AP, Telangana top in irrigation investment

​Hyderabad: Telangana and Andhra Pradesh account for the highest share of about 12 percent and 10 percent in total live investments worth over Rs 5.5 lakh crore attracted by the irrigation sector from both public and private sources across India as of 2014-15, according to the apex industry body, Associated Chambers of Commerce and Industry of India (Assocham).

"While regions that now comprise Telangana state have managed to almost double its share in investments attracted by irrigation sector from about six percent in 2004-05, share of regions in the new Andhra Pradesh state has remained more or less unchanged at about 11 percent," according to the Assocham study titled 'Irrigation investment in India: State level experience’.

Interestingly, Gujarat has seen massive decline in terms of its share in total investments attracted by irrigation sector which has fallen from 25 percent in 2004-05 to just about 5 percent in 2014-15. Public sector accounted for almost 98 percent of investment projects in the irrigation sector.

"Government needs to bring in policy changes to improve efficiencies and encourage accountability, transparency, willingness to promote irrigation development thereby ensuring that irrigation services are more resource-efficient, responsive to farmers needs and equitable," said D S Rawat, secretary general of Assocham while releasing the findings of the chamber's study.

"Besides, considering that irrigation projects require massive investment in fixed assets, it makes sense to consult farmers and ensure that they use the systems that are built as the government must increase farmers' participation and take their advantage in developing irrigation projects to make land acquisition easier," said Rawat.

Investments in irrigation sector have increased at a compounded annual growth rate (CAGR) of about 11 percent during the course of past decade; that is from about Rs 2 lakh crore in 2004-05 to over Rs 5.5 lakh crore in 2014-15, observed the study prepared by the Assocham Economic Research Bureau (AERB).

Though Tamil Nadu accounted for less than 1 percent share in total investments attracted by irrigation sector in India, the State has clocked highest CAGR of over 32 percent during the last decade followed by Jammu & Kashmir (25.5 percent), Chhattisgarh (22.6 percent), Jharkhand (20 percent) and Telangana (19 percent).

Amid prominent states, investments attracted by irrigation sector in Gujarat have declined at a CAGR of over 5 percent during the course of past 10 years.

Over 84 percent of the total irrigation projects in India remained under implementation as of 2014-15 that is out of the total 361 live investment projects in the irrigation sector 248 projects remained stuck and out of these 189 projects reported time/ cost overrun.

Costs of about 178 projects have risen by a whopping 61 percent that is by about Rs 2.5 lakh crore from their actual cost of Rs 4 lakh crore. Cost of delayed irrigation projects in Maharashtra, Karnataka, Andhra Pradesh, Gujarat and Telangana have increased by about 21 percent, 18 percent, 14 percent, 12 percent and 9 percent respectively.

While on an average, irrigation projects in India are facing a delay of 125 months, projects in Jammu & Kashmir, Jharkhand, Bihar, UP and Kerala are facing maximum delay.

In its study, Assocham has suggested that all state governments should set up irrigation development authority to look after all projects and ensure their timely completion. The need is to encourage participatory management in irrigation sector, shift from current emphasis on physical expansion to performance improvement, and encourage wider adoption of irrigation equipment by providing incentives, the study recommended.