Professional Documents
Culture Documents
1.0. GENERAL
This document gives broad guidelines for scheme formulation by banks for financing of dugwells in hard rock areas. The aspects that are necessary in scheme formulation are groundwater availability, well design, cost estimates, cropping pattern, pumpset selection and scheme economics.
It is always desirable to formulate a scheme giving the resource availability, physical programme and financial aspects over a fixed time frame for completion of the project. Scheme formulation helps in the following ways.
Planned and sustainable development of groundwater resources. Proper planning and fixing of targets on area specific basis under a given time frame. Ensuring quality of lending, systematic development, assured income to the beneficiary, assured repayment and recycling of credit. Quality control of minor irrigation works and equipments for efficient and economic use. Systematic monitoring. Periodical review about achievements and shorfall and taking timely remedial measures for successful implementation of the programme. In view of the above NABARD recommends proper scheme formulation and its techno-economic appraisal by banks before extending any refinance facilities.
Scheme formulation for construction of dugwells in hard rock areas against bank loans requires both technical and financial details. The important items that should be included in a scheme for dugwells are indicated below.
3.1. Introduction
This should briefly give the present status of agriculture, irrigation and need for increasing irrigation for improving the socio-economic conditions of the area, location of the scheme area, its areal extent and topographical features. Infrastructure availability like power, roads, etc should be described here.
Guidance of the state groundwater department should be taken to select the project area for minor irrigation development so that adequate groundwater potential is available for future development and that the area does not come under over-exploited or critical category. The area selected should be a compact block / taluka or a watershed with adequate groundwater potential, easy accessibility by road and adequate outlets for sale of agricultural produce. This information can be obtained from the state groundwater department and local district authorities. Brief details about the area selected and the project benefits should be given in the scheme.
3.3. Soils
The general nature of soils prevailing in the area should be indicated. These can be classified as sandy, loamy, clayey or black cotton, red soils etc. Soils have a bearing on irrigation scheduling and depth of irrigation required to meet the water requirement of crops. Type of soils also helps to select a suitable cropping pattern and the fertilizer doze.
Rainfall is the main source of recharge to groundwater and groundwater availability largely depends upon it. It also governs the supplementary irrigaion requirement of crops. The scheme should therefore, indicate the monsoon and non-monsoon rainfall as per data recorded by the India Meteorological Department (IMD). This should also give the minimum and maximum temperatures during different seasons.
3.5. Hydrogeology
The geological formations in the area, nature and types of aquifers and their water yielding capacity, average depth to pre-monsoon and post-monsoon water table and well design suitable for the area should be indicated. The aquifers in hard rock areas suitable for tapping groundwater are generally weathered zones, joints, fractures etc. Their availability in depth and areal extent from the point of view of groundwater development may be indicated in the scheme. This information is available with the district geologist of the state groundwater department.
Before any programme of groundwater development is taken up, it is essential to ascertain whether adequate potential is available in the blocks covered under the scheme. The state groundwater department estimates groundwater resources on a blockwise, taluka wise or watershed wise basis and also keeps a record of the status of groundwater development at a given period of time. The categorisation of blocks as dark (critical and over-exploited) , grey (semicritical) and white (safe) is made on the basis of stage of groundwater development expressed as a ratio of draft to utilisable resources,as well as trend of groundwater table. For over-exploited areas it is greater than 100%, for dark(critical) areas it is greater than 90%, for grey (semi-critical) areas it is greater than 70% but less than 90%, and for white (safe) areas it is less than 70%. This information is available with the NABARD regional office and state groundwater department. Banks can obtain it from them.
Since long term behaviour of water table is a manifestation of the long duration
availability of groundwater resources, it is necessary to ensure that there is no declining trend of water table in the area selected for the scheme. Information on pre-monsoon water table is also necessary to decide the depth of well and to ensure that the yield of well is not affected due to depletion of water table.
Keeping these in view and for sustainability of the structure and investment, new well schemes should not be formulated in dark (critical and overexploited) areas.
