Final Report for the Karnataka Integrated and Sustainable Water Resources Management Investment TABLE OF CONTENTS

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2 TABLE OF CONTENTS TABLE OF CONTENTS... i ABBREVIATIONS... vi EXECUTIVE SUMMARY BACKGROUND Location Climate Geomorphology Soils Surface Water Resources Ground Water Climate Change and Water Resources Description of Irrigation Areas Integrated Water Resources Management IWRM Institutional Framework Irrigation and IWRM IWRM and Climate Change KARNATAKA WATER SECTOR ASSESSMENT State Water Vision and Policy National Water Policy and National Water Mission th Five Year Plan Karnataka Water Sector SWOT Water Sector Objectives OVERVIEW Introduction Rationale SGOK Water Sector Roadmap Water Resources Management Vision Water Services Delivery Vision River and Ecosystem Health Vision Review of Karnataka Water Sector Assistance THE KISWRMIP The MFF Roadmap Impact and Outcome Outputs Output 1: State and Basin Level Institutions Strengthened for IWRM DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. i

3 Output 2. Management of Irrigation Schemes with IWRM Principles Output 3: Efficient Management Systems Operational Summary Investment and Financing Plan Procurement Requirements Civil Works Goods and equipment Consultant Services Procurement Plan Environmental and Social Safeguards Environmental Safeguards Social Safeguards Social Safeguards: Indigenous People Summary Poverty Reduction and Social Strategy (SPRSS) Gender Action Plan (GAP) Governance National Water Policy and Framework State Water Sector Policy and Legal Framework State Water Institutions Involvement and Capacity Building Needs of Water Agencies Stakeholder Consultation and Communication Implementation Implementation Arrangements Staffing Requirements and Organisation Financial Management and Disbursement PROGRAM BENEFITS Approach and Major Assumptions Economic Benefits Financial Social, Poverty and Gender Environmental DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. ii

4 LIST OF FIGURES Figure 1: KISWRMIP Roadmap... 3 Figure 2: Tungabhadra Sub Basin Figure 3: River Basins of Karnataka Figure 4: Sub Basins of the Krishna River Basin Figure 5: Status of Groundwater Figure 6: Project locations Figure 7: Locations of Vijayanagara and Tungabhadra Left Bank Canal Systems Figure 8: Gondhi Command Area Figure 9: Vijayanagara upstream canals Figure 10: Example of the IWRM Institutional Framework Figure 11. Trend in operational farm holdings ( ) Figure 12: Strategic framework for IWRM in Karnataka Figure 13: WUCS Institutional Strengthening Strategy Figure 14: KISWRMIP Implementation Framework DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. iii

5 LIST OF TABLES Table 1: River Systems and Yields Table 2. Strengths, Weaknesses, Opportunities and Threats of Karnataka Water Sector Table 3: Projected sector water demands in 2025 (Karnataka State) Table 4: Summary of Flow Measurement Locations Table 5: Proposed training for irrigation service institutions Table 6: Cost Estimates (US$ million) Table 7: Financing Plan (US$ million) Table 8: Expenditure Accounts by Components Base Costs (US$ '000) Table 9: Cost Estimates and Financing Plan (Tranche 1, US$ million) Table 10: Categorisation according to EPA, 2006 for River Valley Projects Table 11: Environmental Compliance Requirements Legislative Needs India Table 12: Sub project Administrative Jurisdictions and ST Population Table 13: Land Holding amongst STs in Project Districts Table 14: Average Land Holding Pattern amongst STs in Project Districts Table 15: State water institutions and their roles Table 16: Agencies involvement in KISWRMIP Table 17: Stakeholders and planned training approach Table 18: Person Month Requirements for Project Support Consultancy Table 19: Staffing of PMU Monitoring and Communication and Budget and Administration cells 108 Table 20: Staffing of PMU Irrigation cell Table 21: Staffing of SST Table 22: Summary of Financial and Economic Analysis DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. iv

6 LIST OF APPENDICES VOLUME 2 APPENDIX 1: DESIGN AND MONITORING FRAMEWORK APPENDIX 2: KISWRMIP IWRM ROADMAP APPENDIX 3: WATER GOVERNANCE APPENDIX 4A: OUTPUT 1 PROJECT IMPLEMENTATION PLAN APPENDIX 4B 1: OUTPUT 2 PROJECT IMPLEMENTATION PLAN (MANAGEMENT OF IRRIGATION SUB PROJECTS IS MODERNIZED) APPENDIX 4B 2: OUTPUT 2 PROJECT IMPLEMENTATION PLAN (WUCS AND AGRICULTURE DEVELOPMENT) APPENDIX 4C: OUTPUT 3 PROJECT IMPLEMENTATION PLAN APPENDIX 5: TERMS OF REFERENCE FOR WUCS SUPPORT SERVICE TEAM (SST) APPENDIX 6: IWRM CAPACITY ASSESSMENT APPENDIX 7: PROCUREMENT CAPACITY ASSESSMENT APPENDIX 8: STAKEHOLDER PARTICIPATION & CONSULTATION APPENDIX 9: COMMUNICATIONS STRATEGY APPENDIX 10: RESETTLEMENT FRAMEWORK APPENDIX 11: DRAFT SUMMARY POVERTY REDUCTION AND SOCIAL STRATEGY APPENDIX 12: GENDER ACTION PLAN APPENDIX 13: PROCUREMENT PLAN APPENDIX 14: DEVELOPMENT COORDINATION APPENDIX 15: DETAILED TRANCHE 1 FUNDING COSTS APPENDIX 16: ECONOMIC AND FINANCIAL ASSESSMENT APPENDIX 17: OUTLINE OF FACILITY ADMINSTRATION MANUAL LIST OF ANNEXURE ANNEXE 1: ANNEXE 2: ANNEXE 3: ENVIRONMENTAL ASSESSMENT REVIEW FRAMEWORK INITIAL ENVIRONMENTAL EVALUATION FEASIBILITY REPORT CIRCULATED UNDER SEPARATE COVER, NOVEMBER 2012 FEASIBILITY REPORT VOLUME 1: MAIN REPORT FEASIBILITY REPORT VOLUME 2: ANNEXURE DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. v

7 ABBREVIATIONS AC IWRM Advanced Centre for Integrated Water Resource Management ADB Asian Development Bank AIBP Accelerated Irrigation Benefit APs APs Affected Persons BATNEEC Best Available Technology Not Entailing Excessive Costs BCM Billion Cubic Metres BPL Below Poverty Line CAD Command Area Development CADA Command Area Development Authority CCA Culturable Command Area CDTA Capacity Development Technical Assistance CMO Central Mechanical Organisation CNNL Cauvery Neeravari Nigam Limited CPCB Central Pollution Control Board CWC Central Water Commission DMF Design and Monitoring Framework DPR Detailed Project Report DPs Displaced Persons EA Executing Agency EARF Environmental Assessment and Review Framework EIA Environmental Impact Assessment EIRR Economic Internal Rate of Return EMMP Environmental Management and Mitigation Plan EMP Environmental Management Plan FFA Framework Financing Agreement FGD Focus Group Discussion FIRR Financial Internal Rate of Return FTP Full Technical Proposal FY Fiscal Year (April 1 March 31) GAP Gender Action Plan GCA Gross Command Area GIS Geographic Information System GOI Government of India GRC Grievance Redress Committee DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. vi

