and is reaching the stage of conflict. Apart from this, reservoirs/tanks are not receiving adequate storage due to untimely rains, and in many places due to poor maintenance of canals, sufficient water is not being properly supplied causing great hardship to the farmers. Due to continuous depletion of ground water levels, the availability of water for agriculture is becoming less. It is therefore necessary to give more attention to efficient utilization of water, use of modern technology and management of water resources.”

“Priority for integrated management of water resources: For the first time in our country to give priority for integrated management of water resources in the State, Karnataka Government with the efforts of the last 2 years has prepared an important scheme. In this scheme, the process of integrated management of various water resources, efficiency in its use, formation of required policies & procedures and required MoU with national and international institutions is underway. The Asian Development Bank is providing assistance apart from funding by the State Government for implementing this scheme. For this purpose, a Special Proficiency Centre with experts will be established at the University of Agricultural Sciences, Bangalore. All preliminary reports have been prepared for implementation of the scheme in the Tungabhadra river basin. This scheme will be extended all over the state in a phased manner. Rs.75 crores (USD 14 million) is allocated towards the State’s funding.”

135. The ADB financed program will have a direct impact on the very large investments being planned by SGoK under the Upper Krishna Project (UKP) Stage‐III in the Krishna basin (as a consequence of final award of tribunal) with an approved budget outlay of INR 17,200 crores (USD 3.25 billion). UKP Stage‐III works are being taken up from 9 projects, works of Mulwad LIS, Chimmalgi LIS, Guttibasavanna LIS, Mallabad LIS, Koppal LIS and Ramapura LIS have already been started. In the current year, the remaining extension works of Narayanpur RBC, Herkal LIS and Bheema flank, Nandipura and Marabihalu of Hagaribommanahalli LIS projects works will commence. The key elements of the KISWRMIP program viz., IWRM principles, river basin planning and management, irrigation (management) modernization will provide insights and field experience to further improve these investments.

136. Similarly, learnings for the KISWRMIP will feed into the Yettina Hole Project which is to provide safe drinking water to the eastern part of the state i.e., Kolar, Chikkaballapur, parts of Bangalore (Urban), Bangalore (Rural), Tumkur and other districts. The Yethina Hole Project has been approved at a cost of Rs.8,323 crores (USD 1.57 billion). Preparation of a detailed project report is in progress by the SGoK. Various other projects in other sub‐basins will also benefitted from the experiences from the ADB project. The state budget for this for the financial year is around USD 2.0 billion.

137. Considering the progress of Karnataka in bringing in the reforms in water sector, the National Water Mission (NWM) is partnering on a large pilot to improve water use efficiency by 20% in Narayanapur LBC with an outlay of about USD 1.0 billion. This will provide a definite opportunity for Karnataka state to provide regional leadership to many other states who will eventually have to move to the initiatives being taken up by the state in this program. GoI thru NWM will facilitate this and hence the impact of this program will be nation‐wide influencing investments worth at least USD 10 billion.

(vii) Potential synergies and overlaps

138. A number of programs and projects listed above have interrelated and interdependent interventions and impacts though they are executed by different departments and agencies. While successful watershed management would arrest the rate of siltation of reservoirs, it would also impact on the inflows. Similarly, effective command area development works and agricultural



extension could improve water use efficiency and contribute to better irrigation system operation and management including managing tail end problems. At the same time regenerated water from the command assists groundwater recharge and inflows into down stream irrigation projects. This is clearly observed in such projects as Bhadra – Gondhi canals and TLBC – Vijayanagar Left Bank Canals. Finally, coordinated implementation of these programs could ensure better agricultural productivity and increased incomes for the farmers.

139. Leveraging effective coordination and synergy among these programs would require their planning and execution within a sub‐basin management perspective. Therefore moving to a river basin planning process involving all stakeholders within a basin management organization could be the institutional and technical process to synergize these programs.

140. The KISWRMP will have direct influence, through the WRD as well as the IWRM Steering Committee and National Water Mission, on the approaches taken in implementing projects with budget commitments of more than USD 17.8 billion as described above.

(viii) Strategic management and coordination

141. The SGOK is engaged with the above activities and is keen to implement IWRM with support from the ADB. The project needs to ensure coordination arrangements that look possible synergies and avoiding the overlapping activities by agencies involved to create an enabling environment for implementation of the IWRM.

142. The SGOK IWRM Steering Committee coordinates key stakeholders related to activities associated with Integrated Water Resources Management in the State. The Central Water Commission (CWC) will be invited to be a member in order to facilitate coordination and cooperation with the national level. Currently, the Steering Committee is giving policy directions and reviewing the KISWRMIP technical assistance work but is expected to continue to provide policy guidance, coordination and reviewing the implementation of the State IWRM Roadmap.

143. The AC‐IWRM aims to synergize the Departments of Water Resources, Agriculture, Minor Irrigation, Groundwater, Industry, Energy, Urban Department, Rural Development, agencies/departments related to the Urban and Rural Water Supply, Environment and Forest, Pollution Board, BWSSB, KUWSSB and other related agencies. The Program is promoting and foresees partnerships with international organisations including UN Water Group, (FAO, UNU, DESA, ESCAP, GEF, UNDP, WMO), NARBO, CGIAR, as well as with Universities and countries highly experienced in managing water scarcity in river basins with an interstate dimension such as Australia.



4. THE KISWRMIP

4.1 The MFF Roadmap

144. This roadmap for IWRM in Karnataka is based on the assessment of the water resource institutions and policies in Karnataka, studies of the Tungabhadra river sub‐basin as a sub‐basin typical of conditions in Karnataka and with reference to the draft National Policy and SGOK Water policy (2002). The process followed extensive consultations with key stakeholder representatives in all relevant sectors and at a number of levels as described in this report. These identified priority issues requiring further study and assessment for possible consideration of adoption in Karnataka. These include:

i. The need for an integrated approach to water resources management to overcome a fragmented approach to managing surface and groundwater by different departments.

ii. Due to increasing demands for water by industry and urban sectors and, given the significance of irrigation as a user of water, adoption of IWRM and highly efficient approaches to water use by the irrigation sector.

iii. Strengthening of the State Water Resources Authority,

iv. Revision and updating of the State Water Policy,

v. Economic and institutional instruments for efficiently achieving improved water management such as separation of regulatory‐policy‐service functions, options for Public Private Partnerships, volumetric water pricing to provide incentives and user pays approaches for resource use and service provision,

vi. Introduction of river basin management arrangements as set out by the SGOK Water Policy with the strategic goal of ensuring that water resources planning, development and management is done for each hydrological unit of entire river basins or sub basin and integrates multi‐sectoral objectives; conjunctive management of surface and ground water resources; and incorporates quantity, quality and environmental considerations,

vii. Investigation of the scope for strengthening the approach to water entitlements, water allocation and water licenses including models that might be most appropriate for conditions in Karnataka,

viii. Strengthening community participation and subsidiarity so that communities have a stronger role and responsibility for water resources management.

145. Following this assessment a ten year, 3 Tranche investment program of $ 225 million ($150 million ADB, $75 million SGOK) was for developed to lead to the KIWRMIP’s goal of ‘enhanced access and security of water supply in the selected river basins in Karnataka’. The scope of the Roadmap is shown in the following Figure which highlights the importance of IWRM and learning processes tom the successful implementation of the Roadmap. The more detailed KIWRMIP IWRM Roadmap is provided in Appendix 2, Volume 2.



Figure 12: Strategic framework for IWRM in Karnataka

146. This roadmap will be implemented via the following 3 Outputs and their related sub‐outputs conducted over the three Tranches as follows.


OUTPUT 1: AC‐IWRM STRENGTHENED TO SUPPORT STATE AND BASIN LEVEL INSTITUTIONS AND POLICIES


Studies involving policy and institutions, river basins, water resource information, water use efficiency


Continuation of Tranche 1 activities including trialling and implementation where relevant

LWMP pilot in 1 WUCS area


Continuation of Tranche 2 activities



Continuation of T1


Continuation of T2

OUTPUT 2: MANAGEMENT OF IRRIGATION SUB PROJECTS IS MODERNIZED


Project 2‐1: Modernisation of Vijayanagara (VJN) and part of Tungabhadra Left Bank Canal (TLBC) Irrigation Systems

Project 2‐1: Modernisation of part of TLBC irrigation system

Project 2‐2:Flow measurement with Telemetry for Bhadra and key irrigation systems



Project 2‐3: WUCS and Agricultural Development ‐ Gondhi Irrigation

Project 2‐3: WUCS and Agricultural Development – VJN, TLBC, aftercare for

Project 2‐3: WUCS and Agricultural Development ‐ TLBC plus aftercare

IMPACT Enhanced access and security of water

resources and services in the river basins of Karnataka

SUPPORTING THEMES Data, Information, and Knowledge

Management Stakeholder Involvement

KEY THEMES Institutions and

Policies for IWRM

Cross-Sectoral Integration

IWRM Based Irrigation

Management

Integrated River Basin

Management

IWRM and Learning Processes




System Gondhi for VJN

Project 2‐4: Strengthening of Nigams and CADA.



OUTPUT 3: EFFICIENT PROGRAM MANAGEMENT SYSTEMS OPERATIONAL

Project 3‐1: Program Planning Project 3‐1: Program Planning Project 3‐1: Program Planning

Project 3‐2: Program Execution Project 3‐2: Program Execution Project 3‐2: Program Execution

Project 3‐3: Program Monitoring Project 3‐3: Program Monitoring Project 3‐3: Program Monitoring

4.2 Program Impact and Outcome

147. The KISWRMIP is to be implemented in three Tranches and The Program Design Monitoring Framework is provided in Volume 2, Appendix 1. Indicators of the Program outcome are as follow:

Program Impact

148. The impact of the Program would be enhanced security of water resources in Karnataka river basins. Indicator targets for this are by 2028:

i. River basin management arrangements established in at least 3 sub‐basins

ii. Water quality in at least 90 % of river reaches maintained at or better than class for intended use in selected sub‐basins

iii. State gross value (2012 INR) of annual agricultural production increases from INR 62,057 crore49 (USD 11.28b) to INR 141,455 crore (USD 25.72b)

Program Outcome

149. The Outcome of the Program would be improved water resources management in the selected river basins in Karnataka. The indicator targets for this are:

i. By 2020 the State IWRM strategy will be under implementation

ii. By 2023 annual water resources monitoring and assessments in program sub‐basins and corresponding water allocations to users are being implemented

iii. By 2023 Infrastructure and management systems on 55,000 ha of irrigation is modernized (FAO 1996) within the K8 sub‐basin

4.3 Program Outputs

150. The KISRMIP comprises 3 Program Level Outputs and these are summarised in the following sections and described in detail in Appendices 4A to 4C.

Output 1: State and Basin Level Institutions Strengthened for IWRM

151. In this Component, the KISWRMIP would support the AC‐IWRM in addressing priority IWRM policy reviews and pilot initiatives in the State in order to strengthened Policy and Institutional Arrangements for IWRM. The approach will be to build capacity of the AC‐IWRM, relevant SGOK organisations and civil society organisations such as universities so that there is a strong IWRM

49 Economic Survey of Karnataka 2012‐13



approach and capacity in Karnataka. Modes of delivery will include on‐the‐job training and support given by consultants, investigation of international and national approaches, and establishment of partnerships as well as work placements with relevant international and national organisations that are using best practice approaches. The Project Implementation Plan for this Output is provided as Appendix 4A.

152. The DMF identifies the Outputs for this Output as:

By 2018 at least 3 river basin plans are being implemented

By 2018 WRD staff (xx% women) are certified in IWRM, and,

By December 2015: AC‐IWRM is fully staffed (6 technical staff consistent with the Government Order for establishment), resourced (offices and equipment), with staffed trained in IWRM

153. The key activities and milestones identified for this Output are:

Water policy reviews under implementation (Jun 2014)

IWRM certification program in implementation (Dec 2014)

Water resources information system in use (Dec 2015)

River basin resources inventories prepared (Dec 2016)

State IWRM Strategy endorsed by IWRM‐SC (Dec 2018)

Output 1 Governance

(i) Steering Committee

154. Implementation of the Output will be under the supervision of the Karnataka IWRM Steering Committee and this is described in detail in Appendix 4C Output 3 Program Management. The Central Water Commission (CWC) would be invited to be a member of the Steering Committee. Output reporting and oversight will be to the State IWRM Steering Committee along with the other Outputs of the KISWRMIP.

(ii) International Board

155. An international advisory board is proposed for the Output. It would meet twice per year (1 real, 1 virtual) and be skills based comprising 6‐7 members covering government water resources policy, river basin management, water resources research, water resources management in India, regional water resources and river basin management from regions where water scarcity is a major issue, and where leading approaches have been taken. Members could be drawn from India government (CWC), Karnataka (WRD, AC‐IWRM, University), NARBO, international governments (eg. DG level or similar from State Water Resource Management Departments from regions where water scarcity important is and strong approaches taken; eg. Australia, USA).

156. The Board’s role would be to provide effective guidance and leadership and advise the IWRM Steering Committee on the Centre’s strategy, IWRM approaches and directions, IWRM research directions, progress with implementing the Centre's Charter, forming partnerships and utilising international collaboration opportunities, ensuring excellence, and assisting the Centre in becoming an international standard centre of excellence.

(iii) AC‐IWRM

157. The AC‐IWRM will lead implementation of the Output and it will supported by international and national consulting services. It will be supported by a core team of 3 international consultants who will provide basic level of support throughout the activity. Tasks included in the basic level of support include on‐the job‐training in implementing the project activities, international and national study tours, training courses, work placements, academic fellowships and, a tri‐annual international



conference. Depending upon budget and SGOK priorities, these core activities would be expanded with more support from international and national consultants enabling more in depth training, investigations and studies, and assistance for Output stakeholders (Appendix 4A, Attachment 1 and 2). A capacity building plan and participation plan would be prepared at the outset of the project and updated annually and focussed on policy makers, managers and technical professionals.

158. The Output will comprise 2 sub‐outputs that will be implemented over the 3 Tranches:

State and Basin Institutions Strengthened for IWRM

Output Management and Communication

Output Activities

159. Activities to be conducted by the sub‐Outputs are as follow:

PROJECT 1: STATE AND BASIN INSTITUTIONS STRENGTHENED FOR IWRM

Activity Description

State IWRM Strategy Task 1: Development of IWRM Strategy

This sub‐activity will take a step wise approach to developing a comparative framework for assessing

institutional and policy arrangements and comparing approaches nationally and internationally. This

will lead to a State IWRM Strategy in Tranche 1 (2‐3 years) which will lead to the detailed study and

trialing of priority policies in subsequent tranches.

Task 2: Interim RBO Arrangements for K‐8 River Basin Developed

Interim arrangements for the Upper Tungabhadra River Basin Organization will also be developed.

Implementation will take place as part of Activity 4 during Tranche 1 and 2 additional RBOs will be

established later and according to the government decisions on the State IWRM Strategy. It will raise

awareness and understanding of River Basin Organisation arrangements for developing options and

supporting WRD in deciding interim management arrangements for the Upper Tungabhadra River

Basin.

Water Resources

Information System

Task 1: IWRM based Water Resource Information and Knowledge System

This sub‐activity is to investigate an IWRM based Water Resource Information and Knowledge System

(WRIS) and in Tranche 1, prepare a draft strategy and plan for developing and implementing such a

system in Tranche 2 and 3 if feasible and agreed.

A WRIS will be prepared for the State River Basins Inventory and with priority on the Upper

Tungabhadra RB for the development of its river basin plan. The system will support the State wide

inventory, river basin planning and management activities, and water policy studies. The system will

comprise spatial databases and GIS as well as an integrated modelling system to support policy, river

basin planning and river operations decision making.

Task 2: RB Planning and Decision Support System

A decision support system comprising a spatially based information system and integrated river basin

modelling approach will be developed and used for river basin planning. Training and capacity

building will be provided.

Task 3: Hydrological Monitoring for T2 and T3 Modernisation Projects

River flow networks and monitoring will be assessed and targeted hydrological data collected to

support assessment of T2 and T3 irrigation modernisation studies of Output 2.

State River Basin

Inventory

An initial spatially based inventory of river basins in Karnataka, will be developed. This will support

development of the State IWRM Strategy and provide a basis for prioritising river basin planning

activities and advice for prioritising IWRM policy needs.

River Basin Plans in

Selected River Basins

Task 1: Preparation of River Basin Plan for Tungabhadra (K‐8) River Basin

A RB Basin Plan including a status and futures report will be prepared for the UTB RB (K8 Basin) and

according to relevant polices (eg. KWDT award). Development of the Plan will use the RB planning

and decision support system developed in Activity 2.Once endorsed by government agreed

components will commence implementation. A priority subset of this task will be to assess water

availability and the impacts of T2 and T3 irrigation modernisation projects.



Task 2: River Basin Plans for 2 Additional RBs

Plans will be subsequently prepared, endorsed and implementation commenced for at least 2

additional river basins

Task 3: RBO Arrangements

Interim arrangements for the Upper Tungabhadra River Basin Organization will be implemented.

Two additional RBOs will be established later and according to the government decisions on the State

IWRM Strategy.

Water Use Efficiency

and Productivity

Task 1: Assessments of Basin scale WUE and Water Productivity

This task would develop the concepts and build understanding of water productivity, water use

efficiency, crop and agricultural productivity and their practical application to water resources

management at a range of scales from river basin to farm. It would also pilot of remote sensing of

water consumption, WUE and water productivity at river basin scales in order to make assessments

of WUE and WUP as well as to support river basin planning and management.

Task 2: Improving WUE and Irrigation Systems

This task would evaluate and analyse irrigation systems using the FAO Mascotte system as well as

make assessments of system water balances (sw and gw), irrigation water savings approaches, and

productivity and environmental impacts (eg. non point source pollution) and their management. The

priority would be T2 and T3 projects and the systems developed would be used to support pilot Land

and Water Management Plans activities

Community Based

Land and Water

Management Plans

Community based Land and Water Management Plans (LWMP) in irrigation areas (eg. distributary)

will be trialed in Tranche 2, and if successful used more widely in T2/ T3. The LWMP would aim to

manage and best utilize surface and groundwater, sustain irrigation systems, improve water

productivity, manage drainage water quantity and quality. Similar activity at a catchment scale might

also be introduced where there is a clear identified ‘hot spot’ need that is identified in river basin

plans.

LWMP would utilize assessments and be prioritized based on the river basin plan and the WUE and

Irrigation Systems activities. The pilot area would be located in one of the modernization areas.

PROJECT 2: OUTPUT MANAGEMENT AND COMMUNICATION

Activity Description

Output Management and

Coordination:

This activity will involve AC‐IWRM, supported by the consultants, in managing Output

implementation and specifically the operations of the Outputs Project Implementation Office

(PIO).

Training and Capacity Building This Activity will prepare in the inception period, an initial training and capacity building plan

that is then reported and updated on annually. It will coordinate training plans, national and

international study tours, work placements, accreditation activities, tri‐annual international

conference, etc.

Communication, Awareness

Raising and IWRM

Participation

This Activity will prepare in the inception period, an initial communications, awareness raising

and participation plan that is then reported and updated on annually. It will coordinate and

implement the plan.

Anticipated Products of the Activities

160. The Output is envisaged to result in an AC‐IWRM that is strengthened to support SGOK and Basin level institutions and policies that will be evidenced by:

State level policies reflecting IWRM principles and requirements including a State IWRM Strategy prepared and agreed by the SGOK

Supporting regulatory arrangements and on‐ground measures in place for priority SGOK IWRM policies



Information and knowledge management systems, including leading edge hydrological models, supporting State policy makers, river basin managers and operators

A State‐wide inventory of river basins that is used to direct policy and government intervention priorities

A practical approach to river basin management for Karnataka that involves water users such as irrigation areas, catchment water users (eg. groundwater, tanks), urban and rural stock and domestic water supply, hydropower, fisheries, environment, etc.

Tungabhadra sub basin and other priority river basins are being managed and with plans consistent with IWRM principals with appropriate river basin organisation arrangements

Community based, integrated land and water management plans will have been developed and be under implementation in priority irrigation systems and catchments.

Resourcing of the Output

161. Program implementation arrangements are described in Section 4.8 of this report. The Output will be implemented in three parts with the following time inputs (person months).

(i) Project Implementation Office

Tranche 1 Tranche 2 Tranche 3 Total

Government Staff 960 720 720 2400

Government Staff on Contract 192 144 144 480

National Consultants 34 12 22 68

TOTAL 1,186 876 886 2,948

(ii) Foundation Activities

162. The Foundation or core component supports the AC‐IWRM throughout the term of the MFF. The international component of this will be supported by a grant. Person months for this are as follows:

Tranche 1 Tranche 2 Tranche 3 Total

Government Staff on Contract 288 216 216 720

International Consultancy 24 9 9 42

National Consultancy 11 6 6 23

TOTAL 323 231 231 785

(iii) Additional activity based support

163. The third part comprises a series of additional activity based support comprising TA and capacity building and this would be funded by the loan component. Consultant inputs to these Activities are as follows.

ACTIVITY Consultant Inputs (pers. mo)

TRANCHE 1 TRANCHE 2 TRANCHE 3 TOTAL

IWRM Policy International 13.5 ‐ ‐ 13.5

National 30 18 9 57

WRIS International 9 25 0.75 5.25

National 12 14 6 32

State RB Inventory International 2 ‐ ‐ 2



ACTIVITY Consultant Inputs (pers. mo)

TRANCHE 1 TRANCHE 2 TRANCHE 3 TOTAL

National 10 ‐ ‐ 10

River Basin Management International 13 15 12 40

National 14 10 6 30

ET, WUE and WUP International 4.25 3.25 ‐ 7.5

National 5 4 ‐ 9

Irrigation WUE International 8 3.5 1.5 10

National 14 10 6 30

LWMP International ‐ 7.75 ‐ 7.75

National ‐ 11 ‐ 11

TOTAL International 49.75 54.5 14.25 86

National 85 67 27 179

Output 2. Management of Irrigation Schemes with IWRM Principles

164. Irrigation is a major user of water and this affects other water users in a river basin by reducing the amount of surface and groundwater water available; changing river flows thereby affecting the environment; and non‐point source pollution through the use of agro‐chemicals. In some cases, irrigation may contribute to the raising groundwater levels causing groundwater discharge, waterlogging and concentrating salts in soils and drainage waters.

165. In river basins where there are water shortages, clear plans, rules and regulatory arrangements are required if water supply and security of access is to be sustained for water users and businesses. It is only with this security that water users will be willing to make investments to increase their returns from their water supply and to use available water most efficiently. Without these plans and rules, a significant component of the supply to water users further down a river system is water that is a return flow from upstream irrigation areas. With time, it is common for upstream water users to improve their efficiencies thereby reducing return flows and downstream water availability.