Groundwater quality in the scheme area as indicated by the state groundwater department should be given. Its suitability for irrigation may be indicated in terms of total dissolved solids, sodium adsorption ratio etc.
This is desirable to assess the demand for new wells in the area before formulating the scheme either by interaction with the farmers or the state agencies like DRDA, SCSTDFC, ITDA or other organisations involved in groundwater development programme. This facilitates fixing the physical targets for wells and pumpsets. If the demand is more and targets assessed are large, the programme could be phased over 2 to 3 years instead of envisaging entire programme for one year. Such a phasing helps better monitoring and leaves scope for mid term correction wherever required.
Normally single design of well is uniformly followed in block suitable for the geological formation. However , if different designs of wells are considered necessary for differnt geological formations, physical programme should be given for each type of well design.
An optimum well design suited to local hydrogeological conditions is important for success of any minor irrigation scheme. The well diameter should be based on hydraulic conductivity of the aquifer and the well depth or thickness of the saturated zone available during the peak demand. At least a 2m of water column in summer is desirable. Guidance from the state groundwater department should be taken for this. The recommended well diameter and depth should be indicated in the scheme. Unit Cost Committee constituted by regional office of NABARD also recommends average design of well in different formations. The same should be adopted.
Normally, the state ground water department provides the map or list of villages within the block or watershed which are ground water worthy. For actual siting of well, further assistance/advice could be sought from the local hydrogeologist of the SGD. However, Annexure I gives the broad guidelines for financing institutions to enable them to decide the suitability or otherwise of the site for new wells.
3.11. Spacing
In absence of any groundwater legislation, institutional agencies exercise technical discipline in the form of spacing between two ground water structures for proper and efficient development of groundwater resources. Spacing is determined by aquifer performance tests conducted by the state groundwater department. However, to avoid over-capitalisation, economic spacing should also be considered and higher of the two spacings adopted for financing of minor irrigation works under a scheme. Spacing between two ground water structures is recommended by the state groundwater department. Therefore any variation or changes in the spacing stipulated has to be authenticated by that department.
Based on the average design of well in the scheme areas, unit cost of well should be estimated adopting district schedule of rates and the total financial
outlay of the scheme should be worked out for the physical programme envisaged. However, actual cost of well may vary from location to location and loan should be sanctioned for actual cost of well. It is important to avoid under financing of well that may render the investment infructuous.
3.13. Pumpset
Proper selection of pumpset in conformity with BIS 10804-1994 is important to achieve maximum output at minimum capital and operation cost. The scheme should give the type of pumpset (diesel / electric), requirement of horse power of the pumpset, size of suction / delivery pipes for the required discharge and operating head as per average agronomical practices and hydrogeological conditions in the scheme area. If site conditions require construction of a pit or provision of a platform in the well steining for placement of the pumpset at different levels , these should also be given in the scheme and its cost provided for. (Please refer to NABARD publication on Selection and Financing of Agricultural Pumpsets).
3.14. Economics
The economics of investment should be given in detail to justify the loan. The scheme should also give details about subsidies, repayment schedule, rate of interest etc.
A checklist should always accompany the proposal. This would help to check at a glance whether or not the details or essential items of scheme formulations have been incorporated. A check list is given in Annexure - II.
1.0. INTRODUCTION
Formulation of a scheme is explained in the subsequent paragraphs taking the case of a model block.The scheme aims to provide financial assistance for construction of 150 dugwells with pumpsets to individual farmers for irrigation development through groundwater sources. These wells would mostly benefit small and marginal farmers in the area where at present irrigation facilities either by surface or groundwater sources are inadequate. Dugwells are the most suitable stuctures for the hydrogeological conditions obtaining in the area and would be constucted by local contractors using conventional methods. Infrastructural facilities like road, powerlines and extension services by the state government are available for successful implementation of the minor irrigation programme.
