RESTRUCTURING PROPOSAL

Odisha Integrated Irrigation Project for Climate Resilient

Agriculture

Abstract
31.03.2023

Project Director, OCTDMS

Table of Contents
1.0 Introduction................................................................................................................................5
2.0 Project Overview........................................................................................................................5
2.1 Project Development Objective...............................................................................................5
2.2 Project Components...............................................................................................................5
2.2.1 Component 1: Climate-Smart Intensification and Diversification of Production.....5
2.2.1.1 Sub-component 1.1: Support to Improved Productivity and Climate Resilience.......5
2.2.1.2 Subcomponent 1.2: Support to Aquaculture Production.................................................5
2.2.1.3 Sub-component 1.3: Support to Diversification and Produce Marketing.......................5
2.2.2 Component 2: Improving Access to Irrigation and Water Productivity........................6
2.2.2.1 Sub-component 2.1: Support to Water Sector Reforms..................................................6
2.2.2.2 Sub-component 2.2: Support to Investments in Cascades...............................................6
2.2.3 Component 3: Institutional Capacity Strengthening.......................................................6
2.2.4 Component 4: Project Management................................................................................6
2.2.5 Component 5: Contingent Emergency Response............................................................6
3.0 Project Progress in Realizing PDO.............................................................................................6
4.0 Financial Progress.......................................................................................................................7
5.0 Rationale for Project Restructuring...........................................................................................8
6.0 Description of Proposed Changes...............................................................................................9
6.1 Component 1: Climate Smart Intensification and Diversification of Production.................9
6.1.1 Sub-Component 1.1: Support to Improved Productivity and Climate Resilience: 9
6.1.1.1 Budget Allocation.........................................................................................................10
6.1.2 Sub-Component 1.2: Support to Aquaculture Production...........................................10
6.1.2.1 Budget Allocation.........................................................................................................11
6.1.3 Sub-Component 1.3: Support to Diversification and Produce Marketing..................11
6.1.3.1 Budget Allocation.........................................................................................................12
6.1.4 Overall Change in Component 1..................................................................................12
6.2 Component 2: Improving Access to Irrigation and Water Productivity..............................15
6.2.1 Budget Allocation........................................................................................................17
6.3 Component 3: Institutional Capacity Strengthening............................................................17
6.3.1 Budget Allocation........................................................................................................20
6.4 Component 4: Project Management.....................................................................................20
6.4.1 Budget Allocation........................................................................................................22
7.0 Conclusion................................................................................................................................22

Page 1 of 23
List of Table
Table 1: Change in Proposed Budgetary Allocation Component 1.1............................................9
Table 2: Change in Proposed Budgetary Allocation Component 1.2..........................................11
Table 3: Change in Proposed Budgetary Allocation Component 1.3..........................................11
Table 4: Change in Proposed Budgetary Allocation.............................................................................12
Table 5: Budget Allocation; Project Design Vs Restructuring Stage..................................................13
Table 6: Change in Proposed Budgetary Allocation Component 2.............................................15
Table 7: Budget Allocation: Project Design Vs Restructuring Stage..................................................17
Table 8: Change in Proposed Budgetary Allocation: Component 3............................................18
Table 9: Budget Allocation: Project Design Vs Restructuring Stage..................................................18
Table 10: Change in Proposed Budgetary Allocation: Component 4..........................................20
Table 11: Budget Allocation: Project Design Vs Restructuring Stage...............................................21
Table 12 (a): Restructuring of Budget by Project Components and Excess Budget.....23
Table 12 (b): Restructuring of Budget by Project Components and Excess Budget.....23

Page 2 of 23
Abbreviations
ABSO Agri-business Support Organization AE
Agri entrepreneur
APC Agriculture Production Commissioner
ATMA Agriculture Technology Management Agency
CAD Command Area Development
CERIP Contingent Emergency Response Implementation Plan CSA
Climate Resilient Agriculture
DOWR Department of Water Resources
ESMF Environment and Social Management Framework
FIAC Farmer’s Information and Advisory Centre
FPC Farmer Producer Company FPO
Farmer Producer Organization GIS
Geographic Information System
GRM Grievance Redress Mechanism HR
Human Resource
IBRD International Bank for Reconstruction and Development ICARDA
International Centre for Agricultural Research in the Dry Areas
IRRI International Rice Research Institute
M&E Monitoring and Evaluation
MIS Management Information System
MTR Mid-Term Review
OCTDMS Odisha Community Tank Development and Management Society
OIIPCRA Odisha Integrated Irrigation Project for Climate Resilient Agriculture OP
Operational Policy
OPPA Odisha Pani Panchayat Act OSSC
Odisha State Seed Corporation
PDO Project Development Objective
PIM Participatory Irrigation Management PP
Pani Panchayat
PPP Public Private Partnership
SHG Self-Help Group
SO Support Organization
WUA Water User Association

Page 3 of 23
 DATA SHEET
BASIC INFORMATION
Borrower Country (ies) Republic of India
Project Name Odisha Integrated Irrigation Project for Climate Resilient Agriculture
Responsible Agency Department of Water Resources, Odisha
Project ID Financing Instrument Environmental Assessment Category
P163533 Investment Project Financing B-Partial Assessment
Financing & Implementation Modalities Contingent Emergency Response Component (CERC)
Approval Date Effective Date Expected Closing Date Closing Date Proposed
30-Sep-2019 16-Dec-2019 31-Dec-2025 31-Dec-2026
Proposed Development Objective(s)
The Project Development Objective is to intensify and diversify agricultural production and enhance climate
resilience in selected districts of Odisha.
Components
Component Name Cost (US$, millions)
1. Climate-Smart Intensification and Diversification of Production 74.60
2. Improving Access to Irrigation and Water Productivity 137.90
3. Institutional Capacity Strengthening 9.70
4. Project Management 12.93
5. Contingent Emergency Response 0.00
Summary Status of Financing (in US$, Millions)
Loan/ Credit/TF Net Commitment Surrendered Disbursed Undisbursed
IBRD-90110 164.59 9.00 15.14 140.85
Policy Waiver(s)
Does this restructure trigger the need for any policy waiver(s)? No
Form Type Based on the proposed changes this Restructuring type is
Full Restructuring Paper Financing/ Timeline
Safeguard Policies Triggered by the Project
Environmental Assessment OP/BP 4.01
Natural Habitats OP/BP 4.04
Pest Management OP 4.09
Physical Cultural Resources OP/BP 4.11
Indigenous Peoples OP/BP 4.10
Safety of Dams OP/BP 4.37

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1.0 Introduction:
The Department of Water Resources, Government of Odisha has been implementing “Odisha
Integrated Irrigation Project for Climate Resilient Agriculture (OIIPCRA)” with the support of
World Bank. The project expressed its interest in restructuring in view of emerging requirements
and target mass demand. Detail proposal for project restructuring is discussed in subsequent sections.

2.0 Project Overview

2.1 Project Development Objective:
The Project Development Objective is to intensify and diversify agricultural production and enhance
climate resilience in selected districts of Odisha.