166. An IWRM approach, if fully implemented, would aim to control these unintended consequences of ‘improved water management’ by having a strict water entitlements system for the river basin and each of the irrigation areas. This would be based on a river basin plan and a detailed assessment of the water resource (surface and groundwater) and the seasonal and annual variability; environmental water requirements; a bulk water entitlements system; measurements of flows and water deliveries; reservoir regulation that uses the water efficiently as well as managing multiple uses of reservoirs such as for flood control, fisheries and recreation; as well as an operational plan drought conditions of varying magnitude. Water users and administrations would be closely involved in developing and implementing the system.

167. The SGOK has as its vision ‘Integrated water resource management to achieve scientific and efficient management of water, to increase “crop per drop” through a mix of improved efficiency of water application and net water gains, crop yield enhancement, adopting practices that are environmentally sustainable and economically viable, closing the gap between the demand and supply of water and maintaining the quality of water.’

168. The IWRM approach within irrigation areas would include water entitlements/permits to an appropriate level (eg. WUCS) including groundwater where there is a stressed groundwater system; measurement of flows and deliveries; volumetric water charges to provide for system operation and maintenance as well as to provide an efficiency incentive for water users; and awareness raising of the approaches and benefits of more efficient water management systems. Water entitlements need to be specific about whether the entitlement is for full consumption of the amount or whether



it has a return flow component. Control is best achieved by water regulators if the amount is the consumptive entitlement as the delivery can be measured whereas return flows can only be measured with difficulty and at additional cost.

169. Fully embedded IWRM principles within SGOK irrigation planning may extend beyond the project timescale. However, subject to the limitations of available data, the principles will guide the planning and design of the sub‐projects.

170. The Project Implementation Plan for this Output is provided Appendix 4B, Volume 2

Project 2‐1: Modernisation of Irrigation Systems

171. The overall vision for upgrading and modernising the irrigation systems is driven by the measures required to support increased crop production using less water by:

Ensuring supply of sufficient water in a timely manner through (a) improvement of the irrigation distribution infrastructure and (b) better operation of this infrastructure;

Working with the water users to improve their awareness of the value of water and developing their capacity to use it more efficiently;

Improved flexibility of supply to encourage diversification of cropping;

Providing irrigation infrastructure compatible with increased mechanisation of agriculture.

172. A progressive modernisation process is envisaged which includes the following, as appropriate for each sub‐project:

Acceptance by all stakeholders of the existing state of irrigated agriculture and challenges facing the sector (eg declining water availability, the long‐term consequences of poor water resource management, poor water use efficiency with unreliable supply to farmers);

Identification and evaluation of options for supplying water appropriate for efficient management and water use including provision of additional off‐line storage within the irrigation systems;

Identify likely future cropping patterns based on likely trends in cropping in the short – medium term;

Preparation of water distribution plans based on the updated command area and current / expected future cropping patterns;

Identification of hardware / software operational constraints and define requirements for future operation for improved service and efficiency;

Determination of future infrastructure requirements to support the improved operation leading to identification of requirements for infrastructure improvements. Infrastructure improvements may include (a) canal lining where justified; (b) structure repair / replacement for easier operation; (c) functioning gates; (d) improvement of drainage systems to eliminate waterlogging;

Improvement of command area distribution systems to enable more efficient and flexible delivery of water to individual plots. This may include tertiary level pipeline conveyance with surface channels and / or lay‐flat hose from distribution points, and – if viable ‐ sprinkler or drip irrigation;

Provision of automatic flow measurement and transmission of flow data for the main distribution system, including through cell phones, so that current operational status can be monitored and corrective action taken where needed with volumetric measurement of flow for each outlet to enable bulk water charging for each WUCS;



Capacity building of both system operations staff and water user organisations to provide more effective operation enabling more efficient use of water.

173. A surface irrigation supply will be the main pillar in the irrigation system but will be supported by possible groundwater use and local storage of surface water where possible. Conjunctive use of surface and groundwater is widespread on many existing schemes, with groundwater (pumped) supplies either supplementing canal supplies in the event of shortage, or totally replacing canal supplies. Irrigation system modernisation plans will promote sustainable use of groundwater use where possible, to meet seasonal / periodic shortages in the command area including canal closure periods.

174. Three existing irrigation systems have been identified for modernisation under this project. These are:

Gondhi Irrigation System: This irrigation system of about 4,600 ha was constructed between 1916 and 1954. It lies within the larger and more recent Bhadra irrigation system but has its own supply from the Gondhi anicut. The system has deteriorated and water is no longer able to pass along the whole length of the right main canal resulting in the tail area of the Gondhi system being dependent on return flows from the Bhadra system. This is, at best, an unreliable source of water and will reduce in the future as the Bhadra system is managed more efficiently.

Vijayanagara Channels: This system comprises 16 canals, most of which were originally constructed during the Vijayanagara Empire about 400 years ago. Most of the canals have their own diversion structures on the river and many of the canals are interlinked. The total command area is reported as 11,154 ha (but has probably been reduced by urbanisation) with command areas of individual canals ranging between 210ha and 2,220 ha. Many of the canals are in poor condition and provide an unreliable supply of water which is unofficially supplemented50 by releases from the more recent Tungabhadra canals.

Tungabhadra Left Bank Canal System; This system has a command area of 244,000 ha supplied from the Tungabhadra dam via a 227 km long main canal. Construction commenced in the 1960s and was envisaged as a system to supplement erratic rainfall during the kharif season. A disproportionate amount of water is used for paddy production in the upstream part of the command and water is reported to rarely reach the tail areas. New concrete lining has been provided for most of the main canal and some of the distributaries in order to reduce conveyance losses. Groundwater is used to supplement canal water supplies in all the command area and, within about 5km of the Tungabhadra river, pumped river water is a major supplementary source for the tail areas of the distributary canals where canal water supplies are often erratic.

175. The Gondhi system is proposed for modernisation during Tranche 1. It has the advantage of being a relatively small system where the suite of proposed interventions can be piloted prior to implementation on a larger scale.

Project 2‐2: Flow measurement with Telemetry for Key Irrigation Systems

176. Improved flow measurement and monitoring is one of the mechanisms to improve water management within the irrigation systems and also enable improved water resource management within the sub‐basin. In addition to improved flow measurement provided as part of the irrigation modernisation sub‐projects, improved flow measurement will be provided at key points for all the

50 The field operations staff intentionally release water through or from distributaries of the modern canals into watercourses which drain

into those Vijayanagara canals which are also the responsibility of the same staff where the water is required to supplement the flow diverted from the river. However, such transfers are not included in the planning of the source canals.



major irrigation systems within the sub‐basin. All flow measurement installations will include telemetry for immediate transmission of data to a central server where the data will be automatically processed and made available for use by system operators WUCS and the general public. Rain gauges and hydro‐met stations will also be provided at selected measurement locations in order to improve the data available for efficient operation.

177. The proposed distribution of flow measurement installations for installation in Tranche 1 is listed in Table 4. This initial network serves four functions:

To facilitate improved understanding of water distribution and enable better management of the Bhadra system (particularly where it interacts with the Gondhi system)

To enable better flow measurement and management of the Gondhi system

To provide real‐time flow data for the main abstraction points on the Tungabhadra river system

To provide a coarse real‐time flow measurement network on the other (ie except Bhadra and Gondhi) main canals in the sub‐basin as a first step towards having a dense network of electronic flow measurement.

Table 4: Summary of Flow Measurement Locations

Scheme / Canal Number of installations

Remarks

Bhadra right bank 52 Head regulator, heads of distys 1 to 22 and other major locations

Bhadra left bank 4 Head regulator and 3 sub‐division boundaries

Tunga canals 5 Head regulator and division boundaries

Singatalur lift irrigation 2 One at head of each main canal

Tungabhadra left bank 7 Outlet from dam, division boundaries plus heads of distys 54 and 76

Tungabhadra right high level (in Karnataka) 4 Outlet from dam, sub‐division boundaries

Tungabhadra right low level (in Karnataka) 5 Outlet from dam, sub‐division boundaries

Raya / Basavanna 1 At outlet from dam

Gondhi irrigation system 20 Head regulators, selected points on main canals and on drainage system

178. Subject to the satisfactory outcome of the Tranche 1 installations enhancing system management and water use efficiency, the network would be expanded during subsequent tranches, both in association with investment in infrastructure improvements and to enable operation based on real‐time flow measurement to become standard practice for all the larger canal systems.

Project 2‐3: WUCS and Agricultural Development

179. The proposed results to be achieved under this Output are:

WUCS are functional and managing minor and on‐farm distribution networks; and

WUCs receive water on volumetric basis.

180. Achievement of these results will be measured by the following indicators:

At least 90% of WUCS confirm receipt of agreed water service by 2022;



By 2023, more than 75% of WUCS operating and maintaining handed‐over systems, including fee collection and accounting and

By 2018 at least 30% of WUC management boards are women.

181. To achieve these results a rigorous WUCS institutional strengthening process will be implemented under the program. The institutional strengthening process for each WUCS will be in four sequential phases implemented over a period of 60 months per subproject. In the case of Gondi given that it is a relatively small system with limited number of WUCS, this may be achieved in 36 months:

Phase 1 WUCS Mobilization (15 Months)

Phase 2 Planning Modernization (3 Months)

Phase 3 Executing Modernization Plan (18 Months)

Phase 4 Irrigation Management (24 Months)

182. The primary responsibility for implementing the WUCS institutional strengthening process is of the WUCS Support Service Teams (SST) to be recruited through the Program Support Consultants and placed with the PIO reporting to the PIO Manager. The SST will comprise two Community Organizers (one male and one female), a Participatory On‐farm Water Management Agent, and an Agricultural Extension Agent. The Participatory On‐farm Water Management Agent will be the SST leader to whom the other team members will report. The SST will work in coordination and with support from the counterpart PIO (KNNL and CADA) staff. Each SST will be responsible for about 10 WUCS and the number of SSTs in each PIO will be correspondingly determined based on the number of WUCS under the PIO. The composition of the SST and the number of WUCS managed by a SST may be reconsidered in later tranches based on the earlier experiences.

183. For Tranche 1 and to minimize implementation risks, it is proposed that the CSO form a joint venture or association with the Project Support Consultancy for more streamlined planning and implementation of activities. This can then be modified for subsequent tranches once sufficient capacity and experience has been gained. It is also noted that in the absence of a rigorous CSO experience and capacity assessment in PIM on similar irrigation modernization projects, risks would be limited through an association or joint venture.

184. The detailed description of the WUCS institutional strengthening process is given in Section ‘Program Implementation, Project 2‐3: WUCS and Agricultural Development’.

Project 2‐4: Strengthening of Nigams and CADA

185. There is a need for capacity building at several levels as part of the transformation of project operation. In addition to the basic task of providing more effective water management in a situation of increasing water scarcity, the system operational staff will need to adapt to their role as operators of a service to provide water to meet agricultural demands instead of supplying water to be used by farmers as and when it is available. Capacity building of CADA and the Agriculture Department is also needed to improve their ability to support the farmers.

186. Specific training proposed under the project is summarised in (Table 5) It is assumed that general training such as upgrading of computer skills will be undertaken as part of routine capacity development.



Table 5: Proposed training for irrigation service institutions

Stakeholder Capacity Building Objective

Planned Activities Training Content (in addition to general capacity building)

KNNL / WRD Improved modernisation planning and design, water management and delivery and effective maintenance

Study tours Training courses On‐the‐job training

/ mentoring

IWRM and WUE concepts System diagnosis and planning of modernisation in

the IWRM context Flow measurement System losses and inefficiencies Water Resources Information System Asset management and asset management systems Preparation of operational plans Feedback and operational improvements Maintenance planning Introduction to irrigated agriculture Participatory irrigation management Benchmarking performance indicators Gender Training

CADA / Dept of Agric.

Improved capacity to deliver support to farmers

Study tours Training courses On‐the‐job training

/ mentoring

Participatory irrigation management Preparation of operational plans Maintenance planning Flow measurement System losses and inefficiencies Techniques for more efficient irrigation Gender Training


KISRWMIP Program Management

187. This Output is detailed in Appendix 4C, Volume 2. The proposed result to be achieved under this Output is:

Efficient program management systems operational

188. Achievement of the result will be measured by the following indicators:

Program MIS operational 3 months after Tranche 1effectiveness;

Annual disbursement projections are met;

PSC recruited and monitored within 6 months of loan effectiveness; and

PMU fully staffed with an appointed PD by loan effectiveness

189. Karnataka Neeravari Nigam Limited (KNNL) is proposed as the program executing agency by WRD, SGOK. The IWRM Steering Committee will be responsible for overall review of the program and to facilitate inter‐departmental coordination, especially for IWRM activities. Output 1 (AC‐IWRM Strengthened to Support State and Basin Level IWRM Institutions and Policies) of the program will be the responsibility of AC‐IWRM and Output 2 (Management of Irrigation Schemes with IWRM Principles) will be the responsibility of KNNL through its Irrigation Zones (Field Units) and the concerned CADAs.

190. A Program Management Unit with the requisite staff will be established under the Chief Engineer, Central Irrigation Zone, Munirabad, designated as the Program Director. It will have overall responsibility for Output 3 (Efficient Program Management Systems Operational). The PMU will consist of a Monitoring and Communication Cell (Program Officer GIS / MIS and Communication Expert), a Budget and Administration Cell (Program Officer Budget / Account and Program Officer Procurement), and an Irrigation Management Cell (Executive Engineer, Assistant Executive Engineer and Assistant Engineer). The PMU will be supported by a Program Support Consultancy team in its work.



191. For field implementation each irrigation project to be modernized will have a Project Implementation Office (PIO) under a Project Manager of a rank of Superintending / Executive Engineer. Under the PIO dedicated Irrigation Sud‐divisions will be established with the requisite irrigation staff such as Assistant Executive Engineers, Assistant Engineers, Junior Engineers and other technical staff. The number of dedicated sub‐divisions under the PIO will be determined (as per WRD norms) by the command area and quantity of works to be covered by it. The CADA staff deputed to the PIO will be an Assistant Engineer, Assistant Agriculture Officer and the Senior Inspector of Cooperative Society. Additionally, the PIO will be provided with WUCS Support Service Teams as described above. The structure and composition of the PMU and PIO may be reconsidered in later tranches based on experience gained.

192. The program will be monitored according to the Program Design and Monitoring Framework. The DMF lays out the proposed results to be achieved by the program for its different outputs and the indicators of these results. While the DMF lays down the overall results to be achieved under the program, the Program Annual Plans will disaggregate and specify the results to be achieved on an annual basis.

193. The PMU will make operational a Program MIS within 3 months of effectiveness of Tranche 1. The Program MIS Officer and the Communication Expert in the PMU will be responsible for managing the Program MIS under the supervision of the Program Director. The Program MIS designed based on the Program DMF will consist of modules for physical, financial and performance monitoring of all the different outputs of the program and their related activities. The MIS will be made operational in the PMU and the PIO and the relevant staff in both offices will be trained in its use by the PMU MIS Officer. Subsequent to this all program progress monitoring and reporting will be supported by this MIS.

194. The detailed description of the WUCS institutional strengthening process is given in the Section ‘Project 2‐3: WUCS and Agricultural Development’.

Program Coordination and Communications

195. Program coordination at Headquarters will be the responsibility of the Program Director. For interagency coordination, the Program Director will have the support of the KNNL / WRD and the IWRM Steering Committee.

196. Program coordination in the field will be undertaken through the project manager (refer later section). For interagency coordination the project manager will have the support of the Administrator, CADA, the Chief Engineer, Irrigation Zone and the Chief Executive Officer, Zilla Panchayath.

197. ADB enunciates that effective external relations and disclosure of information ‐ i.e. more open and proactive public communications are central elements in building ADB supported partnerships. According to the Public Communications Policy 2011 (PCP) of ADB51 public communications approach underscores the need to intensify communication with its audiences in response to evolving development challenges and transparent and proactive public communication is the anchor to this policy.

198. Similar sentiments are articulated in the Rights to Information Act, 2005 of GoI that provides for setting up a practical regime for citizens of India to secure access to information under the control of public authorities in order to promote transparency and accountability in the working of the government. Under the Act every public authority is mandated to:

51 Source: Public communication Policy 2005 of ADB



Maintain all its records duly catalogued and indexed in a manner and the form which facilitates the right to information under this Act so that access to such records is facilitated;

Publish all relevant facts while formulating important policies or announcing the decisions which affect public;

Provide reasons for its administrative or quasi‐judicial decisions to affected persons; and

Among other information publish details in respect of the information, available to or held by it; the particulars of facilities available to citizens for obtaining information; the particulars of arrangement that exists for consultation with, or representation by, the members of the public in relation to the formulation of its policy or implementation thereof; the procedure followed in the decision making process, including channels of supervision and accountability; and the rules, regulations, instructions, manuals and records held by it or under its control or used by its employees for discharging its functions.

199. The Act requires that all public authority to disseminate widely and in such form and manner which is easily accessible to the public all information related to the clauses listed above. A communication strategy for the program is presented at Appendix 9, Volume 2.

200. Communication and information sharing with the community is a part and parcel of implementation of any program. Development processes must ensure the involvement of the people. Further, it is to a) ensure that factual information about a proposal is widely available to people with an interest; b) allow the community and relevant stakeholders to have their say in the assessment process; c) bring new information and ideas to a program; d) avoid unnecessary delays by addressing stakeholder concerns prior to lodgement; e) provide an opportunity for the negotiation of recommended actions acceptable to both the proponent and community; and f) build important long term relationships in development cooperation with the stakeholders.

201. Further it also provides opportunities to establish and maintain channels of communication with indirect stakeholders including development practitioners and partners, media, concerned CSOs and the general public; communicate program benefits and learning and clarify doubts about the program in order to mitigate concerns of potential negative impacts; and build trust, credibility and support for the program among political and executive decision makers and the public at large.

202. Public communication and stakeholder engagement on all program actions will be implemented under two processes:

The Right to Information Act

Program Management System

Under the Right to Information Act

203. GoI has enacted the Right to Information Act, 2005, which entitles access to information by people in public interest. Under the Act all public authorities are mandated to issue a protocol by which citizens can access information from it. It is also mandated all public authorities to designate a special officer to handle all queries under the RTI Act. WRD has the protocol and the designated officer already in place with public access both in person and through the department website.

204. KISWRMIP is subject to all provisions of the RTI Act and the rulings of the Central Information Commission thereafter. In compliance to the RTI Act, hence program related information will be available through the established RTI system of WRD, both at the district and headquarters level i.e. through the designated Information Officers at the district and the headquarters level.

205. In addition program related information will also be available with the project manager at the project level and with the Program Director at the PMU level.



The Communication Management System

206. The PMU will put into operation the specific program communication strategy identified below during the implementation of the program:

The PIOs will make joint decision making systems operational with their counterpart WUCS and their higher‐tier federations regarding all planning and implementation matters as well as project O&M, through regular WUCS‐PIO meetings on progress review, annual and periodic work plans and social audit of works;

For individual projects, the PIOs will post the abstract of all contracts executed, including the quantity of works and their associated costs at a public site selected in consultation with the WUCS;

For individual WUCS level works, the WUCS will post the abstract of all works executed, including the quantity of works and their associated costs at a public site selected in consultation with the WUCS members;

The PMU will establish a program website on which it will host all mandatory information under the RTI Act, all program documents, studies and reports and a system for responding to public queries about the program;

The PMU will post the physical and financial details and program progress in the program/WRD website, along with the tenders and contracts awarded;

The PMU will prepare and distribute among stakeholders program newsletters and other communication/education material informing about program objectives and plans, progress in implementation, program benefits and program experiences and learning to create wider awareness about the program;

The PMU will formulate and operationalise a grievance reporting mechanism to the program’s vigilance officer, project managers and the Program Director. The mechanism will lay down the procedure for affected/concerned stakeholders to register complaints/grievance regarding the program and the action to be taken by the concerned officers. The PMU and PIOs will organize awareness campaigns on the grievance reporting mechanism for the WUCS and other stakeholders;

The PMU, through its Budget and Administration Cell will undertake annual financial audit for all PIOs and associated offices, which will include investigation of all financial records and transactions; and

The PMU will strengthen the program construction supervision, recording, and reporting system with the use of video and photo recording, establish a quality control cell, and operationalise internal third party technical audit mechanism. Accordingly, all supply and work contracts will include provisions for third party inspection for quality control. External monitoring, supervision, and technical audit consultants will be mobilized under the Program Support Consultants team. The findings and reports of the quality control cell, internal third party technical audits and external monitoring, supervision, and technical audits will be shared with program stakeholders, especially the concerned WUCS and their higher level federations through appropriate means developed by the PMU.

4.4 Summary Program Investment and Financing Plan

207. The Program: The program investment cost is estimated at $US 242 million, including: physical and price contingencies of $ 39 million; and taxes and duties of $10 million to be financed by the Government, and minor financial charges during implementation (Table 6).



Table 6: Cost Estimates (US$ million)

Foreign Local Total % of Baseline Cost

Integrated Water Resource Management 5.9 20.9 26.8 13

Irrigation & Agricultural Support 0.1 158.0 158.1 78

Project Management 3.1 15.0 18.2 9

9.1 194.0 203.0 100

Physical Contingencies ‐ 15.6 15.6 8

Price Contingencies 0.9 22.4 23.3 11

10.0 231.9 241.9 119

Financial Charges During Implementation ‐ 0.1 0.1 ‐

TOTAL 10.0 232.0 242.0 119

Source: Asian Development Bank Estimates (SUMCOM).

208. To finance the Program, the Government has requested financing of up to $150 million from ADB’s ordinary capital resources. The Facility may extend to three loans (or Tranches) to implement the Program, under a framework financing agreement (FFA) with ADB. The financing plan for the Program is in Table 7 Grant aid is being sought for IWRM support. A US$ 1 million facility for irrigation scheme design and US$ 0.5 million for impact monitoring studies have been included. There are no land acquisition or resettlement requirements.

Table 7: Financing Plan (US$ million)

Foreign Local Total Percent

The Government 1.3 77.5 78.7 33

Asian Development Bank 5.1 148.4 153.5 63

Grant Finance (IWRM) 3.7 0.8 4.4 2

Beneficiaries ‐ 5.4 5.4 2

Total 10.0 232.0 242.0 100 Source: Asian Development Bank Estimates (FINFL).

209. Table 8 shows detailed expenditure by component, civil works include physical contingencies of 10%, and are about 80% of total expenditure. Implementation consultants include national staff, staff costs are mainly seconded SGoK staff responsible for implementation of scheme development. Table 9 indicates the cost estimates for Tranche 1.

Table 8: Expenditure Accounts by Components ‐ Base Costs (US$ '000)



Project Management

Total

Civil Works ‐ 155.1 ‐ 155.1

Equipment & Supplies 0.2 0.2 0.1 0.6

Training 4.1 ‐ ‐ 4.1

Community Development ‐ 2.7 2.7 5.4

Surveys and Studies 0.3 ‐ 1.5 1.8

Implementation Consultants 3.3 ‐ 10.5 13.8

Staff Costs 9.9 ‐ 3.3 13.2

IWRM Grant 8.9 ‐ ‐ 8.9

Total Baseline Cost 26.8 158.1 18.2 203.0





Project Management

Total

Physical Contingencies ‐ 15.5 ‐ 15.6

Price Contingency 2.6 18.7 1.9 23.3

Total Cost 29.5 192.3 20.1 241.9


Source: Asian Development Bank Estimates (EXCOMF).