The block in the district has been selected to formulate model scheme for minor irrigation development. The block has a geographical area of 17,500 ha of which 14,000 ha are cultivable. It is located 15 km from the district headquarter town. It has an undulating topography and the elevation ranges from 300 m to 400 m above mean sea level . A canal of 9 km length with wetted perimeter of 2.5 m flows for about 90 days during the non-monsoon period. An area of 9200 ha is presently irrigated from canal and 1157 existing irrigation wells.
3.0. SOILS
Soils in the scheme area are of black cotton type and suitable for growing jowar, wheat, vegetables and cash crops like sugarcane and groundnut.
The scheme area in general has a sub-humid to tropical climate. The monsoon season extends from mid-June to September end. About 90% of the total annual rainfall of 750 mm occurs during this period only. The average temperature and humidity are 27o C and 65% respectively. The fair weather
season extends from mid October to February during which a winter rainfall of about 60 mm is recorded. The temperature during the months of December and January comes down to about 18oC. The hot weather conditions last from March to mid June and are characterised by high evaporation with temperature going upto 36oC. The rainfall pattern varies from year to year and on an average there is a dry spell once in 5 years. As per IMD records, the normal annual rainfall in the area is 760 mm.
5.0. HYDROGEOLOGY
The area comprises of basaltic rocks with an aggregate thickness of over 100 m. The individual basaltic lava flows vary in thickness from 10 to 15 m and are made up of alternating massive and vesicular units. The massive units are hard and compact but highly weathered upto a depth of 10 m and are jointed and fractured upto a depth of about 50 m. Vesicular units are generally soft and make upto 30% of the total thickness of individual lava flows. These individual flows are sometimes separated by beds of red clays. Groundwater in the scheme area occurs under water table conditions. The weathered and jointed zones in massive units and vesicular zones are the main water bearing formations. These aquifers are inter-connected forming a type of multi-layered system but show lateral and vertical variations due to heterogenity of aquifers which governs the well yield. Hydrogeologically, aquifers in the scheme area are good and are suitable for construction of dugwells. Their hydraulic conductivity as estimated by the state groundwater department varies from 8 to 12 m/day. Dugwells in the area vary in diameter from 4 to 6 m and in depth from 15 to 20 m. These wells give a discharge of 4 to 6 litres per second for a pumping period of 4 to 6 hours per day for a draw down of 2 to 3 meters. The well recoups by next day.
6.1. Recharge
The state groundwater department (SGD) has estimated the available annual recharge by water table fluctuation and specific yield method. This includes recharge from monsoon rainfall and from supplementary sources like canals and tanks, re-cycled irrigation water, non-monsoon rainfall etc. The available
After allowing for the existing and projected demand for drinking water and industrial use, the balance groundwater recharge available for irrigation is estimated at 3570 ham.
6.2. Draft
Irrigation by electric and diesel operated pumpsets is the common method of groundwater extraction in the area. The average draft of a dugwell with pumpset is about 1.2 ham/year. Thus the total annual groundwater draft is about 1326 ham and is given in Table 1 below.
Sr. No.
Monsoon Non-monso-on Yearly 1 Dugwell 114 0.65 22 52 74 2 Dugwell with pumpset 1,043 1.2 376 876 1,252
Net annual Groundwater availability for future irrigation development use is 2244 ham.
The stage of groundwater development is defined by ratio of existing gross annual groundwater draft to net annual groundwater availability and expressed as percentage. From the groundwater estimates by the state groundwater department, the stage of groundwater development in the block is 41%. Further the long term behaviour of water levels in the observation wells as recorded by the state groundwater department, does not show any progressive decline during past 10 years. Accordingly, the block is categorised as white (safe) and new well programme in the block is feasible.
A programme of 150 dugwells with pumpsets is proposed under the scheme. The unit gross draft of a dugwell is taken as 1.2 ham per year. The gross draft works out to be 180 ham, against a water balance of 2244 ham. Thus the proposed programme in the block is feasible. The stage of groundwater development after financing the proposed programme would be within 70% and the block would remain in the white (safe) category.
