FINANCIAL AND ECONOMIC EVALUATION OF TANK IRRIGATION PROJECTS

Abstract

Though irrigation sector continues to be the largest consumer of water, there are competing demands by other sectors, where economic values are being attributed very strongly. Huge sum of investment is required in storage and conveyance of water to meet the demand in irrigated agriculture. Thus, water is now being generally considered as an economic good, with cost attached to it. Therefore, proper financial and economic evaluation of irrigation project play vital role in justification of an irrigation project. A large number of tank irrigation projects have been taken up in India and other developing countries. Several of these are still incomplete for want of financial resources. Some of the irrigation projects started in recent past have shown poor financial and economic performance due to failure to achieved targets envisaged at the project appraisal stage. Therefore, proper financial and economic evaluation of irrigation projects play vital role in justifying and managing irrigation projects with competing other sectoral demand where economic values are being attributed very strongly. In this dissertation, four domestically funded tank irrigation projects in India and three foreign funded rehabilitation irrigation projects in Sri Lanka have been taken up as sample for financial and economic evaluation.....