Table 9: Cost Estimates and Financing Plan (Tranche 1, US$ million)

SGOK ADB Grant Aid

Benefic‐iaries

Total

US$m % US$m % US$m % US$m % US$m %

IWRM 6.3 52 3.5 29 2.4 20 ‐ ‐ 12.1 26

Irrigation & Agricultural Support 8.5 30 19.9 69 ‐ 0.4 1 28.9 61

Project Management 1.2 19 5.0 81 ‐ ‐ ‐ 6.1 13

Total 16.0 34 28.4 60 2.4 5 0.4 1 47.1 100


Source: Asian Development Bank Estimates (COMFIN Tranche 1).

210. The First Tranche is estimated to cost the equivalent of US$ 47 million, including taxes and duties of $ 1.9million. It will cover the initial implementation of one medium scheme (including flow measurement), four years of IWRM development (including studies), social support costs, project management and consulting services. A loan of $ 28 million is to be requested from ADB. The loan will have a term of 25 years, including a grace period of 7 years, with interest rate to be determined according to ADB’s LIBOR‐based lending facility, a commitment charge of 0.15% per annum, and such other terms and conditions as agreed in the FFA, and the loan agreement.

211. Tranche 1 funding costs (as five Detailed Cost Tables) are given on Appendix 15 of Volume 2. Detailed Tables for tranche 1 by component can to be obtained from final version of COSTAB file for Tranche 1.

212. There are a range of development agencies that are undertaking related activities, or have expressed interest in the KISWRMIP. These are presented in Appendix 14, Volume 2.

213. Financial Model Details. The project is costed in COSTAB v3.01 (2010). There are three components and five detailed tables:

Component 1 IWRM

Table 1.1 IWRM Policy Studies

Table 1.2 IWRM Support Unit

Component 2 Irrigated Agriculture

Table 1.3 Irrigation Infrastructure

Table 1.4 WUC & Agricultural Training

Component 3 Project Management and Coordination

Table 1.5 Project Management and Coordination

214. The program is ten years, starting in 2013 and consists of three overlapping Tranches of three or four years, depending on the activities, for example irrigation scheme design and WUC awareness activities may start in the tranche prior to infrastructure investment. Each Tranche has five Detailed



Tables (15 tables for the Program, clearly labelled and numbered). Three irrigation schemes are proposed: Gondhi (4,600 ha) in Tranche 1; Vijayanagara (11,154 ha) in Tranche 2 and part of Tungabhadra Left Bank Canal (about 40,000 ha) in Tranche 2 & 3, however the choice of scheme is subject to review.

215. The financial model uses late 2012 prices, costs were estimated in US$, with an exchange rate of Rs 55 per $. The model will output costs in US$ ‘000 or in Rupee Laks. Base costs include local taxes and duties: 4% on civil works; 20% on vehicles and equipment; 10% on training, 5% on social mobilization; 12.5% on local consultancy services; and 7.5% on support costs. Physical contingences are 10% for civil works & equipment, zero for other inputs. Price contingencies are 2% per annum for foreign exchange costs and 5% per annum for local currency costs, Constant Purchasing Power Parity (CPP) exchange rates were modelled52. Financial charges include commitment fees of 0.15% and interest (at LIBOR + 0.2%) of 2.85%, with a grace period of xx years, so interest charges do not apply within a tranche. Foreign exchange costs are 100% for international consultancy; 20% equipment; 10% support costs.

216. Financiers are ADB, grant finance (to be identified), beneficiaries (contribution to CAD works) and Government of Karnataka. Financier and Procurement accounts have been set up in the model. ADB will finance civil works at 70%, consultancy costs, incremental staff (including WUC support), training, equipment and software at 100%. Government is the residual financier and pays taxes and duties. Grant funding will be sought for IWRM capacity development. No recurrent costs are included.

217. Irrigation infrastructure include topographical surveys undertake prior to construction (usually in the previous tranche, cost about US$ 1 million), and costs are based on SGoK Detailed Project Reports for the relevant schemes. High unit costs (about US$5,000 per ha), mainly due to adoption of 100% canal lining, limit the area to be improved on the TLBC. Field staff costs for WUC support are included under Project Management (Table 6). The program includes funding for Feasibility Studies for schemes in Tranche 2 and Tranche 3, and for impact monitoring studies to support mid‐term review and project completion. Local consultancy fee rates are high (US$7000 per month) to reflect the need for high quality inputs and rapidly rising professional costs. No vehicles are procured, transport will be provided by hired vehicles, with drivers.

4.5 Procurement Requirements

218. Procurement is to be financed from the ADB loans under the MFF will be carried out in accordance with ADB’s Procurement Guidelines for goods, works, services and consultants (April 2010), as amended from time to time.

219. State level organizations such as Water Resources Department and KNNL have a system of registration of contractors in various classes (super class, class I, class II etc.) based on bidders previous experience and financial capacity. The registration is validated once in 2‐3 years and the list updated. The registration system and bid documents are not fully aligned with ADB procurement procedures because, in the government system, contractors not registered are not allowed to bid. Standard bid documents for works, goods and consultants have been standardized by SGOK, Ministry of Finance, Procurement Cell and are used by SGOK departments including WRD and KNNL. Consultant selection process and request for proposal (RFP) are substantially similar to that of ADB. However they are not yet mandatory since the Karnataka Public Works Department code which prescribes bidding formats is yet to be modified. Bidding documents will need adjustments in line with ADB’s standard bidding documents to be used for procurement of goods and works by NCB. For ICB, ADBs SBD may be adopted. For consultant selection SGOK SBD may be used with minor adjustments to meet ADB requirements.

52 CPP implies that the purchasing power of the Rupee stays constant in US$ terms, in other words the Rupee exchange rate declines

against the $



220. A procurement capacity assessment was conducted on KNNL (Appendix 7, Volume 2). This found and recommended that since it is mandatory to use e‐Procurement and KNNL being well versed in the process, ADB may agree to e‐procurement subject to assessment of e‐Procurement system in terms of safety, transparency and competitiveness.

221. Karnataka enacted Karnataka Transparency in Public Procurements Act, 1999 which governs all public procurement in the state. The Act aims to ensure transparency in public procurement of goods and services by streamlining the procedures of inviting, processing and acceptance of tenders by Procurement Entities. The Act is clear and is closely aligned with ADB’s procurement guidelines. The provisions of this Act state that if they are inconsistent with the procedure specified in respect of the Projects funded by International Financial Agencies or Projects covered under International Agreements, they shall not apply to procurement of goods or services for such project. Hence in case of inconsistencies, ADB procurement guidelines will prevail. The Act is to be read with the Karnataka Procurement Rules which amplify and detail the provisions in the Act.

222. Procurement for the MFF will be carried out by WRD, AC‐IWRM and KNNL using e‐Procurement for goods, works and services costing more than $4000. E‐Procurement is the default mode of procurement for WRD and its agencies. Unified End‐to‐End e‐Procurement System is implemented by Centre for e‐Governance (CEG), SGOK. Procurement capacity assessment WRD, AC‐IWRM and KNNL is detailed in Appendix 7, Volume 2. The recently formed AC‐IWRM being a nascent organization will be assisted by WRD and KNNL in carrying out procurement of primarily office equipment and modelling software. The Project Management Unit (PMU) will monitor and report on the implementation of the Procurement Plan and will organize the procurement activities. Measures to strengthen the capacity of the PMU and Project Implementation Office (PIO) staff in undertaking procurement activities will be implemented including training on procurement and other aspects of project implementation. PMU and PIO staff will also be nominated to attend ADB‐sponsored courses and seminars on procurement and project implementation.

223. Advance Contracting and Retroactive Financing is allowable subject to approval by the ADB board provided that the total eligible expenditure under such financing will not exceed an amount equivalent to 20% of the individual loans, and must have been incurred not more than 12 months before the signing of the relevant legal agreements. The Government has been informed that the approval of advance action and retroactive financing does not commit ADB to finance the relevant projects under the Investment Program.

Civil Works

224. In Tranche 1, there is one ICB contract of $20 million for Gondhi main canal and distributaries. Work comprises of earthwork, lining, structures and flow measurement devices. The bidding will follow single stage two envelope procedure and will be tendered by KNNL. Gondhi command area development works comprise of small field channels or pipes for irrigation and associate command area improvements. These kind of works have been implemented by KNNL so far by directly contracting WUCS. The field channels are in farmers land, and farmers participation and cooperation is critical for carrying out the work. WUCS comprise of farmers who donate land for field channels. Hence for each block of field channels a contract to the WUCS working in the block will be awarded by direct contracting by KNNL at approved estimated cost. There are 10 WUCS working in Gondhi and it is expected that there would be approximately 200 such contracts. The exact number of contracts will be determined once the detailed design of field channels is available (which will be an ongoing process during project implementation because the layouts have to be agreed with the farmers). KNNL follows direct contracting with a ceiling of INR. one million per contract. Hence it is proposed to use the bid documents of KNNL for direct contracting of WUCS with each contract not exceeding $20,000.

225. International competitive bidding (ICB) will be followed for civil work contracts costing $10 million or more. Civil works contracts costing less than $10 million will be procured through national



competitive bidding (NCB) procedures acceptable to ADB. ADB standard bidding documents with post‐qualification under the two‐envelope system will be adopted. In addition, numerous small service contracts or community works (to be determined in consultation with the farmers) within command area to be implemented through WUCS costing less than $20,000 each may be directly contracted since the works are non competitive in nature, i.e. excavation of small field channels, their lining, distribution pipes adjoining farmers fields.

Goods and equipment

226. Computers and software for PMU & AC‐IWRM would be procured in various lots. Primarily the presently identified needs are workstations, laptops, GIS and database management software.

227. In procuring goods and related services, ICB procedure will be used if the estimated cost is at least $1 million and NCB procedures if the cost is between $0.1 million and $1 million, and shopping if the estimated contract amount is less than $0.1 million.

Consultant Services

228. The project will finance three consulting services packages. International firms will be recruited as Project Support Consultant and AC‐IWRM strengthening consultant to support PMU and AC‐IWRM respectively for the duration of first tranche. They will be procured through QCBS FTP procedure. A national civil society organization will be hired as WUCS Support Service Team for the duration of first Tranche. It will be procured through FBS procedure since the TOR is clearly defined and the work requires continuous handholding and support to build capacity of WUCS which is a farmers’ organization.

Procurement Plan

229. The detailed procurement plan for Project 1 is shown in Appendix 13, Volume 2.

4.6 Environmental and Social Safeguards

4.6.1 Environmental Safeguards

Environmental Legislation and Policy

230. Environment legislation in India is divided into the national and state legislation. While all states may create their own state level environment legislation, the standards must be at least as strict if not more than existing national legislation on the subject. Existing national and state legislation are briefly discussed below. A more detailed discussion can be referred to in the EARF at Annex 1.

(i) Environment protection

231. The overarching act for environmental protection is the Environmental (Protection) Act, 1986. This act vests powers with the central government to take necessary steps to protect the environment, prevent pollution and set standards for discharge of effluents and pollution. For the management of pollution, effluents discharge etc there are a number of different acts relevant for Karnataka. These include the Water (Prevention and Control of Pollution) Act 1974, and its various amendments and rules; the Air (Prevention and Control of Pollution) Act, 1981 and its rules and amendments, and the Noise Pollution (Regulation and Control) Rules, 2000. All project activities therefore would need to follow these standards.

232. For hazardous material, its transport, manufacturing and storage the Manufacturing, Storage and Transportation of Hazardous Chemicals Rules, 1989 and amendments apply. These rules outline the conditions for manufacturing, storing and transporting such chemicals, lists what are considered



hazardous, identifies what needs to be done in case of an accident and levels at which chemicals are considered toxic.

233. All these rules need to be carefully adhered to by the project in all phases – design, construction and operation. However, it is during the construction phase that it is most likely that there will be issues that need attention. Areas where attention would be needed in the construction phase includes – dust and noise at quarry and other material procurement site, noise at construction sites, water quality concerns due to sanitation at labour camps and material storage and construction sites, air pollution from badly maintained/not road worthy vehicles and storage of chemicals at various sites.

234. The other important legislation is the EIA Notification – 1994 and its 2006 update. According to this notification construction of new projects or activities or the expansion or modernization of existing projects or activities listed in the Schedule to the notification entailing capacity addition with change in process and or technology need an environmental clearance from the Central Government or the State Level Environment Impact Assessment Authority as the case might be. The Schedule includes in section 1 (c) River valley projects, including irrigation projects. The table below gives details of what is mentioned under 1 (c) of the Schedule. Therefore, once the DPR is finalized the project must take a clearance under this notification.

Table 10: Categorisation according to EPA, 2006 for River Valley Projects

Category with threshold limit Conditions if any

Project or Activity A B

1(c) River Valley projects

(i) ³ 50 MW hydroelectric power generation; (ii) ³ 10,000 ha. of culturable command area

(i) < 50 MW ³ 25 MW hydroelectric power generation; (ii) < 10,000 ha. of culturable command area

General Condition shall apply

General Conditions: Any project or activity specified in category ‘B’ will be treated as category ‘A’, if located in whole or in part within 10 km from the boundary of: (i) Protected Areas notified under the Wild Life (Protection) Act, 1972, (ii) Critically Polluted areas as identified by the Central Pollution Control Board from time to time, (iii) Notified Eco‐sensitive areas, and (iv) inter‐State boundaries

235. As can be seen from the General Conditions of the notification certain projects which are category B may be considered as category A if they fulfil any of the conditions listed here. The Gondi project is within 10 km of the Bhadra Wildlife Sanctuary with the Gondhi Anicut being approximately 4.7 km and 9.2 km from different ‘nearest pints’ of the reserve (Annex 2‐ Initial Environmental Evaluation). The project is also within the 10 km zone of a critically polluted area, Bhadrawati (Central Pollution Control Board). Therefore, this project would be considered a category A project and it is understood that the Detailed Project Report (DPR) will require clearance from the central government.

236. Similarly, the Daroji Bear Sanctuary is near the VNC system and this should be specifically considered by the DPR and IEE for this Tranche 2 project.

237. Under the Government of India’s EPA, 1986, a registered and accredited consultant is to be hired for clearances required under the law. Projects must also be examined for possible concern under General Conditions 3 and 4. While condition four would not be applicable to Bhadra or Gondi, it may be applicable to TLBC if the canal network is within 10 km of the border with Andhra Pradesh.

(ii) Forest, tree and biodiversity management

238. The applicable laws under this section include the Biological Diversity Act, 2002, Karnataka Forest Act, 1963, Karnataka Forest Rules, 1969, Karnataka Preservation of Tree Act, 1976, and the Wetland (Management and Conservation) Rules, 2010. According to the Biodiversity act, in case there is a biodiversity rich area, or the habitat of biological resources is threatened immediate ameliorative measures need to be taken up. Also, as required the Central Government can take



actions to integrate the conservation, promotion and sustainable use of biological diversity into relevant plans, programmes and policies. The State Government, under this act, can also declare areas of biological importance as heritage sites. The VJN area includes the Daroji Bear Sanctuary in the vicinity, and there have been sightings of some endangered and critically endangered bird species in Bellary and Raichur. These include the Great Indian Bustard and Long Billed Vulture in Bellary and the Lesser Florican in Raichur. Of these sightings of the Great Indian Bustard and the Long Billed Vulture have both taken place in the last few months. These three bird species and the sloth bear, the main inhabitant of the sanctuary are all species seen in dry land and semi‐arid ecosystems. The areas of concern would be mainly if (i) more areas were to become irrigated thereby changing the local ecosystem and crops, (ii) construction and quarrying destroying habitats of species, and (iii) increased environmental toxicity from increased use of agrochemicals and from an increase in the generation of agrochemical waste.

239. The Karnataka Forest Act defines the use and management of Reserved Forests, District Forests, Village Forests and Private Forests, the control of forest products, and also defines ‘reserved trees’ or trees that cannot be cut without permission from the Forest Department and the cutting of ‘Government Trees’ from private lands. According to the Tree Act the felling of any tree; even on private lands, requires permission from the appropriate authority for the area, as specified in the legislation. The legislation also mentions that there is a need to plant trees of the same or different species in lieu of the felled trees, as directed by the Tree Officer. This will be relevant at the time of designing and construction of project activities where the project location and routes for material transport and tree clearance would need to be addressed and appropriate actions and permissions taken.

240. The Wetland Rules identify activities that are not permitted in such areas and include reclamation, setting up of new or expansion of existing industries, dumping of waste or discharge of effluents, any activity that adversely impacts the wetland ecosystem, amongst others.

(iii) Archaeological sites and areas of cultural significance

241. This includes the Ancient Monuments and Archaeological Sites and Remains Act, 1958, The Ancient Monuments and Archaeological Sites and Remains (Amendment and Validation) Act, 2010 and their rules and amendments, and The Karnataka Ancient and Historical Monuments and Archaeological Sites and Remains Act, 1961 and the Hampi World Heritage Area Management Authority Act, 2002. These acts identify limits of prohibited and regulated areas and the activities that can be carried out in them and the required permissions. These Acts and their associated regulations and other legislation are important for the project as there are a number of notified monuments within the project area and in the case of chance findings while carrying out various project activities. In case of Hampi there are also further restrictions which include the material to be used, the look of super structures, activities to be carried out or not and where. The Archaeological Department should be involved in providing clearances and in monitoring any works being undertaken including powers to stop works if necessary.

(iv) Groundwater management

242. The Karnataka Groundwater (Regulation for protection of sources of Drinking Water) Act, 1999 and the Karnataka Groundwater (Regulation and Control of Development and Management) Act 2011 may apply to the project. These identify restrictions on development of wells, over exploitation of watersheds, and the use of groundwater during periods of droughts. According to these acts, the project’s conjunctive water use plans would need to identify how and where wells may be sunk and restrictions on irrigation at the time of a drought.



(v) GOI guidelines for Detailed Project Reports of Irrigation Projects, 201053

243. The draft Guidelines mention the need to consider the ecological needs for water and therefore the maintenance of appropriate minimum flows of rivers for the aquatic environment, aesthetics and other requirements, need for catchment treatment, It indicates the need for State Government to obtain all required statutory clearances, including environmental, forest clearance etc, from the Ministry of Environment and Forest and Ministry of Social Justice and Empowerment, and other relevant Ministries etc.

(vi) Summary of Environmental Compliance Requirements

244. A summary of the Environmental Compliance Requirements Legislative Needs is summarised in (Table 11).

Table 11: Environmental Compliance Requirements Legislative Needs ‐ India

Component Applicable Legislation Action Required

All irrigation project modernization activities

Environmental (Protection) Act, 1986

Requires environmental clearance – as discussed in the Schedule of the act, and its general conditions

Any component where there is a need to acquire forest land or access any produce from forest produce Any trees cut by project activities

Karnataka Forest Act 1969, Wildlife Act, 1972 and Karnataka Preservation of Tree Act, 1976

Apply for permission and undertake any action as directed by the Forest Department Apply for permission and undertake any action as directed under this act – e.g. undertake compensatory plantation activities.

Any impact on biodiversity hotspots or sensitive areas due to project activities

Biodiversity Act, 2002 Consult with the Biodiversity Board to identify any sensitive areas and appropriate actions to minimize impact from project activities

For conjunctive water plans where groundwater is to be used

Karnataka Groundwater (Regulation for Protection of Source of Drinking Water) Act, 1999 and Karnataka Groundwater (regulation and Control of Development and Management) Act 2011

Taking permission for sinking of borewells, ensuring minimum distance between irrigation wells and follow directions of legislation if area declared drought hit.

Especially during construction period

Noise Pollution (Regulation and Control) Rules, 2000

Ensure all activities adhere to the existing noise limits

Pollution due to vehicle and construction activities

Water (Prevention and Control of Pollution) Act, 1974

Ensure any activity undertaken is within the existing discharge standards, based upon the designated use of a waterbody.

At time of construction such as use of diesel generators and various vehicles and machinery. Also at various quarry and other sites resulting in atmospheric dust

Air (Prevention and Control of Pollution) Act, 1981

Ensure that all activities comply with the existing air quality levels. Vehicles have required pollution under control certification from appropriate authorities

53 Government of India, Ministry Of Water Resources (2012) Guidelines for Preparation of Detailed Project Report of Irrigation &

Multipurpose Projects



Component Applicable Legislation Action Required

Waste dumping at construction or in the O&M phase Change in the wetlands due to project interventions

Wetland (Management and Conservation) Rules, 2010

Ensure compliance to the rules by controlling waste disposal is in waterbodies and wetlands. Ensure that no important wetland is degraded

ADB policy

245. ADB’s 2009 Safeguard Policy Framework is applicable for this project. According to this policy framework a Multi‐tranche Financing Facility (MFF) is required to prepare an Environmental Assessment and Review Framework (EARF). The EARF will provide guidance to the assessments of the subprojects of the subsequent tranches. Also, each subproject is to conduct an environmental assessment based upon its categorisation. This categorization is based its impact on the environment. These ADB categorisations, which differ from GOI categorisations are:

Category A. If impacts likely to have significant adverse environmental impacts that are irreversible, diverse, or unprecedented. These impacts may affect an area larger than the sites or facilities subject to physical works.

Category B. If potential adverse environmental impacts are less adverse than category A projects, are site‐specific, few if any of them are irreversible, and in most cases mitigation measures can be designed more readily than for category A projects.

Category C. If project is likely to have minimal or no adverse environmental impacts.

Category FI. A proposed project is classified as category FI if it involves investment of ADB funds to or through a FI (Financial Intermediary).

246. Of the four subprojects 3 have been classified as category B. These are Gondi, TLBC and VNC. Therefore an IEE is to be undertaken for these three projects. Bhadra, due to the very limited nature of the work is categorized as a category C project and no further assessment is required.

Institutional set up

247. All environmental related clearances are undertaken by the consultants hired for the activity. There are no environmental specialists in KNNL or WRD. While developing DPR’s the hired consulting agency should have a suitable team of specialists. However, the environmental sections of the DPRs for these projects do not appear to have received adequate attention and this may be due to the lack of appropriate specialists in the team developing the DPR.

248. Any government related environmental clearances need to be taken from the relevant line departments at the State level, unless there is a specific need for a national level clearance. At the state level the environment related departments are the Department of Environment, Forest Department and the State Pollution Control Board. The EARF gives details of the different government departments and agencies in the environment sector.

