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Pricing and Financial Aspects of Irrigation Water in India  Dr. A. Narayanamoorthy Reader Gokhale Institute of Politics and Economics Pune - 411 004 (India) E-mail: na_narayana@hotmail.com Tel: 020-5650287; Fax: 020-5652579
Basis for sanctioning irrigation projects ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Basis for sanctioning irrigation projects ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
How is the price of irrigation water  fixed  in India? ,[object Object],[object Object],[object Object]
Main Criteria followed for Fixing Water Price ,[object Object],[object Object],[object Object],[object Object]
What is the current pricing system? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Guidelines Suggested by the Second Irrigation Commission (1972) for Fixing Water Rates   ,[object Object],[object Object],[object Object],[object Object]
Second Irrigation Commission Guidelines Continues…... ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Statewise water rates and working expenses:1995-96
WE, GR and Water Rates (ha) of IMPRVP 6/04/1977 37-124 8 470 15. WB 18/09/1995 30-474 21 484 14. UP 1/07/1962 3-62 27 846 13. TN 24/05/1999 27-607 65 888 12. Rajasthan 14/02/1997 abolished 20 217 11. Punjab 5/04/2002 28-930 30 256 10. Orissa 1/9/2001 180-4763 130 3050 9. Maharashtra 15/06/1999 124-741 87 516 8. MP 18/09/1974 37-99 33 442 7. Kerala 13/07/2000 37-989 53 2014 6. Karnataka 1/4/2000 20-49 6 319 5. JK 27/07/2000 86-198 94 683 4. Haryana 16/2/2001 70-2750 346 4768 3. Gujarat Nov.2001 74-371 76 375 2. Bihar 1/7/1996 148-1235 6 1556 1.AP Date since applicable Water Rate (Rs/ha) GR (Rs/ha) in 1999-00 WE (Rs/ha) in 1999-00 States
Gross Receipts from Major and Medium Irrigation Projects Relative to  Productivity of Irrigation
Relative Share of Administration and Maintenance Expenses  in Total Working  Expenses in Major and Medium Irrigation Projects: 1974-89.
Financial Performance - India ,[object Object],[object Object],[object Object]
Financial results of IMPRVP: India Source: CWC (2004), Water and Related Statistics. 5.7 7980.2 457.0 1999-00 10.3 4819.0 498.2 1995-96 9.2 2476.3 228.9 1990-91 46.0 486.9 223.8 1985-86 45.8 225.7 103.4 1980-81 92.9 112.8 104.7 1976-77 GR/WE*100 WE  (Rs. crore) GR  (Rs.crore) Year
Financial Results of IMPRVP, All India, (in1993-94 prices)
Recovery rate in IMPRVP in India: 1974-75 to 1999-2000
Financial Condition across States ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object]
Financial results of IMPRVP- selected states 3.02 299.05 9.05 Late 1990s   2.59 84.80 2.20 Early 1990s   2.00 72.45 1.45 Late 1980s Tamil Nadu 9.03 188.10 17.00 Late 1990s   16.03 91.40 14.65 Early 1990s   23.69 71.75 17.00 Late 1980s Punjab 15.40 62.75 9.50 Late 1990s   24.00 20.80 4.90 Early 1990s   35.00 14.75 5.10 Late 1980s Orissa 3.07 1541.15 47.65 Late 1990s   3.63 546.20 19.80 Early 1990s   5.80 399.35 23.15 Late 1980s Maharashtra 0.42 1082.55 4.60 Late 1990s   8.32 376.20 31.30 Early 1990s   5.03 403.25 20.30 Late 1980s AP RR (%) WE  GR Year States
Recovery Rate in Selected States
Why does recovery rate decline? ,[object Object],[object Object],[object Object],[object Object],[object Object]
Questions to be addressed? ,[object Object],[object Object],[object Object],[object Object]
Trends in GR, WE and RR of IMPRVP (in 1993-94 prices) 12.83 a 10.44 a -2.40 a 1976-77 to 1999-00 -6.19 a 3.11 a -3.09 ns 1990-91 to 1999-00 -17.12 a 11.72 a -5.41 a 1976-77 to 1989-90 Growth Rate (% per annum) 5.73 4378.30 250.70 1999-00 9.34 3227.40 301.30 1989-90 92.86 605.20 562.00 1976-77 RR (%) WE ( Rs. Crore) GR ( Rs. Crore) Year/period
Demand raised, actual collection and arrears of irrigation charges in MMI sector, selected states, TE 1990-91  (Rs.in lakh) Na 80 234 WB Na 5703 6179 UP -- -- 337 TN 115.93 Na 1150 992 Punjab 44.65 Na 417 934 Orissa 70.54 7325 1341 1901 Maharasht 60.20 6859 1475 2450 MP 120.26 1151 1389 1155 Haryana 65.42 3347 719 1099 Gujarat 45.30 3593 463 1022 Bihar (3)/(2)x100 (5) Arrears (cumulative) (4) Actual collection (3) Demand raised (2) States (1)
Extract of the Report on Committee on Pricing of Irrigation Water (1992) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Extract of the Report on Committee on Pricing of Irrigation Water (1992) ,[object Object],[object Object],[object Object],[object Object],[object Object]
Policy Options for improving the Financial Performance ,[object Object],[object Object],[object Object],[object Object],[object Object]

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Irrigation pricing narayanamoorthy

  • 1. Pricing and Financial Aspects of Irrigation Water in India Dr. A. Narayanamoorthy Reader Gokhale Institute of Politics and Economics Pune - 411 004 (India) E-mail: na_narayana@hotmail.com Tel: 020-5650287; Fax: 020-5652579
  • 2.