8 GSDP IA ICB ICCs IEE INR IP IPC IPCC IPPF IPU IRBM IT IWRM JNNURM JSYS KCBTMP KERC KISWRMIP KNNL KUIDFC KUWSDB KWDT LAA LDO litres/p/d LWMP MCM MFF MGNREGA MI MIS MMI MOA&C MORD MOUD Gross State Domestic Product Implementing Agency International competitive bidding Irrigation Consultative Committees Initial environmental examination Indian National Rupee Indigenous People Irrigation Potential Created Intergovernmental Panel on Climate Change Indigenous Peoples Planning Framework Irrigation Potential Utilized Integrated River Basin Plan Information Technology Integrated Water Resources Management Jawaharlal Nehru National Urban Renewal Mission Karnataka Jala Samvardhane Yojana Sangha Karnataka Community Based Tanks Management Project Karnataka Engineering Research Centre Karnataka Integrated and Sustainable Water Resources Management Investment Karnataka Neeravari Nigam Limited Karnataka Urban Infrastructure Finance Corporation Karnataka Urban Water and Sewerage Drainage Board Krishna Water Dispute Tribunal Land Acquisition Act Land Development Officer Litres Per Day Land and Water Management Plan Million Cubic Metres Multi Tranche Financing Facility Mahatma Gandhi National Rural Employment Guarantee Act Minor Irrigation Management Information System Major and Medium Irrigation Ministry of Agriculture and Cooperation Ministry of Rural Development Ministry of Urban Development DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. vii

9 MOWR NAPCC NCB NGO NLBC NRDWM NRRP NWM O&M OFD PIM PIO PM PMU PPP PPTA PSC QCBS R&R RB RBO RF RoW RPs RRR RTI SCs SEZ SGOK SoR SPCB SPRSS SPS SST STs SW Ministry of Water Resources National Action Plan on Climate Change National Competitive Bidding Non government organization Narayanpur Left Bank Canal National Rural Drinking Water Mission National Resettlement & Rehabilitation Policy National Water Mission Operation and maintenance On Farm Development Participatory Irrigation Management Project Implementation Officer Prime Minister Management Unit Public Private Partnership Project Preparation Technical Assistance Support Consultancy Quality and Cost Based Selection Rehabilitation and Resettlement River Basin River Basin Organization Resettlement Framework Right of Way Resettlement Plans Repair, Renovation and Restoration Right to Information Scheduled Castes Special Economic Zones State Government of Karnataka Schedule of Rates State Pollution Control Board Summary Poverty Reduction and Social Strategy Safeguard Policy Statement WUCS Service Support Team Scheduled Tribes South West DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. viii

10 TAC TB TLBC TMC TOR TSC UKP UWSS VJN VNC WALMI WRA WRD WRDO WSS WUCS WUE Technical Advisory Committee Tungabhadra sub basin Tungabhadra Left Bank Canal Thousand Million Cubic Feet (1 TMC = MCM) Terms of Reference Total Sanitation Campaign Upper Krishna Project Urban Water Supply and Sanitation Vijayanagara Vijayanagara Channels Water and Land Management Institute of WRD Water Regulatory Authority Water Resources Department, Government of Karnataka Water Resources Department Organization, Government of Karnataka Water Supply and Sanitation Water User Cooperative Societies Water Use Efficiency DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. ix

11 EXECUTIVE SUMMARY Background and Rationale 1. The State of Karnataka lies in the south of India and covers an area of 191,976 square kilometers, or 5.83% of the area of India. It is the eighth largest Indian state by area with over 61 million inhabitants. The two main river systems of the state are the Krishna and its tributaries (Bhima, Ghataprabha, Vedavathi, Malaprabha, and Tungabhadra) in the north, and the Cauvery and its tributaries (Hemavati, Shimsha, Arkavathi, Lakshmana, Thirtha, and Kabini). Both these rivers flow eastward and fall into the Bay of Bengal. 2. Karnataka is one of India s most progressive states and home to one third of the information technology (IT) and back office service industries. As a result, the state economy is one of the fastest growing however, of the approximately 61.1 million people in Karnataka, about million people (23.6%) lived below the poverty line in The relative importance of agriculture the Gross State Domestic Product (GSDP) is reducing quite quickly and the demand for water by non agriculture sectors is increasing rapidly (eg. water diversions/demand for industry is expected to almost triple from 2000 to 2025). Agriculture accounted for about 84% of water diversions in 2000 and estimated water demands in the State may reach 52,366 Million m 3 (1,850 TMC) by 2025 from 37,419 Million m 3 (1,321 TMC) in Agriculture will remain by far the largest water user and the major source of employment for about 55% of the total population and about 75% of the rural population. 4. Karnataka is one of the most water stressed states in India, with about 61% of the State, the 5 th highest percentage, in the drought prone area or desert development programs in Irrigation water use is important as Karnataka has limited water resources (1,608 m 3 /person/year overall and approximately 1,072 m 3 /person/year in eastward flowing rivers). 5. The Tungabhadra sub basin (TB), the main pilot area for this project, lies within the Krishna River Basin and largely within Karnataka. Rainfall for the sub basin follows a monsoonal pattern, and roughly reflects elevation which ranges from 1,200 m to 500 m. Annual rainfall is from 300 cm in the south (Western Ghats), and to less than 50 cm in the northeast. Droughts are frequent. During the southwest monsoon of June to September, the sub basin receives on average about 70% of the annual rainfall, with September being the wettest month. The average annual runoff from the subbasin is about 6.6 km³. 6. There is a long term warming trend and negative trend in rainfall for Karnataka. Climate Change studies of Karnataka have indicated with a high degree of confidence that the area affected by drought will increase. In the Kharif season, most northern districts are projected to have an increase in drought incidences by10 80% with the Districts of Koppal and Yadgir projected to have almost a doubling of drought frequency. 7. Integrated Water Resources Management (IWRM) aims to ensure water for health, food, and energy, while maximising sustainable economic, social and environmental outcomes. Its principal features are to coordinate the management of water by sectors and water users (both quantity, quality; surface water and groundwater) in taking a scientific and planned approach so that water resources are used and managed, including by the environment, within the total available quantum of the resource. IWRM is a critical requirement that will enable a smoother and more effective adaptation to climate change when compared to alternative approaches and in particular business as usual. 8. International experience shows that effective IWRM includes: An institutional framework that is both robust and flexible, and includes modern legislation that supports an integrated and adaptive policy approach, Water resource assessment, planning and management being knowledge driven. DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 1

12 Integration that is built into institutions, resource management, and policy and the environment is recognised as a legitimate water user, Stakeholder and community awareness raising and participation as a key part of water resources management so that communities understand and contribute to solutions through local management and actions. Regular monitoring and evaluation that provides information to determine whether river management and investment are achieving planned outcomes. 9. Irrigation is the major user and consumer of surface and groundwater in Karnataka. Traditionally, irrigation areas were seen to be individually inefficient and so major programs were undertaken to increase water use efficiency at this scale. However, this mostly results in runoff from one irrigation area being substantially reduced thereby reducing the availability of water to downstream users such as irrigation, urban or environmental users. It is critical that an IWRM approach is taken where water availability and efficiency is considered from an overall river basin perspective. In this way, inter system linkages and dependencies are considered and managed. In river basins where there are existing or potential water shortages; clear plans, rules and regulatory arrangements are required if water supply and security of access is to be sustained for all water users. A strong water information, regulatory and river basin management system will underpin management of the water resource for all users and including protection of the environment. 10. Climate Change requires an even stronger emphasis and application of IWRM principles and approaches and particularly strong water resource modelling and decision support systems. A robust water sharing approach is required which is resilient when faced with the extremes of droughts and floods. Climate change increases the urgency and rigour with which IWRM needs to be adopted and evolved. 11. The State Government of Karnataka s (SGOK) Water Policy and various water related visions, responds to this scarcity of water and in declaring 2011 to 2020 as the irrigation decade shifts focus from yield per acre to yield per unit of water consumed. Although there is no standalone, IWRM based, water resources law; SGOK policies, plans and objectives place a high priority on the sustainable and improved use and development of its water resources. 12. At a national level the National Water Policy 2002, the current draft National Water Policy and 12 th Five Year Plan provide directions consistent with IWRM and strong support for this. Conversely these arrangements give confidence that the lessons from the KISWRMIP will be extended more widely throughout India. Additional governance arrangements relevant to water resources management in Karnataka that have been reviewed here are: National Water Resources Framework Approach to 12th Five Year Plan ( ) National Water Resources Framework National Water Mission under the National Action Plan on Climate Change State Water Policy and Vision State Water Legislations State Water Institutions Capacity building needs of Water Agencies 13. While there are constraints to water resources management, such as fragmentation of water resources management between agencies and resistance to change at some levels of government and civil society, there a great number of enabling factors for IWRM in Karnataka. For example, recognition of the scarcity and threats to the water resource, progressive policy statements, a willingness and history of large investments in water resources management, a capable technical workforce, and new and semi independent institutions such as the Advanced Centre for Integrated DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 2