2.2 Project Components

2.2.1 Component 1: Climate-Smart Intensification and Diversification of Production:
The objective of this component is to intensify production, strengthen farmers’ capacity to adapt
to climate change stresses affecting crop and aquaculture production, and diversify production,
especially in Rabi in response to effective market demand. This component will support producers in
both inside and outside the tank command. This component is having three sub-components:

2.2.1.1 Sub-component 1.1: Support to Improved Productivity and Climate Resilience: This
sub-component supports farmer to adopt CSA technologies and practices to increase productivity,
improve resilience to climate shocks and reduce GHG emissions. The sub- component supports
extension service provision, through both public and private sector, to increase farmers’ awareness
and adoption of climate-smart technologies and practices. Agri entrepreneurs are supported to
enhance their capacity in promoting agribusiness activities. To improve farmers’ access to high
yielding and resilient seed varieties, the sub-component supports in creating farmers’ awareness
on resilient seed varieties, accelerate seed multiplication and dissemination, encourage the
private sector in seed supply chain linking to the AE network as well as to the Odisha State Seed
Corporation (OSSC) seed dealer network. This sub-component also finances collaboration /
partnerships with different institutions for the promotion of CRA technologies / practices like
IRRI, ICARDA etc.

2.2.1.2 Subcomponent 1.2: Support to Aquaculture Production:

Project support under this sub-component is to promote climate- resilient aquaculture in the
rehabilitated tanks, as well as other tanks in the cascade. The project supports investments in
production of good quality climate-resilient fingerlings, technical support to establish
fingerlings production business lines. In addition, investment under the sub-component also covers
input support to landless farmers engaged in / intended for improved aquaculture production. Good
aquaculture management practices are promoted through technology transfer / extension service,
including short-term culture of alternate species.

2.2.1.3 Sub-component 1.3: Support to Diversification and Produce Marketing:

The objective of this sub-component is to support farmers to reduce the current emphasis on paddy
and increase the share of high-value non-paddy crops; and improve marketing of the produces /
market linkage to increase farmer’s income and ensure sustained income to the farmers through
adoption of CSA practices. This sub-component helps in increasing awareness of farmers on
diversification opportunities, support for value chain development of potential commodities,
strengthening farmer groups, capacity building on marketing, agribusiness management, fostering
linkages with the financial sector or other government programs for access to credit etc.

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 2.2.2 Component 2: Improving Access to Irrigation and Water Productivity:
Support under this component goes towards introducing water sector reforms, including piloting
of IWRM, support for the preparation of groundwater regulation, establishment of a PP support
unit in DOWR, piloting of Public Private Partnerships (PPP) in irrigation management, and
investments in selected cascades of irrigation tank systems.

2.2.2.1 Sub-component 2.1: Support to Water Sector Reforms:

This sub-component invests in introduction of IWRM in one pilot catchment (Kharkhari Nala),
bringing in Groundwater regulatory reform, establishment of PP Support unit, and introducing
PPP in irrigation management.

2.2.2.2 Sub-component 2.2: Support to Investments in Cascades:

Under this sub-component, investment is made in hydraulic infrastructure in project tanks/
cascades. Support under this sub-component covers identifying the priority investments within
the identified cascades, conducting rapid hydrological assessment, and identifying investments
that contribute to optimizing water use across the cascade and throughout the year. To improve the
sustainability of irrigation systems, the project finances capacity development of stakeholders,
support PPs and their federations, and establishment of PP support cell in DOWR.

2.2.3 Component 3: Institutional Capacity Strengthening:

The objective of this component is to improve capacity of the GoO for interdepartmental planning,
coordination, and implementation of cross-sectoral programs in the agriculture and water resource
sectors with the view of strengthening farmers’ capacity to adopt to climate change. The project
finance under this component covers establishment of a secretariat within the office of the
Agriculture Production Commissioner (APC) for the purposes of improving planning and
convergence, coordination, oversight, monitoring, analytics, policy formulation, and
partnerships building. This component also supports state’s long and short-term vision for water
and agriculture development and adaptation / mitigation of climate change, build the state’s capability
to deliver programs, and help forge strategic long-term partnerships for improved performance
of relevant sectors. This component also support training for relevant departmental staff,
based on capacity assessments. The project finance also includes staff support to the district level.

2.2.4 Component 4: Project Management:

This component finances activities related to state and district-level project planning,
coordination, and management. Financing under this component includes procurement, financial
management, human resource management, safeguards compliance monitoring, development &
implementation of Management Information System (MIS), monitoring and evaluation (M&E),
Grievance Redress Mechanism (GRM) etc.

2.2.5 Component 5: Contingent Emergency Response:

This component deals with contingent emergency response and intended to support in case of disaster
or other crises and emergencies. Support under this component is planned to be provided based on a
detailed Contingent Emergency Response Implementation Plan (CERIP). No budget is allocated
to this component as allocation will be need based.

3.0 Project Progress in Realizing PDO:

The interventions under the project have been supporting in realizing the PDO in terms of
improving crop productivity, promotion of CRA practices through demonstrations, improving
water availability in the tank command along with modernization of irrigation structures and
systems, strengthening PPs for participatory irrigation management etc.

Page 6 of 23
About 4,798 ha. of cultivated area has been provided with improved irrigation along with
adoption of different CRA practices by 2,826 farmers in the tank command and nearby areas.
Share of non-rice commodities in the total agricultural production system observed improving
along with emergence of agribusiness activities. Potential FPOs in the intervention areas have
been identified and they have been strengthened to take up agribusiness and value / supply chain
management.

The project has promoted adoption of CRA practices and crop diversification through
demonstrations of millets (1,247 ha.), promotion of green manure crops (3,572 ha.),
demonstration of oil seeds (2,825 ha.), demonstration of pulses (3,775 ha.) and promotion of 335
organic clusters in 6,700 ha. with the association of 13,982 farmers. Hybrid vegetable has also
been promoted in 2,552 ha. to enhance farmer’s income and support in crop diversification.
Women groups have also been supported for mushroom farming. To improve supply chain of
agricultural and horticultural commodities, individual farmers have been supported with pack
house (130 nos.), preservation units (109 nos.), and onion storage structures (130 no.). Capacity
building on CRA practices has been one of the key thrusts of the project through training,
exposure and hand holding support.

To augment pisciculture in the project area, individuals, and women SHGs have been supported
with required inputs (seed, feed, technology) in feasible tanks. Private hatcheries (28 nos.) have been
supported to enhance fingerling production and need based supply of fingerlings to the
intervention tanks.

Improving irrigation coverage, minimizing gap ayacut and bringing in water use efficiency has been
one of the prime focuses in the project. The project has prepared DPR for all 429 tanks and
identified solutions to improve the irrigation structures and systems. Tank rehabilitation
measures have been completed in 28 tanks with reduction of gap ayacut. Civil works contracts have
been made in 188 tanks and there are 89 tanks in tender stage. The project has also been supportive in
strengthening the PP support unit at State and district level by strengthening its human resource
capacity. The project interventions have been helpful to reorganize and strengthen 450 PPs covering
15 project districts. The project has taken initiatives for the promotion of PPP in irrigation
management along with PIM through PPs.

Capacity building has been an important activity under the project that supports all other components
and sub-components of the project. Based on the designed capacity building framework, the project
has trained 164 engineers covering all the project districts. About 120 personnel of SOs engaged by
the project to facilitate execution of the framed activities have also been trained on project and its
interventions. The project has also in the process of developing different modules/ manuals, as per the
identified needs of the target mass, including Govt. officials of associated Depts.

