Docmcnt of The World Bank Report No. 13952-IN STAFF APPRAISAL REPORT INDIA HYDROLOGY PROJECT JULY 14, 1995 South Asia Country Department II Agriculture and Water Operations Division CURRENCY EOUIVALENTS (As of July 1994) Currency Unit Indian Rupee (Rs) US$ 1.00 Rs 32.0l/ INDIAN FISCAL YEAR Government of India, States: April I - March 31 WEIGHTS AND MEASURES - METRIC SYSTEM 2/ 1 Meter (m) 3.28 feet 1 kilometer (km) 0.62 miles i hectare (ha) 2.47 acres I square kilometer (sq km) 100 ha or 0.39 square miles I million cubic meters (Mm3) 810 acre-feet (ac-ft) I million acre-feet 1235 Mm3 I cubic foot per second (cfs or cusec) 0.028 Mm3 per second (cumec) SEASONS kharif Monsoon season rabi Dry/Winter season A/ The US Dollar/Rupee exchange rate is subject to change. Conversions in this report have taken into account the projected exchange rate over the disbursement period. 2/ The Metric System has been used in most cases. However, India is still in the process of transition to the metric system; non-metric units are still widely used, and were also used in this report in which conversion to the metric system may confuse the reader. ABBREVIATIONS. ACRONYMS AND INDIAN TERMINOLOGY General ADB - Asian Development Bank APR - Annual Project Review BCM - Billion Cubic Meters CAS - Country Assistance Strategy CGWB - Central Groundwater Board CGWTRI - Central Groundwater Training and Research Institute CPCB - Central Pollution Control Board CWC - Central Water Commision CWPRS - Central Water and Power Research Station DANIDA - Danish Aid Organization DEA - Department of Economic Affairs DGIS - Netherlands Organization for International Cooperation DMG - Department of Mines and Geology DOWR - Department of Water Resources FAO/CP - Food and Agliculutre Organization of the UN, Rome GOI - Government of India GOO - Government of Orissa GOK - Government of Kerala GOMP - Government of Madhya Pradsesh GOAP - Government of Andra Pradesh GOTN - Government of Tamil Nadu GOM - Government of Maharashtra GOG - Government of Gujarat HDUG - Hydrology Data Users Group HDW - Hydrology Development Workshops HIDAP - Hydrology Institutional Development Action Plan HIDR - Hydrology Institutional Development Review HILTECH - High Level Committee on Hydrology H P - Hydrology Project HSC - Hydrology Standard Committee IDR - Institutional Development Review IMD - India Meteorological Department MOWR - Ministry of Water Resources MOEF - Ministry of Enviomnent and Forests MOST - Ministry of Sceince and Technology NHP - National Hydrology Project NCC - National Coordination Committee NGWDC - National Groundwater Data Center NIC - National Informatics Center NIGRT - National Institute for Groundwater Research and Training NICNET - NIC's Satellite-based Communication Network NIH - National Institute of Hydrology NLSC - National Level Steering Committee NSWDC - Natonal Surface Water Data Center PCS - Project Coordination Secretaiiat O&M - Operation and Maintenance ODA - Overseas Development Administration (UK) OECF - Overseas Economic Cooperation Fund (Japan) PWD - Public Works Department RDEC - Research and Development Evaluation Committee R&D - Research and Development RGWDC - Regional Groundwater Data Center RSWDC - Regional Surface Water Data Center SDV - Supplementary Data Volume (Annexes) SID - SuLvey, Investigation and Design SGO - State Groundwater Organization SOE - Statement of Exenditures SPCC - State Project Coordination Committee SWDC - State Water Data Center WMO - World Metereological Organization WRD - Water Resources Department I IND1P - Uinited Nations Development Program Professional Designations. AD - Assistant Director AE - Assistant Engineer ARO - Assistant Research Officer CE - Chief Engineer DG - Di-ector General EE - Executive Engineer JE - Junior Engineer RO - Research Officer- SG - Supeiinteniding Geologist SRO - Senlior Research Officer SE - Superintending Enginiee Technical. A( ;S - Automatic Climatic Station ARCk - Autogr-aphic Rain Gauge \Wl R - Automnatic Water Level Recoride 1- -C- - Electr o-colld(ucti vity DD)F - Depth-Dur-ati on-Frequency F('S - Full (Class A) Climatic Station C\:G\ - Groundwater G - River Gauging tRG) Site equipped with a staff gauge GD - RG Site with 'C' and sedi:ment sampling IGi)SQ - RG Site with 'GDS' ani water quality sampling IDF - I n te nsity- DuL ation-Fi-equency IS 13 - Indian Standciard Bureau OW - OlIservation Well pl'l - NieasuIe of water's alkalinity/acidity PC, [ isolial Corln pttelr RD - River Data RG - River Gauging W( - Watel Quality INDIA HYDROLOGY PROJECT STAFF APPRAISAL REPORT Table of Contents Page No. CREDIT AND PROJECT SUMMARY ............................................................. i I. PROJECT AND SECTOR BACKGROUND .I Introduction. I Backgr-ound. ............... .................... Surface Water and Groundwater Resour ces ............................................... Hydrology in India ............ .. ... 4 Future Challenges in the Water ResouLces Subbsect. . II. BANK INVOLVEMENT AND LESSONS LEARNED. 7 Bank Involvemenit in India's Water ResouLIceeS Secto. . . 7 Issues and Lessons Learnt regarding Hydrology in Incia... - Organization Issues .8 - Development of Specialized Cadres for Suiface Water I lydr(ology . 9 - Access to Data Bases .9 - Quality of Basic Data. - Financial Constraints.9 Proposed Strategy and Rationale for Bank Involvement . . .I () - Government Stategy. I() - Banik Strategy .I () - Rationale for Bank Involvement .I I III. THE PROJECT ..............................I.. A. Project Concept, Objectives and Scope . ................................i - Project Concept .........................................................I I - Project Objectives .......................................................... 1 - Project Strategy ......................................................... 12 - Project Scope ..................... .................................... 1 2 This report is based on the finidings of an Appraisal mission comprisinig of Messrs./Mmes. Cunningham (Task Manager), Barber, Fraquaharson, Grijsen, van Hoves, Dutt. Dass, and Abbi (Consultants) which visited India in September/October 1994 and was joined palt-time by Messrs./Ms. Matthews. Mei Xie and Robelus (IDA). The mission was also joined part-time by an ODA (UK) team consisting of Messrs. Jackson and Robson (ODA), an(d Messrs. Hull and Sunderland (consultants). The institutional and organizational aspects of the project were fuLther elaborated in 1995 with assistance of specialists from DGIS (The Netherlands) anld ODA. The project preparation was also assisted by Messrs/Mmes. Oblitas, Fauss, J.R. Malhotra, A. Subramanian, Myint, EstoLlue and Abedin (Bank). and Kraatz and Hasan (FAO). The Peer Reviewers of the project were Messrs./Mmes. Crooks, Robelus (environmental aspects): Frederiksen (iirigation); Matthews (informatics): Smith (general water resoulces) Ms. Mei Xie (hydrology) and Radha Singh (institutional aspects). Mr. Vergin, Director (SA2DR) anld Mr. Shawki Barghouti, Division Chief (SA2AW) have endoorsed the project. Page No. B. Detailed Features of the Project .................................... 14 - Surface Water Hydrology ......................................... 14 - Groundwater Hydrology ......................................... 17 - Hydrometeorology ......................................... 19 - Upgrading of Data Managemnent Facilities ...................................... . 20 General ......................................... 20 Establishment of Data Banks ......................................... 20 Hardware and Software for Data Centers ................................... 21 Communication Networks for Data Transfer ............................... 21 - Research and Development Activities ......................................... 22 - Institutional Support ......................................... 23 Training ......................................... 23 - Consultancy Services ......................................... 23 C. Status of Preparation anid Implementation Schedule ..................... ................. 24 D. Environmental Aspects ................................................ 25 IV. PROJECT COSTS AND FINANCING ................................................ 25 Project Costs ......................................................... 25 Project Financing ................................................ 26 Procurement ................................................ 27 Credit Allocation and Disbursements ................................................. 29 Accounts and Audits ................................................ 29 V. ORGANIZATION. MANAGEMENT and IMPLEMENTATION ...................... 30 A. Process Approach ........................................................................ 30 BI. Implementation and Management Arrangements ..................... 31 - Project agencies ........................................ 31 - Project Implementation Arrangements ........................................ 32 - Project Coordination ........................................ 32 - Organizational Framework ............... ......................... 33 - Hydrology Institutional Development Action Plan .............. ............. 34 - Annual Hydrological Institutional Development Review .......... .......... 34 - Linkages to Data Users ........................................ 34 - Project Monitoring ........................................ 35 - Annual Project Review ........................................ 35 - Project Launch Mission ........................................ 35 VI. PROJECT JUSTIFICATION AND RISKS ................ ................... 36 Project Justification ................................... 36 Risks ..................................................... 37 VII. AGREEMENTS AND RECOMMENDATIONS ................................... 38 TABLE IN THE MAIN TEXT Table 4.1 Summary of Costs ................................... 26 Table 4.2 Project Financing Plan ................................... 27 Table 4.3 Procurement Plan ....................................28 INDIA HYDROLOGY PROJECT STAFF APPRAISAL REPORT (Annexes and Supplementary Data) Table of Contents ANNEXES I. Main Tables Table 1. Existing and Improved Hydrometric Facilities ............................... I Table 2. Water Quality Testing Facilities . .............................................. 2 Table 3. Project Cost Summary .................................................... 3 Table 4. Implementation Schedule ..................................................... 4 Table 5. Estimated Disbursement Schedule ........................ ................... 5 Table 6. Proposed Allocation of Loan ................................................. 6 2. Detailed Cost Estimates .......................................................... .... 8 3 Improvements to Surface Water Observations Systems ............... .................. 19 4. Improvements to Groundwater Observations Systems ........... .. ................... 24 5 Surface and Groundwater Quality Monitoring ................ .. ........................ 29 6. Meteorological Activities .............................................................. 37 7. Data Management and Communication Systems ........................... I ........... 45 Appendix 1: Participation of Data Users ................ ....................... 52 8. Research and Development ............................................................ 57 9. Institutional Strengthening .............................................................. 63 Appendix 1: Project Coordination Arrangements ............ .................. 74 10. Training ..78 I1. Consultant Services .86 12 Project Supervision and Monitorable Indicators of Development Impact 98 13a. E nvironmental Considerations ..106 ]3b Procuremenit .......................................... ........................................ 107 14. Selected Documents anid Data Available in the Project File . .111 CHARTS (a) Development Objective Indicator-s and Monitoring ..................................... 101 (b) Overall Project Coordination .................... ...................................... 113 (c) Project Organizationi Arrangemiients for CWC ..................... 114 (d) Project Organ izationi Arrangements for CGWB .115 (e) Organizationi ot Typical State (MP) .......... ............................................. 116 ANNEXES and SUPPL,EMENTARY DATA 15. Centr-al Water Commilissio. .117 16. Cenitral G roLundwater Board Prograrm ................................................... 130 1 7. National lIstitute ot Hydrology Progr-am ..................... 152 1 S. Central Water and Power Research Station Progr-am I 58 I '. Indian Meteorological Department .161 20. Programs in Andra Padesh. .166 21. Programs in GLjarat ..................... 183 22. Programs in Kerala .198 23. Progra m s in Madhya Pradesh ............................................................ 211 24. Programns in Maharashtra .227 25. Programs in Orissa .243 26. Programs in Tamil Nadu .259 INDIA HYDROLOGY PROJECT Credit and Project Summarv Borrower: India, acting by its President Implementing Central Water Commission (CWC), Central Groundwater Board (CGWB), Agencies: Central Water and Power Research Station (CWPRS), and National Institute of Hydrology (NIH) within the Ministry of Water Resources (MOWR); India Meteorological Department (IMD) within the Ministiy of Science and Technology); and the Governments of Andra Praldesh (GOAP). Gujarat (GOG). Kerala (GOK), Madhya Pradesh (GOMP), Maharashtra (GOM), Orissa (GOO), and Tamil Nadu (GOTN) through their agencies responsible fro surface water and groundwater hydrology. Amount: IDA Credit SDR 90.1 million (US$ 142.0 million equivalent) Terms: Standard terms with a 35 years maturity Re-lending Terms: From the GOI to the states, as part of the central assistance to the State development on terms and conditions as applicable at that time. Project Description: The Project would assist GOI and the seven participating states to develop comprehensive, easily accessed and user friendly data bases covering all aspects of the hydrological cycle, including suiface water and groundwater in terms of quantity and quality and climatic measurements, particularly of rainfall. The project supports the objectives of GOI's National Water Policy and the Bank's strategy for India's water sector and policy regarding water resources management. Special