13 Water Resources Management (AC IWRM) which is established to study and advise on new IWRM based approaches to water resources management. 14. The AC IWRM was established in February 2012 and it will engage in policy analysis and research, development of an updated water sector knowledge base, and, assist the Water Resources Department in introducing IWRM into Karnataka. 15. The SGOK has requested financing from the Asian Development Bank (ADB) to enhance water security in selected basins where there is increasing water stress due to rapid economic growth and future competing needs for water supply. 16. The Government of India, SGOK and ADB have agreed to prepare the Karnataka Integrated and Sustainable Water Resources Management Investment (KISWRMIP) for this purpose. It will be financed through a Multi tranche Financing Facility (MFF) so as to enable flexibility in investment decisions and timing based on the needs and constraints of the project, instead of a precise definition of investments up front as conventionally required. Karnataka IWRM Roadmap 17. The Government of Karnataka declared the period 2011 to 2020 as the Irrigation Decade, with an objective of increasing the State s agricultural income and achieving food security. It has adopted an IWRM vision of: Water resources planning, development and management that will be carried out by adopting an integrated approach for a hydrological unit such as river basin as a whole or for a sub basin, multi sectorally, conjunctively for surface and ground water incorporating quantity, quality and environmental considerations 18. A framework for the road map for the KISWRMIP and introducing IWRM into Karnataka is shown in Figure 1. Figure 1: KISWRMIP Roadmap IMPACT Enhanced access and security of water resources and services in the river basins of Karnataka KEY THEMES Institutions and Policies for IWRM Integrated River Basin Management Cross-Sectoral Integration IWRM Based Irrigation Management IWRM and Learning Processes SUPPORTING THEMES Data, Information, and Knowledge Management Stakeholder Involvement 19. The IWRM Roadmap (appendix 2) is based on the assessment of the water resource institutions and policies in Karnataka as well as the study of the Tungabhadra river sub basin as a sub basin typical of conditions in Karnataka. The Roadmap and KISWRMIP has been developed and includes DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 3

14 key areas for IWRM and a supporting ten year program consisting of 3 overlapping Tranches totalling investment of $ 225 million ($150 million ADB, $75 million SGOK). Impact 20. The impact of the will be enhanced security of water resources in Karnataka river basins. Indicator targets from the Design and Monitoring Framework (DMF) for this are by 2028: i. River basin management arrangements established in at least 3 sub basins ii. Water quality in at least 90 % of river reaches maintained at or better than class for intended use in selected sub basins iii. State gross value (2012 INR) of annual agricultural production increases from INR 62,057 crore (USD 11.28b) to INR 141,455 crore (USD 25.72b) Outcome 21. The Outcome of the would be improved water resources management in the selected river basins in Karnataka. The indicator targets for this are: i. By 2020 the State IWRM strategy will be under implementation ii. By 2023 annual water resources monitoring and assessments in program sub basins and corresponding water allocations to users are being implemented iii. By 2023 Infrastructure and management systems on 55,000 ha of irrigation is modernized (FAO 1996) within the K8 sub basin Outputs 22. The KISRMIP comprises 3 Level Outputs, each with performance indicators, and these are: i. State and basin institutions strengthened for IWRM ii. Irrigation system infrastructure and management modernised iii. management systems operational 23. The 3 Outputs will be conducted as follows: TRANCHE 1 (years1 4) TRANCHE 2 (years 3 7) TRANCHE 3 (years 6 10) OUTPUT 1: AC IWRM STRENGTHENED TO SUPPORT STATE AND BASIN LEVEL INSTITUTIONS AND POLICIES Project 1 1: State and Basin Institutions Strengthened For IWRM Studies involving policy and institutions, river basins, water resource information, water use efficiency Project 1 2: Output Management and Coordination Project 1 1: State and Basin Institutions Strengthened For IWRM Continuation of Tranche 1 activities including trialing and implementation where relevant LWMP pilot in 1 WUCS area Project 1 2: Output Management and Coordination Continuation of T1 Project 1 1: State and Basin Institutions Strengthened For IWRM Continuation of Tranche 2 activities Project 1 2: Output Management and Coordination Continuation of T2 OUTPUT 2: MANAGEMENT OF IRRIGATION SUB PROJECTS IS MODERNIZED Project 2 1: Modernisation of Gondhi irrigation system Project 2 1: Modernisation of Vijayanagara (VJN) and part of Tungabhadra Left Bank Canal (TLBC) Irrigation Systems Project 2 1: Modernisation of part of TLBC irrigation system DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 4

15 TRANCHE 1 (years1 4) TRANCHE 2 (years 3 7) TRANCHE 3 (years 6 10) Project 2 2:Flow measurement with Telemetry for Bhadra and key irrigation systems Project 2 3: WUCS and Agricultural Development Gondhi Irrigation System Project 2 4: Strengthening of Nigams and CADA. Project 2 2: Flow measurement with Telemetry Project 2 3: WUCS and Agricultural Development VJN, TLBC, aftercare for Gondhi Project 2 4: Strengthening of Nigams and CADA. On going and aftercare Project 2 2: Flow measurement with Telemetry Project 2 3: WUCS and Agricultural Development TLBC plus aftercare for VJN Project 2 4: Strengthening of Nigams and CADA. On going and aftercare OUTPUT 3: EFFICIENT PROGRAM MANAGEMENT SYSTEMS OPERATIONAL Project 3 1: Planning Project 3 1: Planning Project 3 1: Planning Project 3 2: Execution Project 3 2: Execution Project 3 2: Execution Project 3 3: Monitoring Project 3 3: Monitoring Project 3 3: Monitoring Output 1: AC IWRM Strengthened to Support State and Basin Level Institutions and Policies 24. For Output 1 conducted by the AC IWRM, the sub outputs to be conducted are: (i) (ii) Activities for Project 1 1: State and Basin Institutions Strengthened For IWRM Preparation of a State IWRM Strategy - Task 1: Development of IWRM Strategy - Task 2: Interim RBO Arrangements for K 8 River Basin Developed Strategy for Water Resources Information System - Task 1: IWRM based Water Resource Information and Knowledge System - Task 2: RB Planning and Decision Support System - Task 3: Hydrological Monitoring for T2 and T3 Modernisation Projects Inventory of State River Basins - Task 1: Preparation of inventory of river basins River Basin Plans in Selected River Basins - Task 1: Preparation of River Basin Plan for Tungabhadra (K 8) RB - Task 2: River Basin Plans for 2 Additional RBs - Task 3: RBO Arrangements Water Efficiency and Productivity - Task 1: Assessments of Basin scale WUE and Water Productivity - Task 2: Improving WUE and Irrigation Systems Preparation of Community Based Land and Water Management Plans - Task 1: Preparation of pilot LWMP Activities for Project 1 2: Output Management and Coordination DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 5

