higher investments (Easter and Liu 2005). An increased public investment in irrigation infrastructure has a ‘crowding in’ effect on private (farm household)
investment in irrigation, which in turn helps to accelerate agricultural productivity
and reduce rural poverty (Hussain and Hanjra 2004; Bhattarai and
Narayanamoorthy 2003; Gulati and Bathla 2001; Bathla et al. 2020). However,
concerns have been raised about the efficacy of public investment in major and
medium irrigation projects, and returns obtained thereof vary across geographical
locations. Poor operation and maintenance of irrigation systems have affected water
use efficiency, which is perceptible from low utilisation of irrigation potential
created along with safety risks due to recurrent dam failures and hence floods and
loss of lives.
Recovery of cost of investment, time overruns, non-completion of projects and
escalation of cost, poor operation and maintenance, environmental externalities
have become serious concerns (GoI 1992; Gulati et al. 1994; Easter and Liu 2005;
Gulati and Banerjee 2017). The Central Water Commission reports 5264 large
dams in operation across the country, each having more than 25 years of age.
Initiative for completing the last mile projects started with the launch of Accelerated
Irrigation Benefits Programme in 1996, first as a loan-based scheme transforming to
a grant-based scheme in 2008. The scheme yielded good benefits in setting up canal
networks upto minor canals level. From 2015–16, completion of major and medium
irrigation/multipurpose irrigation projects (including management of dams to avert
flood) is tried through Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)—Har
Khet KoPani. Neglect of operation and maintenance of irrigation dams, persistent
leakages, poor management practices have always been attributed to lack of sufficient funds resulting from low pricing of water (GoI 1992). A dedicated Long
Term Irrigation Fund (LTIF) is therefore created under NABARD from 2016–17
with an initial corpus of Rs. 20,000 crore to bridge the fund requirements for
completion of irrigation projects, including command area development works.
In this context, this chapter examines whether it is the failure of the public policy
in resource allocation towards irrigation across the states or the states are inefficient
in utilising the available resources. This issue is addressed by quantifying the
priority of the respective state governments towards agriculture and measuring the
relative efficiency of public investment in irrigation. The efficiency is measured
through technical efficiency scores obtained through the Data Envelopment
Analysis (DEA).
The chapter is structured as follows. Following introduction, Sect. 2 explains the
database and methodological approach. Section 3 sets the stage for measurement of
efficiency in public irrigation investment by delineating the temporal and spatial
trends in public expenditure and capital intensity. It also underscores the priority
accorded to agriculture sector in the public policy by estimating an agriculture
orientation index at state level. Section 4 presents results on technical efficiency of
public irrigation investments at the sub-national level. The last section provides
conclusion and policy implications for the management of public canals.
46
S. Bathla et al.
investment in irrigation, which in turn helps to accelerate agricultural productivity
and reduce rural poverty (Hussain and Hanjra 2004; Bhattarai and
Narayanamoorthy 2003; Gulati and Bathla 2001; Bathla et al. 2020). However,
concerns have been raised about the efficacy of public investment in major and
medium irrigation projects, and returns obtained thereof vary across geographical
locations. Poor operation and maintenance of irrigation systems have affected water
use efficiency, which is perceptible from low utilisation of irrigation potential
created along with safety risks due to recurrent dam failures and hence floods and
loss of lives.
Recovery of cost of investment, time overruns, non-completion of projects and
escalation of cost, poor operation and maintenance, environmental externalities
have become serious concerns (GoI 1992; Gulati et al. 1994; Easter and Liu 2005;
Gulati and Banerjee 2017). The Central Water Commission reports 5264 large
dams in operation across the country, each having more than 25 years of age.
Initiative for completing the last mile projects started with the launch of Accelerated
Irrigation Benefits Programme in 1996, first as a loan-based scheme transforming to
a grant-based scheme in 2008. The scheme yielded good benefits in setting up canal
networks upto minor canals level. From 2015–16, completion of major and medium
irrigation/multipurpose irrigation projects (including management of dams to avert
flood) is tried through Pradhan Mantri Krishi Sinchayee Yojana (PMKSY)—Har
Khet KoPani. Neglect of operation and maintenance of irrigation dams, persistent
leakages, poor management practices have always been attributed to lack of sufficient funds resulting from low pricing of water (GoI 1992). A dedicated Long
Term Irrigation Fund (LTIF) is therefore created under NABARD from 2016–17
with an initial corpus of Rs. 20,000 crore to bridge the fund requirements for
completion of irrigation projects, including command area development works.
In this context, this chapter examines whether it is the failure of the public policy
in resource allocation towards irrigation across the states or the states are inefficient
in utilising the available resources. This issue is addressed by quantifying the
priority of the respective state governments towards agriculture and measuring the
relative efficiency of public investment in irrigation. The efficiency is measured
through technical efficiency scores obtained through the Data Envelopment
Analysis (DEA).
The chapter is structured as follows. Following introduction, Sect. 2 explains the
database and methodological approach. Section 3 sets the stage for measurement of
efficiency in public irrigation investment by delineating the temporal and spatial
trends in public expenditure and capital intensity. It also underscores the priority
accorded to agriculture sector in the public policy by estimating an agriculture
orientation index at state level. Section 4 presents results on technical efficiency of
public irrigation investments at the sub-national level. The last section provides
conclusion and policy implications for the management of public canals.
46
S. Bathla et al.