PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: PIDA1291. Project Name. Region. Country

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1 Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized Public Disclosure Authorized PROJECT INFORMATION DOCUMENT (PID) APPRAISAL STAGE Report No.: PIDA1291 Project Name Uttarakhand Decentralized Watershed Development II Project (P131235) Region SOUTH ASIA Country India Sector(s) Agricultural extension and research (40%), Forestry (25%), General agriculture, fishing and forestry sector (15%), Irrigation and dr ainage (10%), Agro-industry, marketing, and trade (10%) Theme(s) Rural services and infrastructure (49%), Participation and civic engagement (18%), Land administration and management (13%), Water r esource management (13%), Rural policies and institutions (7%) Lending Instrument Specific Investment Loan Project ID P Borrower(s) Department of Economic Affairs, Ministry of Finance, Government of India Implementing Agency Watershed Management Directorate (WMD) Environmental Category B-Partial Assessment Date PID Prepared/Updated 22-Oct-2013 Date PID Approved/Disclosed 10-Nov-2013 Estimated Date of Appraisal 11-Nov-2013 Completion Estimated Date of Board 27-Mar-2014 Approval Decision I. Project Context Country Context Agriculture accounts for around 16 percent of India s GDP. Some 60 percent of Indians depend on agriculture as their primary livelihood, mainly in rainfed agriculture. India cultivates 86 million rainfed hectares, which is among the largest in the world. The incidence of poverty is high in these rainfed areas due to low land and labor productivity and limited employment opportunities. Of the total population of Uttarakhand of 8.5 million, 37 percent live below the poverty line, as compared to the national average of 26 percent. With 65 percent of India s agriculture relying solely on rainfall, improving the productivity of country s rainfed agriculture remains a challenge. The rainfed areas in India have not benefited from the green revolution technologies, which were mainly tailored to well-endowed irrigated Page 1 of 5

2 areas. Because the scope is limited to further expand irrigated areas, about 40 percent of the incremental national food demand must be met by increasing productivity in rainfed areas by To increase rainfed crop yields and reduce poverty, watershed development tools, such as rainwater conservation and harvesting, hold considerable promise. Watershed development is a primary tool of the Government of India (GoI) to increase agricultural productivity and reduce rural poverty. For the 12th Five Year Plan, GOI has signaled its intent to significantly expand the watershed development programs nationwide. In this context the proposed Uttarakhand Decentralized Watershed Development Project II (here after referred to as Gramya II), is well aligned with the GOI priorities. Building on the successful community-based approach of the Uttarakhand Decentralized Watershed Development Project (UDWDP I or Gramya I), the central focus of the proposed Gramya II is rainfed agriculture development by using watershed development tools, in particular, rain water conservation and harvesting and land resource management. Major investment would be on catchment area treatment of about 219,000 ha of nonarable land in the hills, ranging from 700 m to 2,500 m above sea level. This is expected to rejuvenate the natural resource base by significantly reducing soil erosion and runoff loss of rainwater, improving ground water recharge, and reducing sediment load in the tributaries of Ganges flowing through Uttarakhand. The project would also construct water harvesting structures and small irrigation systems on 45,000 ha of arable land, and disseminate new technologies for increasing productivity of cereal, pulse, and oilseed crops in the rainfed areas, and of high value vegetables in the irrigated areas. It would also develop value chains for selected agriculture and horticulture commodities in addition to building capacity of target Gram Panchayats (GPs) for developing and implementing sound watershed management plans. Sectoral and institutional Context In Uttarakhand, about 80 percent of population in the hills depends on agriculture. Main crops are subsistence cereals, whose productivity is as low as 1.2 to 1.4 ton/ha. On average, the crop yields in the plains are 50 percent higher than those of the hills, due mainly to limited availability of irrigation water, poor in-situ rainwater conservation, and loss of fertile topsoil. In the hills, conventional irrigation practices are not feasible. Moreover, there has been an overall reduction in the discharge rate of spring and stream water sources. About 10 percent of these water sources have dried up over the last decade. Annual rainfall is high (1,523 mm) and more than 90 percent is received during the July-September monsoon months, resulting in severe soil erosion and average soil loss of 40 tons/ha/year. Rapid water runoff from the undulating hills during monsoon months also adversely impacts downstream valley and plains regions. These are major constraints to enhancing rainfed agronomic practices and increasing agricultural productivity.. The degraded lands are owned by poor households, and their land holdings are small and scattered. As a consequence, household incomes are low and over 24 percent of the population out-migrates. Improving water availability through watershed treatment is the only way forward for enhancing agriculture productivity and improving livelihoods in the rainfed areas of Uttarakhand. The Gramya I supported the Government of Uttarakhand (GoUK) in improving productivity and livelihoods in the hills by enhancing natural resource management and strengthening capacity of the targeted Gram Panchayats (GPs). Financed by an IDA credit of US$ 77.6 million equivalent and a Global Environment Facility (GEF) grant of US$ 7.5 million Gramya I treated 234,000 ha in 76 micro-watersheds, built capacity of 468 GPs, and benefited 285,000 persons. With active community participation and adoption of improved water conservation techniques, the Gramya I Page 2 of 5