4.0 Financial Progress:

The financial progress of the project has been modest due to various exogenous factors, including
COVID pandemic. The project has utilized USD 31.089 million (INR 222.16 Cr.) against the
disbursement of USD 15.841 million (INR 113.2 Cr.) (9.6 % of the total IBRD support) up to March
2023. The physical and financial progress of project components / sub-components has been low at
this stage, looking at the project cycle and planned expenditure.

Page 7 of 23
5.0 Rationale for Project Restructuring:
Impact of COVID Pandemic: Project progress remained disproportionate during the initial project
period, i.e., 2019-20 and 2020-21 owing to the prevalence of COVID-19 pandemic. With
inconsistent physical progress, financial progress also remained lopsided. Hence, realignment of
both physical and financial aspects under all the sub-components seems essential.

Revisiting and Reframing Interventions: The activities that were framed during the design
stage was revisited during MTR. Revisiting the activities covered intervention approach, strategy of
execution, physical targets, and financials. Consultation with different stakeholders revealed
that while some framed interventions are required to be modified, some activities required change
in execution strategy. It is also recognized that the set physical target require modification,
looking at executional gap in the initial phases of the project. As revision of physical target will
induce financial revision and will have impact on the result indicators, restructuring can help to
make the intervention more realistic and achievable.

Financial Appropriateness and Relocation: It is realized in the course that availability of

funds under specific interventions required to be appropriated based on the field situation and as
per the emerging community demand. During analysis of progress and achievement, it is also
observed that relocation of the funds would help to improve the financial utilization and linked
physical progress. As physical and financial deviations from the initial plan are expected under
components/ sub-components, project can be restructured to accommodate such revisions.

Mobilization of Executing Agencies: As per the design of the project, SOs play a vital role in
facilitating and execution of project activities across the sub-components. On-boarding of SOs
and their full-fledged association consumed major part of the initial project period. During this
initial phase, progress of preparatory activities remained slow which impacted upon
implementation of other activities that require community association, selection of target
beneficiaries etc. So, the time lapsed in preparatory work and slow progress of different other
activities during that period requires to be adjusted with the overall project life cycle and
accordingly the achievement targets. Hence, restructuring can be supportive in realignment of
both physical and financial aspects of project components / sub- components in a more realistic
and judicious manner. Further, placement of HR in the project and onboarding of SST / ABSO /
UNDP supported hands was time consuming. Mobilization of contractors through tender process
also consumed significant time and impacted on project progress.

Status of PP: It was observed in majority of the tanks that the existing PPs required to be
reorganized or reformed for their effective association in project activities. As project framed
activities, more specifically component II requires association of PP in the overall process, their
strengthening was given priority, so that related other activities can be taken up. After the association
of SOs, PP strengthening measures were taken up to prepare them to take up PIM and participate in
the project activities. Reorganization/ reformation of the PPs, as per the OPPA, consumed significant
part of the project duration and slowdown the physical progress of other activities that is based on
community organizations.

Achievements as per the Result Framework: The slowdown of activity execution further
retarded the realization of the result indicators and targets there by. During MTR, it is also
realized that some indicators required to be revisited and reframed along with the targets

Page 8 of 23
that are SMART and in consideration to the lapsed project cycle. So, along with physical and
financial reexamination and restructuring, reexamination of the result indicators and required
revision is to be taken up for which restructuring of the project seems a requirement.

Savings from Currency Exchange Rate: The project has accrued exchange rate gains due to
appreciation of dollar value over a period of three years of the project cycle. Submission of till
date exchange rate savings is mutually agreed between Government of Odisha and the World Bank
during the Mid Term Review. The generated savings, which was planned to be a part of the overall
project finance, apart from the actual budget allocation, requires to be excluded from the future
provision and realignment of project finances accordingly. Hence, for financial realignment,
excluding such savings, is to be made and restructuring of the project can make it feasible.

6.0 Description of Proposed Changes:

The restructuring of the project will be comprising of (1) revision of scope of different
project components, sub-components and activities; (2) revision of project activities under sub-
components; (3) modification of physical targets, (4) relocation of funds and cost table amendment;
and (5) modification of project result indicators.

6.1 Component 1: Climate Smart Intensification and Diversification of Production The

component I is objectively designed to enhance adoption of CRA practices, improve agricultural
production and productivity and promotion of pisciculture in feasible project tanks. The project is
having three sub-components and proposed changes in the intervention are highlighted
below.

6.1.1 Sub-Component 1.1: Support to Improved Productivity and Climate Resilience:

The sub-component 1.1 supports to improve productivity and climate resilience in the project
area. Broad intervention framework under the project will continue to exist, with change in
nature of activities, physical target and financial allocation. The project will continue to support
(1) AE network for 500 AEs; (2) strengthening existing extension system through ATMA /
FIAC; (3) engagement with partner agencies for promotion of climate resilient practices; (4)
facilitate crop diversification and demonstrations; (5) capacity building of producers; and (6)
support project management. The matrix below highlights broad activities that were planned
earlier and would continue after the restructuring.

Table 1: Change in Proposed Budgetary Allocation Component 1.1

Sl. No. Project Initial Revised Difference Remarks
Components / Allocation Allocation
Activities
Sub-Component 1.1
1.1 A 1 AE Network 10.350 12.270 1.92 Target AEs remain unchanged.
Development for Allocation under AE increased by
500 AEs INR 1.92 Cr. due to specific
supportive measures to strengthen AEs,
i.e., engagement of PMU, providing
IT support to AEs to improve
their business
performance and construction of AE
incubation centre.
1.1 A 2 Strengthening 3.964 3.627 -0.34 Different actions are already taken in
existing the project cycle to strengthen
extension existing extension system. Hence,
the allocation is reduced by 0.34 Cr.
Sl. No. Project Initial Revised Difference Remarks
Components / Allocation Allocation
Activities
system through
ATMA/FIAC

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 1.1 B Engagement 56.056 55.832 -0.22 The project has collaborated with
with Partner different ICAR institutions for the
agencies promotion of climate resilient
practices in project districts. Based on
the current engagement pattern and
project support norms,
allocation marginally reduced by INR
0.22 Cr.
1.1C Crop 145.324 170.500 25.176 The project has taken up
Diversification demonstrations in different project
and districts to promote climate resilient
Demonstration practices. The associated ICAR
institutions have also taken up
demonstrations for specific crops
and budget allocation is raised by
INR 25.176 Cr.
1.1D Capacity 11.507 15.298 3.791 Allocation raised by INR 3.791 Cr.
Building of considering additional capacity
Farmers/ building measures for training of
Producers/ Lead farmers including Krushak
Officers Sathi, Exposure Visit and training of
Officers (Outside State/ Country).
1.1E Project 2.184 6.500 4.32 Additional provision of INR 4.32 Cr. is
Management proposed to accommodate increase
in cost norms in project management
and documentation of project
activities.
Sub-Comp-1.1 229.385 264.027 34.642 Overall, a rise in the plan for INR
34.642 Cr. is proposed from the
earlier allocation, based on the
activities that are already taken up and
additional capacity building
measures proposed under the
project, revision in cost norms of
the activities.

6.1.1.1 Budget Allocation:

Total budget allocated to Component 1.1 prior to restructuring was Rs. 229.39 Cr (USD 32.1
million). The allocation for this component is revised to INR. 264.02 Cr (USD 36.95 million) for
the balance project period. After relocation, there will be an additional fund of INR 34.64 Cr.
(USD 4.85 million) which is reallocated to other components/ sub- components.