16 Output Management and Coordination IWRM Training and Capacity Building Awareness Raising and IWRM Participation Output 2: Management of Irrigation Sub Projects is Modernized 25. A progressive modernisation process is envisaged which will include a range of factors including: acceptance by all stakeholders of the challenges facing the sector; identification and evaluation of a full range of modernisation options that account for likely future cropping patterns and command area distribution systems; future operation requirements for improved service and efficiency; appropriate infrastructure to support improved service delivery; provision of automatic flow measurement and data transmission for monitoring and management purposes; volumetric monitoring of deliveries to underpin bulk water charging; and, capacity building of system operations staff and water user organisations. 26. Three existing irrigation systems have been identified for modernisation under this project and these activities will be conducted by the Karnataka Neeravari Nigam Limited (KNNL). Gondhi Irrigation System which has a total command area of about 4,600 ha and this will be modernised in Tranche 1. This takes advantage of the multi tranche facility by starting with a relatively small Tranche 1 during which capacity building can be undertaken and, strategies and project sustainability trialed on a small and relatively uncomplicated subproject. Vijayanagara (VJN) Channels which has a total command area of about 11,000 ha which would be modernised in Tranche 2 Tungabhadra Left Bank Canal System which has a command area of 244,000 ha. About 40,000 ha in total would be modernised in Tranches 2 and Detailed Project Reports (DPR) and detailed designs are being prepared for these projects by separate consultants under contract to KNNL. The DPR will then be passed to the Central Water Commission (CWC) first at the regional/state level and then the national level for approval of Technical Advisory Committee (TAC) of Ministry of Water Resources (MOWR) after which the work can be tendered by KNNL. 28. Detailed preparation of Feasibility Studies to meet ADB requirements for subsequent Tranche subprojects (VJN and TLBC) including rapid appraisal and FAO Masscote system diagnostics will be undertaken. It is anticipated that the preparation of these sub projects will commence about 1 year into Tranche Improved flow measurement and monitoring is one of the mechanisms to improve water management within the irrigation systems and also enable improved water resource management within the sub basin. In addition to improved flow measurement that will be provided as part of the irrigation modernisation sub projects, improved flow measurement will be provided at key points for all of the major irrigation systems within the sub basin. 30. A rigorous WUCS institutional strengthening process and agricultural training will be implemented under the program. The institutional strengthening process for each WUCS will be in four sequential phases implemented over a period of 60 months per sub project. As Gondi is a relatively small system with limited number of WUCS, this may be achieved in 36 months. The primary responsibility for implementing the WUCS institutional strengthening process is of the WUCS Support Service Teams (SST) to be recruited through the Support Consultants and placed with the PIO and reporting to the PIO Manager. The agricultural training includes strengthening of agricultural productivity and gender awareness and involvement. DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 6

17 31. Strengthening of the involved Nigams, the Command Area Development Authorities and Agriculture Department is planned in order to support the project in providing more effective water management where there is increasing water scarcity, taking a customer (water user) focussed approach, as well as improving agricultural productivity. Specific training for this purpose and including gender training is planned. Output 3: Efficient Management Systems Operational 32. KNNL is proposed as the program Executing Agency by WRD, SGOK. The SGOK IWRM Steering Committee, chaired by the Chief Secretary, will be responsible for overall review of the program and to facilitate inter departmental coordination, especially for IWRM activities. The Implementing Agency for Output 1 will be the AC IWRM; Output 2, KNNL; and, for Output 3, the KNNL through its Irrigation Zones (Field Units) and the concerned CADAs. 33. A skills based expert advisory panel is proposed for Output 1. It would comprise international, national and SGOK representatives. 34. In order to promote linkages with national initiatives and expertise as well as to extend the benefits of the program nationally, the Central Water Commission (CWC) would be invited to be a member of both the IWRM Steering Committee and the international expert advisory panel. 35. A Management Unit (PMU) with the requisite staff will be established in the Tungabhadra Basin, under the KNNL Chief Engineer, Central Irrigation Zone, Munirabad, who is designated as the Director. The PMU will have overall responsibility for Output 3. The PMU will be responsible for overall program management, coordination, monitoring and reporting. Communications will be managed consistent with GOI and ADB requirements for transparency The PMU will be supported by a Support Consultancy (PSC) team in its work. 36. A Project Implementation Office (PIO) under a Project Manager of a rank of Superintending / Executive Engineer will be established for field implementation of each irrigation modernisation project. Depending upon the command area and quantity of works, dedicated Irrigation Subdivisions will be established under the PIO. CADA staff will be deputed to the PIO and also include the WUCS Support Service Teams described above. A PIO will be located at the AC IWRM in Bangalore under the supervision of the Director AC IWRM for Output The program will be monitored according to the Design and Monitoring Framework and a MIS will be established in the commencement phase of the project. 38. coordination at Headquarters will be the responsibility of the Director. For interagency coordination, the Director will have the support of the KNNL / WRD and the IWRM Steering Committee. 39. Transparent and effective external relations and disclosure of information will be undertaken consistent with the ADB, Public Communications Policy 2011 and the Government of India, Rights to Information Act, The PMU will establish a specific communication strategy consistent with these policies. Resourcing and Administration Staffing, Contract and Consulting Services 40. The proposed assistance for the respective Outputs are: Output 1: AC IWRM Strengthened to Support State and Basin Level Institutions & Policies 41. Output 1 is planned to be implemented in 2 parts. Support for the foundation part (part 1) that runs throughout the 3 Tranches is provided by ADB funds and this will support basic international consulting services for Tranche 1. The foundation part would support all activities although the level of training and support from international consultants would be limited. The loan to SGOK would support government staff on contract and national consultants for all Tranches and would also DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 7

18 support training Courses; international, regional and national Study Tours; 2 way international work placements and fellowships; and a tri ennial international conference. 42. Funding of international consultants for Tranches 2 and 3 would be by yet to be identified international partners and/or the loan component of the. 43. Part 2 includes additional services and activities to provide additional training and support from international and national consultants for the Tasks listed above. This would be funded by international partners and/or the loan component of the. 44. The SGOK would provide government staff for all Tranches. Staffing and consulting requirements for the foundation activities of both (project implementation office and IWRM technical activities) projects of Output 1 are: government staff 2,400 person months (T1 1,186 pm, T2 876 pm, T3 886 pm); government staff on contract 1,200 pm (T1 480 pm, T2 360 pm, 360 pm); national consultants 91 pm (T1 45 pm, T2 18 pm, T3 28 pm); international consultants 42 pm (T1 24 pm, T2 9 pm, T3 9 pm). 45. For the additional activity based support to be funded by additional partner involvement or from the project loan proposed staffing and consulting requirements are: national consultants 86 pm (T1 85 pm; T2 67 pm; T3 179 pm); international consultants 86 pm (T pm, T pm, T pm). Output 2: Management of Irrigation Sub Projects is Modernized 46. The Output 2 staffing and consulting support requirements are for the Project Support Consultancy and comprise national consultants 686 pm (T1 225 pm, T2 258 pm, T3 203 pm); international 96 pm (T1 30 pm, T2 36 pm, T3 30 pm). 47. Requirements for WUCS Support Service Team are 1,516 pm (T1 216 pm, T2 696 pm, T3 624 pm). Output 3: Efficient Management Systems Operational 48. Requirements for PMU recruited staff are 120 pm over all tranches. Financing 49. The program investment cost is estimated at $US 242 million, including: physical and price contingencies of $ 39 million; and taxes and duties of $10 million to be financed by the Government, and minor financial charges as shown in the following table. Foreign Local Total % of Baseline Integrated Water Resource Management Irrigation & Agricultural Support Project Management Physical Contingencies Price Contingencies Financial Charges During Implementation TOTAL The Government has requested financing of up to $150 million from ADB s ordinary capital resources to finance the. The facility may extend to three Tranches to implement the, under a framework financing agreement (FFA) with ADB. The financing plan (USD million) for the is shown in the following table. Grant aid is being sought for IWRM support. A US$ 1 million facility for irrigation scheme design and US$ 0.5 million for impact monitoring studies have been included. There are no land acquisition or resettlement requirements. DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 8