Safeguard concerns

249. As this is an MFF, the project is divided into more than one tranche. In Tranche 1 canal modernisation is to be undertaken for the Gondi Anicut system and flow measurement devices are to be placed in identified locations in the Bhadra canal system. Also, identified activities to improve agriculture productivity will be taken up for Gondi. Tranche 2 and 3 will consist of canal modernisation work for Vijayanagara Channels (VNC) and part of the Tungabhadra Left Bank Canal (TLBC). As a part of the project preparation activities an IEE has been conducted for the Gondi Anicut system which is categorised as an ADB environment Category B project, and a short note has been written to guide the activities of Bhadra which has been categorised as an ADB environment Category C project, not requiring an IEE or and EIA. An EARF has also been developed for the MFF which will guide the project for the environment actions for TLBC and VNC, and could guide the



activities in Bhadra. Volume 4 of the PPTA briefly discusses some of the main relevant issues for TLBC and VNC.

250. The IEE for Gondi both describes the environmental impacts from the project and also provides a detailed EMP. In the case of Bhadra, a brief document is available in Annexe 2 of the PPTA Feasibility Study. The EARF should be used for any further details that may be required for the management of identified impacts for the Bhadra. The EARF provides guidance to the overall project and will also support the development of the IEE for the subsequent tranches.

251. Project implementation is to be overseen through a Project Management Unit (PMU). This PMU will be supported by an environmental specialist (intermittent) recruited through the Program Support Consultants, who is to ensure the implementation of environmental actions, and provide required support for the implementation of the project and the capacity building activities. Therefore, the inclusion and monitoring of identified adverse impacts, as noted in the IEE, for all stages of the project is the responsibility of the environmental specialist.

252. The activities identified in the environmental safeguard documents for the Tranche 1 subprojects need to be included in the Detailed Project Report (DPR) to ensure adverse impacts identified are addressed. Also, construction related actions where the construction contractor needs to ensure certain mitigation actions are undertaken – such as clearing up sites post construction, must be included in the contractor clauses and ensure prior to the contractor’s work being considered complete, and could also be linked to the payment schedule. For all operation related impacts, they would need to be managed during project implementation itself. While the IEEs have tried to identify possible adverse impacts for the project, there is a need to ensure that unforeseen impacts that could occur are identified and managed in time. To do this there will be a need for regular monitoring of the project, and will be done by the PMU's environmental specialist.

253. Both TLBC and VNC have been identified as Category B subprojects. Therefore, they would require an IEE each as a part of project preparation. The major impacts identified so far for these projects are given in Volume 4 of this document. For Tranche 2 and 3 projects the IEE should be completed as a part of the project design and needs to be fed into the final project design (DPR), to ensure that adverse environmental identified through the assessment are adequately addressed in the design stage itself. The format for IEEs is given in the EARF document for this MFF.

254. As required by State and National legislation, clearances and permissions should be identified and taken. These would include the Environmental Protection Act, 2006 and the various legislations under it; the forest, tree protection and the Hampi Heritage Area HWHAMA acts. While the present legislation is discussed in the attached EARF, any new legislation, or any other legislation which becomes relevant because of a previously unidentified impact, should be considered when preparing an IEE for Tranche 2 and 3 projects. Required ‘No Objection Certificate/Clearances’ or other actions as suggested in the various environment related legislation under the relevant acts for an area must be attached to the final DPR prior to the work commencing to ensure that there are no problems during project implementation. In the case of quarry, borrow pits and other material procurement sites, identification of all sites should be based upon the state guidelines and legislation prevalent at the time.

255. According to the existing assessment there are unlikely to be any major adverse environment impact of the Tranche 1 projects and all identified impacts are likely to be managed through the EMP. These projects are also likely to have positive environmental and related impacts such as improved soil health due to better management of irrigation water, reduction in habitat of disease vectors, reduced damage to houses and community infrastructure from waterlogging and increased agricultural productivity. These benefits are expected throughout the whole irrigation system. In some districts, such as Raichur where concerns of malnutrition exist, increased agricultural productivity is also likely to help increase the income of the farming community as well as ensure that more food is available in the local market. Thus, it is expected will also have a positive impact on



the health of the local population. There are also other expected positive impacts and are discussed in greater detail in the project’s EARF.

256. The project activities are also likely to have some adverse impacts on the environment which will need to be carefully considered while designing and implementing the subprojects to ensure that any adverse impacts from project activities are minimal. While a majority of adverse impacts are expected to be in the construction phase of the project, some location and design impacts and project operation impacts have also been noted. These are briefly discussed below. This section discusses possible impacts for projects of all three tranches.

257. Design and location impacts: The major design and location impacts for all MFF subprojects will vary because of local conditions and access to water. For example, in some tail end areas there is too little water, in others too much as it is uncontrolled. Expected impacts, however, include; (i) Possible reduced environmental flows due to increased efficiency in irrigation resulting in a reduction in return flows. Considering that the natural river systems are already compromised due to low river flows in the dry season this may have an added impact on the aquatic ecology of the system, recharge of aquifers, and also downstream livelihoods. (ii) Increased environmental and health risks from increased agrochemical usage and toxicity in the area due to assured irrigation, corresponding changes in cropping pattern; (iii) Adverse impact on the agro‐biodiversity as water becomes available to tail end farmers who may change from dry land or semi irrigated agriculture such as cultivation of millets and similar crops to more water intensive crops; (iv) change and degradation of drylan and semi‐arid ecosystems due to change in cropping patterns with more assured irrigation and availability of water; (v) increased grazing pressure with fallow lands, including local wetlands, becoming irrigated thereby causing encroachment upon dryland and grazing lands. (vi) possible land use changes and intensification, including through widespread adoption of HYV, may degrade local ecosystems and semi‐arid or dry land species, and also lead to a loss of local agro‐biodiversity and landraces. (vii) Changing ephemeral water bodies and wetlands currently used as tanks into more permanent water bodies. (viii) In the case of Hampi World Heritage Site which is a part of the VNC system, impacts on the local heritage structures, their aesthetics and stability need to be considered in depth while developing the project design; (ix) In case of Bhadra which has been recently modernised, there are risks of wildlife from neighboring forests visiting the area in the dry season to drink water from the canal system and then falling in and becoming trapped; (x) There is also a possibility of some increase in animal – human conflict in areas if the crops grown attract feeding wild animals. For example, elephants are fond of rice and sugarcane and therefore they may raid such fields, infrastructure that cuts across animal corridors, or certain species such as local deer species may have grazed on marginal lands which become farmed intensively thereby resulting in crop raiding.

258. In case of VNC there would be a need for some additional safeguards and include undertaking a physical and cultural resource survey to ensure that transport routes do not impact the heritage area. The Archaeological Survey should be closely involved in project design.

259. Construction Phase: A majority of project related environment impacts can be expected during the construction phase. Most of these are likely to be temporary in nature – unless appropriate management is not planned with impacts becoming permanent. These impacts would include (i) accidents and other safety issues for labour and the local population due to poor site management and safety systems; (ii) poor waste management leading to ill health or contamination of the environment; (iii) conflict between labour camps and local population due to poor site management and competition between resources; (iv) degradation of the local environment due to methods and locations of raw material acquisition such as stones, murrum and sand. This may lead to watershed degradation, reduced stability of downstream infrastructure, increased turbidity of local water bodies or degradation of ecosystem and wildlife habitat; (iii) Chance findings are also another issue that must be clearly considered during construction and material procurement activities; (iv) Compensatory tree plantation or firewood plantations with alien species, those inappropriate to the ecosystem, or plantations in areas where the ecosystem does not consist of trees, resulting in the



degradation of the local ecosystem, such as by planting Prosopis glandulosa and Prosopis juliflora. (vi) transport routes may also have an impact on the local environment – disturbing both the local population and wildlife species, some like the Common Crow butterfly breed and migrate from the Western Ghats during the summer; (iv) reduced access to local populations dependent upon the site locations, (vii) health risks from poor site management such as waterborne diseases due to inadequate provision of sanitation facilities for labour.

260. Operation impacts: There are likely to be limited impacts during the operation phase. However, it is suggested that the project be monitored to identify any possible impacts during this phase. The possible impacts are briefly identified here. (i) An increase in agrochemical usage due to assured irrigation and changing cropping patterns resulting in contamination of the local environment, toxicity to humans, and other species. (ii) Inadequate or poor management of drainage system, over irrigation and waterlogging soil degradation, contamination of surface and ground water and vector diseases. (iii) Poor management of waste from canal maintenance such as silt and weeds. (iv) Increased waste such as pipes from micro‐irrigation, broken mechanical parts, oil and grease etc. contaminating sites or resulting in breeding grounds for disease vectors; (v) Destruction of local archaeological sites due to vandalism while repairing of system – such as using the local material which is a part of the archaeological site (eg. the Hampi World heritage site). Considering that some areas are also ecologically sensitive and include dry land ecosystems, monitoring of possible adverse impact on local ecosystem must be considered and appropriate corrective actions taken up.

4.6.2 Social Safeguards

261. Social Safeguard documents relevant to this section and provided in accompanying Volumes are:

i. Appendix 10: Resettlement Framework.

ii. Appendix 11: The draft Summary Poverty Reduction and Social Strategy.

iii. Appendix 12: The draft Gender Action Plan.

Social Safeguards: Involuntary Resettlement

Project Scope and Resettlement Impacts

262. The Karnataka Integrated and Sustainable Water Resources Management Investment Program (KISWRMIP) has been envisaged as a Multi‐tranche Financing Facility (MFF). The Program is designed to include the Institutional Strengthening for IWRM including the Nigams CADA and WUCs, and modernisation of management of irrigation sub‐projects. The four irrigation sub‐projects proposed to be included for modernisation of irrigation system under the program are: (i) Gondhi Irrigation system, which is a sub‐area of the Bhadra irrigation system (Tranche 1), (ii) Vijayanagara (VJN, Tranche 2) and (iii) part of Tungabhadra Left Bank Canal (TLBC, Tranche 2 and 3) and (iv) Bhadra Irrigation System (with interventions limited to putting up the flow measurement devices). The components proposed as part of the modernisation works include (i) Flow measurement with Telemetry for Key Irrigation Systems, (ii) WUCs and Agricultural Development and (iii) the canal improvement works like lining, improvement of control structures etc.

263. An assessment for involuntary resettlement impacts has been made for Gondhi, Vijay Nagar and TLBC Irrigation/ Canal Systems based on the feedback from the WRD and CADA officials about their experience of implementing similar interventions as part of their on‐going projects, observational field visits and consultations with the communities to validate and elicit their views on the involuntary resettlement issues. The key findings from the assessment are:

the interventions under Tranche‐1 and subsequent tranches are planned within the RoW;

the other interventions that could be planned for subsequent tranches include strengthening of the existing linkages between the different canal systems within the



sub‐basin including improvements in the tanks/ ponds. Some of these ponds/ tanks areas have been encroached upon for the purpose of farming. In other cases changes to dam operation could increase water levels and therefore result in peripheral flooding. These could potentially have certain impacts on the livelihood issues. The technical feasibility for these is yet to be established and hence it is difficult to assess the likely impacts in terms of the land requirement. However, any such interventions are not envisaged in Transche‐1 as per the investment plan proposed for Tranche‐1.

A very minimal extent of temporary impacts may be involved, especially if there are establishment of construction camps, although this is not envisaged at this stage and would be confirmed with detailed planning as there are existing construction camp sites available in the command area.

Similarly, as part of the overall IWRM approach the possibilities of on‐line storage systems and the night storage reservoirs, if found technically feasible, after the detailed assessments are made during Tranche‐1, the likely impacts in terms of land requirements and involuntary resettlement would need to be established. The costing for Tranche‐1 has not considered any investment towards on‐line storage and night storage reservoirs.

264. The assessment of the sub‐projects under consideration with regard to the projects interventions envisaged as of now and the ground level situation clearly reveals that direct resettlement impacts are unlikely. Given the overall nature of the project (modernisation of canal works within the right of way, RoW, of the canal) and set of interventions envisaged under Tranche‐1, no action is needed with regard to Involuntary Resettlement Safeguards for Tranche‐1. However based on the final set of design interventions which would be evolved and planned for subsequent tranches (especially if the night storage reservoirs or online storage reservoirs are planned), the project could require preparation of Resettlement Plans (RPs) and such impacts can be assessed only once the technical feasibility for these interventions is established and design interventions are firmed up for the subsequent tranches. In this context, a Resettlement Framework (RF) is required to guide the involuntary resettlement safeguards that will be followed for the subsequent Tranches. All future sub‐projects will be screened for involuntary resettlement safeguards with the following objectives:

to avoid involuntary resettlement wherever possible;

to minimize involuntary resettlement by exploring project and design alternatives;

to enhance, or at least restore, the livelihoods of all displaced persons in real terms relative to pre‐project levels; and

to improve the standards of living of the displaced poor and other vulnerable groups.

265. The Resettlement Framework (RF) has been formulated to guide the preparation of subproject Resettlement Plans (RPs), if required, during subsequent Tranches of the Program planning and implementation. The RF identifies the broad scope of the Program and outlines the policy, procedures and institutional requirements for the preparation and implementation of subproject RPs. The Executing Agency (EA), Karnataka Neeravari Nigam Limited (KNNL) of the SGOK, will be responsible for conducting the social assessments and formulating RPs for subsequent sub‐projects, where involuntary resettlement impacts are expected, as per the procedures outlined in this RF. The draft RPs will be disclosed to the Affected Persons (APs) in local language (Kannada) and submitted to ADB for review and approval, and public disclosure prior to the award of civil works contracts. Compensation, relocation and rehabilitation processes will be completed prior to the commencement of any project‐related construction activities. The Draft Resettlement Framework is attached as Appendix 12.



Review of Government Policies, Laws and ADB Safeguard Policy Requirements

266. Presently, Land Acquisition Act, 1894 and the National Rehabilitation and Resettlement Policy, 2007 guides the process of land acquisition and the rehabilitation and resettlement in India and the same applies for Karnataka. The Karnataka Resettlement of Project Displaced Persons Act, 1987 was passed by the legislature in 1987 and received the president’s assent in 1994 which was subsequently repealed by The Karnataka Repealing and Amending Act, 200254. The State Government of Karnataka is in the process of working out a comprehensive and pragmatic framework on rehabilitation and resettlement (R&R) works for the families affected by irrigation projects across the State55. With regard to the Command Area Development, the Karnataka Command Area Development Act, 1980 provides for preparation of Schemes and the land acquisition for these schemes as per the provisions of Section 12 to Section 16 of the Act. The Karnataka Command Area Development Act primarily focuses on the lower levels of irrigation system as part of the command area, mainly the field channels and also makes a provision to levy the charges for the development works. In absence of any State R&R Policy to address the involuntary resettlement, the provisions related to NRRP, 2007 and the Land Acquisition Act are applicable for involuntary resettlement under the projects in the state.

267. ADB Safeguard Policy Statement (SPS), 2009 shall be applicable for this Program in order to promote the sustainability of project outcomes by protecting the environment and people from potential adverse impacts of projects. ADB’s SPS sets out the policy objectives, scope and principles for three key safeguard areas: (i) environmental safeguards (covered under separate section), (ii) involuntary resettlement safeguards, and (iii) Indigenous People’s safeguards. The Policy requires development of Resettlement Framework (RF) and Indigenous Peoples Planning Framework (IPPF) for a Multi‐tranche Financing Facility (MFF). The RF provides guidance to the assessments of the subprojects of the subsequent tranches and the social impact assessment would need to be carried out for each sub‐project.

268. The review of the provisions of the LAA and NRRP and its comparison with the Policy Principles for involuntary resettlement laid down under ADB SPS 2009 has been made and it can be concluded that the provisions made under the LAA supplemented with NRRP 2007 broadly fulfill the requirements of Involuntary Resettlement Safeguards under ADB SPS with a few minor gaps, including the cut‐off date for DPs without title to land and the compensation at replacement cost.

Involuntary Resettlement Principles

269. Involuntary resettlement, including both physical displacement and economic displacement, will be avoided or minimized by identifying possible alternative project designs and appropriate social, economic, operational and engineering solutions that have the least impact on the population in the Project area. Where involuntary resettlement is unavoidable for the wider gains to the larger community and achievement of IWRM objectives, the persons affected by the project will be offered assistance under the program for improving or at least restoring their livelihoods, income, and standard of living.

270. The populations/ persons affected by the Project are defined as those who may stand to lose, as a consequence of the Project, all or part of their assets which includes homes, lands, commercial properties, tenancies, income earning opportunities, social and cultural activities and infrastructure together with any other losses that may be identified in the resettlement planning exercise. Neither lack of legal rights to the assets lost, tenure status, nor social or economic status will bar the DP from entitlement to the compensation and rehabilitation objectives and measures outlined in the Framework. All DPs will be entitled to be compensated as per the principle of replacement of

54 http://dpal.kar.nic.in/pdf_files

55 http://www.thehindu.com/todays‐paper/tp‐national/tp‐karnataka/new‐policy‐on‐rr‐soon/article4194086.ece, The Hindu, dated December 13 2012



affected assets, incomes and businesses; all severely affected persons will also be provided with transitional assistance and income restoration and other rehabilitation assistance which will be sufficient to improve or at least restore their pre‐project living standards, income levels and productive capacity. The R&R assistance shall be payable as per the entitlement matrix for all APs and shall be applicable for all future subprojects. In the event of any population relocation, efforts will be made to maintain the physically displaced persons existing social and cultural institutions to the greatest extent possible.

271. For the purpose of the RF, the vulnerability and DPs without legal title to land have been defined as:

The Vulnerable DPs will include the poorest/ below poverty line, SCs and STs, female headed households, the disabled and elderly with no means of support, landless and those without a title to land, marginal farmers or those who become marginal as a result of acquisition and these will be assisted to mitigate their hardships and improve their livelihoods.

The DPs without legal title to land will be classified in two categories, (i) Squatters and (ii) Encroachers. Squatters are those that are landless or without title to land and occupy public land for shelter and/or for carrying out their livelihoods. Encroacher is used here to denote illegal extension into public property by a person who is a legal titleholder of his property. The person is an encroacher on the portion of the property occupied to which the person does not hold legal title.

Social Impact Assessment and Resettlement Plans

272. All future sub‐projects will be screened for involuntary resettlement impacts from as early as planning stage for the sub‐project and social impact assessment exercise will be taken up for each of the sub‐projects. The socioeconomic survey(s) and a census, with appropriate socioeconomic baseline data to identify all persons who will be displaced by the project and to assess the project’s socioeconomic impacts on them will be carried out for all sub‐projects under the Program. If any sub‐project in future tranches involve involuntary resettlement impacts, the RPs will be prepared with an objective to ensure that livelihoods and standards of living of displaced persons are improved, or at least restored to pre‐project (physical and/or economic) levels and that the standards of living of the displaced poor and other vulnerable groups are improved, not merely restored, by providing adequate housing, security of land tenure and steady income and livelihood sources.

273. All RPs will be prepared on the basis of social impact assessment and through meaningful consultation with the affected persons and necessary budget allocations will be made available for RP preparation and implementation. During the identification of the impacts of resettlement and resettlement planning, and implementation, adequate attention will be paid to gender concerns, including specific measures addressing the need of female headed households, gender‐inclusive consultation, information disclosure, and grievance mechanisms, to ensure that both men and women receive adequate and appropriate compensation for their lost property and resettlement assistance, if required, as well as assistance to restore and improve their incomes and living standards.

274. The RPs will include detailed measures for income restoration and livelihood improvement of displaced persons in order to ensure that Income sources and livelihoods affected by project activities will be restored to at least pre‐project levels, and every effort will be made to improve the incomes of displaced persons so that they can benefit from the project, especially for the vulnerable groups. The resettlement plan will specify the income and livelihoods restoration strategy, the institutional arrangements, the monitoring and reporting framework, the budget, and the time‐bound implementation schedule.



275. The RPs will be finalized by updating the census and inventories of loss of assets after the detailed engineering designs are completed. The entitlement matrix of the resettlement plan will be updated, if required, to reflect the relevant changes without lowering the entitlements in the entitlement matrix during the revision/ finalization of the RPs. Projects with significant involuntary resettlement impacts will be provided with adequate contingency funds to address involuntary resettlement impacts that are identified during project implementation. The DPs will be consulted and informed about their entitlements and relocation options. The RPs including any revisions in RPs/ supplementary RPs will be submitted to ADB for review before any contracts are awarded.

Entitlements

276. Based on the likely impacts, the Displaced Persons have been classified for different types for potential losses and accordingly their entitlements have been defined.

DPs whose land is affected – DPs whose land is being used for agricultural, homestead, residential, or commercial purposes and is affected either in part or in total and the effects are either temporary or permanent shall be eligible for compensation on the basis of replacement cost and assistance for replacement of land;

DPs whose structures are affected – DPs whose structures (including ancillary and secondary structures) are being used for residential, commercial or worship or any other purposes which are affected in part or in total and the effects are either temporary or permanent shall be eligible for compensation on the basis of replacement cost and assistance for replacement of affected assets including the assistance for transitional phase and the relocation;

DPs with other assets affected – DPs who have other assets, such as crops or trees, affected either temporarily or permanently shall be eligible for compensation on the basis of market value of the loss;

DPs losing income or livelihoods – DPs whose business, source of income or livelihood (including employees of affected businesses or share croppers/agriculture labor on the agriculture field) is affected in part or in total, and affected either temporarily or permanently shall be eligible for assistance for restoration of the loss of business/ wage income;

Vulnerable DPs including IPs– DPs included in any of the above categories who are defined as vulnerable/ IPs shall be eligible for additional benefits and assistance for rebuilding and improvement of income and livelihoods as defined in the Policy and the supporting entitlement matrix; and.

APs losing access to common property resources – APs whose access to or use of common property resources is affected on a temporary or permanent basis shall be assisted for rebuilding and/ or restoration of community resources/ facilities;

277. The replacement value of land will be the highest of the value arrived using (i) estimated Market Value of Land as notified by SGoK, (ii) average of recent land sales/transfer and (iii) the crop productivity method. For land acquisition, compensation for land acquired will be decided by the Competent Authority as per the provisions of the Land Acquisition Act. The value of houses, buildings and other immovable properties will be determined on the basis of relevant and updated Schedule of Rates (SoR) as on date without depreciation. Compensation for trees will be based on their market value. The EA will determine the replacement value of land and property to be acquired based the above principles in consultation with the WUCs and the available records of the agriculture and revenue department. If the compensation amount as declared under the Land Acquisition Act is less than the replacement cost of the land and property, the EA will pay the difference between the compensation and the replacement cost as replacement assistance for land and property. In addition, the salvage material from the dismantled structures/ assets would remain



the property of DPs. The DPs will be compensated for immovable properties on the principles of replacement cost that would include fair market value to replace the property, transaction costs, interest accrued, transitional and restoration costs, and any other applicable payment. The common property resources of the APs lost under the project will be replaced through WUCs on the similar principle as proposed for implementation of field channels improvement works under the procurement plan.

278. Compensation and resettlement and rehabilitation assistance for each category of DP are based on the type and level of loss or impact. The Project Entitlement Matrix is provided as part of the RF. It has been prepared on the basis of expected impacts and the minimum requirements to be met for various types of losses, as per the NRRP. It identifies the categories of impact and shows the entitlements for each type of loss. If additional or unforeseen impacts are identified during the detail design and/or implementation phases then such losses will to be included in a revised entitlement matrix as well as in the RPs and addressed as per the general principles defined for the Project as mutually agreed between the ADB and SGoK.