attention would be paid to standardization of criteria, processes and procedures for measurement of hydrological parameters and for storage and retrieval of information so that data series would be compatible and the data bases would be interactive. The project would be structured as a six-year operation and include support of: upgrading and expanding the physical infrastructure for all aspects of the collection, collation, processing and dissemination of hydrological and hydrometeorological data; provision of equipment and materials; institutional strengthening including technical assistance and training and; new buildings and incremental operating and maintenance costs. Benefits and Risks: The project would generate substantial indirect benefits by assisting in the development of more reliable and spatially intensive data on the quantity and quality of water resources and making information available to legitimate users from computerized data banks. The main project risks are generally known fiom the work undertaken for project preparation and appraisal. The project has been designed to address and minimize specific risks, as described below. The institutional risks include the ability to achieve and maintain organizational arrangements envisaged, adequate staffing and operating budgetary resources. Actions proposed to address these risks include: (i) the six-year project period; (ii) improved inter-agency coordination; and (iii) provision of technical assistance, training and institutional support. Technical risks are relatively small and relate mainly to quality control issues. All proposed technologies have been tested and used outside (and some inside) India and have proven effective. However, sorne may be novel to some agencies involved and may proceed more slowly than - 11 - anticipated. This risk is contained by flexible process approach with annual reviews of work programs and by: (i) standardization of data collection, validation and storage; (ii) special attention to quality control and monitoring and evaluation of project impact: and (iii) ensuring that lessons learned and experience gained are shared among hydrology data users and stakeholders. The environmental risks associated with the project are minimal. The overall environmental impact would be positive due to reliable data to improve all aspects of water resource development and management. Estimated Costs: a! Item Description Local Foreign Total % of ----------US$ Million ---------- Base Cost A. Hydrometry and Data Management (i) MOWR and its agencies 38.0 8.6 46.6 32 (ii) India Metereological Department 1.3 0.4 1.7 1 (iii) Project States 28.2 10.1 38.3 26 B . Institutional Strengthening (i) Consulting Services 3.3 4.6 7.9 5 (ii) Training 5.5 0.4 5.9 4 (iii) Research & Development Services 0.7 0.1 0.8 1 (iv) Institutional Strengthening & O&M support 37.8 6.2 44.0 31 Base Cost 114.8 30.4 145.2 10( Physical Contingencies 9.7 2.0 11.6 8 PriceContingencies b/ 4.1 1.5 5.6 4 Total Project Cost 128.5 33.9 162.4 112 Financing Plan: Local Foreign Total -----------------($ million)----------------- Government of India 20.4 0.0 20.4 11 IDA 108.1 33.9 142.0 89 Total 128.5 33.9 162.4 100 Disbursement: Bank FY 1995 1996 1997 1998 1999 2000 2001 ------U------------------------(US$ million)------------------------------------------ Annual - 5.7 15.6 27.0 34.1 34.0 25.6 Cumulative - 5.7 21.3 48.3 82.4 116.4 142.0 Poverty Category: Not applicable Estimated Rate of Economic Return: Not applicable a/ Including taxes and duties estimated at US$ 4.0 million equivalent; rounded to one decimal place. b/ Including allowance for changes in currency equivalent over the project period. INDIA HYDROLOGY PROJECT I. SECTOR AND PROJECT BACKGROUND Introduction 1.01 The development and efficient use of India's water resources for a wide range of purposes is critical to the country's economic well-being and to the overall welfare of its people. Meeting the food demands of the very large and growing population has required the development of essentially all the available land that is suitable for agricultural production and the commitment of a very large proportion of the available water resources to irrigation in order to increase cropping intensities and crop yields on the land. Meanwhile, there are growing and competing demands for water resource development to provide supplies for municipalities and urban populations, rural communities, industry and power generation. It is also recognized that sufficient water of appropriate quality must be left in-stream during the low flow season to sustain wildlife and meet other environmental demands. And in some cases it is necessary to maintain river flows for navigation. In contrast, there is need in many parts of India to develop flood control works to protect populations and their property, which are increasingly forced to occupy flood-prone lands. 