19 Foreign Local Total Percent The Government Asian Development Bank Grant Finance (IWRM) Beneficiaries Total The following table shows detailed expenditure (USD million) by component. Expenditure Account Water Resource Management Irrigation & Agricultural Support Project Management Total Civil Works Equipment & Supplies Training Community Development Surveys and Studies Implementation Consultants Staff Costs IWRM Grant Total Baseline Cost Physical Contingencies Price Contingency Total Cost (of which taxes) The following table indicates the cost estimates (USD million) for Tranche 1. The first Tranche is estimated to cost the equivalent of US$ 47 million, including taxes and duties of US$ 1.9 million. It will cover the initial implementation of one medium scheme (including flow measurement), four years of IWRM development (including studies), social support costs, project management and consulting services. SGOK ADB Grant Aid Beneficiaries Total US$m % US$m % US$m % US$m % US$m % IWRM Irrigation & Agricultural Support Project Management Total (of which taxes) 1.9 DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 9

20 53. The program is ten years, starting in 2013 and consists of three overlapping Tranches of three or four years, depending on the activities, for example irrigation scheme design and WUC awareness activities may start in the Tranche prior to infrastructure investment. Procurement 54. Procurement is to be financed from the ADB loans under the MFF and will be carried out in accordance with ADB s Procurement Guidelines for goods, works, services and consultants (April 2010), as amended from time to time. 55. State level procurement approaches are not fully aligned with ADB procurement procedures. Bidding documents will need adjustments in line with ADB s standard bidding documents to be used for procurement of goods and works by NCB. For ICB, ADBs SBD may be adopted. For consultant selection SGOK SBD may be used with minor adjustments to meet ADB requirements. 56. Procurement for the MFF will be carried out by WRD, AC IWRM and KNNL using e Procurement for goods, works and services costing more than $4000. E Procurement is the default mode of procurement for WRD and its agencies. A procurement capacity assessment was conducted on KNNL and this found and recommended that since it is mandatory to use e Procurement and KNNL is well versed in the process, ADB may agree to e procurement subject to assessment of the e Procurement system in terms of safety, transparency and competitiveness. The recently formed AC IWRM being a nascent organization will be assisted by WRD and KNNL in carrying out procurement. 57. The PMU will monitor and report on the implementation of the Procurement Plan and will organize the procurement activities. Measures to strengthen the capacity of the PMU and Project Implementation Office (PIO) staff in undertaking procurement activities will be implemented. 58. The Karnataka Transparency in Public Procurements Act, 1999 governs all public procurement in the state and aims for transparency in public procurement of goods and services. It is clear and closely aligned with ADB s procurement guidelines. The Act indicates that in case of inconsistencies, ADB procurement guidelines would prevail. 59. The project will finance three consulting services packages. International firms will be recruited as Project Support Consultant and AC IWRM strengthening consultant to support PMU and AC IWRM respectively for the duration of first tranche. A national civil society organization will be hired as WUCS Support Service Team for the first Tranche. It will be procured through FBS procedure since the TOR is clearly defined and the work requires continuous handholding and support to build capacity of WUCS which is a farmers organization. Impacts and Safeguards Environmental 60. An Environmental Assessment Review Framework (EARF) has been developed and used to assess the possible impacts of projects during design and detailed planning, construction, and operation and maintenance to minimise the risk of environmental impact from the Tranche 1 (Gondhi) project. This EARF provides the foundation for the Initial Environmental Evaluation (IEE) that will be conducted during Tranche 1 for the Tranche 2 and Tranche 3 modernisation projects. 61. Under the GOI EIA Notification requirements Gondhi project is likely to be considered a Category A project as it is within 10 km of the Bhadra Wildlife Sanctuary and within 10 km of a critically polluted area, namely Bhadrawati. Thus the Detailed Project Report (DPR) may require clearance from the central government. Similarly, the Daroji Bear Sanctuary is near the VNC system and this should be specifically considered by the DPR and IEE for this Tranche 2 project. 62. ADB s 2009 Safeguard Policy Framework is applicable for this project. According to this policy framework a Multi tranche Financing Facility (MFF) is required to prepare an Environmental Assessment and Review Framework (EARF) and this has been prepared to provide guidance to the assessments of the subprojects of the subsequent tranches. DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 10

21 63. The ADB categorisations, differ from GOI categorisations and are: Category A. If impacts likely to have significant adverse environmental impacts that are irreversible, diverse, or unprecedented. These impacts may affect an area larger than the sites or facilities subject to physical works. Category B. If potential adverse environmental impacts are less adverse than category A projects, are site specific, few if any of them are irreversible, and in most cases mitigation measures can be designed more readily than for category A projects. Category C. If project is likely to have minimal or no adverse environmental impacts. Category FI. A proposed project is classified as category FI if it involves investment of ADB funds to or through a FI (Financial Intermediary). 64. Of the four subprojects, 3 have been classified as Category B. These are Gondi, TLBC and VJN. Therefore an IEE is to be undertaken for these three projects. Bhadra, due to the very limited nature of the work, is categorized as a Category C project and no further assessment is required. 65. An IEE and Environmental Management Plan (EMP) was prepared for the Tranche 1 project (Gondhi modernisation). It identifies a list of activities/subprojects which need to be undertaken during design and detailed planning, construction, and operation and maintenance to minimise the risk and control any environmental impacts. This will form a template for Tranche 2 and 3 modernisation projects. 66. Both TLBC and VJC have been identified as Category B subprojects. Therefore, they will require an IEE each as a part of project preparation. For Tranche 2 and 3 projects the IEE should be completed as a part of the project design and needs to be fed into the final project design (DPR), to ensure that possible adverse environmental impacts identified through the assessment are adequately addressed in the design stage itself. 67. As required by State and National legislation, clearances and permissions should be identified and taken. These would include the Environmental Protection Act, 2006 and the various legislations under it; the forest, tree protection and the Hampi Heritage Area HWHAMA (for the VJN project) acts. Resettlement 68. An assessment for involuntary resettlement impacts has been made for Gondhi, Vijayanagara and TLBC Irrigation/ Canal Systems based on the feedback from the WRD and CADA officials about their experience of implementing similar interventions as part of their on going projects, observational field visits, and consultations with the communities to validate and elicit their views on the involuntary resettlement issues. 69. The key finding was that impacts would be minimal as interventions are mostly planned within the established canal right of way as well as in consultation with the local community. A very minimal extent of temporary impact may be involved, especially if there are establishment of construction camps, although this is not envisaged at this stage and would be confirmed with detailed planning as there are existing construction camp sites available in the command area. 70. Given the overall nature of the project no action is needed with regard to Involuntary Resettlement Safeguards for Tranche 1. However based on the final set of design interventions which would be evolved and planned for subsequent tranches (especially if night storage reservoirs or online storage reservoirs are planned), the project could require preparation of Resettlement Plans (RPs). Such impacts can be assessed only once the technical feasibility for these interventions is established and design interventions are firmed up for the subsequent tranches. In this context, a Resettlement Framework (RF) is required to guide the involuntary resettlement safeguards that will be followed for the subsequent Tranches and to screen for involuntary resettlement safeguards. DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 11