Public Consultation, Participation and Disclosure of RP

279. Resettlement Plan, if any, will be prepared and implemented in close consultation with the stakeholders and will involve focus group discussion (FGD) and meetings, particularly with the affected households. In addition, a Public Consultation and Disclosure Plan will be prepared for each of the subproject. The RP will be made available in local language(s) during the public meetings at the community level. Copies of draft RPs will also be made available at the local level public offices such as the office of gram panchayats and WUCs (if available) to stakeholders for local inputs prior to award of civil work contract. The RP will be disclosed on ADB and KNNL websites and the consultation will continue throughout the project implementation period and the cost will be appropriately budgeted. In case there is no impact and no Resettlement Plan is needed, the EA will make disclosure of the same informing the Gram Panchayats, WUCs, market places along the canals that no land or structure, irrespective of their title will be affected by any activities of this project. The report of this disclosure giving detail of date, location will be shared with ADB.

Grievance Redress Mechanism

280. The grievance redress mechanism would comprise three stages/ levels and the WUCs/ PIO will inform the DPs/ APs about the provisions of grievance redress mechanism as part of the consultations and disclosure. The institutions responsible for addressing the grievances at three levels will be WUCs (proposed as the agency responsible for implementation of the RPs), the Project Manager at PIO Level and the Grievance Redress Committee (GRC). The GRC will comprise the Deputy Commissioner as Chairman, a member from the Revenue and Agriculture Department, a representative of KNNL, Panchayat and WUC members and representatives of affected persons, including women and vulnerable groups. The GRC will conduct hearing on the grievance within 3 weeks from the date of registration of grievance. Other than disputes relating to ownership rights under the court of law, GRC will review grievances involving all resettlement benefits, compensation, relocation, and other assistance. All costs incurred in resolving the complaints will be borne by the project. A comprehensive record will be maintained by EA for all grievance proceedings organized at different stages. However, at any stage of the GRM, an aggrieved person will be free to access the country’s legal system and that this is not conditional upon the perceived unsatisfactory outcome of the GRM.

Institutional Arrangements

281. KNNL is the Executing Agency (EA) for the Program and will be responsible for overall coordination and financing of the activities related to involuntary resettlement and ensuring adequate resettlement budgets to PMU for the resettlement safeguards. The Project Management Unit (PMU) to be set‐up will have the primary responsibility for the overall coordination, planning and implementation of the RPs. The staff of the KNNL/ PMU responsible for the program



implementation will be provided training on IR Issues in order to build the institutional capacity in IR for this program in specific. The scope of training should include ADB resettlement policy and principles.

282. The Superintending / Executive Engineer will be the Project Manager and the Land Development Officer (Agriculture) assigned by the CADA will be the Deputy Project Manager at the level of PIO. The Deputy Project Manager will be responsible for resettlement issues and will be supported by the SSTs at the level of PIO in the implementation and monitoring of IR activities. The implementation of resettlement plans will be taken up with the involvement of WUCs with the support and guidance from PIOs and SSTs. The staff at the PIO level, SSTs and WUCs will be provided with the training for implementation of the RP, wherever applicable. The PIO will maintain all databases, work closely with DPs and other stakeholders and monitor the day‐to‐day resettlement activities. The PIO will be responsible for working out the replacement costs for land and structure and the same shall be approved by the Committee to be constituted under the Chairmanship of Deputy Commissioner with representatives of Revenue, Agriculture, PIO, Forest and PWD along with representatives of WUCs representing the DPs.

Resettlement Budget

283. Detailed budget estimates for RP, if any, will be prepared by the EA through the PMU. The budget shall include: (i) detailed costs of land acquisition, relocation, and livelihood and income restoration and improvement; (ii) costs for carrying out meaningful consultations through the resettlement plan implementation and the grievance redress mechanism (ii) source of funding; (iii) administrative costs (iv) monitoring cost (v) cost of hiring consultants (vi) arrangement for approval, and the flow of funds and contingency arrangements. All land acquisition, compensation, relocation and rehabilitation, administrative, monitoring and consultation costs, consultant costs, income and livelihood restoration costs will form the part of the overall financial estimates for the sub‐project. All land acquisition and resettlement costs will be borne by the EA and it will ensure timely disbursement of funds for RP implementation. It is proposed that the SGOK will provide the entire fund for land acquisition and resettlement for which a separate budget head for the Program specific Land Acquisition and Resettlement shall be created with a provision of token amount in the Budget of the State Government to ensure that the resettlement plans are implemented timely. The consent of SGOK is to be sought in this regard.

Monitoring and Evaluation

284. Monitoring of IR activities will be undertaken by the Project Implementation Offices (PIO). The Project Implementation Offices (PIO), with the support from SSTs, will gather and maintain information on Subproject RP implementation. Monitoring Reports on Subproject RP implementation will be included in PIO’s Quarterly Project Progress Report and will contain: (i) Accomplishments To‐Date; (ii) Objectives Attained and Not Attained during the Quarter; (iii) Problems Encountered; and (iv) Targets for the next Quarter. The Monitoring Reports will be integrated by the Program Management Unit (PMU). The PMU will prepare semi‐annual monitoring reports describing the progress of the implementation of resettlement activities and any compliance issues and corrective actions following the involuntary resettlement monitoring indicators agreed at the time of resettlement plan approval and submit these reports to ADB. For projects with significant involuntary resettlement impacts, if any, identified during subsequent tranches, the EA will retain qualified and experienced external experts or qualified NGOs to verify the monitoring information. The external experts will be responsible for advising on safeguard compliance issues, and conducting a one‐time Social Impact Evaluation, at least six months following the completion of the Tranche.

4.6.3 Social Safeguards: Indigenous People

285. The total population of Karnataka, as per 2001 Census was 52.85 million. Of this, 3.46 million population fall under the category of Scheduled Tribes (STs) constituting nearly 6.6 percent of the state population. As per the existing list fifty one STs have been notified in Karnataka by the



Scheduled Castes and Scheduled Tribes Order (Amendment) Act, 1976 and by the Act 39 of 1991 and amendments thereof. Five STs namely, Kammara, Kaniyan, Kuruba, Maratha and Marati have been notified with area restriction56. Kuruba and Maratha have been notified only in Kodagu district, where as Marati in Dakshina Kannada, Kaniyan in Kollegal taluk of Chamarajanagar and Kammara in Dakshina Kannada and Kollegal taluk of Chamarajanagar districts of Karnataka.

286. A review of the data available from secondary sources (Census 2001)57 for the Districts and Talukas (blocks) falling within the command of the sub‐projects was analysed and as can be seen from (Table 12), the percentage of ST population (Indigenous People) ranges between 2.27% in Hospet Taluka to 34.49% in Devdurga Taluka. The data provided shown presents the share of the ST population in the overall influence area of the project.

Table 12: Sub‐project Administrative Jurisdictions and ST Population

Sub‐Projects Districts Talukas and Percentage of ST Population

Tungabhadra Left Bank Canal (TLBC)

Raichur Devdurga (34.49%), Manvi (25%), Raichur(20.91%), Sindhnur (14.90%)

Koppal Gangavati (16.24%), Koppal (9.60%)

Bhadra Shimoga Bhadravathi (4.73%), Shimoga (6.07%)

Chikkmaggalur Tarikere (3.46%)

Davangere Channagiri (13.02%), Davangere (14.25%), Harapanahali (16.38%), Harihara (11.24%), Honnali (7.57%)

Vijay Nagara Canal System

Bellary Hospet (2,27%), Sriguppa (6.70%)

Koppal Gangavati (16.24%), Koppal (9.60%)

Raichur Raichur (20.91%)

Gondhi Irrigation System

Shimoga Bhadravathi (4.73%)*

*‐ ST population for the villages of Bhadravathi Taluka falling within the Gondhi command area is 3.3%

287. Literacy and level of education are two basic indicators of the level of development achieved by a group/society. The literacy results in more awareness besides contributing to the overall improvement of health, hygiene and other social conditions. According to 2001 Census, percentage of literate persons (those who can read & write with understanding), aged 7 years and above, among ST population of Karnataka, is 48.3 percent, which is lower than 66.6 per cent reported for the state population as a whole. The literacy data show that the ST population of the state has made significant improvement during the decade 1991‐2001. The literacy rate, which was 36.0 per cent in 1991, has increased by 12.3 percentage points in 2001.

288. As per Census 2001, agriculture remains the mainstay activities of the scheduled tribes in the project districts, wherein these groups are engaged as cultivators and agriculture labourers like

56 Area restriction refers to notification applicable for particular tribe with respect to their place of living in a specific administrative jurisdiction (district/ taluka)

57 Though Census 2011 has been completed, limited data has been released so far and hence the data for Census 2001 has been adopted for the purpose of analysis. However, during consultations it was found that there has not been any major change in the overall profile of the rural population.



other rural households. Another critical indicator with regard to the status of STs within the overall framework of the society is the landholding pattern. The landholding patterns amongst these communities are similar to other communities in the rural areas as can be seen from Table 13 and Table 14. Table 13 presents the district level data related to percentage of ST Population, number of operational landholdings of ST as a percentage of total landholdings in the district and area of operational landholdings of ST as a percentage of area of total landholdings in the district.

Table 13: Land Holding amongst STs in Project Districts

Districts ST Population as % of district population

Number of ST Land Holdings as % of total district

holdings

Area of ST Land Holdings as % of total

district holdings

Raichur 18.15 19.02 17.50

Koppal 11.59 10.53 9.91

Shimoga 3.41 2.49 1.93

Chikkmaggalur 3.59 1.43 1.02

Davangere 11.71 10.94 10.31

Bellary 17.98 16.48 15.34

Source: Landholding Patterns in Karnataka, SGoK, 2005

289. Table 14 below presents the average landholding size amongst different communities and it can be seen that the average land holding amongst the ST groups is marginally lower than the average landholding in the district whereas the Schedule Castes (another vulnerable category of social group) has relatively lower average land holding.

Table 14: Average Land Holding Pattern amongst STs in Project Districts

Districts Average Size of Land Holding (in Ha)

ST SC Others Overall

Raichur 2.10 1.70 2.44 2.29

Koppal 2.04 1.52 2.27 2.18

Shimoga 1.00 1.00 1.32 1.29

Chikkmaggalur 1.00 0.96 1.46 1.45

Davangere 1.48 1.27 1.64 1.57

Bellary 1.93 1.55 2.20 2.09

Source: Landholding Patterns in Karnataka, SGoK, 2005

290. Table 14 also presents the data related to the SC population, who are considered vulnerable section of the society especially considering the lower level of land holdings and the poor economic condition amongst SCs. This is an important consideration while developing the safeguards strategy especially the resettlement framework.



291. As per the ADB SPS, the significance of impacts on Indigenous Peoples shall be determined by assessing (i) the magnitude of impact in terms of (a) customary rights of use and access to land and natural resources; (b) socioeconomic status; (c) cultural and communal integrity; (d) health, education, livelihood, and social security status; and (e) the recognition of indigenous knowledge; and (ii) the level of vulnerability of the affected Indigenous Peoples community.

292. Considering the nature of interventions proposed under the program, no specific adverse impacts are anticipated for the STs (Indigenous People) as for other communities. ADB IP safeguards are not triggered because the project directly or indirectly does not affect the dignity, human rights, livelihood systems, or culture of the STs nor the project will affect territories claimed by the STs as their ancestral domain. During the community consultations also, it has been found that there is no specific uniqueness with regard to the economic status or the livelihood systems or cultural practices amongst the STs as compared to other communities in the villages. In this context, for the purpose of this Program, IPPF is not required. In addition, as part of the WUCs strengthening, special focus shall be made to ensure the participation of STs (indigenous) and SCs (vulnerable) in the planning and decision making process while preparation of Command Area Development Plans. It will also be ensured that under no circumstances the STs/ SCs are deprived of the benefits from the program. However, if there is any physical relocation of STs in any future Tranche, combined plan including Resettlement Plan and Indigenous Peoples Plan will be prepared in consultation with ADB.

4.6.4 Summary Poverty Reduction and Social Strategy (SPRSS)

293. The poverty reduction and social strategy under the program is aligned with the GOI’s current policy (11th and Draft 12th Five Year Plan) and ADB’s Strategy (2020) on promoting inclusive growth and achieving rural poverty reduction through strengthening the rural infrastructure services including, integrated water resources management, improvement in irrigated agriculture and community participation as one of the priority areas in development planning.

294. The current Program focuses on adopting of pro‐poor and gender inclusive mechanism within the overall program design. It aims at providing enhanced water accessibility and equity to farmers and rural households for both agricultural and household purposes with special focus given to tail–end farmers, marginal, small and landless farmers, and the poor and vulnerable women. The project interventions will have positive impacts on the women and socially excluded groups in terms of (i) strengthened grassroots institutions; (ii) improved irrigation infrastructure and practice; (iii) improved and equitable access to water by small, marginal and landless farmers; (iv) improved farm incomes; (v) enhanced off farm livelihood opportunities (vi) sustainable and innovative irrigation and agricultural practices, including drip and micro irrigation and crop diversification; (vii) strengthened water resources and environmental management; (viii) social inclusion and enhanced capacities of women to participate in grassroots governance and decision–making processes and viii) NGOs’ participation in awareness generation, community mobilization, credit plus and participatory irrigation management.

4.6.5 Gender Action Plan (GAP)

295. The Project is proposed to be classified as Category II: Effective Gender Mainstreaming, (EGM) following ADB’s gender categorization of projects (ADB’s Policy on Gender and Development 1998 and ADB’s Gender Mainstreaming Criteria Guidelines; 2010). The gender strategy under this program is expected to mainstream gender in the context of irrigation management. It envisages strengthening women’s participation in grassroots governance and leadership with a planned 30 percent women’s representation in the executive board by 2018. It will also focus on expanding women’s knowledge of improved crop diversification and management, on‐farm water management, and O&M and systems management. It also enables women to gain easier access to water for agricultural and non–agricultural, domestic use, and health and hygiene purposes. The Gender mainstreaming activities in off–farm income generating activities will also be pursued as will promoting women’s participation in grassroots decision–making and governance; in particular, the



WUCs. Capacity development programs focusing on project management and monitoring will be conducted for women staff of relevant government counterparts.

296. The scope for raising the level of women’s participation in decision–making and project management processes will also be strengthened. In addition a Gender Action Plan (GAP), (Attachment 11), has been systematically designed to ensure that women, vulnerable and landless households are mainstreamed within the overall program design and have equitable access to the project’s resources and benefits. The GAP also provides specific actions and responsibilities to ensure full participation of women in project activities.

4.7 Governance

297. A detailed review of governance arrangements relevant to water resources management in Karnataka is provided as Appendix 3.

National Water Policy and Framework

National Water Policy

298. The National Water Policy, which is intended to guide States in setting their own policies and in developing their water resources, enunciates the following broad principles.

Water Resource Planning should be undertaken for each river basin, to include both surface and groundwater, and should consider water quality, quantity, and environmental needs. Optimum use should be made of water resources, using methods such as river basin transfers and watershed management. Information systems should be standardized to include water availability, actual water use and projections of future demand.

Institutional Mechanisms appropriate to river basin planning should be established taking into account all water users including irrigation.

Water Allocation Priorities in descending order are drinking water, irrigation, hydro‐power, ecology, agro‐industry and navigation, but may be modified as warranted for each region.

Groundwater Development should be sustainable, with integrated and coordinated development of surface and groundwater resources. Conjunctive use should be considered during planning and be an integral part of project implementation.

Irrigation should be developed on the basis of holistic project planning, with water allocations established considering equity and social justice. To fully realize irrigation potential, command area development should be incorporated into all irrigation projects.

Resettlement and Rehabilitation policies should developed by the individual states, ensuring that project‐affected persons share in the benefits of water management investments through proper rehabilitation.

Financial and Physical Sustainability should be achieved through water charges that at least cover O&M costs. Where subsidized water rates are provided to the poor and disadvantaged they should be well targeted and transparent.

Participatory Approach to Water Resources Management should be adopted by involving Pani Panchayats and local bodies in O&M and management of water infrastructure and facilities, with a view to management transfer.

Private Sector Participation should be encouraged in planning, development and management of water resources projects.

Conservation of Water should be promoted and measures taken to augment available water by maximizing retention, eliminating pollution, and minimizing losses.



Flood Control and Management should be provided on the basis of Masterplans for each flood‐prone basin that promote both structural and non‐structural measures. In highly flood‐prone areas, consideration should be given to operating reservoirs so as to control flooding, even at the expense of hydro‐power or irrigation.

Land Erosion should be minimized by suitable cost‐effective measures.

Drought‐prone areas should be made less vulnerable to drought and their needs should be given priority whilst planning.

Project Monitoring Systems should be part of project planning and execution, to eliminate time and cost overruns.

Water sharing between states should be guided by a national perspective. The Interstate Water Disputes Act (1956) should be reviewed and may be amended for timely adjudication of disputes referred to the Tribunal.

Performance Improvement should shift emphasis from creating new infrastructure to improving performance of existing facilities.

Maintenance and Modernization should include monitoring and appropriate annual provision for maintenance, as well as forming Pani Panchayats and providing them with the necessary authority to facilitate management and maintenance.

Safety of Hydraulic Structures requires appropriate institutional structures at both national and state levels as well as legislation and updated guidelines as the basis for a system of constant surveillance.

Training of staff and farmers should address areas such as information systems, sector planning, project planning and formulation, project management, operation and management.

299. In general, the National Water Policy provides a comprehensive framework to guide water resources development at the State level. The Policy identifies a range of challenges related to the more traditional aspects of water management, such as escalating costs of delivering water and deterioration of infrastructure. The policy also emphasizes new challenges that include environmental flows, deteriorating water quality, increasing demands, social equity, and participatory management. However, the Policy falls short of setting targets and is generally silent on needed institutional changes. Since responsibility for water resources planning and development belongs to the State, these could arguably be left to the individual states.

National Water Resources Program Framework – Approach to 12th Five Year Plan (2012‐17)

300. The draft 12th Five Year Plan for India has been issued after the National Development Council meeting held in December 2012. The document makes a detailed assessment of water sector issues and priorities for the 12th Five Year Plan proposes the following water sector strategy for the 12th Five Year Plan:

A move away from a narrowly engineering construction‐centric approach to a more multidisciplinary, participatory management approach to our major and medium irrigation projects, with central emphasis on command area development and a sustained effort at improving water use efficiency;

Since groundwater accounts for nearly two‐thirds of India’s irrigation and 80 per cent of domestic water needs, we need a participatory approach to sustainable management of groundwater based on a new programme of aquifer mapping;

A massive programme for watershed restoration and groundwater recharge must be launched by transforming Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) into our largest watershed programme,3 giving renewed energy to the reformed Integrated Watershed



Management Programme launched in the Eleventh Five Year Plan and launching a completely revamped programme on Repair, Renovation and Restoration (RRR) of Water Bodies;

A new approach to rural drinking water and sanitation;

All urban water supply projects to necessarily integrate sewage systems within them;

Definite targets for recycling and reuse of water by Indian industry to move in conformity with international standards;

Renewed focus on non‐structural mechanisms for flood management;

Vastly improved systems of water‐related data collection and management as also transparency in availability of data;

Adaptation strategies to mitigate the likely impact of climate change to be pursued under the National Water Mission (NWM); and

A new legal and institutional framework for water based on broader consensus among the States.

National Water Resources Program Framework ‐ National Water Mission under the National Action Plan on Climate Change

301. India is faced with the challenge of sustaining its rapid economic growth while dealing with the global threat of climate change. With a view to addressing this, a National Action Plan on Climate Change (NAPCC) has been prepared by the Government of India. The National Action Plan advocates a strategy that promotes, first, adaptation to climate change and second, further enhancement of the ecological sustainability of India’s development path. Eight National Missions which form the core of the National Action Plan represent multi‐pronged, long term and integrated strategies for achieving key goals in the context of climate change. The eight National Missions are i) the National Solar Mission; ii) the National Mission on Enhanced Energy Efficiency; iii0 the National Mission on Sustainable Habitat; iv) the National Water Mission; v) the National Mission for Sustaining the Himalayan Ecosystem; vi) the National Mission for a Green India; vii) the National Mission for Sustainable Agriculture; and viii) the National Mission on Strategic Knowledge for Climate Change.

302. The National Water Mission (NWM) addresses various aspects of the water sector for effective adaptation to climate change. The nodal agency for the National Water Mission is the Ministry of Water Resources, Government of India. The National Water Mission Report constitutes of the Comprehensive Mission Document as the Main Report and six annexure reports ‐ the Report on Policy and Institutional Framework, the Report on Surface Water Management, the Report on Ground Water Management, the Report on Domestic and Industrial Water Management, the Report on Efficient Use of Water for Various Purposes; and the Report on Basin level Planning and Management

303. The five goals proposed under the National Water Mission are:

i. Comprehensive water data base in public domain and assessment of the impact of climate change on water resource

ii. Promotion of citizen and state actions for water conservation, augmentation and preservation

iii. Focused attention to over‐exploited areas iv. Increasing water use efficiency by 20% v. Promotion of basin level integrated water resources management

304. The Comprehensive Mission Document for National Water Mission was approved by the PM’s Council on Climate Change on May 28, 2010. The Union Cabinet approved its implementation framework on April 6, 2011. As per the Mission Document, the total estimated additional fund required for implementing the Mission is Rs. 89,101 crore during the 11th and the 12th Five Year Plan period. This includes expenditure on schemes implemented through the State Plans and the Central



Plan. Further, a National Water Mission Directorate has been established in MoWR for implementation of the mission goals and facilitate the States in preparing State specific Action Plans.

State Water Sector Policy and Legal Framework

State Water Policy and Vision

305. Karnataka State government's overall water resource management strategy, reflected in its "Vision 2020," shifts focus from yield per acre to yield per unit of water consumed58. This change recognizes the need for policies to empower water user associations and to decentralize the management of irrigation systems.

306. Similarly, the Karnataka State Water Policy (2002) requires water resources planning, development and management in the State to be carried out using an integrated approach i) adopting a hydrological unit such as river basin or sub‐basin, ii) multi sectorally, iii) conjunctively for surface and ground water and iv) incorporating quantity, quality and environmental considerations for poverty alleviation, increasing incomes and productivity, equity, reduced vulnerability to natural and economic risks. It also proposes that solutions to water allocation and planning issues be found adopting a demand management approach, hence facilitating and ensuring stakeholder participation. The policy also clearly stipulates the need for private sector participation. In summary, the policy incorporates IWRM principles although it has an over emphasis on irrigation.

307. The Karnataka State Water Policy 2002 also includes a participatory approach to water resources management as follows:

“The management of water resources shall be done adopting a participatory approach. Necessary legal and institutional changes will be made. The ultimate goal will be to transfer operation, maintenance, management and collection of water charges to users groups.