6.1.2 Sub-Component 1.2: Support to Aquaculture Production:

Aquaculture promotional activities are taken up under this sub-component in project and individual
tanks that have feasible water spread area. Based on the persisting situation at the project sites,
modification in the intervention plan is suggested in the project restructuring. While some
feasible activities will continue after restructuring, activities that are less feasible contextually is
proposed for exclusion from the intervention frame. The matrix below highlights the activities and
its proposed financial allocation

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Table 2: Change in Proposed Budgetary Allocation Component 1.2
Sl. No. Project Initial Revised Difference Remarks
Components / Allocation Allocation
Activities
Sub-Component 1.2
1.2 Support to 40.732 43.650 2.918 Based on existing situation and after
Aquaculture careful assessment of the emerging
needs, some innovative and additional
interventions are planned under this
sub-component for pisciculture
promotion. It includes promotion of
Bio Floc, fishing drag net support to
fishers, engagement of a third-party
agency for capacity building of
fishers and technology demonstration
for climate resilient fish farming.
Additional INR 2.918 Cr. is proposed
to accommodate the revised plan.

6.1.2.1 Budget Allocation:

Total budget allocated to Component 1.2 prior to restructuring was Rs. 40.732 Cr (USD 5.70
million). The revised allocation for this component is INR. 43.650 Cr (USD 6.11 million) for the
balanced project period. After relocation, there will be an increment of INR 2.918 Cr. (USD 0.41
million) under the sub-component which is adjusted with other components / sub-components.

6.1.3 Sub-Component 1.3: Support to Diversification and Produce Marketing:

Promotion of agribusiness activities has been the prime focus of this sub-component. It is expected
that with increased diversification of crops and improvement in gross cropped area and cropping
intensity, there will be increasing requirement for market linkage and value addition of the produces.
This component will support in establishing processing units, providing market linkage support
through ABSOs, building capacity of the farmers and their collectives (FPO / FPC) and render
management support to the FPO /FPC in business planning and management. Realizing the
importance of the initially planned activities and its importance on the overall project
performance, majority of the planned activities are proposed to continue after restricting with
revised cost allocation. Details of activities that were planned earlier and would continue after
restructuring is presented in the matrix.

Table 3: Change in Proposed Budgetary Allocation Component 1.3

Sl. No. Project Initial Revised Difference Remarks
Components / Allocation Allocation
Activities
Sub-Component 1.3
1.3A Produce 45.500 9.850 -35.65 Two interventions, i.e., thematic
Marketing studies and technical assistance by
Support OSAM Board is proposed to be
dropped from the plan. Cost of hiring
ABSO has also been reduced based on
the recent experience in the bidding
process for ABSO engagement. The
proposed revised allocation is reduced
by INR 35.65 Cr. due to the
realignment of activities.

1.3B Training and 14.776 2.019 -12.76 Building capacity of the farmers and
Capacity their groups has been one of the
focuses under the sub-component.
Sl. No. Project Initial Revised Difference Remarks
Components / Allocation Allocation

Page 11 of 23
 Activities
building of The project has already taken measures
Farmer Groups in this regard with experience of costs
associated with each event. Hence, cost
norm is realigned, and budget
allocation is proposed to be reduced
by INR
12.76 Cr.
1.3C Business Plan 202.697 292.221 89.524 As commodity specific supply chain and
Financing in value chain development is the thrust of
Prioritised this component, earlier budget
categories provision found inadequate to cater to
the emerging needs of the farmers and
their groups. The project is
suggesting additional measures to
support the farmers and their groups
with preservation and processing
facilities and hence additional budget
of INR 89.524 Cr.
is proposed.
Sub-Component 262.973 304.089 41.11 Looking at the emerging perspective in
1.3 agribusiness and investment
requirement, the project has proposed
to increase the overall budget of sub-
component 1.3 by INR
41.11 Cr.

6.1.3.1 Budget Allocation:

Total budget allocated to Component 1.3 prior to restructuring was INR 262.973 Cr (USD 36.80
million). The revised allocation for this component is INR. 304.089 Cr (USD 42.55 million) for
the balance project period. After reallocation, there will be an increment of INR
41.11 Cr. (USD 5.75 million) under the sub-component which is adjusted with other
components/ sub-components.

6.1.4 Overall Change in Component 1:

Table 4: Change in Proposed Budgetary Allocation
Sl. No. Project Components / Activities Initial Revised Difference
Allocation Allocation
Sub-Component 1.1
1.1 A 1 AE Network Development for 500 AEs 10.350 12.270 1.92
1.1 A 2 Strengthening existing extension system through ATMA/ 3.964 3.627 -0.34
FIAC
1.1 B Engagement with Partner agencies 56.056 55.832 -0.22
1.1C Crop Diversification and Demonstration 145.324 170.500 25.17
1.1D Capacity Building of Farmers/ Producers/Officers 11.507 15.298 3.791
1.1E Project Management 2.184 6.500 4.32
Sub-Total Comp-1.1 229.385 264.027 34.64

Sub-Component 1.2
1.2 Support to Aquaculture 40.732 43.650 2.92

Sub-Component 1.3
1.3A Produce Marketing Support 45.500 9.850 -35.65
1.3B Training and Capacity building of Farmer Groups 14.776 2.019 -12.76
1.3C Business Plan Financing in Prioritised categories 202.697 292.221 89.52
Sub-Total Component 1.3 262.973 304.089 41.11
Grand Total Component-1 533.094 611.774 78.68

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Table 5: Budget Allocation; Project Design Vs Restructuring Stage
Sl. No. Project Components / Activities (Component 1) Initial Revised IBRD
Allocation Allocation Share
(70%)
1.1. A Strengthening Extension Delivery System
1.1 A 1 AE Network Development for 500 AEs
Selection of AEs 10.350 0.052 0.036
Training of AEs 5.910 4.137
Incubation of AEs (Cumulative) 3.000 2.100
Procurement of tablets for AEs 0.600 0.420
IT support cost to AE 0.100 0.070
Partner agency cost to PRADAN 0.572 0.400
PMU cost to WASSAN 0.655 0.459
Construction of AE incubation centre 0.830 0.581
Admin expenses 0.550 0.385
Sub-Total (1.1 A.1) 10.350 12.270 8.589
1.1 A 2 Strengthening existing extension system through 3.964 3.627 2.539
ATMA/FIAC
Sub-Total (1.1 A. 2) 3.964 3.627 2.539
1.1 B Engagement with Partner agencies -
Engagement with Partners agencies NRRI, IRRI, ICRISAT, 56.056 55.832 39.082
ICARDA and CIWA)
Sub-Total (1.1 B) 56.056 55.832 39.082
1.1C Crop Diversification and Demonstration -
Integrated Farming System (IFS) 145.324 9.870 6.909
Millet Promotion 10.056 7.039
Demonstration of Climate Resilient Crop Varieties (Pulses) 24.825 17.378
Demonstration of Climate Resilient Crop Varieties (Oil Seed) 12.248 8.574