8.0. SPACING
The spacing between two dug wells as based on aquifer performance test conducted by the SGD works out to be 120 m. However, spacing on economic considerations has also been examined. A dugwell with pumpset can irrigate an area of about 2 ha and thus, on economic considerations, the spacing would
As per report of the state groundwater department, groundwater in the block shows low values of total dissolved solids (TDS less than 700 ppm) with Sodium Adsorption Ratio (SAR) less than 10. The water is therefore, suitable for irrigation purposes.
In the scheme area a saturated thickness of about 6 m is available in a well depth of 15 m. The water table aquifers in the weathered and jointed zones, vesicular units have good hydraulic conductivity and are capable of yielding about 5 to 6 lps. The state groundwater department has recommended a well of 5m diameter and 15m depth in the scheme area and the same is adopted. Predictably, within this depth, atleast 2 m of water column would be available in the wells during summer season.
The crops grown in the scheme area under irrigated conditions are jowar, wheat, vegetables, groundnut and sugarcane. The command area of a dugwell varies from 1.5 to 2 ha. The well discharge can meet the crop water requirement for such a farm model. The cropping pattern and water requirement for a 1.6 ha farm model are given below in Table 2.
Season Crop Area (ha) Number of Irrigations (nos) Irrigation Interval (days) Depth of Irrigation (cm) Kharif
Vegetables 0.4 4 20 5
Sugarcane
0.4 4 15 7.5
1.6
Rabi
Wheat 0.4
6 20 7.5
1.6
Summer
Groundnut 0.4 10
12 7.5
Sugarcane 0.4 12 10 10
0.8
The discharge required has been calculated from the following formula:
Q = 28 AI
Rt
I = Depth of irrigation in cm
The discharge required during the different crop seasons is calculated below:
20x4
30x4
15x4
= 3.50 lps
30x4
20x4
12x4
12x4
10x4
= 4.55 lps
Considering water losses at 20% (irrigation efficiency at 80%) the required discharge would be:
The discharge required during the Rabi and Summer season is 5.6 lps and 5.7 lps respectively, say 6 lps. This can be met from the design of well proposed under the scheme. A discharge of 6 lps is therefore taken for selection of pumpset.
A centrifugal pumpset is suitable for installation on dugwells. This type of pumpset, both electric and diesel are also commonly used in the scheme area. The pumpset has been selected as per IS-10804-1994 keeping in view the discharge and the total pumping head and the pump/motor efficiencies as observed from the relevant tables and curves.
The total pumping head to meet peak demand (5.7 lps) in summer season is likely to be 15.4 m (apprx) with 65 mm dia GI pipe. This includes total static head, friction losses in pipes, allied fittings, foot valve and offset pipe as per norms on suction and delivery side. The required HP of the pumpset under these conditions works out to be 3.0. This includes 10% additional input to nominal pump input to take care of tolerance on pump efficiency and variation in duty. Accordingly, pumpsets of 3 HP are considered under the scheme.
The specifications of the electric pumpset selected for the scheme area are as below:
a) Centrifugal Pump
Discharge(Q) = 6 lps
b) Piping System
Suction/Delivery pipes = 65 mm
Foot valve = 65 mm
( K = 0.8 m)
Straight length = 17 m
of 65 mm GI pipe
c) HP of pumpset (electric/diesel) = 3
The cost estimate for the well with suggested design is made on the basis of prevalent schedule of rates. The unit cost works out to Rs.37000/-. The cost estimate of the dugwell in the scheme area is given below in Table 3.
(Indicative Only)
S.N.r No
Rate (Rs/m3)
Amount (Rs)
1 Excavation
30 2,114.1
29.44
85
2,502.4
58.40
185
10804.0
28,899.62 2 Steining
26.46
201
5,318.76
5.30
201
1065.30
LS 1,500
7,884.06
Total cost of well 36783.68 say Rs.37000/4 Pumphouse 2.5 m x 2.5 m x 2.1 m
7000
5 Pumpset 3 HP (electric/diesel) pumpset conforming to ISI standards including accessories, piping system,transportation and installation charges etc.