Minor Irrigation works and sub‐systems of Major and Medium Irrigation works will be rehabilitated with participation by the users of these tanks and sub‐systems and handed over to Users Organization for operation, maintenance and management. Technical assistance will be rendered to Water Users Societies / Associations and they will be encouraged to undertake land leveling and also take up cultivation of high value crops requiring less water for efficient use of scarce water.”

308. The State Water Resources Policy (2002) has six explicit policy objectives. These are:

To provide drinking water at the rate of 55 litres per person per day in the rural areas, 70 litres per person per day in towns and 100 litres per person per day in the city municipal council areas and 135 litres per person per day in city corporation areas;

To create an ultimate irrigation potential of 45 lakh hectares under major, medium and minor irrigation projects. Facilitate creation of an additional irrigation potential of 16 lakh hectares by individual farmers using ground water;

To improve performance of all water resources projects;

To improve productivity of irrigated agriculture by involving users in irrigation management;

To harness the hydropower potential of the State; and

Provide a legislative, administrative and infrastructural environment, which will ensure fair, just and equitable distribution and utilization of the water resources of the State to benefit all the people of the State.

58 January 2010. Government of Karnataka, Vision 2020, p. 21 para. 66



309. An assessment of the Karnataka Water Policy 2002 against IWRM Principles shows that there are many similarities between the actions proposed in the Policy and those recommended under IWRM. The key similarities are:

The needs to undertake water resources analysis, planning and management on the basis of hydrologic units, principally river basins and groundwater aquifers;

Recognition of requirements for institutional reform, particularly the adoption of a demand management approach;

Need for an apex body to facilitate cooperation and collaboration;

More explicit water allocation;

Direct involvement of all concerned stakeholders in planning for basin management;

Improved water governance.

310. On the other hand, actions recommended under IWRM but not included in the Policy are:

Focus on service delivery, decentralization and subsidiarity;

Explicit provision of water for environmental needs to maintain biodiversity;

Management of water supply security through linking water allocation and water system operation;

Organizational restructuring to separate regulatory, management and operational functions with creation and strengthening of a separate water management unit within the Department of Water Resources and provision of an independent regulator for water services;

Recognition of the wide range of stakeholders and the need for their active involvement in policy implementation; and

Provision of forums for identifying issues and solutions, establishing priorities and resolving conflicts in water management such as between supporting farming communities and providing drinking water supply.

State Water Legislations

311. Water resources management in Karnataka is governed by the State Water Policies and a plethora of legislations. There are in all 29 pieces of legislation that govern water resources in the State. Out of these 5 are directly administer by the Water Resources Department while the remaining are administered by such diverse departments as Forest, Environment and Ecology (3), Agriculture (6), Industries and Commerce (2), Rural Development and Panchayati Raj (3) and Urban Development (10).

312. A review of these legislations shows that:

There is no law for water resources, as such in the State and water management issues are addressed in terms of their use for specific purposes;

Laws are framed in terms of the exploitation of natural resources with three exceptions where the intent of the law is for protection of the resource (trees, cattle and groundwater as a drinking water source);

There is no State environmental protection law and the National Environment Protection Act 1986 regulates environmental impacts in the State; and

The present legislations are totally inadequate to cover contemporary needs in IWRM.

313. The State legislations concerning irrigation management are summarised below.



314. Irrigation Act, 1965: Enacted in 1965, the Act provides among other things for the regulation of water from irrigation works, and gives certain powers to irrigation officers in regard to the survey, investigation, execution and maintenance of irrigation works. It provides for the performance of customary obligations in regard to maintenance of irrigation works by the beneficiaries. There is provision for taking over certain notified irrigation works all over the State for maintenance by Government if it is found necessary to do so in the interest of their proper preservation and of the economic utilization of and regulation of water from such works. This is subject to the payment by the beneficiaries of a cess, the proceeds of which will be put into a fund. A contribution to the fund of up to 50 per cent of such proceeds is to be made by Government out of general revenues. This fund is to be utilised for maintenance as well as for providing facilities for proper use of water from the irrigation work and for constructing and maintaining ayacut roads, culverts, etc., in the irrigated area. It has been proposed to take over all but very small irrigation works for maintenance over a period of years, so that at the end of that period, the State will have complete control and responsibility for maintenance of all such works, while the responsibility for the others will continue to vest in the beneficiaries or other appropriate agencies.

315. Provision has also been made in the Act for the construction by the Government Agency of all water canals with a capacity of not below one cusec, leaving the responsibility for construction of water canals having a smaller capacity (called 'field channels') to the farmers. The Act also provides for certain safeguards for irrigation works and for penalties for the contravention of the mandatory provisions of the Act.

316. The Act was amended in 2000 to involve and empower farmers through Water Users Co‐operative Societies and their Federations in irrigation water management to achieve better results in water management. This included:

To outline the functions of Water User Society, Water Users Distributary Level Federation, Water Users Project Level federation and Water Users Apex Level Federation;

To provide for entrustment of control, maintenance and monitoring of irrigation works to Water User Societies;

To enable, Water Users Societies to provide the means of crossing canals and to construct culverts etc., to prevent obstructions to drainage;

To empower the Water User Society to construct drainage works wherever necessary;

To empower the Water User Society to repair the field channel in the event of failure by the user to repair the field channel and recover the costs from the user;

To provide for consulting the Water Users Project Level Federation for regulating water supply from irrigation work;

To empower the Water User Society to levy water charges when water is temporarily made available as well as when water use is unauthorized;

To empower Water User Society to stop supply of water in the event of violation of cropping pattern and non‐payment of water charges and to levy penal water charges in cases of crop violations; and

To exempt levy of maintenance cess in respect of lands situated within the jurisdiction of Water User Societies.

317. Irrigation (Levy of Betterment Contribution and Water Rate) Act, 1957: The Act was enacted in 1957 to introduce the principle of levying betterment contribution and water rates in respect of lands benefiting from the irrigation work in the State. This was necessitated as there was no uniformity in the provisions made in this regard in the irrigation laws in force at that time. The Act provided for the levy and collection of betterment contribution from lands benefited by the construction, restoration, expansion or alteration by Government of any irrigation work and also for



the levy of a water rate. In order to achieve better results in water management it was considered in 1995 to amend the Act to handover the responsibility of water management and collection of water charges to Water User’s Cooperative Societies. The Act was further amended in 1995 and in 2002 to entrust the Krishna Bhagya Jala Nigam and the Karnataka Neeravari Nigam Limited, respectively with the task of supply of water in any irrigation works under their jurisdiction and to empower them with the responsibility of fixing and collecting water rates.

318. The Karnataka Command Areas Development Act, 1980: Enacted in 1980, the Act provides for establishment of 6 Command Area Development Authorities (CADA) for the integrated development and for ensuring rapid and optimum utilization of irrigation potential created under the major and medium irrigation projects in the State. The Act made the CADAs statutory bodies and empowered them to enforce land development on compulsory basis. The special features of the Act are:

Formulation of schemes for the comprehensive development of the command areas;

Construction of field channels and field drains and ensuring proper maintenance of irrigation system under a pipe outlet;

Compulsory and systematic land development on a pipe‐outlet basis with option to land holders to develop lands themselves as per approved plan;

Compulsory and systematic land development on a pipe‐outlet basis with option to land holders to develop lands themselves;

Localization of command areas and enforcement of cropping pattern;

Alteration of field boundaries, wherever necessary for systematic land development;

Empowering the CADA to borrow and lend money necessary for the due discharge of its functions;

All round development of the farmers in the area in respect of agriculture, sericulture, animal husbandry, fisheries, horticulture, farm forestry, Communication and co‐operation;

Constitution of a fund for the Authority;

Provision for offences and penalties.

319. Karnataka Ground Water (Regulation and Control of Development and Management) Act, 2011: The Ministry of Water Resources, Government of India, had circulated a model Bill for regulation and control of development and management of ground water in 1992 and subsequently in the year 1996. Following this, the Government of Karnataka enacted the Karnataka Ground Water (Regulation for protection of sources of drinking water) Act, 1999 to give priority for drinking water and for protection of drinking water sources. The present Act, enacted in 2011 brings a general legislation to control indiscriminatory exploitation of groundwater especially in the notified areas in the State through:

Constitution of the Karnataka Ground Water Authority;

Restriction and regulation of extraction of ground water in the notified area;

Specification of the minimum distance between bore‐wells dug for the purpose of irrigation;

Declaration by notification any areas as drought hit areas.

320. Legal Framework for Water Users Cooperative Societies: The Karnataka Irrigation Act of 1965 was amended in the year 2000 and 2002 to accommodate Water Users into main stream irrigation management through formation of WUCS at primary, distributary, project level and apex level. The WUCS are formed under the Karnataka Cooperative Societies Act of 1959. Currently (up to January 2012), 2,719 WUCS’s have been established in the state by the CADA. They cover an area of 1.39



million ha in 29 irrigation projects. The Karnataka Irrigation Act, 1965 (amended 2000 & 2002) sets the functions of the Water User Cooperative Societies as:

To assist the Irrigation Department and Command Area Development Authority in implementing irrigation and drainage works;

To implement or execute on farm development works;

To procure water in bulk on volumetric basis from the Irrigation Department or Krishna Jala Bhagya Nigama or Karnataka Neeravari Nigam and distribute it to the land holders in accordance with the principles laid down by the General Body for equitable distribution of water;

To prepare water budget and financial budget for each irrigation season;

To operate and maintain canals situated within its jurisdiction;

To levy and collect water charges and service charges from the land holders;

To resolve disputes that may arise among land holders; and

To educate and train land holders in the efficient and economical use of water and adoption of new technology as well as to implement necessary programs;

321. Hence, between this and the Karnataka Water Policy and Irrigation Act, 1965 the mandate of the WUCS in irrigation water management is clearly delineated.

State Water Institutions

322. In Karnataka, the major water management institutions are under 8 departments that have among them 37 agencies to administer the many related policies, pieces of legislation and statues governing water resources. The departments are Water Resources, Minor Irrigation, Mines and Geology, Agriculture and Horticulture, Animal Husbandry and Fishery, Forests, Ecology and Environment, Industries and Commerce, Rural Development and Panchayat Raj and Urban Development. The water management mandates of some of these departments are described below.

Table 15: State water institutions and their roles

Stakeholder Water Related Role

Water Resources Authority The highest or most authoritative body to advice on water policy and strategic direction.

It is chaired by the Minister for Water Resources and comprises on government members and it has more than 50% non‐government members including eminent specialists, academia, farmers unions, and WUCS representatives.

Its responsibilities are to provide advice on most aspects of strategic IWRM.

State Planning Board and Areas Development Board

The latter supports development in ‘backward’ areas

Water Resources Department Responsible for overall management of Karnataka’s water resources.

3 main functional units ‐ Water Resource Development Organisation, the Command Area Development Authorities and the Nigams. Also within WRD is the Central Mechanical Organization (CMO), the Water and Land Management Institute (WALMI) and the Karnataka Engineering Research Centre (KERS).

AC‐IWRM The AC‐IWRM is being formed to be the leader for IWRM technical aspects of IWRM in Karnataka. It is to function as an expert think tank and advisory agency to WRD and coordinate with WALMI, KERS, CMO, and the WRDO.

Department of Minor Irrigation

Responsible for all groundwater and surface water schemes, with cultivable command area less than 2000 hectares.

Main objective is to bring more land under irrigation and conducts engineering works to




do this; forms of water users organisations for completed schemes.

Undertakes river bank protection works; assists fixing of water rates.

Department of Mines and Geology

Responsible for groundwater including estimating the available groundwater resources, monitors groundwater levels and quality, advise on bore construction and rehabilitation; construct artificial recharge structures,

Karnataka State Natural Disaster Monitoring Centre

Provides scientific advice on drought management and maintains data bases, issues periodical reports on drought indicators, undertakes studies on drought management in drought prone districts

Tungabhadra Board Set up (under 1956 Act) for the development of the Tungabhadra river.

Regulation of supplies of water to the States of Andhra Pradesh and Karnataka, maintenance of the dam and Tungabhadra reservoir of the project, maintenance of the common portion of canals shared between states, issues lease for reservoir fisheries, implements upstream catchment protection measures, develops new hydropower schemes,

Department of Ecology and Environment: Technical Wing and the State Pollution Control Board (KSPB)

Mandate is to preserve and enhance the quality of the natural environment, including water, air and soil quality; conserve and protect flora, fauna and other natural resources; enforce environmental Acts and Rules; coordinate various environmental policies and programs.

Conducts environmental audits and administer laws and regulations to protect the environment and its natural resources

KSPB administers 2 Acts to control point source pollution discharges

Departments of Agriculture (DA), Horticulture Department (HD) and Watershed Development Department (WD).

DA involved with (i) command area development, (ii) soil and water conservation and watershed development, (iii) crop development, (iv) crop protection.

HD deals with (i) fruits & floriculture, (ii) farms & nurseries, (iii) oil palm, (iv) vegetables, marketing & post‐harvest management, (v) biotechnology, (vi) drip irrigation, and (vii) plantation crops & plant protection

WD undertakes programs to conserve soil and moisture and to increase the productivity of land use.

Karnataka Forest Department Works with Village Forest Committees and enters into partnership agreements with the forest department for planning and implementing various forest protection, conservation and development programs.

Karnataka Urban Water Supply and Sewerage Board (KUWSDB) / Karnataka Urban Infrastructure Finance Corporation (KUIDFC)

State level responsibility for the planning and delivery of urban water supply and sanitation (WSS) services funded by SGOK and funded by donor agencies, respectively.

Karnataka Rural Water Supply and Sanitation Agency (KRWSSA) / Rural Development and Panchayat Raj Department (rural water supplies)

Develops rural water supply and sanitation systems and assists local governments to deliver water supply services. Once the water supply system is designed and constructed, the scheme is handed over to the local government.

Department of Industries and Commerce (Industrial Water Supplies)

Takes a developmental and facilitation roles for the industrial sector

Water used for industrial purposes is taken under a water use permission provided in the same manner as that for urban water supply

The Karnataka Power Corporation and the Karnataka Power Transmission Corporation Limited

Responsible for investigation, execution operation and maintenance of power projects; and, transmission and distribution of electricity respectively.

Water related responsibilities involve consumption of water as well as hydropower projects.

Urban Local Bodies Request water supply scheme implementation and take over scheme on completion




Local Government

Zilla Panchayath (district level)

At a District level there is construction of underground water recharge structures to ensure availability of water in the drinking water wells; protecting drinking water supplies from irrigation wells, social forestry planning.

Taluk Panchayath (taluk level) Taluks construct and augment water supply works for less than 40 L/p/d

Gram Panchayath (village level)

Village GP provide sanitary latrines, and maintain water supply works

Irrigation Consultative Committees (ICCs)

Determine for command areas, the irrigation plan (time for water release, quantity and period of supply, area to be supplied at different times

Project Level Water User Federations

Responsible for conflict resolution along the 1st order canal; interaction with the NIGAM on behalf of its members; and representation on the River Basin Organisation

Distributory Level Water User Federations

Responsible for resolution of conflicts along 2nd order canal; coordination of any participatory O&M of the secondary canals and drains and representation of the first tier interests at third tier level

Water User Associations (WUCS)

Responsible for allocation of the group right between members; resolution of conflict between members; and capacity building of members

Set up under the CADA according to the Cooperative Societies Act

Irrigation Farmers Irrigation farmers and their practices can affect land and water conditions through inefficient practices leading to water logging and salinity, non point source pollution, as well as taking water beyond their entitlement. Downstream farmers may suffer the consequences of upstream inefficient practices

323. A detailed assessment of the water policy and legislative framework and the State water institutions in given in Appendix 3.

Program Involvement and Capacity Building Needs of Water Agencies

324. There are more than twenty agencies involved directly or indirectly in water resources management in the State. Organisations were assessed in order to identify their possible involvement in the KISWRMIP as (i) service providers for implementing the IWRM activities, (ii) involvement in IWRM activities such as river basin planning, as well as for (iii) possible involvement in capacity building activities; and then consideration given to their training needs.

325. The following table lists these organisations which are classified as:

Core organisations with direct responsibilities for IWRM and to the implementation of the Program. These are either agencies that are part of WRD or Departments that are responsible for the sectoral management of water.

Directly involved organisations that would be involved in technical project activities such as on working groups, project workshops, sharing data, and,

Organisations which would be involved in training activities to increase the cadre and capacity of the State to manage water resources

Table 16: Agencies involvement in KISWRMIP

Organisation

Level of Involvement

Core Involved Training

i. Water Resources Department (WRD)

ii. Advanced Centre for IWRM (AC‐IWRM)

iii. Water Resource Development Organization (WRDO)



Organisation

Level of Involvement

Core Involved Training

a) Geomatics Unit

iv. WRDO ‐ Hydrology Zone

v. Karnataka Neeravari Nigam Limited (KNNL)

a) UTP zone

b) ICZ Munirabad (Tungabhadra) zone

vi. Command Area Development Authorities (CADA)

vii. Water and Land Management Institute (WALMI)

viii. Karnataka Engineering Research Station (KERS)

a) Engineering Staff College (ESC)

ix. Department of Mines & Geology ‐ Groundwater Division

x. Department of Minor Irrigation (WRD)

xi. Department of Watershed

xii. Department of Agriculture

xiii. Department of Horticulture

xv. Development Fisheries

xvi. Department of Environment, Forests and Ecology

a) State Pollution Control Board

xvii. Department Planning and Statistics

xviii. Department of Information Technology and Biotechnology

a) State Remote Sensing Applications Centre

xix. Urban Development Department

xx. Department of Industries and Commerce

xiv. Water User Cooperative Societies (WUCS)

xxi. Universities – UAS‐B, UAS‐D, VTU.......

xxii. Private Consulting Companies

xxiii. Engineering Colleges with PG courses

326. A brief assessment of the management systems and related resources such as, the data bases available, rules and process in practice for these systems, current new initiatives, etc. was carried out to have a reasonable understanding for further investment in these areas and the required capacity building to be carried out.

Capacity Building Needs

327. A brief assessment of the resourcing and management systems of key organisations was made and this very clearly showed that the capacity building needs are very different from the traditional sense of training for a specific technology or methodology although some of this style of training will be needed. The major lesson from the assessment is that departments /organisations have changed the way that they functioning and over the last decade have undergone public sector reform leading to outsourcing and separating government roles from service provision.

328. Hence capacity building is required that recognises these different roles and needs and enabling the key stakeholders to access new emerging knowledge relevant to their role and responsibilities.



This capacity building is required with two main foci. One is the role of government such as the effective functioning of the department, development and implementation of IWRM policy, oversight of the outsourced functions, managing professional partnerships, strengthening the emerging role of a facilitator and long term visionary, etc. The second is in the adoption and application of new technologies that enable IWRM practice such as river basin planning, management of the water resource, etc.

329. The form of capacity building should take the form of:

i. International and national study tours with follow up workshops to investigate leading international approaches to IWRM including policy (water laws and regulations, water allocation and licensing, water markets, etc), institutions (eg. State level water departments, RBO, rural water and irrigation authorities), IWRM planning (State level, river basin, irrigation area etc), irrigation management (distribution and farm systems)

ii. On the job training in the application of information products that are supporting policy and river basin management.

iii. Training of trainers (eg. Universities, training colleges) who train and strengthen current as well as future water managers. This should also include the technical accreditation of service providers such as consultants.

330. Key stakeholders and the planned capacity building activities and objectives are shown in the following table.

Table 17: Stakeholders and planned training approach



Kanataka Water Resources Authority

Improved and deep understanding of IWRM that result in improved IWRM at State level

Senior leader s international study tours, discussion seminars, and workshops

IWRM consistent with the functions of the authority

Institutional arrangements and separation of policy regulator and service delivery

River basin management, water allocation and drought management

Water entitlements and trading Management of large irrigation systems

WRD Improved and deep understanding of IWRM that results in improved IWRM at State level

Senior leader s international study tours and workshop

Training of staff in IWRM, including new staff

IWRM frameworks Institutional arrangements and separation of

policy, regulator, manager, and service delivery

River basin management, water allocation and drought management

Water entitlements and trading Management of large irrigation systems Course work for internship training of new

civil engineers

AC‐IWRM Strong capacity supporting government IWRM decision making, water resource assessments, river basin and sub basin planning

International and domestic study tour

Training courses Work placements On the Job Training

(OJT) International training

courses

Hydrology and data management Water quality management River health Water resources modeling Groundwater modeling and management Remote sensing Water inventories and water balance Water entitlements and trading Economic, Social, environmental impact

assessment Decision support systems River basin planning and management Financing of IRBM Land and Water Management Planning Secretariat support to RBO and RBO

operations





River Basin Organisation

Stakeholders operating cooperatively in river basin planning and management

International study tours and meetings

OJT Collaboration with

international RBO and organisations

Integrated River Basin Management Functions of RBOs Water inventories and water control Water allocations and water sharing Drought management Environmental management (river health)

Water related agencies and institutions such as Universities

Strong capacity to support government and other IWRM institutions and to graduate students with a good understanding and capacity for IWRM

International and domestic study tour

Training courses Work placements On the Job Training

(OJT) Curricula development

Aspects of IWRM

KNNL / WRD Improved water management and delivery and effective maintenance

Study tours Training courses On‐the‐job training /

mentoring

IWRM and WUE Flow measurement System losses and inefficiencies Water Resources Information Systems Preparation of operational plans Feedback and operational improvements Maintenance planning Introduction to irrigated agriculture Participatory irrigation management Benchmarking performance indicators

CADA / Dept of Agric.

Improved capacity to deliver support to farmers

Study tours Training courses

To Be Advised

WUCSs Beneficiary operation and maintenance

Training courses Technical support and

guidance

TBA

Farmers Improved crop production and household incomes

Village level training Village level

demonstrations59

Technical support and guidance

TBA

Stakeholder Consultation and Communication

331. Many water and land related discussions arose during stakeholder consultation, in Focused Group Discussions, and with WUCS. In particular, issues surrounding irrigation modernisation, enhanced water security, sustainability and river environment for rural and urban population in selected water‐scarce river basins were discussed. The stakeholder profile of those consulted included 1) State Government, 2) Villagers, 3) Local Govt/ Gram Panchayat/ WUCs /Aanganwadi members, 4) SOE (KNNL, CADA), 5) CSO, and 6) Consultants. More than 70 stakeholder consultation events were undertaken. The report on Stakeholder Participation and Consultation is given in Appendix 8, Volume 2.

332. The modernisation initiative was viewed as an opportunity to comprehensively examine the operations of the irrigation services including layout and function of the irrigation water supply system to strengthen its viability and efficiency in the face of a future with less water. Building the

59 It is recommended that demonstration plots are used at the village level to pilot new crops or crop varieties or crop husbandry. If

farmers can watch the demonstrations evolve under their local conditions then they are more likely to adopt practices that they see are successful.



capacity of institutions, increasing water user involvement, better sharing available water between users were themes to come from the consultations.