Hybrid vegetable cultivation/ Floriculture 8.116 5.681

Green Manuring with Dhanicha 3.155 2.209
Organic cluster Promotion 29.461 20.623
Direct Seeded Rice (DSR) 4.641 3.249
Innovative Horticulture for CRA 68.13 47.691
Sub-Total (1.1 C) 145.324 170.500 119.350
1.1D Capacity Building of Farmers/ Producers/Officers -
Farmer Field School training (FFS) 4.150 4.232 2.962
Farmers Training on Climate Resilient Agricultural Practices 3.600 2.643 1.850

Exposure visits of farmers 2.432 5.948 4.164

ToT 0.500 0.075 0.053
Training of Lead farmers including Krushak Sathi 0.825 0.800 0.560
Exposure Visit and training of Officers (Outside State/ - 1.600 1.120
Country)
Sub-Total (1.1 D) 11.507 15.298 10.709
1.1E Project Management -
Project Management/Documentation/ Contingency for 1.004 3.250 2.275
state and district level (DA & FP)
Project Management/Documentation/ Contingency for 1.180 3.250 2.275
state and district level (DoH)
Sub-Total (1.1 E) 2.184 6.500 4.550
Sub-Total Comp-1.1 229.385 264.027 184.819
1.2 Support to Aquaculture
Block-level network of Private Seed Growers for production 40.732 0.623 0.436
of advanced fingerlings
Promotion of Scientific Fish farming in 263 MIPs (1122 Ha) 17.257 12.080
by WSHGs/ WUGs/ Pani Panchayat
Promotion of Species Diversification in Private Tanks through 4.720 3.304
Polyculture of IMC with Amur Carp, Minor Carps, Mola and
Freshwater Prawn and Monoculture of GIFT
Tilapia and Pangasius
Sl. No. Project Components / Activities (Component 1) Initial Revised IBRD
Allocation Allocation Share
(70%)

Page 13 of 23
 Biofloc unit inside the Ayacut area (Ayacut village with revenue 6.000 4.200
boundaries as unit)
Small feed mixing plant/ pelletiser to local community 3.000 2.100
organisations / individual
Demonstration of freshwater prawn nurseries for production of 1.000 0.700
juveniles from PL
Fishing drag net (300’X 18’) 1.000 0.700
Water testing kit 0.500 0.350
Fish marketing infrastructure 1.600 1.120
Innovative fisheries technology demonstration 2.000 1.400
Capacity building (trainings & exposure visits) and monitoring 5.000 3.500
& evaluation through technical collaboration with WorldFish
international CGIAR organization
(Consultancy Charges to WorldFish)
Project Management (State Level) Mobility Expenses 0.750 0.525
Project Management (State Level) IT and Communication 0.200 0.140
equipment
Sub-Total Comp-1.2 40.732 43.650 30.555
1.3A Produce Marketing Support -
Hiring of ABSO 15.000 9.850 6.895
Hiring an agency for thematic studies 9.000 - -
Technical Assistance OSAM Board 21.500 - -
Sub-Total Comp-1.3A 45.500 9.850 6.895
1.3B Training and Capacity building of Farmer Groups -
1.3. B.1 Training -
FG Organisation and Governance 0.292 0.292 0.204
Business Management and Marketing skills 0.292 0.292 0.204
Statuary (Financial Management/ Book Keeping/ Documentation) 0.292 0.292 0.204

Need based Skill Training 1.000 0.292 0.204

Sub-Total Comp-1.3B1 1.876 1.168 0.818
1.3. B.2 Exposure Visits and Farmers Training (DoH) -
Exposure Visit of Farmers inside state 6.000 0.264 0.185
Exposure Visit of Farmers outside state 6.900 0.334 0.234
Training of Farmers - 0.253 0.177
Sub-Total Comp-1.3B2 12.900 0.851 0.596
Sub-Total (1.3.B) 14.776 2.019 1.413
1.3C Business Plan Financing in Prioritised categories -
Millet Processing Unit 202.697 6.680 4.676
Small Oil extraction Unit 5.962 4.173
Mini Dal Mill 3.110 2.177
Custom Hiring Center 82.600 57.820
Solar Pump 105.924 74.147
Saturation mode micro irrigation in a single village 2.226 1.558
Mushroom Cultivation 3.477 2.434
Vermicompost Pit 0.560 0.392
Functional Pack House 8.000 5.600
Cold room Solar fir 5MT/ Electric for 30 MT 0.675 0.473
Sabji Cooler 0.345 0.242
Onion storage structure 3.031 2.122
Preservation unit (Veg & Fruits) 3.458 2.421
Scientific Apiculture 25.528 17.870
IoT based Scientific Apiculture 1.500 1.050
Innovative horticultural project to minimize post-harvest 22.746 15.922
losses through FruWash
IoT based Mushroom cultivation 3.900 2.730
Integrated pack house with facilities for conveyer belt, sorting, 12.500 8.750
grading units, washing, drying and weighing (9m*18m) @ Rs
50.0 lakh/unit

Sl. No. Project Components / Activities (Component 1) Initial Revised IBRD

Allocation Allocation Share
(70%)
Sub-Total Comp-1.3C 202.697 292.221 204.555

Page 14 of 23
 Sub-Total Component 1.3 262.973 304.089 212.862
Grand Total Component-1 533.094 611.774 428.242

6.2 Component 2: Improving Access to Irrigation and Water Productivity:

This component supports in improving access to irrigation and enhance water productivity with
both structural and non-structural measures. Under this component, renovation and
modernization of identified project tanks have been taken up along with providing irrigation to the
farmers through CAD channels. This component also supports PPs in strengthening their
governance system, irrigation management capacity, crop water budgeting knowledge base and over
and above promotion of participatory irrigation management.

Activities under the component proposed, in line with the PDO, are rehabilitation and
modernization of tanks, desilting of selected tanks based on the hydrological assessment, CAD
works to improve irrigation coverage and efficiency improvement, LIDAR based survey of the
identified / selected tanks for desilting, IWRM piloting in selected tank etc. Suggested activities and
revised budget are presented in the matrix.

Table 6: Change in Proposed Budgetary Allocation Component 2

Sl. Project Components/ Activities
No.
Component 2
A. Improving access to Irrigation and Water productivity - Tank System Improvement
i. Civil Works (W)
ii. Quality Control (C/S)
iii. Catchment treatment and Cascade
Level Organization provision while
implementing cascade plan (W)
Sub Total (A)
B. Support to Water Sector Reforms
i. Consultancies
ii. Improving Service delivery
through PPP model in medium
Initial Revised Differen Remarks
Allocati Allocati ce
on on
832.80 744.85 -87.95 It is assessed that out of 537
tanks, 70 tanks do not require
tank improvement works. The
cost estimated for
improvement has been reduced
in view of actuals for the 277
tanks tendered. The average
unit cost is adopted for the rest
of the tanks basing on the
actuals and the allocation
under this head is
reduced by INR 87.95 Cr.
6.00 4.96 -1.04 The cost is reduced as per
actual contract amount.
105.00 23.26 -81.74 The activity would be piloted in
25% of the area previously
planned under cascades in
view of the time constraints.
943.79 773.06 -170.73
7 8
9.872 6.623 -3.25 The activities as provisioned in
the plan has been kept intact
with budget for the consultancy
services reduced by INR 3.25
Cr. based on the actual service
cost. A new activity, i.e.,
LIDAR survey is proposed for
the project tanks and budget
provision is made for the
activity.
7.00 7.00 - The activity and budgetary
provision remain unchanged.

