STRENGTHENING PP governance for resilient water resources A case of Pani Panchayat in Odisha: a building block for a Green Climate Fund Project Regional Dialogue Bangkok 4th-6th March 2019 Dr. Ashok Kumar Singha, CEO, CTRAN Consulting www.ctranconsulting.com

Climate change and impact on water sector in Odisha About 54 percent of India faces high to extremely high water stress 16 percent of our ground water wells are decreasing by more than one meter per year and will become critical soon With a global mean warming of 2°C above pre-industrial levels, food water requirements in India will exceed green water availability. Odisha as per the latest version of its SAPCC is likely to see a rise of rise in max temp by 0.4- 1.2 deg C and min temp 0.3 to 2.7 deg C; rainfall is likely to be quite variable having a range from -4.6% to +25.7% in districts. [Under RCP 4.5 mid- century) Odisha receives about 1200 mm in southern coastal plain to about 1700 mm in northern plateau. 65% of its arable area is rainfed Ground water condition is currently fine but projected to be critical by mid century www.ctranconsulting.com

Problem context Odisha receives significant amount of rainfall but in yield gap in major crops is more than 10-20%. Odisha faces frequent droughts and flood events Odisha’s agriculture is least diversified result: price shocks, crop loss and distress sale. Higher the diversification-higher the income Economic Survey, 2018 www.ctranconsulting.com

Challenges 65% of the total work force and contributes 26% of the net state domestic product. Cropping during Rabi season is mainly confined to irrigated areas or areas with residual moisture Potential salinity due to low conjunctive use Large number of small holders Reducing gap between Irrigation Potential Created and Utilized. (gap is from 40-60%), medium and minor having higher gaps Improving efficiency in irrigation projects and increasing water productivity Big dams have bigger problems vs decentralized tank based system Supporting development of sustainable local institutions for maintenance and management of irrigation systems www.ctranconsulting.com

Irrigation potential unmet IPC: Irrigation potential created, IPU: Irrigation Potential Utilised www.ctranconsulting.com

Pani Panchayat and functions Pani Panchayat, a water-user collective. The Orissa Farmers Management Irrigation Act of 2002 provides for the establishment of farmers organizations in all the irrigation systems, for their operation and maintenance. It has been subsequently amended in 2008. www.ctranconsulting.com

Role of Pani Panchayat To prepare cropping programme considering the soil and agro climatic condition with due regards to crop diversification. To prepare a plan for the maintenance of irrigation system in the area of its operation at the end of the  each crop season and carry out the maintenance works with the funds of the PaniPanchayats from time to time. To regulate the use of water among the various pipe outlets under its area of its operation according to the warabandi schedule of the system. To promote economy in the use of water allotted. To assist the Revenue and Disaster Management Department in the preparation of demand and collection of water rates except EC aided projects and L.I projects where the farmers collect water tax among themselves. To resolve the disputes, if any, between the members and water users in its area of operation and to raise resources. www.ctranconsulting.com

Status of Pani Panchayat in Odisha as on 2018 Sl. No Sector No of PPs Area (in Ha) 1 Major and Medium 2641 (9%) 1156803 (55%) 2 Minor 3056 (10%) 403707 (19%) 3 Orissa Lift Irrigation Corporation(OLIC) 24438 (81%) 536085 (26%) 4 Total 30315 2096595 www.ctranconsulting.com 54% of the total irrigated area of the state have PPs

change in planning and water governance by PP solutions change in planning and water governance by PP Key Focus of our strategy: Focus on Rabi cropping & promote conjunctive use Key elements: Pani panchayat based integrated agriculture and irrigation planning Canal operational planning and scheduling Operational Plan for field channels Crop-water Budgeting Incentive Planning www.ctranconsulting.com

Medium irrigation project www.ctranconsulting.com

Incentivizing pps PPs receive Rs 100/ annum maintenance grants PPs prepare crop plan PPs who diversify to non-paddy crop save water and get additional grant No of irrigation saved in Kharif Dept. gives equivalent of water charge as grant to PP No of irrigation saved in Rabi Dept. gives equivalent of water charge as grant to PP www.ctranconsulting.com

Three scenarios Baseline: representing current water management practice; Scenario-1: with intervention only on on-farm water management; and Scenario-2: with additional interventions of crop diversification (groundnut, grams, maize, vegetables in Rabi) diverting some area from gram in kharif form paddy on top of on-farm water management www.ctranconsulting.com