  • 3.
  • 4.
  • 5.
  • 6.
  • 7.
  • 8.
  • 9. Statewise water rates and working expenses:1995-96
  • 10. WE, GR and Water Rates (ha) of IMPRVP 6/04/1977 37-124 8 470 15. WB 18/09/1995 30-474 21 484 14. UP 1/07/1962 3-62 27 846 13. TN 24/05/1999 27-607 65 888 12. Rajasthan 14/02/1997 abolished 20 217 11. Punjab 5/04/2002 28-930 30 256 10. Orissa 1/9/2001 180-4763 130 3050 9. Maharashtra 15/06/1999 124-741 87 516 8. MP 18/09/1974 37-99 33 442 7. Kerala 13/07/2000 37-989 53 2014 6. Karnataka 1/4/2000 20-49 6 319 5. JK 27/07/2000 86-198 94 683 4. Haryana 16/2/2001 70-2750 346 4768 3. Gujarat Nov.2001 74-371 76 375 2. Bihar 1/7/1996 148-1235 6 1556 1.AP Date since applicable Water Rate (Rs/ha) GR (Rs/ha) in 1999-00 WE (Rs/ha) in 1999-00 States
  • 11. Gross Receipts from Major and Medium Irrigation Projects Relative to Productivity of Irrigation
  • 12. Relative Share of Administration and Maintenance Expenses in Total Working Expenses in Major and Medium Irrigation Projects: 1974-89.
  • 13.
  • 14. Financial results of IMPRVP: India Source: CWC (2004), Water and Related Statistics. 5.7 7980.2 457.0 1999-00 10.3 4819.0 498.2 1995-96 9.2 2476.3 228.9 1990-91 46.0 486.9 223.8 1985-86 45.8 225.7 103.4 1980-81 92.9 112.8 104.7 1976-77 GR/WE*100 WE (Rs. crore) GR (Rs.crore) Year
  • 15. Financial Results of IMPRVP, All India, (in1993-94 prices)
  • 16. Recovery rate in IMPRVP in India: 1974-75 to 1999-2000
  • 17.
  • 18. Financial results of IMPRVP- selected states 3.02 299.05 9.05 Late 1990s   2.59 84.80 2.20 Early 1990s   2.00 72.45 1.45 Late 1980s Tamil Nadu 9.03 188.10 17.00 Late 1990s   16.03 91.40 14.65 Early 1990s   23.69 71.75 17.00 Late 1980s Punjab 15.40 62.75 9.50 Late 1990s   24.00 20.80 4.90 Early 1990s   35.00 14.75 5.10 Late 1980s Orissa 3.07 1541.15 47.65 Late 1990s   3.63 546.20 19.80 Early 1990s   5.80 399.35 23.15 Late 1980s Maharashtra 0.42 1082.55 4.60 Late 1990s   8.32 376.20 31.30 Early 1990s   5.03 403.25 20.30 Late 1980s AP RR (%) WE GR Year States
  • 19. Recovery Rate in Selected States
  • 20.
  • 21.
  • 22. Trends in GR, WE and RR of IMPRVP (in 1993-94 prices) 12.83 a 10.44 a -2.40 a 1976-77 to 1999-00 -6.19 a 3.11 a -3.09 ns 1990-91 to 1999-00 -17.12 a 11.72 a -5.41 a 1976-77 to 1989-90 Growth Rate (% per annum) 5.73 4378.30 250.70 1999-00 9.34 3227.40 301.30 1989-90 92.86 605.20 562.00 1976-77 RR (%) WE ( Rs. Crore) GR ( Rs. Crore) Year/period
  • 23. Demand raised, actual collection and arrears of irrigation charges in MMI sector, selected states, TE 1990-91 (Rs.in lakh) Na 80 234 WB Na 5703 6179 UP -- -- 337 TN 115.93 Na 1150 992 Punjab 44.65 Na 417 934 Orissa 70.54 7325 1341 1901 Maharasht 60.20 6859 1475 2450 MP 120.26 1151 1389 1155 Haryana 65.42 3347 719 1099 Gujarat 45.30 3593 463 1022 Bihar (3)/(2)x100 (5) Arrears (cumulative) (4) Actual collection (3) Demand raised (2) States (1)
  • 24.
  • 25.
  • 26.