22 71. A Resettlement Framework (RF) has been formulated to guide the preparation of subproject Resettlement Plans (RPs), if required, during subsequent Tranches of the planning and implementation. The Executing Agency (EA), KNNL, will be responsible for conducting the social assessments and formulating RPs for subsequent sub projects, where involuntary resettlement impacts are expected. The draft RPs will be disclosed to the Affected Persons (APs) in local language (Kannada) and submitted to ADB for review and approval, and public disclosure. Social Safeguards: Indigenous Peoples 72. The total population of Karnataka, as per the 2001 Census was million. Of this, 3.46 million people fall under the category of Scheduled Tribes (STs) constituting nearly 6.6 percent of the state population. The percentage of ST population (Indigenous People) ranges between 2.27% in Hospet Taluka to 34.49% in Devdurga Taluka. 73. The significance of impacts on Indigenous Peoples has been determined according to the ADB SPS. Considering the nature of interventions proposed under the program, no specific adverse impacts are anticipated for the STs (Indigenous People) compared to other communities. ADB IP safeguards are not triggered because the project directly or indirectly does not affect the dignity, human rights, livelihood systems, or culture of the STs and the project will not affect territories claimed by the STs as their ancestral domain. During the community consultations also, it has been found that there is no specific uniqueness with regard to the economic status, livelihood systems or cultural practices amongst the STs as compared to other communities in the villages. 74. In this context, for the purpose of this, an IPPF is not required. In addition, as part of the WUCs strengthening, special focus shall be made to ensure the participation of STs (indigenous) and SCs (vulnerable) in the planning and decision making process. It will also be ensured that under no circumstances will the STs/ SCs be deprived of the benefits from the program. However, if there is any physical relocation of STs in any future Tranche, a combined plan including Resettlement Plan and Indigenous Peoples Plan will be prepared in consultation with ADB. Summary Poverty Reduction and Social Strategy 75. The poverty reduction and social strategy under the program is aligned with the GOI s current policy (11th and Draft 12th Five Year Plan) and ADB s Strategy (2020) on promoting inclusive growth and achieving rural poverty reduction. The focuses on adopting of pro poor and gender inclusive mechanism within the overall program design. The project interventions will have positive impacts on the women and socially excluded groups. Gender Action Plan 76. The Project is proposed to be classified as Category II: Effective Gender Mainstreaming, (EGM) following ADB s gender categorization of projects (ADB s Policy on Gender and Development 1998 and ADB s Gender Mainstreaming Criteria Guidelines; 2010). The gender strategy under this program is expected to mainstream gender in the context of irrigation management. 77. The scope for raising the level of women s participation in decision making and project management processes will also be strengthened. In addition, a Gender Action Plan (GAP) has been systematically designed to ensure that women, vulnerable and landless households are mainstreamed within the overall program design and have equitable access to the project s resources and benefits. The GAP also provides specific actions and responsibilities to ensure full participation of women in project activities. Benefits and Spin offs 78. The will renovate and extend major and medium irrigation systems which are lowperforming at present, potentially benefiting about 1.5 million people. An additional 57 TMC of water saving (1,700 million m³) of water would be released for new irrigation on up to 160,000 ha. The quantifiable benefits will be incremental crop production from modernised irrigation DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 12

23 infrastructure and water management. Incremental labour demand will particularly benefit the poor. Non quantified benefits include improved irrigation and water management at river basin level, improved institutional performance, multiplier effects in agricultural supply, marketing and processing, and local economic activities and minor improvements in local transport, access to water and health resulting from infrastructure improvements and drainage activities. 79. An economic and financial analysis was carried for the Tranche 1 sub project. Water charges are to be paid by farmers according to crop and season. In future, collection of water charges will be undertaken by the WUCs, and used for O&M, 30% being passed on to WRD for overheads. Water charges are included in the crop budget models, but even at 100% collection the water charges are only about 30% of the total O&M cost. 80. Crop budgets were prepared for Kharif & Rabi rice, other semi dry crops (maize), sugarcane and arecanut. Yield rates with the project increase by 20% over three years and by products are directly linked to yield. Inorganic fertilisers and harvest labour are linked to the yield rate. SRI rice is being adopted in Karnataka 1, and it is envisaged that this will be introduced into the subproject. 81. Farm models were prepared for marginal, small and medium farmers using the average farm size for each and assuming a farm family labour rate. Analysis shows that retained farm income is expected to increase by 53%, 41% and 41% respectively for marginal, small and medium farm households. 82. The economic viability of the sub project is assessed by estimating its economic internal rate of return (EIRR) and benefit cost ratio over an expected scheme life of 25 years. Sensitivity analysis was undertaken for the key perceived risks. An assessment of the impact of the subproject on poverty reduction is also undertaken. The social discount rate for NPV is assumed at 12%, which is high compared to other investment opportunities, but is the rate normally assumed for development projects in India. Project benefits relate to delivery of water beyond km 44 of the canal as the current supply from Bhadra is planned to cease reducing a total production loss of 20%, changed cropping patterns and improved yields, and the transfer of 0.5 TMC to the Upper Bhadra scheme. A series of scenarios were tested including canal rehabilitation without lining. The economic returns are estimated as follows: Scenario With Lining Without Yield Reduction (%) Saved Water Net Return (%) EIRR (%) NPV (Rs million) B:C ratio A1a: Gondhi scheme, 100% lining A1b: Add avoided end of Gondhi loss A2: Add diverted water value Without Lining B1a: Gondhi scheme, no lining B1b: Add avoided end of Gondhi loss B2: Add diverted water value Gondhi Subproject Base EIRR Report, Financial & Economic Analysis: Markets And Prices and Crop Physical and Financial Budgets are provided In Volume The will have positive poverty reduction impacts on income, employment opportunities, and food security in particular for marginal farmers (under 1 ha) and landless households (68% of the households in Gondhi). The remaining schemes are likely to have a higher 1 Karnataka State, under the Accelerated Rice Production me (ARPP) has plans to improve productivity in about 2,00,000 hectares in 13 districts through SRI/mechanized farming (Page 2 of Agriculture Production s published by Department of Agriculture, GoK). It is planned for 40 per cent of the prevailing paddy area to use SRI and improved paddy cultivation methods. DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 13

24 proportion of poorer households, and benefits to poorer households should also be considerable in areas receiving new irrigation water. 84. The analysis of the costs and benefits of the Tranche 1 sub project implies that a relatively large percentage of benefits will accrue to larger farms. Poor households, especially landless households will benefit from increased hired on farm labour, though expected increases are relatively small (14,000 days a year). Retained farm income for marginal farm households is expected to increase by 53% including the value of family labour retained by the family. Income levels remain below the poverty threshold, at about INR 30 per person per day, but return to family labour is attractive, and adequate to provide incentive to participate. 85. The project interventions will lead to increased agriculture opportunities and crop diversification in command areas and correspondingly improve income opportunities and enhance overall living standards, benefiting both men and women. The program is expected to mainstream gender within the gambit of irrigation management by strengthening landless/tail end farmers and women s participation at grassroots (WUCS) level. 86. The project is likely to result in a number of positive environmental impacts including reduction in salinity, waterlogging and improved soil health; reduced rates of malaria and dengue, filarial and Japanese encephalitis due to better water management reducing vector habitats; reduced transmission rates of cholera, hepatitis and variety of other gastrointestinal diseases through better water management. Improved water and agricultural management will also reduce run off induced non point source pollution and contamination of surface and groundwater from fertilisers and pesticides. Environmental flow requirements will be explicitly addressed via the IWRM activities and this is expected to at least protect and possibly improve environmental river flows. Similarly water quality in rivers will be addressed and approaches to improve water quality assessed and where possible implemented. 87. There are many Central and State assisted programs in the water sector in Karnataka that are under execution with different water sector organizations and these were important elements of the just released Karnataka State budget. The KISWRMP will have a significant direct influence, through the WRD as well as the IWRM Steering Committee and National Water Mission, on the approaches taken in implementing water related projects with budget commitments of more than USD 17.8 billion in Karnataka as well as more widely in India. DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 14