333. The participation and consultation process is to be on‐going and to inform the stakeholders of the project plans and activities. Consultations & communication will be continuous and an integral part of the project.

334. The Program Communications Strategy (Appendix 9, Volume 2) covers a range of communication needs of the project. It aims to ensure communication about project actions for identified stakeholders and other audience during the life time of the project and consistent with the Right to Information Act, and the project’s Project Management System

4.8 Program Implementation

335. As described in previous sections, the KISWRMIP constitutes of three Outputs: Output 1: State and Basin Level Institutions Strengthened for IWRM; Output 2: Management of Irrigation Schemes with IWRM Principles; and Output 3: Efficient Program Management Systems Operational.

336. KISWRMIP will be financed over a 10 year period through the ADB’s Multi‐tranche Financing Facility (MFF) as this would enable flexibility in investment decisions and timing based on the needs and constraints of the program, instead of a precise definition of investments up front as conventionally required. It will be made available in a phased manner subject to the eligibility and readiness of programs. The MFF will allow ADB and SGOK to develop a long‐term partnership for supporting the goals of the KISWRMIP in a realistic timeframe.

Implementation Arrangements

337. Implementation responsibility for Program Output 1 will be primarily with the AC‐IWRM, WRD; for Output 2 it will be of concerned field units of KNNL (Irrigation Zones) and the concerned CADAs; and for Output 3 it will be of the KNNL and Program PMU.

Output 1: State and Basin Level Institutions Strengthened for IWRM

338. Government staff, government contract staff, national and international consultants required for implementing the output are listed in Section 4.3. The scope of the required services is presented in Appendix 4A, Volume 2. Implementation of Program Output 1 will involve the following actions.

(i) Establishing the AC‐IWRM

339. AC‐IWRM will be the Implementing Agency, lead and be responsible for implementing ‘Output 1: State and Basin Level Institutions Strengthened for IWRM’.

340. Before fielding of assistance the SGOK would have established the AC‐IWRM including its office arrangements, staff (administrative and technical) and priority contractors/consultants. AC‐IWRM and its staff and key contractors should have been functional for at least 6 months prior to the fielding the consulting team.

341. The Director of the AC‐IWRM should have training to tertiary level and with a PhD in water resources management and substantial experience with IWRM. The Director should have a strong international reputation in IWRM and with high recent performance professionally in the field of expertise.

342. With the exception of the AC‐IWRM Director, staff and consultants should have training to tertiary level preferably with post graduate qualifications all in the specified area of expertise and have strong evidence of being active with high recent performance professionally in the field of expertise.



(ii) Contracting national consultants

343. National consultants would be contracted by the AC‐IWRM.

(iii) Contracting international technical support

344. International technical support for the foundation activities will be contracted via international competitive bidding in the first instance for Tranche 1.

345. AC‐IWRM would contract international consultants for implementation of the additional activity based support comprising TA and capacity building and this would be funded by the loan component.

(iv) Output management arrangements

346. The Output Manager will be the Director of the AC‐IWRM and the Deputy Director will be the Deputy Director of the Output. They will be supported by the Team Leader of the international team who will be the IWRM Policy specialist.

347. The Project Implementation Office (PIO) will comprise the administrative and financial management staff of the AC‐IWRM; namely, the Registrar, Joint Registrar, Assistant Registrar, Section Officers, Stenographers, Assistants, Data Entry Operators and Peons. The AC‐IWRM PIO will coordinate preparation of annual work and procurement plans, budgeting, accounting, procurement, annual reporting, M&E for AC‐IWRM activities under the direction and coordination of the PMU.

(v) Mobilisation

348. Mobilisation will commence with a 2 month inception period with the international team led by the international Team Leader (IWRM Policy specialist), and including the hydrologist river basin modeller. They will support the Output Manager/Director AC‐IWRM and staff in preparing a detailed inception report and work plan for Tranche 1.

(vi) Output Supervision and Coordination

349. The Leader of the Output, the Director of AC‐IWRM, will report to the AC‐IWRM Director General / Principal Secretary of the Water Resources Department. The Output will report directly to the IWRM Steering Committee. The IWRM Steering Committee is chaired by the Chief Secretary and comprises senior representatives of relevant line agencies as well as invitees from ADB and is described more fully below. The CWC will be invited to participate.

350. An international skills based board is proposed for the AC‐IWRM.

351. Sub‐output and Activity (eg. river basin plans, WRIS) Working Groups involving working representatives from relevant line agencies and Departments will be organized via the Director General AC‐IWRM according to the sub‐output/Activity needs.


352. The irrigation modernisation strategy takes advantage of the multi‐tranche facility to start with a relatively small Tranche 1 during which capacity building can be undertaken and in which a range of strategies to improve water use efficiency and project sustainability can be piloted on a small and relatively uncomplicated subproject. Initial development of a small project will support realisation of rapid results thus motivating subsequent tranches and providing opportunities for lesson learning and optimising the project implementation processes. Tranches 2 and 3 will build on the Tranche 1 successes and lessons learned while adopting a step‐wise approach in terms of scale and complexity of interventions. An indicative outline of interventions under each tranche is as follows:



353. Tranche‐1: Institutional strengthening and capacity building for improved irrigation O&M, investment on modernisation of Gondi subproject and telemetry installation at strategic locations throughout K‐8 sub‐basin (including Bhadra irrigation system)

354. Tranche‐2: Continued institutional strengthening and capacity building for improved irrigation O&M, modernisation of the Vijayanagara (VJN) and part of the Tungabhadra left bank system (TLBC)

355. Tranche‐3: Continued institutional strengthening and capacity building for improved irrigation O&M, modernisation of the balance of the Tungabhadra left bank system

356. Modernization of Gondi irrigation system will be undertaken during Tranche 1. Experience from other agriculture and natural resources sector projects indicates the need for upstream planning and a holistic approach to system modernization is critical. By limiting to one small/medium subproject for the first Tranche there is opportunity to undertake more rigorous and thorough preparation of subsequent Tranche subprojects (VJN and TLBC) including rapid appraisal and Masscote system diagnostics. It is anticipated that the preparation of these sub‐projects will commence about 1 year into Tranche 1.

357. The Detailed Project Report (DPR) and detailed designs for Gondhi are being prepared by separate consultants under contract with KNNL. The DPR will then be passed to the Central Water Commission (CWC) first at the regional/State level and then the national level for approval of Technical Advisory Committee (TAC) of Ministry of Water Resources (MOWR) after which the work can be tendered by KNNL.

358. The DPR will only include sample designs for development of about 10% of the command area. Designs for the full area will be progressively prepared during implementation in consultation with the farmers in order to ensure that the proposed arrangements are acceptable to them and they will subsequently take over responsibility for operation and maintenance.

359. The Gondhi system construction is assumed to take place over 3 years and it is likely that the working period will encompass three longer closures (assumed as 6 weeks in May‐June when some rain can be expected to support perennial crops) and three shorter closures (assumed to be one month in November‐December). Activities during closure periods needs to be focused on specific sections with the objective of completing all work within a section during a closure to avoid the risk of unfinished work having to be redone (for example, if earthworks are undertaken but lining is not completed during a closure then earthworks will likely have to be repeated). The overall division of construction activities could be:

Longer closure periods: Canal earthworks and lining; some canal structures; Command Area Development (CAD) works.

Shorter closure periods: Canal structures; command area development works.

A further closure period may be available depending on the exact timing of the contract.

360. The Vijayanagara system will have similar short closure periods to Gondhi but the TLBC system will have a longer closure period between the end of the rabi irrigation in April and the start of the kharif irrigation in late July.

361. It is anticipated that the main system improvements (main canals, distributaries, associated structures and any main drainage improvements) will be combined into one single construction package to be of interest to contractors with adequate resources. CAD works could be undertaken by contractor or through small contracts directly with the WUCS as both capacity building and to enable the farmers to contribute labour.

362. The irrigation modernisation will be primarily managed by KNNL with assistance from Project Support Consultants. CAD works will be undertaken in coordination with the WUCSs through contracts with KNNL with the support of the Command Area Development Authority (CADA).



363. Provision of automatic flow measurement with telemetry will be undertaken for the Bhadra system and the other main canals in the sub‐basin early in Tranche 1 so that progressive improvement of overall operation can be undertaken. The individual projects will also include additional flow measurement to be installed once infrastructure works are completed in order to further enhance the system.

364. For Tranche 2 (VJN, TLBC) and Tranche 3 (TLBC) projects, on final agreement of an irrigation project, a detailed Feasibility Study will be carried out for it. This will utilise the Detailed Project Report (DPR) prepared for WRD (via KNNL). The Feasibility Study will assess the viability of the investment based on an economic analysis of costs and benefits. This will include identification of the main system modernization works, the CAD and on farm development works, the agriculture development interventions and the WUCS strengthening activities. All these interventions will be identified through a participatory process of walk through, focused group discussion, village/ WUCS meetings and consultation with department staff and other resources persons/ agencies in the field.

365. Along with this, the Feasibility Study will also identify the possible safeguard issues (ADB and GoI/SGOK) related to environment, social, resettlement and vulnerable groups. On identifying any such safeguard issues, the Feasibility Study will propose safeguard policies and interventions to mitigate any adverse impacts of project interventions.

366. To support the economic analysis and safeguard studies, a socio‐economic base line study will also be conducted on a sample household basis. The Feasibility Study will be carried out by the Project Support Consultants with support for government staff and farmers. The Feasibility Study will be submitted to SGOK and ADB for approval. On approval, the activities proposed in the Feasibility Study will be agreed as the interventions under the project.

367. Complementing the Feasibility Study, the WRD will prepare the DPR based on the guidelines provided by the MOWR. All activities proposed in the Feasibility Study will be reflected in the DPR and lead to the detailed designs and cost estimates. The DPR will be prepared based on detailed field surveys and investigations and in consultation with the farmers/ WUCS regarding the modernization works required and the level of irrigation service desired. KNNL may either prepare the DPR through its own field engineers or outsource it to some irrigation engineering company. On finalizing the DPR, KNNL will submit it to the State Technical Advisory Committee (TAC) for technical approval. On receiving technical approval from TAC, KNNL will submit the DPR to CWC for approval. Once the DPR receives the approval of the TAC of MOWR it will be accorded sanction for implementation by ADB.

368. Based on the DPR, KNNL will package the canal system construction works into separate packages for tendering. Tendering will be done by KNNL, either the concerned Executive Engineer or the Chief Engineer. Tendering will be done though the government’s e‐procurement platform. Tender evaluation and work contracting will also be done by KNNL. The PMU, which is under KNNL, will assist in all these processes.

369. Tendering for CAD works will also be done by KNNL, though in coordination with the concerned CADA. The CAD works that are to be tendered to contractors will follow the regular tendering process of CADA through the government’s e‐procurement platform. However, CAD works to be implemented through WUCS will follow the contracting process proposed in the Centrally Sponsored CAD&WM scheme. The SST staff in coordination with the CADA staff will assist the WUCS in implementing these works.

370. Work implementation supervision will be done by the concerned PIO, which will comprise of the irrigation staff of the Circles, Divisions and Sub‐divisions constituting the project. The Superintending / Executive Engineer in charge will be the PIO Manager responsible for work supervision. Construction Quality supervision will be done by the Quality Control Division of the Irrigation Zone in which the project lies. Further, third party construction quality supervision will also be done by the Program Support Consultancy.



371. Based on physical progress reports submitted by the PIO, the PMU will review and sanction payment to either the contractor or WUCS, as the case may be. PMU will maintain record of overall physical and financial progress and report to KNNL, WRD, GoI and ADB likewise.

372. The steps described above will be adopted in all projects and all tranches of the program.

Project 2‐3: WUCS and Agricultural Development

373. The formation, registration and capacity building of WUCS on society administration, water management, land reclamation and crop demonstration rest with the CADA. Subsequently, the WUCS enters into a Memorandum of Understanding with the Nigam on irrigation services. The MOU specifies the terms and conditions of the irrigation service to be received by the WUCS from the Nigam and include sections on the rights of the members of the WUCS, water rights of the WUCS, water rates and assessment, recovery of water charges, maintenance and repairs on the minor canals, maintenance and repairs of the field channels and field drains, special incentives and rights of government officials. After signing of MOU between the WUCS and the Nigam, the minor canal and CAD system within the jurisdiction of the WUCS is handed over by the Nigam to the WUCS for operation and maintenance. However, after signing the MOU, but before the resumption of water supplies a joint inspection of the minor canal and CAD system is carried out jointly by the Nigam and the WUCS and the required repairs are carried out at the Nigam cost to ensure that the actual discharges at various points are to the design capacities.

374. On handing over, the WUCS is responsible for maintenance and repairs of the physical system of the minor canal and the CAD works in its jurisdiction. The MOU also is required to specify the water allocation on volumetric basis the WUCS is entitled to receive at the head of its minor canals on crop season bases (Kharif and Rabi). However, this entitlement is subject to the provisions that if there is less availability of water in the storage in any year, the volume sanctioned would be proportionately reduced as per the government policy with due advance notice for the WUCS before the beginning of the cropping season. Further, the water allocation is subject for review and suitable modification after two years in mutual consultation between the WUCS and the Nigam. Finally, at the end of each cropping season, the Nigam would prepare demand statements for water charges on the basis of the total quantity of water supplied and at the volumetric water rates indicated in the MOU and submit to the WUCS for collection for the farmers and remittance to the Nigam accounts.

375. Hence, the task involved in establishing an effective WUCS is intensive and time consuming. Enrolment of farmers as active members of WUCS is the basic requirement for the successful emergence of empowered and functional WUCS. This is crucial in terms of ensuring transparency, accountability and democratic functioning of the WUCS and requires rigorous community awareness and mobilization effort followed with well structured training and hand holding support.

376. The WUCS institutional action to be accomplished under the program includes:

Establishment of a WUCS where they have not yet been formed;

Signing of MOU with WUCS to establish the mutual responsibilities of the WUCS and KNNL in irrigation management;

Restoration of system to design standards and handing over process for minor canal and CAD system to WUCS; and

Capacity building of WUCS to effectively function and perform its responsibility of water management, minor canal and CAD system O&M, water charge collection and remittance to KNNL and support agriculture development among the farmers.

377. To achieve these results it is proposed that the Program adopt a WUCS institutional strengthening strategy that is divided into 4 sequential steps:



Phase 1 WUCS Mobilization (15 Months)

Phase 2 Planning Modernization (3 Months)

Phase 3 Executing Modernization Plan (18 Months)

Phase 4 Irrigation Management (24 Months)

378. The detailed activities proposed under the four phases are given in the Figure below.

Figure 13: WUCS Institutional Strengthening Strategy

Phase 1 (15 Months) Phase 2 (3 Months) Phase 3 (18 Months) Phase 4 (24 Months)

Mobilization Modernization Planning Executing Modernization Plan

Irrigation Management

These two phases may overlap

Establishing and registering WUCS where they are not yet formed;

Creating awareness among farmers about the role and function of WUCS in irrigation service delivery including crop water planning, water management, minor and CAD system O&M, water charge collection and remittance;

Creating awareness among WUCS / members on program objectives and activities and their role in it;

Mobilizing non‐member farmers to become members of their WUCS;

Training all WUCS office bearers on internal administration of WUCS as per Cooperative Societies Act;

Establishing WUCS Office, equipping WUCS with relevant information and records and updating their records to current status;

Discussing and signing of MOU between all WUCS and KNNL; and

Participatory bench marking of WUCS on its current level of functioning related to internal administration and irrigation management with its members.

Preparation of WUCS CAD system improvement plan; and

Preparation of the WUCS agriculture development plan

Implementation of the WUCS CAD system improvement plan;

Implementation of the WUCS agriculture development plan; and

Continued training of WUCS on various topics

Handing over of minor canal and CAD system to WUCS

Preparation of minor canal and CAD system Asset Management Plan

Participatory bench marking of WUCS

Preparation and implementation of participatory WUCS action plan

Constitution of Water User Project Level Federation



Project 3: Efficient Program Management Systems Operational

379. Karnataka Neeravari Nigam Limited (KNNL) is proposed as the program executing agency by WRD. The IWRM Steering Committee will be responsible for overall review of the program and facilitate inter‐departmental coordination, especially for IWRM activities as well as coordination with the national level through the participation of the CWC. Output 1 (AC‐IWRM Strengthened to Support State and Basin Level IWRM Institutions and Policies) of the program will be the responsibility of AC‐IWRM and Output 2 (Management of Irrigation Schemes with IWRM Principles) will be the responsibility of KNNL through its Irrigation Zones (field Units) and the concerned CADAs.

380. A Program Management Unit, with the requisite staff will be established under the Chief Engineer, Central Irrigation Zone, Munirabad, designated as the Program Director. The PMU will be overall responsible for Output 3 (Efficient Program Management Systems Operational). The PMU will consist of a Monitoring and Communication Cell, a Budget and Administration Cell, an Irrigation Management Cell, A CAD Cell and an Institutions Support Cell. The PMU will be supported by a Program Support Consultancy team in its work.

381. The Program Management Unit (PMU) will be overall responsible for delivering the KISWRMIP. The PMU will have full authority to execute the program and to liaise with ADB. Specifically, the PMU will: (i) coordinate with other agencies concerned, (ii) prepare an overall implementation plan and annual program budget; (iii) review and approve project feasibility studies, (iv) monitor the activities of the Project Implementation Offices (PIOs) (iv) maintain program financial records and accounts; (v) prepare periodic reports on implementation progress, (vi) establish and maintain a program Management Information System, and (vii) monitor overall program progress and assess social and environmental impact and program benefits. The PMU, working with the Program Consultancy Team, will overall monitor program execution with respect to agreed procedures and compliances.

382. The Program related services that will be provided by the PMU include:

Ensuring that program activities are adequately coordinated, and budgets are placed in an appropriate and timely manner;

Ensuring headquarter‐level coordination with the activities of KNNL, CAD Directorate, AC‐IWRM and any complementary government schemes that might be available from departments such as agriculture, horticulture, etc.;

Assisting in identifying requisite staff and placing them in the Project Implementation Office (PIO) to ensure that a full complement of staff is maintained;

Providing guidance and direction to the PIOs;

Conducting regular meetings with PIOs to monitor, coordinate, and guide their activities and to assist with any specific problems that may arise;

Monitoring, through a purpose designed MIS system, the activities of the program. This will involve establishing the data input and retrieval systems and producing outputs for servicing the needs of the SGOK, GoI, ADB, program offices and other concerned stakeholders;

Preparing newsletters for distribution among the WUCS and other interested people highlighting program related issues, experiences, learning and successes;

Supporting any other program management related needs of SGOK, GoI and ADB.

383. At the field level, the Program activities will be implemented through a dedicated Project Implementation Office established for each irrigation project taken up for modernization. The PIO will be under a Project Manager reporting to the Program Director. The PIO will rehabilitate and renew the infrastructure so that a fully functioning irrigation system is left in place and WUCS that are independent self‐sustaining entities capable of fulfilling their responsibilities including irrigation



management, equitable distribution of water to farmers, O&M of minor canal system and collection of irrigation water charges and capable of interacting with service agencies including KNNL / CADA, Agriculture Department, Horticulture Department and other Departments to ensure that they receive necessary services. The goal is a significant improvement in water use efficiency coupled with an increase in agricultural productivity which in turn should lead to substantial improvement in the income of farmers.

384. Under the support and guidance of PMU provided through regular PMU‐PIO meetings, the PIO will (i) coordinate with the field staff of the concerned line departments; (ii) prepare an annual work plan for approval by PMU; (iii) implement the work plan; and (iv) establishing reporting systems to provide information on physical and institutional progress and impacts. The PIO will closely work with WUCS and establish participatory decision making system through regular meetings at minor canal and on farm levels. Within this framework, the specific tasks of the PIO will include: (i) provide inputs to project planning and design process; (ii) undertake WUCS strengthening and micro‐planning for CAD and agriculture development; (iii) implement safeguards actions following the relevant plans; (iv) execute civil works; (v) coordinate for and/or implement support services for agriculture and livelihoods; (vi) support project operation, and maintenance in collaboration with WUCSs while ensuring the capacities and resources for the latter; (vii) arrange training programs for the staff including service providers, and WUCS.

385. The program will be monitored according to the Program Design and Monitoring Framework (Attachment 1). The DMF lays out the proposed results to be achieved by the program for its different outputs and the indicators to be used to measure the achievement of these results. While the DMF lays down the overall results to be achieved under the program, the Program Annual Plans will disaggregate and specify the results to be achieved on an annual basis.

386. The PMU will make operational the Program MIS within 3 months of effectiveness of Tranche 1. The Program MIS Officer and the Communication Expert in the PMU will be responsible for managing the Program MIS under the supervision of the Program Director. The Program MIS designed based on the Program DMF will consist of modules for physical, financial and performance monitoring of all the different outputs of the program and their related activities. The MIS will be made operational in the PMU and the PIO and the relevant staff in both offices will be trained in its use by the PMU MIS Officer. Subsequent to this all program progress monitoring and reporting will be supported by this MIS.

387. Program implementation progress will be monitored monthly by the program implementing units that will include the PMU, PIO, the AC‐IWRM and other offices of WRD involved in implementation of program activities. The various offices will compile their monthly progress information and upload it into the Program MIS. The PMU will be responsible to coordinate this exercise and ensure that regular monthly updating is done by the concerned offices.

388. Based on the information loaded into the Program MIS, the PMU will generate the Monthly Progress Reports for the various users such as the WRD, SGOK, GoI and ADB. Quarterly and annual progress reports will also be generated from the MIS by the PMU.

389. The MIS will monitor the physical and financial progress of the program against its Annual Plan and Procurement Plan to assess the timeliness of program implementation. Additionally, the MIS will also monitor the program against the result indicators listed in the DMF and the Annual Plan to assess the performance of the program against its outputs and outcomes. A review of these progress and performance monitoring reports will become the basis of guiding decisions for improving program planning and implementation.



Staffing Requirements and Organisation

Program Organizational Framework

IWRM Steering Committee

390. Through a Government Order, a Steering Committee was constituted to coordinate the activities of key stakeholders related to activities associated with Integrated Water Resources Management. KISWRMIP involves the same key stakeholders as those associated with IWRM so the IWRM Steering Committee will also serve to coordinate activities and resolve issues for this Program. The Chairman of the Steering Committee is the Chief Secretary to Government and the Principal Secretary, WRD is its Member Secretary. Other Committee members include representatives from the Urban Development Department, Rural Development and Panchayati Raj Department, Agriculture Department, Commerce and Industries Department, Forest Ecology, and Environment Department, Minor Irrigation, KUIDFC, KUWS&DB, BWSSB, WRD. In addition there are special invitees from ADB and the Central Water Commission. The CWC will be invited to participate on the Steering Committee to facilitate linkages and coordination with the national level.

Karnataka Neeravari Nigam Limited (Executing Agency)

391. The Executing Agency for KISWRMIP will be the Karnataka Neeravari Nigam Limited and the key implementation roles will be carried out by the AC‐IWRM (Output 1) and the concerned Irrigation Zone (KNNL) and the concerned Command Area development Authority (Output 2).