1.02 A reliable data base providing historical records for all aspects of the hydrological cycle is essential for planning and management of water resources development. This is particularly important when the development of this unitary resource approaches its limits in any basin area and conflict and competition between users becomes a common occurrence. In this situation, a scientifically designed data base, with appropriate coverage of all important aspects of hydrology in space and time, is required for analyses of potentials for new water resources developments, for long-term planning and real-time management of the resources, and for preservation of the resources within the overall environment in both quantitative and qualitative terns. 1.03 The concerned agencies in the Government of India (GOI) and in the State Governments of Andhra Pradesh, Gujarat, Madhya Pradesh, Maharashtra, Kerala, Orissa and Tamil Nadu have recognized the need: (a) to improve their hydrological data bases in terms of coverage and accuracy; (b) to improve their capabilities for storage, retrieval and interpretation of data elements through use of computers with appropriate peripherals and software; (c) to ensure rapid transfer of data between concerned agencies by connecting computerized data bases through satellite and land communication links; and (d) to enhance the publication and access of information to eligible users in the public domain. The concerned agencies recognize that achievement of the above goals will need improvement of institutional and staff capabilities at all levels through focused institutional strengthening and a large-scale trainini g exercise, and will need some organizational changes in the agencies. The proposed project is designed to assist in the achievement of the above objectives. Background 1.04 The land surface of India, coveting about 3.3 M km2, may be subdivided into six major physiographic regions. The Himalayan ranges occupy large areas of the extreme northwest and northeast of the country. The great Indo-Gangetic plain encompasses an area of about 650,000 km2, which extends from the deserts of northern Rajasthan to the high rainfall area of West Bengal. The central highlands lie between the Indo-Gangetic plain and the peninsular plateaus. They include the divide between the northward-draininig tributaries of the Ganges river system and the rivers which drain eastward to the Bay of Bengal or westward to the Arabian Sea. The plateaus form the largest of the physiographic units. They are bounded on the west by the escarpments of the Western Ghats which rise fi-om a narrow coastal plain. The Eastem Ghats mark the eastern edge of the plateaus with escarpments which overlook an alternation of deltas and coastal plains. The seven states which will participate in the project (para 1.03) form a contiguous block of 2 country covering about 0.98 M km2 (about 30% of India's total area) which includes part of the central highlands region, the whole of the peninsula plateaus, the whole of the Western Ghats and the whole of the Eastern Ghats. 1.05 India has a diversity of tropical and subtropical climates ranging from oceanic along the coasts to continental in most of the land mass. Rainfall conditions range from arid to humid. The incidence of rainfall is controlled mainly by the occurrence of the monsoons. The southwest monsoon reaches the whole of India during June to September. The northeast monsoon passes over the southern end of the peninsula during October to December. Thus, the marked seasonality of rainfall reflects the distribution and timing of the monsoons. The spatial variation in annual rainfall amounts in India is extremely wide, ranging from less than 100 mm in parts of the Rajasthan desert to more than 4,000 mm in parts of the Western Ghats and in the extreme northeast of the country. A similar spatial variation in annual rainfall occurs within the area covered by the eight states participating in the project. Surface Water and Groundwater Resources 1.06 Water Availability. A 1988 publication by the Central Water Commission (CWC) estimates that the average annual natural run-off available to India is about 1,880 billion cubic meters (BCM). Of this total, about 600 BCM (32%) is generated in the Brahmaputra and Barak (Meghna) basins and about 500 BCM (27%) in the Ganges basin, leaving only 780 BCM (41%) from the remaining basins of India, which cover 56% of the country's land surface. The average annual run-off from the basins which cover the seven states participating in the project (excluding the run- off to the Ganges river from Madhya Pradesh) totals about 520 BCM or 28% of the run-off available to India. 