Cost benefit under different scenarios Baseline Cost Benefit PP No Crops (ha) Irrigation Cost Saved (Rs) Cost of Cultivation (Rs) Benefit from Crops (Rs) BC Ratio Cropping Intensity (%)   Kharif Rabi 3 338.34 270.672 20,968,283.16 39,913,124 1.903 180 4 345.86 172.93 17,861,939.70 34,000,199 150 5 365.05 109.515 16,339,272.95 31,101,804 130 6 383.50 115.05 17,165,076.50 32,673,721 10 433.03 14,909,222.90 28,379,704 100 Total 87,243,795.21 16,6068,552 www.ctranconsulting.com

Cost benefit under different scenarios Scenario 1 (With On-Farm Water Management intervention keeping cropping pattern same as baseline cropping pattern) PP No Crops (Ha) Cost of Irrigation Saved= Incentive from Department Cost of Cultivation Benefit (from Crops) Total Benefit BC Ratio Cropping Intensity (%) Incentive per ha Incentive Share for PP institutions Incentive Share for farmers 1 2 3 4 5 6 7 (4+6) 8=7/5 9=((2+3)/2)*100 10=4/2 11 12   Kharif Rabi 338.34 270.672 169914 21804304.38 50570833.95 50740747.95 2.33 180 502.2 125.55 376.65 345.86 172.93 144742 18574109.00 43079024.63 43223766.63 150 418.5 104.625 313.875 365.05 109.515 132404 16990732.05 39406691.19 39539095.19 130 362.7 90.675 272.025 383.5 115.05 139095 17849461.01 41398345.63 41537441.00 10 433.03 120815 15503664.83 35957728.63 36078543.63 100 279 69.75 209.25 www.ctranconsulting.com

Cost benefit under different scenarios Scenario 2 (With On-Farm Water Management intervention and Crop Diversification) PP No Crops (Ha) Cost of Irrigation Saved= Incentive from Department Cost of Cultivation Cost of Benefit Total Benefit BC Ratio Cropping Intensity (%) Incentive per ha from water saving Incentive per Ha for Crop Diversification 1 2 3 4 5 6 7=(4+6) 8=7/5 9=((2+3)/2)*100 10=4/2 11   Kharif Rabi 338.34 295 466331.80 17258217 41579685.45 42046017.25 2.44 187 1378 243 345.86 267 322117.29 17647165 43364462.45 43686579.74 2.48 177 931 239 365.05 259 211829.875 18999769.91 46338107.08 46549936.95 2.45 171 580 222 383.5 300 186823.75 21574430 54248231 54435054.75 2.52 178 487 209 10 423.03 369 56027.87 25690392.35 70226275.64 70282303.51 2.74 183 132 212 www.ctranconsulting.com

FINANCIAL FRAMEWORK to Scale up Stage-1: only water related activity, Stage-2: water plus supply of production inputs, Stage-3: water plus inputs plus output marketing and Stage-4: all activities mentioned in stage-3 plus marketing oriented production, value added production and other business expansion. www.ctranconsulting.com

Operational framework Application by Water Users indicating cropwise area for a crop season Compilation of cropwise area, scrutiny and corrections of applications Water Volume Demand Calculation Checking water availability from Project Matching water demand with water availability and water allocation plan www.ctranconsulting.com

Integrated planning process www.ctranconsulting.com

PP calendar www.ctranconsulting.com

Key lessons Pani panchayats in the state need strengthening in the following areas: Water management Crop management Financial management Conflict resolution Social audit The current level of awareness on various schemes, subsidies and benefits are still low It is possible to improve the cropping intensity and farmers’ income significantly from the baseline situation by both on farm water management and diversification to non-paddy low duty crops in rabi. Possible crops are groundnut, grams, maize and high value vegetables. The incentive scheme which is linked to saving numbers of irrigation in kharif and taking low water requiring crops can be equalled to the water saved. Additional incentive can be provided on water tax collected. This will be in addition to the Rs 500/ha maintenance grant already received by the PPs. They can share this among members and can invest in common infrastructure. Apex Pani Panchayat should be identified as one of the key intermediary institutions (like FPOs) in enhancing farmers’ access to inputs and markets. www.ctranconsulting.com

Thank you Contact for further information ashoksingha@ctranconsulting.com www.ctranconsulting.com