Sl. Project Components/ Activities Initial Revised Differen Remarks

No. Allocati Allocati ce
on on

Page 15 of 23
 and large-scale tanks & Irrigation
Automation pilot (W)
iii. Support for the preparation of ground 6.00 - -6.00 The provision of Rs. 6.00 Cr is
water regulation (C/S) dropped as govt. has made
favourable policy framework for
ground water use for
irrigation in tank command.
Sub Total (B) 22.87 13.62 -9.25
D Support To Water User/PP Members 2.100 - -2.10 No budget is allocated to this
intervention as it was shifted
to Component-3 with
appropriateness of budget
E Training 13.694 - -13.69 Engagement of SO, and their
training, including baseline
development are already
completed. Training of PP /
WUA is shifted to Component-
3 along with PP monitoring and
learning meetings. Hence no
budgetary provision is
made under this head.
F Exposure and Learning Visit for PP 2.970 - -2.97 Looking at the nature, this
members activity is aligned with
Component-3 and hence no
budget is proposed
Pani Panchayat Sub Total (4+5) 16.664 - -16.66 As all PP / WUA related
activities shifted to
Component-3, no budget is
allocated in this sub-
component. So, there is
reduction of INR 16.66 Cr.
from the previous sanctioned
budget.
Grand Total 985.43 792.69 -192.74
3 1
Notes on activity restructure:
Overall, total budget allocation under the component is reduced by INR 192.74 Cr. due to reduction of number of tanks
under civil works, realignment of activities with other project components and appropriateness of cost based on
experience in project execution.
Civil Works: 70 tanks out of 537 tanks considered under project does not require tank improvement except CAD
& Tank desilting etc.
Quality Control: Provision of Rs.6.00 Cr for this consulting work has been reduced to Rs. 4.95 Cr as per the
contract.
Catchment treatment and Cascade Level Organization provision while implementing cascade plan (W): The
provision of Rs.105.0 Cr have been reduced to Rs. 23.26 Cr. The number of PP under Cascade Level Organization
plan will be carried in 25% of the area.
IWRM Pilot: Provision of Rs.4.00 Cr for this consulting work has been reduced to Rs. 0.89 Cr as per contract. Support
for the preparation of ground water regulation: The provision of Rs. 6.00 Cr is dropped as govt. has made
favorable policy framework for ground water use for irrigation in tank command.
Support to the PP Cell at State and provisions related to capacity building: The cost under these activities has
been relocated under Component-3

Page 16 of 23
Table 7: Budget Allocation: Project Design Vs Restructuring Stage
Sl. Project Components / Activities Initial Revised IBRD Share
No Allocatio Allocation (70%)
. n
A. Improving access to Irrigation and Water productivity -
Tank System Improvement
1 Civil Works (W) 832.797 744.854 521.398
2 Quality Control (C/S) 6.000 4.956 3.469
3 Catchment treatment and Cascade Level Organization 105.000 23.258 16.280
provision while implementing cascade plan (W)
Sub-Total (1) 943.797 773.068 541.148
B. Consultancies
1 Cascade Planning, Preparation of DPR and PP -
mobilisation/a5
i. Contour Survey of Tanks (C/S) 1.020 1.015 0.711
ii. Hydrologic Assessment of tanks in cascade (C/S) 1.240 1.231 0.861
iii. DPR Preparation (C/S) 1.740 1.850 1.295
iv. LIDAR survey of tank & command (C/S) - 6.920 4.844
2 IWRM Pilot (C/S) 4.000 0.887 0.621
3 Improving Service delivery through PPP model in medium and 7.000 7.000 4.900
large-scale tanks & Irrigation Automation pilot (W)
4 Support to State Dam Safety Expert Panel (C/S) 1.872 0.720 0.504
5 Support for the preparation of ground water regulation (C/S) 6.000 - -
Sub-Total (2) 22.872 19.623 13.736
D SUPPORT TO WATER USER/PANI PANCHAYAT Members
Support to the PP Cell at State (C/S) 2.100 - -
Sub-Total (3) 2.100 - -
E Training - -
Training of SO for Baseline preparation (4 day)/a2 0.064 - -
Development of baseline & PP/WUA of the 538 tanks by SO 0.161 - -
Training need Assessment by SO with technical support from 0.269 - -
Commission of modules (ToT/ development of training - -
calendar) -
Training of PP/WUA/ a 11.880 - -
Monitoring and Learning meeting at PP/WUA/a.3 1.320 - -
Sub-Total (4) 13.694 - -
F Exposure and Learning Visit for PP members/a.4 2.970 - -
Sub-Total (5) 2.970 - -
Pani Panchayat Sub Total (4+5) 16.664 - -
Grand Total 985.433 792.691 554.883

6.2.1 Budget Allocation:

Total budget allocated to Component 2 prior to restructuring was INR 985.433 Cr. (USD 137.90
million). The revised allocation for this component is INR. 792.691 Cr. (USD 110.93 million) for
the balanced project period. After relocation, the balance of INR 192.74 Cr. (USD 26.97
million) has been reallocated to other components / sub-components and/or planned for surrender.

6.3 Component 3: Institutional Capacity Strengthening:

The project will take required measures to improve and strengthen capacity of the Govt. officials of
the associated Departments / institutions under this component in planning, coordination,
implementation of project / programs and over and above to enhance their service delivery capability.
Capacity building plan is prepared under this component for different stakeholders and exposure visits
are organized along with training. Along with advanced technical training, the project looks at
developing different E-modules for the convenience of the officials.

Page 17 of 23
Some of the activities which are already completed, are excluded from the intervention frame
of this component while, based on the emerging needs, additional activities are suggested for
the remaining period of the project. A comparative of activities proposed during design stage
and the activities that are to be continued after restructuring is presented in the matrix.

Table 8: Change in Proposed Budgetary Allocation: Component 3

Sl. Project Initial Revised Difference Remarks
No. Components/ Allocation Allocation
Activities
Component 3
A. PP/Community 1.800 20.857 19.057 All PP related plan shifted from
Component 2 to Component 3. To enhance
capacity of the PPs, strengthen PP cell at the
State level and to improve PP governance
mechanism for better irrigation
management; additional budget is allocated
to the tune of INR
19.057 Cr.
B. Departmental Staff 67.520 77.505 9.985 The project has planned to take up
Training on Project strengthening planning, execution, and
Management coordination capacity of the Dept.
Development officials with a broader perspective. The plan
Programme also includes catering to the capacity
building needs of other stakeholders like
SO, cascade council etc. The budget
provision has been increased by INR 9.985
Cr. to address the planned
capacity building measures.
Total 69.320 99.812 29.042 Overall, there is an increment of INR
29.042 Cr. under this component to meet
the capacity requirement of different
stakeholders. The budgetary provision
includes a range of stakeholders whose
capacity will be enhanced through
appropriate initiatives. Budget provision is
also made under this component for
orientation of stakeholder/s on
environmental safeguard, cost towards
strengthening APC establishment and
training of contractors.