3 areas showed an increase in the discharge rate from 5-8 liter per minute (lpm) to about 18 lpm. The project provided renewable water for irrigation and domestic use. It is estimated to have created an additional irrigation potential of 11,609 ha by converting about 13 percent of rainfed areas into irrigated areas. In addition, Gramya I has helped in enhancing the productive potential of natural resources through catchment treatment and forestry activities in project areas. This includes new forestry plantation of 16,363 ha. Moreover, investments the rainwater conservation and harvesting financed under the Gramya I had a major impact on agricultural production and productivity in the project area. The project introduced high-value vegetable crops in irrigated areas through demonstrations and achieved high productivity levels (for example, the yields of ginger and peas were 2.34 t/ha and 3.67 t/ha, respectively). The project successfully established 27 agribusiness federations with forward market linkages with an annual turnover of about Rs. 430 million (about US$ 9.5 million). Through a participatory and inclusive approach to watershed development, Gramya I supported income generation activities for vulnerable groups and built substantial management capacity for participating Panchayat Raj Institutions (PRIs), including project management, fiduciary oversight, and safeguards compliance. GoUK also implemented a regulatory reform by issuing a Government Order (GO) allowing Van Panchayats (VPs) to work in reserve forest areas within the watershed catchment. Such GO by the State Forestry Department is unprecedented in India. In 2009, GoUK developed a Perspective and Strategic Plan for scaling up the participatory watershed development model under Gramya I to other programs, such as the GoIsupported Integrated Watershed Management Program (IWMP) and the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA). Common guidelines were developed for these programs, and the GoUK plans to treat 537 untreated micro-watersheds in the hills, covering about 1.9 million ha by II. Proposed Development Objectives To use participatory watershed development to improve the productive potential of natural resources and rainfed agriculture and to support the GoUK in providing effective response in the targeted areas to an eligible crisis or emergency, if required. III. Project Description Social Mobilization and Participatory Watershed Planning Component 1 would support mobilization of 509 targeted GPs and VPs prepare Watershed Development Plans (WDPs) at both the GP and micro-watershed levels. Watershed Treatment and Rainfed Agriculture Development Component 2 would improve source water discharge, enhance biomass production, and increase productivity of rainfed and irrigated crops through support to GPs and VPs to implement their WDPs. Page 3 of 5

4 Enhancing Livelihood Opportunities Component 3 would improve rural livelihoods by building on the previous two components and reaching out to target farmers, vulnerable groups, and farmer federations (FFs) formed by the Gramya I. Project Management Component 4 would finance institution building, knowledge management, dissemination, communication, monitoring and evaluation (M&E), and project operational costs. Contingent Emergency Response Component 5 would finance, as needed, GoUK requests to the Bank to reallocate project funds for response and reconstruction from adverse natural events that result in major natural disasters. IV. Financing (in USD Million) Total Project Cost: Total Bank Financing: Financing Gap: 0.00 For Loans/Credits/Others Amount BORROWER/RECIPIENT International Development Association (IDA) LOCAL BENEFICIARIES 2.90 Total V. Implementation The proposed Gramya II would be implemented by the Watershed Management Directorate (WMD) under the State Forestry Department. Uttarakhand is one of eight states in India which have established a dedicated watershed directorate to implement watershed and rainfed agriculture development activities. Under Gramya I, WMD built substantial capacity in managing a complex, multi-sectoral project, which required expertise in natural resource management, irrigation, agriculture, horticulture, livestock, forestry, environment (e.g., hydrology, climate change, and safeguards), social development (e.g., participation, social and institutional development, gender, vulnerable groups, social accountability, and safeguards), agribusiness and value chain development, M&E (including MIS), financial management, and procurement. In addition, WMD has also been implementing the GOI-financed Integrated Watershed Management Program (IWMP) and would therefore promote synergy and convergence between the two projects. The PRIs, GPs and VPs would undertake project implementation at the GP and micro-watershed levels. WMD will contract local NGOs to provide support in social mobilization, WDP preparation, implementation, and monitoring, and agribusiness development. GoUK has an adequate number of experienced NGOs for social mobilization and capacity building of the communities at the grassroots level. Moreover, WMD would partner with national institutes and universities for technical support, including the Indian Institute of Technology (IIT), the National Institute of Hydrology, and the G B Pant University of Agriculture & Technology. Page 4 of 5

5 VI. Safeguard Policies (including public consultation) Safeguard Policies Triggered by the Project Yes No Environmental Assessment OP/BP 4.01 Natural Habitats OP/BP 4.04 Forests OP/BP 4.36 Pest Management OP 4.09 Physical Cultural Resources OP/BP 4.11 Indigenous Peoples OP/BP 4.10 Involuntary Resettlement OP/BP 4.12 Safety of Dams OP/BP 4.37 Projects on International Waterways OP/BP 7.50 Projects in Disputed Areas OP/BP 7.60 VII. Contact point World Bank Contact: Edward William Bresnyan Title: Senior Rural Development Specialist Tel: Borrower/Client/Recipient Name: Department of Economic Affairs, Ministry of Finance, Government of India Contact: Mr. Nilaya Mitash Title: Director Tel: Implementing Agencies Name: Watershed Management Directorate (WMD) Contact: Mr. B. P. Pandey, FRDC and CPD Title: Chief Project Director Tel: ( ) VIII.For more information contact: The InfoShop The World Bank 1818 H Street, NW Washington, D.C Telephone: (202) Fax: (202) Web: Page 5 of 5