25 1. BACKGROUND 1.1 Location 1. The State of Karnataka, in the southern part of India is confined roughly within latitude North and North and, 74 5 East and East. It is situated on a tableland where the Western and Eastern Ghat ranges converge into the Nilgiri hill complex. The state covers an area of 191,976 square kilometers, or 5.83% of the total geographical area of India. It is the eighth largest Indian state by area. With over 61 million inhabitants (2011), Karnataka is the ninth largest state by population and comprises 30 districts. Kannada is the most widely spoken and official language of the state. Karnataka is bordered by the Arabian Sea to the west, Goa to the northwest, Maharashtra to the north, Andhra Pradesh to the east, Tamil Nadu to the southeast, and Kerala to the southwest. The state extends to about 750km from North to South and about 400km from East to West. 2. The two main river systems of the state are the Krishna and its tributaries (Bhima, Ghataprabha, Vedavathi, Malaprabha, and Tungabhadra) in the north, and the Cauvery and its tributaries (Hemavati, Shimsha, Arkavathi, Lakshmana Thirtha and Kabini) in the south. Both these rivers flow eastward and fall into the Bay of Bengal. Tungabhadra Sub Basin (K 8) 3. The Tungabhadra Sub basin (Figure 2), the main pilot area for this project, lies within the Krishna River Basin and largely within Karnataka. It contains three river systems; Bhadra, Tunga and Varada. Each of these rise in the Western Ghats and flow eastwards. The Tungabhadra River is an easternflowing river of southern India in the State of Karnataka. It is the chief tributary of the Krishna River and is formed by the confluence of two rivers, the Tunga and the Bhadra, at Koodli in Shivamogga District. These rivers rise in the eastern slope of the Western Ghats at Gangamula which has an elevation of 1,198 metres. The Tungabhadra flows east across the Deccan Plateau for a distance of 530 km, joining the Krishna River in Andhra Pradesh state, from where the Krishna continues east to empty into the Bay of Bengal. There are three major reservoirs formed by dams in the sub basin: Bhadra, Tunga and Tungabhadra Reservoir which were constructed for large irrigation projects. The Vadara River joins the Tungabhadra just before it flows into Tungabhadra Reservoir. The catchment area upstream of the Tungabhadra reservoir is 25,820 km² and the river flows a further 170 km from the reservoir to Andhra Pradesh and a further 90 km to the Krishna river. 1.2 Climate 4. Karnataka experiences four seasons the winter in January and February is followed by summer between March and May, the monsoon season between June and September and the post monsoon season from October till December. 5. The Rabi (dry season) and Kharif (wet season) agricultural seasons correspond to the months of November to April and May to October respectively. 6. For meteorological purposes, the State has been divided into three zones namely (a) Coastal Karnataka (Dakshina Kannada and Uttara Kannada Districts), (b) North Interior Karnataka (Belgaum Bidar, Bijapur, Dharwad, Gulbarga and Raichur Districts) and (c) South Interior Karnataka (the remaining Districts of Bangalore Rural, Bangalore, Bellary, Chikmagalur, Chitradurga, Kodagu, Hassan, Kolar, Mysore, Mandya, Shivamogga and Tumkur Districts). Of these, the coastal zone receives the heaviest rainfall with an average rainfall of about 3,638.5 mm (143 in) per annum, far in excess of the state average of 1,139 mm (45 in). Agumbe in the Shivamogga district receives the second highest annual rainfall in India. The highest recorded temperature was 45.6 C (114 F) at Raichur and the lowest recorded temperature was 2.8 C (37 F) at Bidar. DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 15

26 Figure 2: Tungabhadra Sub Basin 7. The annual rainfall in the state varies roughly from 50 to 350 cm. In the districts of Bijapur, Raichur, Bellary and Southern half of Gulbarga, the rainfall is the lowest varying from 50 to 60 cm. The rainfall increases significantly in the Western part of the State and reaches its maximum over the coastal belt. The South West monsoon is the principal rainy season during which the State receives 80% of its rainfall. Rainfall in the winter season (January to February) is less than one percent of the annual total amount, about 70% of the summer seasonal total (March to May), and for the postmonsoon season about 12%. DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 16

27 8. For the Tungabhadra sub basin, rainfall follows a monsoonal seasonal pattern, and in terms of annual average rainfall, follows roughly according to the topographical elevations. While annual rainfall in the sub basin, reaches more than 300 cm in the south (Western Ghats), it falls to less than 50 cm in the northeast and droughts are frequent. During the southwest monsoon months of June to September, the sub basin receives on average about 70% of the annual rainfall, September being the month with the highest rainfall. The variations in the annual rainfall from year to year are large. The average annual runoff from the sub basin is estimated at about 6.6 km³. 9. The command area of Gondhi Anicut canals is located in Bhadravathi Taluk (a group of villages forming an administrative sub division of the District division) which has an average annual rainfall of mm and enjoys a tropical climate throughout the year. The relative humidity ranges from 27% to 88% and June to September are wet months with October and November experiencing little rainfall from the NE monsoon. Projected Climate Change 10. The Intergovernmental Panel on Climate Change (IPCC) predicted with high confidence that the area affected by drought will increase in South Asia, including India (IPCC, 2007) 2. A recent study 3 specifically conducted on Karnataka found that: there is a long term negative trend of about 6% in precipitation over Karnataka for the period rainfall variability is very high in Chikballapur, Chitradurga, Gadag, Kolar, Mandya and Tumkur districts. there is considerable decrease in precipitation over the Coastal and North Interior Karnataka districts during the period annual mean minimum and maximum temperatures are highest in Raichur, Gulbarga and Yadgir districts of North Interior Karnataka. Bidar and Gulbarga districts indicate a larger inter annual variability with respect to annual mean minimum and maximum temperature. a steady warming trend is observed in both the minimum and maximum temperature over Bijapur, Gulbarga and Raichur. most of the areas in the state are projected to experience a warming of 1.8 to 2.2 ºC by the 2030 s with the cooler being coastal and the hottest (>2.2 ºC) being northern inland Districts. according to a global climate model study, the Indian subcontinent could be subjected to an average of over 4 ºC increase in temperature by 2085 The north eastern and south western parts of the state are projected to experience decrease in the quantum of rainfall, annually In the Kharif season, most northern districts are projected to have an increase in drought incidences by10 80% with the Districts of Koppal and Yadgir projected to have almost a doubling of drought frequency In the Rabi season, drought frequency is projected to increase in most of the eastern districts of the state. 2 IPCC (2007) Climate Change 2007: Working Group II Report: Impacts, Adaptation and Vulnerability. WMO and UNEP, Geneva. 3 Bangalore Climate Change Initiative Karnataka (BCCI K) (2011) Karnataka Climate Change Action Plan. Final Report Submitted to the Government of Karnataka, May pp 183. Funded by the World Bank DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 17