Advanced Centre – IWRM (Implementing Agency)

392. The State has established an Advanced Centre‐IWRM as a society registered under the Karnataka Societies Registration Act. The Centre will act as a think tank for the Water Resources Department helping to define improved water management and regulatory functions and institutions through policy research and analysis, knowledge development and serving as a platform through WRD for coordination among main departments and other agencies dealing with water in implementation of IWRM principles in the State. While KISWRMIP, will provide technical support to establish this Centre it is expected that the Centre will provide support to the program by supporting the government in carrying out pilot river basin planning, establishing pilot river basin organizations, establishing a State IWRM information system and providing training to staff associated with KISWRMIP in IWRM related concepts and activities. A PIO, reporting to the PMU, will be established by the AC‐IWRM to manage the activities of Output 1.

Program Management Unit (Implementing Agency)

393. The PMU will be located within the Karnataka Neeravari Nigam Limited (KNNL) with Chief Engineer, Irrigation Central Zone, Munirabad as the Program Director. The PMU staff will be working from the Program Director’s Office in Munirabad. The Program Director will operate under the overall guidance and with the support of the Managing Director, KNNL and the Principle Secretary, WRD. The Principle Secretary, WRD will be responsible to:

Process and coordinate inter departmental matters related to KISWRMIP activities;

Correspond with the Government of India, the Central Water Commission and ADB on program‐related matters; and

Review and guide the program’s overall implementation plan and progress.

Project Implementation Office (Implementing Agency)

394. A PIO for Output 1 will be established under the direction of the Director of AC‐IWRM.

395. For field implementation (Output 2), each irrigation project to be modernized will have a dedicated Project Implementation Office (PIO) under a Project Manager of the rank of a Superintending / Executive Engineer. Under the PIO dedicated Irrigation Sup‐divisions will be established with the requisite irrigation staff such as Assistant Executive Engineers, Assistant



Engineers, Junior Engineers and other technical staff. The number of dedicated sub‐divisions under the PIO will be determined (as per WRD norms) by the command area and quantity of works to be covered by it. The CADA staff deputed to the PIO will be an Assistant Engineer, Assistant Agriculture Officer and the Senior Inspector of Cooperative Society. Additionally, the PIO will be provided with WUCS Support Service Teams as described above. The structure and composition of the PMU and PIO may be reconsidered in later tranches based on experience gained.

Program Support Consultancy (Implementing Agency)

396. It is anticipated that technical consultancy support will be required by the the KNNL and PMU in implementation of the program. The Program Support Consultancy Team will consist of International and Domestic Specialists in the areas of irrigation management, irrigation operation, water institutions, PIM, agriculture, social, gender and environment. The Program Support Consultancy will be contracted through a single contract using a QCBS process of 90% technical and 10% financial weight. The detailed terms of reference for the Tranche 1 PSC Team is given in the Aide Memoire of the ADB Mission Leader / Project Officer.

397. The tranche wise proposed person month requirement of the Program Support Consultancy for Output 2 is shown in the following table.

Table 18: Person Month Requirements for Project Support Consultancy

Program Support Consultancy Members Person Months

Tr. 1 Tr. 2 Tr. 3

International

1 Irrigation Specialist / Team Leader 30 36 30

Sub‐total 30 36 30

National

1 Operation & Maintenance Specialist 30 36 30

2 PIM Specialist 48 60 48

3 Water Institutions Specialist 30 36 30

4 Agriculture Specialist 15 20 15

5 Environment Specialist 8 8 8

6 Gender and Social Development Specialist 48 60 48

7 Construction Specialist 24 30 24

8 Communication Specialist 8 0 0

9 MIS Specialist 8 8 0

10 Procurement Specialist 6 0 0

Sub‐total 225 258 203

Total 255 294 233

Coordination

398. Coordination at Headquarters will be the responsibility of the Program Director. For interagency coordination, the Program Director will have the support of the KNNL / WRD and the IWRM Steering Committee.

399. Coordination in the field will be undertaken through the project manager. For interagency coordination the project manager will have the support of the Administrator, CADA, the Chief Engineer, Irrigation Zone and the Chief Executive Officer, Zilla Panchayath.



Figure 14: KISWRMIP Implementation Framework

Advanced CenterIW RM

Program SupportConsultants

Consulting relationship

LineDepartments

Agriculture Department

Horticulture Department

Program DirectorChief Engineer, Munirabad

W ater Resources DepartmentPrincipal Secretary / Secretary

KNNLManaging Director

Monitoring &Communication

Cell

Program OfficerMIS & GIS

CommunicationExpert

Budget /Administration

Cell

Program OfficerBudget & Accounts

Program OfficerProcurement

IrrigationManagement

Cell

Executive. Engineer

Assistant ExecutiveEngineer

Assistant Engineer

Program Management Unit

SST LeaderWater

ManagementAgent

Sub-Division

AssistantExecutiveEngineer

AssistantEngineers

Junior Engineers

Technical Staff

Project ManagerExecutiveEngineer

CommunityOrganizer(Female)

CommunityOrganizer

(Male)

AgricultureExtension

Agent

Support ServiceTeam

AssistantEngineer

AssistantAgriculture

Officer

Senior Inspectorof Co-operative

Societies

CAD Unit

Project Implementation Office

Support service relationship

IW RM SteeringCommittee

Coordinating relationship

IrrigationManagement

Unit

Staff Requirement

Program Management Unit

400. For program administrative matters (Output 3), the PMU will have two Cells that report directly to the Program Director; a Monitoring and Communication Cell and a Budget and Administration Cell. It will be necessary to recruit program‐related staff for these positions in the following table.

Table 19: Staffing of PMU Monitoring and Communication and Budget and Administration cells

Staff Position Numbers

Monitoring and Communication Cell

1 Program Officer MIS and GIS 1

2 Communication Expert 1

Budget and Administration Cell

1 Program Officer Procurement 1

2 Program Officer Budget and Accounts 1



401. For technical matters of Output 2 and related to program management described above, an Irrigation Management Cell will be established reporting to the Project Director. The Cell will have the following staff positioned through internal staff transfers, who will be fully dedicated to the Program.

Table 20: Staffing of PMU Irrigation cell

Staff Position Numbers

Irrigation Management Cell

1 Executive Engineer, Irrigation 1

2 Assistant Executive Engineer, Irrigation 1

3 Assistant Engineer, Irrigation 1

402. The scope of work for the staff in the Monitoring and Communication Cell is given in Appendix 5, Volume 2. Scope of Work for Program Management Unit Recruited Staff.

403. The total inputs requirement of all PMU staff for the 3 tranches will be 120 person months.

Project Implementation Office

404. For implementing program activities, a dedicated Project Implementation Office (PIO) will be established for Output 1 (AC‐IWRM) and for every individual irrigation project taken up for modernization under Output 2. Since only Gondhi Project is included for modernization under Tranche 1, a single PIO will be established in this tranche. However, in subsequent tranches additional PIOs will be established depending on the number of irrigation projects taken up for modernization.

405. The PIO will be established with a Superintending / Executive Engineer as the Project Manager reporting to the Program Director. Under the PIO dedicated Irrigation Sup‐divisions will be established with the requisite irrigation staff such as Assistant Executive Engineers, Assistant Engineers, Junior Engineers and other technical staff. The number of dedicated sub‐divisions under the PIO will be determined (as per WRD norms) by the command area and quantity of works to be covered by it. The CADA staff deputed to the PIO will be an Assistant Engineer, Assistant Agriculture Officer and the Senior Inspector of Cooperative Society. Additionally, the PIO will be provided with WUCS Support Service Teams as described below. The structure and composition of the PIO may be reconsidered in later tranches based on experience gained.

406. The irrigation engineering staff will oversee implementation of the canal system rehabilitation and modernization works, the CADA staff to oversee implementation of the CAD and on‐farm development works and WUCS SSTs will directly support the process of WUCS strengthening, managing the PIM process and providing agriculture support.

407. The SST will be mobilized through the Program Support Consultancy and comprise four persons, two Community Organizer (one male and one female), a Participatory On‐farm Water Management Agent, and an Agricultural Extension Agent who will all work closely with the WUCS and the PIO counterpart staff. The Participatory On‐farm Water Management Agent will be the SST leader to whom the other team members will report. A SST will provide support to about 10 WUCS. Since Gondhi Project under Tranche 1 has 10 WUCS, only one SST is proposed under the 1 in Gondhi Project PIO. In the subsequent tranches the number of SST assigned to a PIO will be calculated on the basis of the total number of WUCS under the Project. Also in later tranches and based on experience gained the the composition of the SST and the number of WUCS managed by a SST may be reconsidered.

408. The SSTs will be provided with a series of milestones to be achieved within a specified schedule as a basis for evaluating their performance. It is expected that the SST will provide support to each WUCS for a period of 48 months.



409. The detailed Terms of Reference for the SST is given in Appendix 5, Volume 2, Terms of Reference for WUCS Support Service Team (SST).

410. The expected Tranche wise proposed person month requirements of the SST member are shown in the following table.

Table 21: Staffing of SST

WUCS Support Service Team Members Person Months

Tr. 1 Tr. 2 Tr. 3

1 Community Organizer (Male) 60 180 156

2 Community Organizer (Female) 60 180 156

3 Water Management Extension Agent 48 168 156

4 Agricultural Extension Agent 48 168 156

Total 216 696 624

4.9 Financial Management and Disbursement

411. It is essential for the project to adopt mainstream Government Accounting System, as has been done in implementing other Externally Aided Projects in the recent past. Elements of relevance to the project are Treasury Computerization, Treasury Network Management system for effective data transfer & financial reporting and coordination with the Treasury. As the mainstream Finance and Accounts procedures of Government of Karnataka (SGOK) are to be followed, it is imperative to follow the provisions of the Karnataka Finance Code, Karnataka Treasury Code & Manual, Public Works Accounts Code, Manual of Contingent Expenditure, Stores Manual, Budget Manual, Karnataka Transparency in Public Procurement Act and Karnataka Right to Information Act. Budgeting for the Project would involve adequate annual budget allocations for implementation of the Project Finance Components under the designated project specific budget heads.

412. All agencies involved in project implementation will maintain records and accounts, identifying expenses incurred from loan proceeds and possible grant funding, financing resources received, and use of local funds. These accounts will be established and maintained in accordance with sound accounting principles and internationally accepted accounting standards. The PMU will consolidate these accounts and have them audited annually in accordance with sound accounting practices by the sovereign audit agency of the Government or other auditors acceptable to ADB. The audit report will include a statement verifying whether or not the funds disbursed by ADB were used for the purposes for which they were provided, and auditor’s opinion on the use of the project expenses. Copies of the audited accounts and auditor’s report will be submitted to ADB within six months after the end of each financial year. The PMU will prepare consolidated bi‐annual reports indicating progress made, problems encountered during the period, steps taken or proposed to remedy the problems, proposed program of activities, and progress expected for the next half year. Both the loan and grant funding will be covered in these reports. Within six months of physical completion of the Project, PMU will submit to ADB a completion report that describes the achievements in relation to the Project’s expected impact, outcome and outputs.

413. Funds flow from first generation imprest account with GOI to Karnataka state treasury. The SGOK makes budgetary provision for project expenditure and claims reimbursement of expenses from GOI. Payment of project expenses incurred by PMU and PIO will be disbursed through state treasury. The proceeds of the loan will be disbursed in accordance with ADB’s Loan Disbursement Handbook, as amended from time to time60. Reimbursement procedures will be used to withdraw

60 ADB. 2007. Loan Disbursement Handbook. Manila.



funds from the loan account. To expedite the flow of funds and simplify document processing, the Statement of Expenditure procedure may be used to reimburse eligible expenditures for any individual payment not exceeding $100,000. The payments exceeding the Statement of Expenditure ceiling will be reimbursed based on full documentation. The proposed grant funds will be channelled through ADB and disbursements will be supported by an appropriate withdrawal application and related documentation.

414. The PMU requires additional capacity and experience to efficiently deal with the operation and withdrawal procedures of loan amounts. Accordingly, assistance and training will be provided so that PMU staff and the PIO staff can expedite loan and the possible grant disbursements.



5. PROGRAM BENEFITS

5.1 Approach and Major Assumptions

415. Economic and financial analysis was undertaken for the Gondhi scheme which is included in the first multi‐tranche financing facility loan for the KISWRMIP. Analysis of financial affordability, distribution of benefits and economic feasibility was undertaken, and the capacity and willingness of farm households to participate was assessed. Benefits are based on increased net crop production. Costs include: agricultural extension; support to WUC development; a proportion of overhead costs including consulting services, training, and administration (10%), the remainder assumed to be for overall water management at state level; capital development costs; and operation and maintenance costs. A number of scenarios (loss/no loss of downstream production, percentage of channel lining and use/non use of water savings) were compared with and without the project. Crop production was based on cropping patterns, outputs, use of inputs and labour based on farm surveys in the subproject and state publications. Project life was 25 years and full benefits obtained in year three. Investment costs were based on Detailed Project Report estimates. Prices were based on domestic price numeraire, and economic prices for traded inputs and commodities (rice with export parity, oilseeds and fertilizers with import parity) were based on the World Bank commodity prices, October 2012. Other prices were based on local market prices in 2012, labour costs were undergoing very rapid real increases of around 20% per year. Standard conversion factors of 0.90 and shadow wage rate of 0.9 were used. Crop production values will increase due to (i) increased yields; and (ii) increased perennial crop area, cropping intensity may reduce. The project will prevent loss of production due to project interventions on neighbouring schemes, and release water to new irrigation. Farm budget analysis was undertaken for marginal, small, and medium farm households, using FARMOD.

5.2 Economic Benefits

416. The Program will renovate and extend 345,000 ha of major and medium irrigation systems which are low‐performing at present, potentially benefiting about 1.5 million people. An additional 57 TMC of water saving (1,700 million m³) of water would be released for new irrigation on up to 160,000 ha. The quantifiable benefits will be incremental crop production from modernised irrigation infrastructure and water management. Incremental labour demand will particularly benefit the poor. Non‐quantified benefits include improved irrigation and water management at river basin level, improved institutional performance, multiplier effects in agricultural supply, marketing and processing, and local economic activities and minor improvements in local transport, access to water and health resulting from infrastructure improvements and drainage activities.

417. Economic and financial impacts were analysed for one medium scheme, Gondhi, CCA of 4,600ha, included in the first tranche. Gondhi is a fully developed irrigation scheme with current cropping intensity of 138% which will not increase. Over 60% of the scheme is perennial crop (arecanut) and this area is expanding. Seasonal cropping covers most of the remaining area in both Kharif and Rabi. Expected grain production will decrease, but remain above subsistence requirements. The EIRR is 17%, assuming that crop production without the project would decline due to lack of water resulting from upstream interventions. Sensitivity analyses to test the impacts of a range of risks including adverse changes in investment costs, output prices, and yields showed that project returns are sensitive to price or yield changes, as the assumed increases in production are small, and no new area will be irrigated. A number of scenario were tested for Gondhi, assuming loss or no loss of downstream production , full or no concrete lining of irrigation channels and full or no use of the predicted water savings. These gave EIRR of between 9% (no loss of production, 100% lining and no use of saved water) and 32% (20% loss of production, no lining and full use of saved water), with the most likely outcome between the two extremes. The remaining program schemes (see Table 22) are considerably larger, have a small proportion of perennial crops, and have potential to expand irrigated area within the project. It is likely that the returns to these schemes will be



higher than for Gondhi, and may be sufficient to cover the costs of modernisation even without water savings.

418. All three proposed schemes have the assumed benefit of releasing water, due to improved water efficiency, which will be used for new irrigation, much of which will be outside the area of the schemes being modernised. Returns to this water have been estimated by valuing water for irrigation in Gondhi, and assuming an efficiency for utilisation. The benefits of the saved water are considerable, approaching the returns from the schemes, so valuing the benefits needs to be considered. This requires two steps: developing robust systems to estimate realistic water savings; and undertaking an analysis of the use and benefits of the water. Estimates of water saving are taken directly from the DPRs, which assume high levels of post‐project water efficiency (conveyance, distribution and field application efficiencies of 80%) with an overall efficiency of 52%, and the estimated savings are based on similar parameters on the current irrigated area. Even a small loss in assumed efficiency can have a large effect on the overall efficiency. In particular, field application efficiencies of 80% must assume drip irrigation. A study to estimate realistic water requirements on identified schemes should be undertaken as part of the remaining feasibility studies, and monitoring of real water use undertaken as part of implementation. Future feasibility studies should also consider the actual amount (noting transfer losses) and likely use of water on the newly irrigated areas, real conveyance efficiency, the current cropping practices and third party impacts (eg. current downstream users who may not receive water post project), to estimate the benefits of the water. These new irrigation areas should form part of the overall program assessment.

419. The economic and financial assessment of Tranche 1 of the Program is presented at Appendix 16, Volume 2.

5.2 Financial

420. The Program will have positive poverty reduction impacts on income, employment opportunities, and food security in particular for marginal farmers (under 1 ha) and landless households, 68% of the households on Gondhi. The remaining schemes are likely to have a higher proportion of poorer households, and benefits to poorer households should also be considerable in areas receiving new irrigation water.

5.3 Social, Poverty and Gender

421. Benefits and costs are distributed in proportion to farm area by farm class, based on the scenario of 20% loss of downstream production, full lining and no use of saved water, with an EIRR of 17%. Gondhi scheme has 60% marginal farm households (under 1 ha) with 20% of farm area; 25% small farm households (1‐2 ha) with 30% of area; and 15% medium farm households (over 2 ha) with 50% of area. This implies that a relatively large percentage of benefits accrue to larger farms. Overall 28% of benefits go to BPL households. Poor households, especially landless households will benefit from increased hired on‐farm labour, though expected increases are relatively small (14,000 days a year). Retained farm income for marginal farm households is expected to increase by 53% including the value of family labour retained by the family. Income levels remain below the poverty threshold, at about Rs 30 per person per day, but return to family labour is attractive, and adequate to provide incentive to participate.

422. Gender Benefits: The project interventions will lead to increased agriculture opportunities and crop diversification in command areas and correspondingly improve income opportunities and enhance the overall living standards, benefiting both men and women across the subprojects. The program is expected to mainstream gender within the gambit of irrigation management by strengthening landless/tail end farmers’ and women’s participation at grassroots (WUCs) level, expanding their knowledgebase, and sensitizing them to improved crop water management, on‐farm water management, O&M and systems management through varied training programs. This will fulfil the strategic requirements of the socially excluded and women in the context of water management, besides meeting their daily water needs for household, drinking, livestock and hygiene



purpose. The social and gender impacts of the project will be progressive, which will include benefits in terms of easier and equitable access to assured water supply, better water quality and improved health and hygiene conditions, enhanced family welfare and improvement in decision making capacity as a result of their increased knowledge and earning capacity. On the whole the project will provide a good platform for promoting inclusive and gender–focused water resources development and irrigation management.

423. The summary of the financial and socio‐economic aspects of the irrigation modernisation components are shown in the following table.

Table 22: Summary of Financial and Economic Analysis

Item Gondhi Vijaynagara Channels

Tungabhadra Left Bank Canal

Gross Command Area (ha) GCA 5,600 16,222 437,054

Culturable Command Area (ha) CCA 4,600 16,222

Current Irrigated area (ha) 4,600 16,222 323,744

Current non irrigated area (ha) 0 0 78,055

Current cropping pattern

Perennial (% irrigated area) 60 7 4

Seasonal (% irrigated area) 40 93 44

Water saving (TMC) 0.5 6.25 50.6

(%) of total 16 52 1

Households 4,200 na na

Landless (%) 7

Marginal (up to 1ha) (%) 57

Small (1 to 2 ha) (%) 23

Medium (over 2 ha) (%) 14

Population 20,000 na na

Sub project cost (Rs million) 656.0 3131.6 18,440.0

Economic Internal Rate of Return (%) 17 na na

Switching values / Sensitivity

Cost overun (10%) 35 / 1.0

Benefit delay (2 years) ‐/ ‐

Incremental benefit shortfall (10%) 15/ 1.9

Price reduction (10%) 40/ 0.8

With crop yield reduced overall (10%)

‐/ 7.9

Incremental retained income per housheold (Rs ‘000) na na

Marginal 20

Small 62

Medium 171

Average 57

Annual O&M (Rs/ha) 800 na na

Incremental labour (‘000 days per year) 14 na na

Incremental grain production (‘000 tonnes) ‐ na na



Item Gondhi Vijaynagara Channels

Tungabhadra Left Bank Canal

Poverty incidence (% households) 44 na na

Benefits to BPL households (%) 28 na na

5.4 Environmental

424. The project mainly deals with the modernisation of the canal system. The project will also support improvements to existing agricultural activities and systems in the project area. This is likely to result in a number of positive environmental impacts which are briefly discussed in this section.

425. Canal modernization and improvement in the irrigation management is expected to result in reduction in water usage for irrigation and seepage from the lined canals. With canal modernisation, clearance of obstructions to water flow and better water control, tail end farmers are likely to have an increased and assured supply of irrigation water. In addition, in some schemes farmers receive uncontrolled outfalls from upstream or up slope irrigation areas and this causes extensive waterlogging that means only high water use crops (rice) can be grown as well as damaging infrastructure by affecting foundations and causing rising damp in walls and floors. For the head and middle reaches where most water is presently used and is in excess, this would mean a reduction in the overall water used for irrigation. There are expected to be a number of positive impacts from this. These would be (i) improved soil health with reduction in salinity and waterlogging, (ii) improved productivity, and (iii) improved health. Improved agricultural productivity is likely to result in areas presently waterlogged or going saline but managed through this project’s interventions. Malaria and dengue, filarial and Japanese encephalitis are all present in the area. Therefore, vectors’ habitats for some of these will reduce with either rationalization of irrigation or reduced waterlogging. Also, cholera, hepatitis and variety of other gastrointestinal diseases are present in the project districts. With present practices of high open defecation, reduction in waterlogging will also have a positive impact on the health as surface and groundwater contamination is likely to reduce.

426. Water saved due to modernization activities and increased irrigation efficiencies are to be provided to tail end farmers, who at present do not get sufficient or assured irrigation water. This increased water availability including control is likely to result in improved productivity, improved and higher value cropping patterns, yields and farm incomes. Again this would have a positive impact for agricultural communities’ ability to buy food and also increase availability of food in the local markets. This may result in better nutritional levels in some areas. This could be an important impact in Raichur where the district health officers were concerned about problems of malnutrition prevalence in the district.

427. Farmer awareness raising and education on agricultural management will include the appropriate use and handling of agrochemicals. This is expected to reduce contamination of waterways, groundwater and the wider environment through reduced runoff, reduced use and leaching of agrichemicals, and reduced and better managed disposal of agrochemical waste. Reduced direct ingestion by farmers while applying the chemicals, and indirectly to the wider community through wind drift and contamination of the environment will also would be reduced and have a positive impact on the health of the local communities as well as the local biodiversity.