1.07 The amounts of unit area run-off from the various basins of India vary widely, reflecting the spatial distribution of annual rainfall intensity. As examples, the unit area run-off from the catchment areas totaling about 60,000 km2 covering the Saurashtra peninsula in Gujarat is about 35,000 m3/km2 (equivalent to a depth of 40 mm on the area), as compared to about 472,000 m3/km2 on the Mahanadi basin of 141,600 km2 (equivalent to a depth of 470 mm on the area). The problems of the spatial diversity of surface water run-off in India are exacerbated by the marked seasonality of run-off reflecting the incidence of the monsoons. Most of the rivers carry about 80% of their annual flows during the months of June to September when the southwest monsoon crosses the entire country. Generally, the rivers carry 90% of their annual flows during the period June to November. Thus, there is a marked low flow season in December-May, and the rivers draining the cenitr-al highland and plateau regions (which lack snow melt run-off) have extremely low flows by the end of the dry season. The problem of the marked seasonality of natural river flows is compounded by wide inter-annual variation of run-off from any basin reflecting variation in annual rainifall amounts on the catchments. As an example, the 1948-79 data series of annual run-off from the Narmada basin provides a mean annual value of 45 BCM, but the extreme range in the series is 21-76 BCM -or 47% to 169% of the mean. 1 .08 The most recent estimate of the replenishable groundwater resources of India, excluding the resources of the Brahmaputra and Barak basins. is about 450 BCM/yr. Of this total, about 207 BCM (45%) are estimated to occur in the seven states which will participate in the project. The Indian practice is to allocate about 15% of the estimated resource to present and future community water supplies and industrial uses and regard the balance as utilizable groundwater for irrigation. However, this estimate is made without accounting for outflows from the groundwater systems to the rivers and for groundwater consumed by natural wild vegetation. Most of these 'losses' are 3 essentially uncontrollable. Moreover, groundwater outflows to the rivers are the source of essentially all the natural dry season flows of the river systems of India which do not have a snow- melt contribution. 1.09 It should be noted that the natural run-off estimates developed by CWC (para. 1.06) are inclusive of the groundwater outflows to the surface water systems. However, as noted above (para 1.08), the methodology used by the Central Ground Water Board (CGWB) and the state groundwater organizations (SGO) for evaluating groundwater resources does not specifically take account of this contribution to surface water when calculating groundwater availability. Thus, there is a definite problem that surface water and groundwater availability are not assessed conjunctively, and this results in double accounting and over-estimation of the total water resource. 1.10 Constitutional and Legal Aspects of Water Resources. Under the Indian Constitution, every State Government has power to legislate in respect of water, and can exercise this power for the whole or any part of the state. The state's authority extends to all works for use and control of water within its jurisdiction. Thus, water and its development is primarily a state subject. 1.11 The Union has power under the Constitution to legislate through Parliament for the regulation and development of interstate rivers and river basins. Thus, the authority of the State Government over water can be exercised within such limitation as may be imposed by law by Parliament, but the Union cannot acquire the rights of user or of constructing water development works within a state. Except with regard to a few specific projects (for example, the Damodar Valley Development), Parliament has not considered it expedient to impose any general limitations on the development of interstate rivers and their basins. 1. 12 Parliament gave authority to Central Government under the River Boards Act of 1956 to set up a River Board for any interstate river, but the Boards are entirely advisory and cannot restrict or control State Governments regarding water. The Constitution authorizes Parliament to provide for the adjudication of any disputes between the riparian regarding use of water in an interstate river or basin by law. Using this provision, Parliament passed the Interstate Water Disputes Act of 1956, which sets out the conditions under which a water dispute can arise, and authorizes Central Government to refer any water dispute, which cannot be settled by interstate agreement, to a legal tribunal for adjudication. In this respect, any of the riparian states can also ask GOI to set up a tribunal. The tribunal findings are regarded as final for the specified period of the award - typically about 50 years. 