15000
The above unit cost is as approved by NABARD regional office Unit Cost Committee.
The unit cost of a dugwell with 3 HP pumpset is Rs.59000 (Rs.37000 + Rs. 7000 + Rs.15000). The financial outlay of the scheme for 150 dugwells with pumpsets is Rs.88.50 lakhs.
16.0. Economics
The scheme economics is given in Annexures III and IV. It is seen therefrom that the net incremental income is Rs.26,870 per year and the IRR works out to be 49%. Thus, the scheme is considered economically viable.
Adequate extension services are available in the scheme area. The beneficiaries having irrigation facilities have adopted modern cultivation practices. A good net work of low tension/high tension power lines exist and energisation of pumpsets can be expected without any delay. A sugar factory is located in the nearby block and marketing of sugarcane produce will not be a problem. A market yard exists within 3 km for marketing the agricultural produce and there are good all weather roads for transport of agricultural produce.
The technical officer of the sponsoring bank would look after the supervision and implementation of the proposal and also extend technical guidance wherever necessary.
Majority of beneficiaries (70%) are in the small and marginal farmers category.
For small and marginal farmers, the loan repayment period of a dugwell would be 11 years excluding a gestation/grace period of 23 months and for pumpset 9 years. The beneficiary may, if he so desires, repay the loan instalment with interest earlier than the stipulated period. For other farmers, the loan repayment period would be 9 years.
The present (2003-04) refinance rate to the financing bank for minor irrigation investments is 5.50% for NE region including Sikkim, A&N Island, whereas for other regions, it is 5.50% and 6.25% respectively for loansizes upto Rs. 50.000/- and above Rs. 50,000/-. The minimum down payment would be 5%.
ANNEXURE- I
Broad guidelines for financing institutions to enable them to decide upon the suitability (or non-suitability) of the site for new wells are given below :
Areas included between two nalas near the confluence having a soil thickness of over 30 cm and weathered mantle of over 5 meters (A weathered mantle comprises of morum, loose sandy material, etc.)
2.
3. Depressions in landscape having more than 30 cm of soil cover and 5 meters depth of weathered mantle.
4. On the banks of nalas towards the high ground provided the banks are not clayey.
5.
6. Old courses of rivers and streams which are represented by presence of sands and gravels.
7.
8.
Wells should not be located in : 1. Areas where hard rocks are exposed.
2.
Areas adjoining ridges and spurs and within about 50 meters of them.
3.
4.
The thinkness of the weathered mantle can be roughly determined by looking at existing wells in the nearby area. If no wells exist, the exposures in nalla
The above guidelines, if rigidly followed, would minimise the chances of failure of wells and ensure location of wells in the groundwater worthy areas.
ANNEXURE-II
CHECK LIST
Minor Irrigation
Tick in boxes to signify that the relevant information has been furnished in the scheme.
