Agro-economic Evaluation of Water Resource Project – A Modeling Approach

Abstract

Feasibility of an irrigation project is evaluated by two criteria viz., reservoir capacity to irrigate its command area and economic returns by incremental crop production versus capital investment for dam construction. The annual water requirement of different crops in the command area is estimated and compared with the availability of water from the dam for irrigation purpose. The annual crop water requirement is estimated as the sum of evapotranspiration for crops and transmission and other losses. Evapotranspiration is estimated by modified Penman formula. Economics of crop production is analyzed by first estimating the monetary value of existing crop production under current rain fed conditions and then estimating the incremental production of irrigated command area for the proposed crop pattern. The proposed cropping pattern is prepared so as to maximize the benefit of crop production and fodder requirement while maintaining a better crop rotation to improve and maintain physical, chemical, and biological conditions of the soil. The dam is to be used for irrigation and water supply only. Command area served by this reservoir will be 76,500ha. The existing annual agricultural return is Rs. 2995.56 lakhs and with the proposed irrigation scheme, it is estimated as Rs. 1,77,91.90 lakhs. The incremental annual return would be Rs. 1,47,96.35 lakhs i.e., 642.68% increase in annual return.