Table 9: Budget Allocation: Project Design Vs Restructuring Stage

Sl. No. Project Components / Activities Initial Revised IBRD Share
Allocation Allocation (70%)
A. PP/Community Strengthening
1 Support to the PP cell at State - 2.200 1.54
2 Support & Setting of PP Offices - 7.059 4.94
3 PP Kit (Poster, Flex/Banner) - 0.272 0.19
4 Preparation of Perspective Plan & Annual Plan for - 0.272 0.19
PP Members
5 Training of PP/WUA /a - 4.000 2.80
6 PP Training Resource Person Fees - 0.030 0.02
7 Governing Body Meeting of PP (Per Year 2*2 Year = 4) - 2.715 1.90

8 Monthly PP Meeting - 0.041 0.03

9 PP Exposure Visit - - -
10 Inside State (Grade B) - 0.326 0.23
11 Outside State (Grade A) - 0.543 0.38
12 E-Module Development for PP Members - 1.600 1.12
Sl. No. Project Components / Activities Initial Revised IBRD Share
Allocation Allocation (70%)
13 Incentive to Best Performing PP 1.800 1.800 1.26

Page 18 of 23
 Sub-Total (A) 1.800 20.857 14.60
B. Departmental Staff Training on Project Management -
Development Programme
1 Senior Level Staffs (Agri/ Horti/ Fish/ MI) 0.290 0.080 0.06
i. Middle Level Staffs (Agri/ Horti/ Fish/ MI) - 0.152 0.11
ii. Field Level Staffs (Agri/ Horti/ Fish/ MI) - 0.450 0.32
iii. District Level Project Monitoring Team Meeting (Monthly 0.090 0.007 0.01
Once)
iv. Advanced Technical trainings in Hydrology/related 7.500 7.500 5.25
discipline of the Engineers (Training at Best institution,
departmental institutions or any other
identified agencies).
2 E-Module Development for PP Members 0.400 1.600 1.12
3 Development of Training Materials 1.320 1.000 0.70
4 Digital communication. (Local Level/ National Level/ 1.000 1.000 0.70
International Level)
5 Training of Field Level Officials/ SPMU Experts/ - 0.305 0.21
Dept. Cell Experts
6 Printing of posters/wall paintings etc. 0.600 - -
7 Training of project officials (3 days) 0.279 - -
8 Development of CB framework 0.100 - -
9 Exposure Visit - - -
i Within state (Field Level Officials from Agri, Horti, 0.640 0.150 0.11
Fisheries, SOPMT & CFT)
ii Outside state (Middle Level Officials from Agri, 1.800 2.100 1.47
Horti, Fisheries, SOPMT
iii Outside India Senior Level Officials from Agri, Horti, 3.395 2.400 1.68
Fisheries)
iv. National Level Exposure Visit/ Seminars/ Workshop - 0.813 0.57
etc.
v Overseas Exposure of Experts / Officials (SPMU/S- SPU) - 0.750 0.53

9 Engaging SO's for social mobilization and 39.553 42.596 29.82

coordination with different stakeholders during project
implementation
10 Cascade council /a.6 0.153 - -
11 Knowledge Management /a.7 1.000 1.000 0.70
12 Strengthening Advisory Support at APC level 6.000 13.176 9.22
13 Strategic Engagement/Promotion cost for APC 1.600 1.600 1.12
/*a.5
14 Agriculture Technology Media Lab (OUAT) 1.800 - -
15 Training on Environment Safeguard - - -
(IPM/INM/OHS/CRA)
i. Senior Level Staffs of State - 0.224 0.16
(Agri/Horti/Fisheries/MI)
ii. District Level Staffs of State - 0.310 0.22
(Agri/Horti/Fisheries/MI)
iii. Block Level Staffs of State (Agri/Horti/Fisheries/MI) - 0.239 0.17
iv. Contractor Training on OHS - 0.053 0.04
Sub-Total (B) 67.520 77.505 54.25
C Documentation & Dissemination (Awareness -
through Electronic Media, A/V, etc.)
1 Documentation of Success Stories - 0.300 0.21
2 Audio-Visual Documentation - 0.900 0.63
3 Dissemination Workshops - 0.250 0.18
4 Awareness through Electronic Media - - -
Sub-Total (C) - 1.450 1.02
Grand Total 69.320 99.812 69.87

Page 19 of 23
6.3.1 Budget Allocation:
Total budget allocated to Component 3 prior to restructuring was INR 69.320 Cr. (USD 9.70 million).
The revised allocation for this component is INR. 99.812 Cr. (USD 13.97 million) for the balance
project period. After relocation, there will be an increment of INR 30.492 Cr. (USD 4.27 million)
under the sub-component which is adjusted from the available funds under other components/ sub-
components.

6.4 Component 4: Project Management:

Project coordination and management activities at State and district level are financed under
component-IV, including developing annual work plans and budgets, financial management (FM)
and procurement, human resource management, safeguards compliance monitoring, development, and
implementation of a Management Information System (MIS), monitoring and evaluation (M&E),
developing communication strategy and citizen engagement and dealing with Grievance Redressal
Mechanism (GRM).

Environment management, as a part of ESMF is included under Component 4 interventions. Key

activities under ESMF would include support for installing sign boards, placing dustbins, barricade
tap around construction sites, purchasing PPE kits, provisioning portable soil and air testing kits,
engagement of NABL accredited laboratory for environmental monitoring / testing of
environmental parameters, and capacity building of stakeholders. Community awareness drive
will be a part of the intervention along with environmental audit.

Table 10: Change in Proposed Budgetary Allocation: Component 4

Sl. Project Components / Initial Revised Difference Remarks
No. Activities Allocation Allocation
Component 4
A. Human Resources Cost
1 Salary component for 37.044 29.000 -8.044 Based on the current salary structure
Contractual staff-SPU and number of professionals engaged,
and DPU level allocation proposed to be reduced
by INR
8.044 Cr. from the previous budget.
B. Preparation of Integrated 3.100 3.100 - Budgetary provision for IIAP
Irrigation Agriculture preparation will remain unchanged
Plans (IIAP)
C. Consultancies 12.081 8.582 -3.499 Based on the current engagement of
different consultancy agencies and
their cost, the budgetary provision is
reduced by INR 3.499 Cr. Cost
towards engagement of HR agency for
staff recruitment is dropped with
the engagement of UNDP
D Establishment Cost 17.807 14.434 -3.373 Excluding hiring of vehicle/s and
consumables (stationary etc.), budget
allocation is reduced or kept as it was
for smooth functioning of project
establishments. Overall, reduction of
INR 3.373 Cr. is
proposed under establishment cost.
E Capacity Building/ 1.915 - -1.915 As capacity building aspects are
Workshop/ Seminars/ covered under Component 3, no
Technical Training budget is proposed in Component 4
F Project Management 0.720 0.720 - No change in budgetary allocation is
(Review & Monitoring) proposed
G MIS / GIS equipment and 3.750 3.750 - No change in budgetary allocation is
software proposed
H Documentation & 3.986 - -3.986 This budget head is taken to
Dissemination Component 3
Sl. Project Components / Initial Revised Difference Remarks

Page 20 of 23
 No. Activities Allocation Allocation
(Awareness through
Electronic Media, A/V,
etc.)
I ESMF Implementation 12.000 8.304 -3.696 Budget for ESMF implementation
reduced by INR 3.696 Cr. looking at
remaining project period and till
date progress under this head.
Grand Total 92.403 67.890 -24.513 Overall, the budget under Component
4 is reduced by INR
24.513 Cr. with realignment of
activities and associated cost. The
appropriation of costs under different
budget heads / sub-heads is also made
taking in to account the cost of
services, equipment, and
office management requirements.