1. Name of scheme : 2. Scheme location : 3. Area - geographical area, cultivated area and area irrigated by different sources : 4. IMD normal rainfall : 5. Geological formations 6. Present level of groundwater development giving number of wells, filter points, tubewells, and other structures with unit draft/year for each : 7. Length of canal and distributories with wetted perimeter and number of days of running in the scheme area :
8. Soil conditions, cropping pattern and crop water requirement : 9. Stage of groundwater development and category of block as indicated by NABARD : 10. Chemical Quality of groundwater : 11. Spacing between different types of minor irrigation works : 12. Groundwater draft per well and total groundwater draft under the proposed scheme : 13. Design of minor irrigation works : 14. Specifications for pumping machinery, diameter of suction and delivery pipes, discharge, total head and HP of pumpset : 15. Cost estimates of minor irrigation works : 16. Area map : 17. Yearwise physical programme and financial outlay : 18. Availability and arrangement for procurement and distribution of material : 19. Financial returns on investments with reference to representative size of holdings in different agro-climatic zones in the scheme area : 20. Lending terms i.e. interest rate, down payment, repayment period, extent of subsidy, etc. : 21. Agency providing crop loan and its adequacy : 22. Supervision and monitoring arrangements : 23. Technical guidance for location of wells, specifications and design, selection of pumpsets, etc. : 24. Availability of extension services : 25. Availability of power /diesel supply : 26. Availability of seeds/fertilizers, pesticides and their distribution : Annexure III
PRE-DEVELOPMENT AND POST DEVELOPMENT INCOME FOR A FARM MODEL OF 4 ACRES (1.6 HA)
Techno-Economic Parameters
Acres Hectare Culturable Command Area4 Irrigable Command Area 4 1.6 1.6
0.15 1 12 0.184481
Annual equated instalments (years) Capital recovery factor for 12 years Diesel charges (Rs. for 783 hrs.) 14851 Horse Power 3 Cost per acre (Rs) 14750 Cost per hectare (Rs) 36875
Land revenue (Rs./ acre) pre-dev 2 Cost of cultivation from borrowed funds 0.6
0.12 8
Land revenue (Rs./ acre) post-dev Repairs & Maintenance % of civil works 0.025 0.03
Sr. No. Crop Area Yield/Acre Total yield Unit Sale Total Sale Cost of cultivation/Acre Total Cost of cultivation Net income (Acres) (Rs.) (3x4) 1 2 3 4 5 6 (5x6) 7 8 (3x8) 9 10 (Q) (Q) Price Rs. Price ( Rs.) (Rs.) (Rs.)
PRE DEVELOPMENT KHARIF 1 2 Maize 2.5 Jowar 1.5 RABI 1 2 Gram 1 Wheat1 Total 6 Land revenue (Rs.2/acre) 8 (Rs.) 2737 Interest on borrowed funds (Rs.) 653 income/acre (Rs.) 684 1.5 1.5 1.5 1.5 950 800 1425 885 1200 790 9063 885 790 540 410 2.5 2.5 6.3 3.8 550 800 3438 840 2100 1338
POST DEVELOPMENT KHARIF 1 2 Vegetables Groundnut RABI 1 2 Wheat1 12 12 8 800 16 9600 4725 4725 4875 525 8400 2195 4390 4010 1 2 75 8 75 16 400 30000 15735 15735 14265
Groundnut Perennial
9.5
9.5
Sugarcane
350
350
72.5
Repairs & Maintenance 2.5% of civil works 925 3% of Mech. works 450
Net Surplus 29607 Pre-Development net income Net Incremental income 26870 6717 2737
X) XI)
10340
XII)
Sr. No. XI
1 2 3
Investment Cost 0 0 0
29500 29500 0 0 0 0 0 0 0 0
0 0 0 0 0 0
0 0 0
0 0 0
0 0 0
0 0 0
29500 29500 0 0 0 0
Incremental Benefit0 20152 26870 26870 26870 26870 26870 26870 26870 26870 26870 26870 26870 26870 26870
5 6 7
Salvage Value 0 0 0
0 0
0 0
0 0
0 0
Total Benefit 0 20152 26870 26870 26870 26870 26870 26870 26870 26870 26870 26870 26870 26870 26870 Net Benefit -29500 -9348 26870 26870 26870 26870 26870 26870 26870 11870 26870 26870 26870 26870 26870
DF @ 15% 0.87 0.756 0.658 0.572 0.497 0.432 0.376 0.327 0.284 0.247 0.215 0.187 0.163 0.141 0.123
25665 22302 0 0 0 0
0 0
0 0 51672
10 11
NPV OF BENEFIT 0 15235 17680 15370 13354 11608 10103 8786 7631 6637 5777 5025 4380 3789 3305 128680 NPW 77007
12
BCR
2.49
13
IRR
49%