28 1.3 Geomorphology 11. The state has three principal geomorphological zones: The coastal region of Karavali, the hilly Malenadu region comprising the Western Ghats, and the Bayaluseeme region comprising the plains of the Deccan plateau. The bulk of the state is in the Bayaluseeme region, the northern part of which is the second largest arid region in India. The highest point in Karnataka is the Mullayanagiri hills in Chickmagalur district which has an altitude of 1,929 metres (6,329 ft). 12. The topography of the Tungabhadra sub basin ranges from hilly to mountainous in the extreme south of the basin, with elevations up to 1,200 m, to the flat terrain of the lower (northeast) part of the catchment at around 500 m elevation. Large areas of national park and conservation areas exist in the upper part of catchment and notably Kudremukh National Park (600 km²) and Bhadra Tiger Sanctuary (490 km²). 13. The Gondhi command area is uneven and undulating with moderate slopes of 0.5% to 3% with a medium slope from canal to the river. 1.4 Soils 14. Eleven soil orders groups are found in Karnataka, viz. Entisols, Inceptisols, Mollisols, Spodosols, Alfisols, Ultisols, Oxisols, Aridisols, Vertisols, Andisols and Histosols. Depending on the agricultural capability of the soil, the soil types are divided into six types, viz. Red, lateritic, black, alluviocolluvial, forest and coastal soils. 15. The Gondhi command area largely comprises red sandy loam mixed with red soil to an extent of 80%. Clay soils are in 18% of the command area and black cotton soils in about 2% of the command area. 1.5 Surface Water Resources 16. Karnataka accounts for about 6 per cent of the country's surface water resources of 1,869 thousand million cubic meters (thousand Mcum) 4 or 66,000 thousand million cubic feet, (TMC). About 40 percent of this water is in the east flowing rivers and the remaining in the west flowing rivers. There are seven river basins with which their tributaries drain the state(figure 3) River systems Table 1: River Systems and Yields Drainage area in thousand Sq.km. Average Annual Yield in MCM (TMC) Krishna ,451 (969.44) Cauvery ,034 (425.00) Godavari ,415 (49.97) North Pennar (32.00) South Pennar 3.76 Palar (32.00) West flowing rivers ,600 ( ) Total ,406 ( ) 4 DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 18

29 Figure 3: River Basins of Karnataka 17. As per the master river basin plans, the total utilization likely under major, medium and minor irrigation projects using surface water is 48,000 MCM (1,690 TMC). In the Tungabhadra sub basin, water sharing and allocation is based on the Krishna Water Dispute Tribunal (KWDT) award which prioritizes drinking water as first followed by irrigation, industries and environment. Total water allocation across the sectors is TMC out of which, agriculture sector gets the major share of 94.3%, 3.72% for industrial usage and 1.96% for drinking water use. DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 19

30 Figure 4: Sub Basins of the Krishna River Basin 18. The Gondhi Anicut is allocated 3.10 TMC (87.80 MCM) of water in the Krishna Water Dispute Tribunal (KWDT) award. 1.6 Ground Water 19. Groundwater resources are estimated with the watershed/catchment as a unit. Karnataka state has been divided into 234 watersheds in 13 catchments; 10 watersheds fall fully in command area and another 76 watersheds fall partially in the command areas. Krishna basin code is 4D and the catchment codes for Tungabhadra sub basin are 4D3 (Lower Tungabhadra) and 4D4 (Upper Tungabhadra). 20. The net annual groundwater availability in the State in 2009, as per the assessment of the Department of Mines and Geology and the Central Ground Water Board was around billion cubic metres (BCM), which is less than the BCM as per the 2004 assessment and BCM as assessed in Since the first survey in , the number of tube wells in Karnataka has increased nearly 20 fold by to 733,227 while the number of dug wells has decreased by 40% to 244,475. More than 95% of groundwater pumps are powered by electricity 21. With over 1 million wells, the increase in bore wells and over extraction has led to rapidly falling groundwater levels. The total store of groundwater has reduced from 16.3 BCM in 1992 to 15.3 BCM in 2004, with the draft of groundwater increasing from 4.1 BCM to 10.7 BCM during the same period. Groundwater sources that include open wells and bore wells have emerged as the largest source of irrigation in the State irrigating 45% of the net irrigated area. In order to provide the legislative environment as envisaged in the Water Policy, the State enacted the holistic Karnataka Ground Water (Regulation and Control of Development and Management) Act, The 2004 report on groundwater resources 5 of Karnataka reports that the groundwater development stage for Bhadarvati Taluk (675 km²) is classified as safe with only about 30% of 5 Department of Mines and Geology (2005) Report on Dynamic Groundwater Resources of Karnataka as of March June pp 132 DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 20

31 groundwater potential being developed. The specific situation for the project area is not indicated. The Minor Irrigation Census for Shivamogga District 6 reports groundwater statistics across the whole District but does not differentiate between surface water irrigation district and rainfed areas. For Shivamogga, there are a total of 24,608 groundwater schemes, with 5% being of depth 0 20m, 1% m, 8% 40 60m, 48% m, and 39% greater than 80m. Of the nearly 30% reporting constraints to utilization, 75% were due to lack of water. This high proportion of groundwater pumping from great depths (>80m) is likely to be a consequence of the 100% government subsidy on the cost of power for operating pumps for groundwater extraction. Figure 5: Status of Groundwater 23. In Tungabhadra Sub basin, the aquifers in about half of the catchments are categorised as either semi critical, critical or over exploited 7 (Figure 5). In the south and southwest of the 6 Department of Minor Irrigation (2011) Report on Fourth Census of Minor Irrigation Schemes Semi critical areas are those where stage of groundwater development is 70 90% & water table during either pre or post monsoon shows a significant long term declining trend. Critical areas are the areas where the stage of groundwater development is more than 90% and long term water level trend of either premonsoon or post monsoon shows a falling trend DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 21

32 sub basin, the safe catchments are predominantly located in the areas that receive greater precipitation. Most of the districts Chikmagalur, Shivamogga and Uttar Kannada are considered safe, but also the semi arid parts of Dharwar, Gadag and the northwest of Haveri. The over exploited catchments are generally located in Bellary, Davangere and Chitradurga and Western Haveri. 24. For the Gondhi project area and subject to hydrogeological conditions, groundwater could be an important source of water for perennial crops during the periods of canal closure although groundwater availability is not well understood. 1.7 Climate Change and Water Resources 25. The impacts of the projected climate changes described above on the water resources of Karnataka and related river basins are 8 : Climate change impact assessment indicates increased moisture stress in Krishna basin, especially in the north eastern districts, and marginal impact on Cauvery basin. The water yield analysis indicates an increase in average water yield in the Krishna basin, while indicating a decrease in average water yield in the Cauvery basin. The precipitation analysis indicates: - Decrease in precipitation annually in the Krishna as well as Cauvery basins. The decrease in precipitation is similar, around 0.25% in the Krishna and Cauvery basins The runoff analysis indicates: - An increase in average annual runoff projected for both the river basins - The projected increase in average annual runoff is much higher for the Krishna basin, when compared to the Cauvery basin - This indicates that water stress in Krishna basin would be much higher and farmers residing around the Krishna basin may suffer reduced crop yields. The evapotranspiration analysis indicates a decrease in evapotranspiration projected annually for both the river basins 1.8 Description of Irrigation Areas 26. The KISWRMIP is to include modernization of 3 irrigation areas: (i) Gondhi Irrigation system, which is a sub area of the Bhadra irrigation system (Tranche 1), (ii) Vijayanagara (VJN, Tranche 2) and (iii) part of Tungabhadra Left Bank Canal (TLBC, Tranche 2 and 3). The areas are: Gondhi Irrigation System: This irrigation system of about 4,600 ha was constructed between 1916 and It lies within the larger and more recent Bhadra irrigation system but has its own supply from the Gondhi anicut. Vijayanagara Channels: This system comprises 16 canals, most of which were originally constructed during the Vijayanagara Empire about 400 years ago. Over exploited areas are the areas where stage of groundwater development is more than 100% and long term water table trend show significant declining trend. 8 Bangalore Climate Change Initiative Karnataka (BCCI K) (2011) Karnataka Climate Change Action Plan. Final Report Submitted to the Government of Karnataka, May pp 183. Funded by the World Bank DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 22

33 Tungabhadra Left Bank Canal System; This system has a command area of 244,000 ha supplied from the Tungabhadra dam via a 227 km long main canal. Construction commenced in the 1960s. 27. These areas are shown in the following Figures. Figure 6: Project locations Figure 7: Locations of Vijayanagara and Tungabhadra Left Bank Canal Systems DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 23

34 Figure 8: Gondhi Command Area Figure 9: Vijayanagara upstream canals DHV BV, The Netherlands in Association with DHV India Pvt. Ltd. 24