Supply-Side Economic Contribution of Watershed Programme to Groundwater Recharge

Abstract

The demand side of groundwater refers to groundwater development implying extraction and use of groundwater. Given that agriculture/irrigation uses more than 90 % of groundwater by volume, agriculture is the largest user of groundwater. However, the supply side of groundwater refers to making groundwater available by artificial recharge at both macro and micro levels. The macro-level recharge programmes are watershed development programmes largely implemented by the National Watershed Development Project for Rainfed Areas (NWDPRA). Similarly, the World Bank too assisted state governments in augmenting recharge through supply-side economics through programmes such as Sujala. The benefit of the macro-level recharge effort is that it caters to a wide area, serving equity and sustainability.

In this chapter, the economic impact of Sujala watershed is assessed with regard to groundwater recharge, efficiency and equity in the distribution of benefits in India. The economic performance is evaluated using the field data from farmers in Karnataka for drought and normal years in Sujala watershed—these data form the data base for the study. For comparison, farmers from the non-Sujala (or Drought-Prone Area Programme—DPAP) watershed and from outside the watershed area are studied and analysed. The results indicate the economic contribution of the watershed programme to groundwater recharge, which also serve as an evaluation of the performance of the programme.

The amortized cost per functioning well and cost per acre-inch of groundwater in the Sujala watershed (₹ 9470, 125) is lower than in the non-Sujala watershed (₹ 10,027, 117) and in the non-watershed area (₹ 11, 140, 138). The economic contribution in terms of incremental net returns per acre indicates the economic supremacy of the Sujala watershed programme: (i) Sujala over the non-watershed area (in drought year, normal year) equal to the contribution of the Sujala watershed: ₹ 1726, 3650; (ii) Sujala over the non-Sujala (DPAP) watershed equal to the contribution of the Sujala watershed institutions: ₹ 1067, 898; (iii) non-Sujala (DPAP) over the non-watershed area equal to the contribution of the non-Sujala (DPAP) watershed: ₹ 133, 2226.

The incremental net returns of Sujala over a non-watershed area (in drought year, normal year) for farmers possessing irrigation wells (₹ 614,5056); for farmers not possessing irrigation wells (₹ 7354, 5326); for all classes of farmers (3066, 4967) are the prima facie indicators of the economic contributions of the Sujala watershed programme. The negative externality per well per year in Sujala is ₹ 2652; in the non-Sujala watershed it is ₹ 2735, and in the non-watershed area it is ₹ 4285. This shows that the negative externality in groundwater irrigation has reduced by 38 % in Sujala over the non-watershed area.