Economic Evaluation of Investments in Micro Irrigation Structures in Kandi Area of Punjab

Abstract

Three types of micro irrigation structures, namely small dams (SD), lift irrigation structures (LIS) and Makowal type structures (MTS) were constructed by the Department of Soil and Water Conservation, Govt. of Punjab, Hoshiarpur division in the Kandi area of Punjab depending upon the availability of water at site, during the period 1990-91 to 1996-97. The impact evaluation has shown that the cultivated area has increased by 9.5 per cent, 3.2 per cent and 9.8 per cent and irrigated area by 600 per cent, 1038 per cent, and 253 per cent for SD (from 1991-92 to 2003-04), LIS (from 1993-94 to 2003-04) and MTS (from 1994-95 to 2003- 04), respectively in the selected villages of these structures. The income of irrigated hectare has been found higher at Rs 14478 than un-irrigated hectare. Discounted cash flow technique has revealed that the financial internal rate of returns are as high as 20.56 per cent, 38.54 per cent and 27.95 per cent for SD, LIS and MTS, respectively, which are highly satisfactory and encourage more public investments on such type of irrigation structures to enhance the income of Kandi farmers.