Table 11: Budget Allocation: Project Design Vs Restructuring Stage

Sl. Project Components / Activities Initial Revised IBRD
No. Allocation Allocation Share
(70%)
A. Human Resources Cost
1 Salary component for Contractual staff-SPU and DPU level 37.044 29.000 20.300
Sub-Total (A) 37.044 29.000 20.300
B. Preparation of Integrated Irrigation Agriculture Plans (IIAP)
1 Assessment Study for IIAP for 15 districts 0.100 0.100 0.070
2 Preparation of Integrated Irrigation Agriculture Plans (IIAP) 3.000 3.000 2.100
Sub-Total (B) 3.100 3.100 2.170
C. Consultancies -
1 Baseline Survey 0.500 0.300 0.210
2 Environmental & Social Assessment 0.400 0.251 0.176
3 External M & E Consultancy 7.000 5.149 3.604
4 Preparation of PIP / Manuals 0.500 0.662 0.464
5 Internal Audit (by CA firm) 1.850 1.500 1.050
6 External Audit (CA firm) 0.720 0.720 0.504
7 HR agency for recruitment of staffs 1.111 - -
Sub-Total (C) 12.081 8.582 6.007
D Establishment Cost
1 Strengthening APC office (Contingency, Mobility, Desktop, TA/DA 1.310 1.310 0.917
etc)
2 SPMU and S-SPMU -
Stationaries, contingencies, utilities & Services 0.647 1.500 1.050
Office Refurbishment 1.779 1.779 1.245
Furniture 0.100 0.100 0.070
Vehicle 0.600 2.000 1.400
Mobility Charges (TA/DA) 0.402 0.402 0.281
Desktop/Laptop/Accessories/maintenance 0.401 0.401 0.281
Other Office Equipment and Maintenance 0.203 0.203 0.142
3 Minor Irrigation (Contingency, Mobility, Desktop, TA/DA etc) 6.739 6.739 4.717
4 ATMA (Contingency, Mobility, Desktop, TA/DA etc) 4.013 - -
5 Horticulture (Contingency, Mobility, Desktop, TA/DA etc) 0.780 - -
6 Fishery (Contingency, Mobility, Desktop, TA/DA etc) 0.833 - -
Sub-Total (D) 17.807 14.434 10.104
E Capacity Building/ Workshop/ Seminars/ Technical Training

Page 21 of 23
 Sl. Project Components / Activities Initial Revised IBRD
No. Allocation Allocation Share
(70%)
1 Training of Field Level Officials / SPMU Experts/Dept Cell Experts 0.315 - -
/a.3
2 National Level Exposure Visit/Seminars/Workshops etc 0.850 - -
3 Overseas Exposure of Experts / Officials (SPMU/S-SPU) 0.750 - -
Sub-Total (E) 1.915 - -
F Project Management (Review & Monitoring)
1 Monthly and Quarterly Review Meeting (SPMU/ Dept-Cell/ 0.240 0.240 0.168
District)
2 Quarterly Monitoring (SPMU/ Dept-Cell) 0.180 0.180 0.126
3 Annual State level Review Meeting 0.300 0.300 0.210
Sub-Total (F) 0.720 0.720 0.504
G MIS / GIS GIS Equipment and Software 3.750 3.750 2.625
Sub-Total (G) 3.750 3.750 2.625
H Documentation & Dissemination (Awareness through
Electronic Media, A/V etc.)
1 Documentation of Success Stories 0.300 - -
2 Audio-Visual Documentation 0.900 - -
3 Dissemination Workshops 0.250 - -
4 Awareness through Electronic Media 2.536 - -
Sub-Total (H) 3.986 - -
I ESMF Implementation 12.000 8.304 5.813
Sub-Total (I) 12.000 8.304 5.813
Grand Total 92.403 67.890 47.523

6.4.1 Budget Allocation:

Total budget allocated to Component 4 prior to restructuring was INR 92.403 Cr. (USD 12.93
million). The revised allocation for this component is INR. 67.89 Cr. (USD 9.50 million) for the
balance project period. After relocation, there will be a balance of INR
24.513 Cr. (USD 3.43 million).

7.0 Conclusion:
The individual cost under the four project components of OIIPCRA is prepared with inter-
component adjustment of the savings or excess. Some of the components have been planned with
some new activities or continued with cost revision to the existing ones. The activity plans are
provided with detailed narrations where such modifications in the activities are made from the
original PIP provisions. The outcome of the restructure has been explained as follows:

Rupee and Dollar exchange rates considered: The US Dollar exchange rate @ INR 71.46 had
been considered at the time of project agreement. The project has previously surrendered an
amount to the tune of USD 9.00 Million during FY 2021-22. The estimated balance cost of the
activities remained for implementation comes to INR has been considered with the current
exchange rate of US Dollar @ INR 82.16.

Costs saved due to restructuring of the activities: The component-wise abstract of costs
were planned at INR 1,680.24 Cr and the cost now estimated after restructure comes to INR
1,572.17 Cr with an overall savings of INR 108.07 Cr (Table 12.a).

Costs saved due to Rupee gain on Dollar exchange rates: There is an undisbursed amount
of IBRD share of USD 140.85 Million as on January 2023. The balance cost required for

Page 22 of 23
implementation of the remaining activities as per restructure computed to the tune of USD
171.67 Million (INR 1410.45 Cr) and IBRD Loan share for USD 120.17 Million @ 70%. Hence,
there would be a surplus of IBRD share to the tune of USD 20.68 Million proposed for surrender
(Table 12.b).

Table 12 (a): Restructuring of Budget by Project Components and Excess Budget

ABSTRACT OF RESTRUCTURE OF OIIPCRA (Amount in INR Crores)
Project Cost Exp by Balance Cost after Balance Savings/
Component Planned December - Restructure Cost as Excess
2022 on Jan-
2023
1 2 3 4 5 6 7
I 533.09 43.36 489.73 611.78 568.42 -78.69
II 985.43 98.25 887.18 792.69 694.44 192.74
III 69.32 11.32 58.00 99.81 88.49 -30.49
IV 92.40 8.78 83.62 67.89 59.11 24.51
V - - - - - -
Total 1,680.24 161.72 1,518.52 1,572.17 1,410.45 108.07

Table 13 (b): Restructuring of Budget by Project Components and Excess Budget

ABSTRACT OF
RESTRUCTURE OF
OIIPCRA (Amount in US $
Million)
Project Cost IBRD Cost after Amount Undisbursed Balance IBRD Savings/ Excess
Component Planned Loan @ USD 9.0 Disbursed Amount Restructured Credit
70% m by Dec- Cost @70%
surrender 2022
1 2 3 4 5 6 7 8 9
I 74.60 52.22 49.59 4.15 45.44 69.18 48.43 -2.99
II 137.90 96.53 91.45 9.14 82.31 84.52 59.17 23.14
III 9.70 6.79 6.38 1.01 5.37 10.77 7.54 -2.17
IV 12.93 9.05 8.58 0.84 7.74 7.19 5.04 2.70
V - - - - - - - -
Total 235.13 164.59 155.99 15.14 140.85 171.67 120.17 20.68

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