1.13 Under the rights laid down by the Constitution, the power to legislate the control of groundwater development rests with the State Governments. The degree to which the states have exercised this power to date has been minimal. 1.14 Water Sharing Arrangements between Riparian. Essentially all the important river basins of India cover two or more states, and the Indus and the Ganges have basin areas which extend beyond the boundaries of the Union. The major river basins of the states which will participate in the project are listed below together with the proportions of their basins occurring in the riparian states; none of those rivers are international rivers. 4 River Basin Area State c of State '. of State . of Srute % of State % of Total Basin (kn2) Basin Basin Basin Basin Basin (%) Namiada 98800 MP 87.0 Gujarat 11.5 Mah 1.5 100 Tapi 65150 Mah 79.0 MP 15.0 Gujarat 6.0 100 Subemarekha 19300 Bihar 71.0 W. Beng18.0 Orissa 11.0 100 Brah imni- Baitarani 41900 Orissa 67.0 Bihar 30.5 MP 2.5 100 Mahanadi 141600 MP 53.0 Orissa 46.5 Bih/MahO.5 100 Mahi-Sabamnati 56500 Gujarat 60.0 Rajastha 39.0 MP 1.0 100 Godavari 312800 Mah 48.6 MP 20.7 AP 23.8 Orissa 5.5 Kamnat 1.4 100 Krishna 258900 Kanat 43.8 Mah 26.8 AP 2-9.4 100 Pennar 55200 AP 88.0 Kamat 12.0 100 Cauverv 87900 TN 55.5 Kamat 41.2 Kerala 3.3 100 AP-Andhra Pradesh, Kanat-Kamataka. MP-Madhya Pradesh. Mah-Maharashtra, and TN-Tamil Nadu 1. 1 5 Within the project's participating states, parts of the surface water resources are shared according to various agreements between the riparian or under tribunal awards. The Godavari waters are shared by interstate agreement with a tribunal award permitting Andhra Pradesh to make a water transfer from the Godavari to the Krishna. The waters of the Narmada and Krishna are shared between the riparian according to tribunal awards (with an allocation to the non-riparian, Rajasthan, from the Narmada). In the cases of the Subernarekha, Tapi and Mahi, parts of the waters are shared under interstate agreements. Developments on the Mahanadi, Brahmani and Baitarani have not as yet caused disputes or required interstate agreements. An interstate dispute between Tamil Nadu, Karnataka and Kerala regarding the Cauvery waters remains unresolved since the previous agreement terminated in 1974 (the dispute is now under adjudication by a Tribunal). All the tribunal awards are time-bound and may be subject to reassessment at a specified future date. A weakness of all the agreements is that they generally allocate proportions from an estimated dependable yield without specifying the timing when withdrawals may occur. None of the existing agreements make arrangements for sharing groundwater. Hydrology in India 1. 16 General. Hydrology may be defined as the science that deals with the processes governing the depletion and replenishment of the surface water and groundwater resources of the earth. In this respect, it may be regarded as a branch of physical geography. Engineering hydrology includes those segments of the very broad field of hydrology pertinent to the design and operation of engineered projects for the control and use of water. 1. 17 Hydrometry is the technology of water measurement, covering all aspects of water movement within the hydrological cycle. Thus, sound hydrometry is basic to the science of hydrology in that it provides the data which are essential for all hydrologic computations and quantifications. Essentially all the field work in hydrology is concerned with hydrometry. A major objective of the project will be to improve the performances of the concerned Indian Federal and State Government agencies in carrying out their hydrometric tasks in order to provide basic data which are more reliable and have an appropriate spatial distribution. This will include water clualitv monitoring for general and environmental purposes. The availability of such data will enhance the accuracy of the hydrological analyses which provide the information on which all water planning and management decisions should be made and all water project design and operation concepts should be based. 5 1. 18 Development of the Practice of Hvdrologv inJIndia. Development of surface water resources has been led, since the 1 850s, by the need to create large public sector irrigation schemes to secure and increase food production to support the growing population. Until around the end of the 19th century, navigation--on rivers, irrigation canals and single purpose navigation canals-- was an important water resource use, but this declined rapidly in the early 20th century. Planning and design of large river diversion structures, their appurtenant canal systems and any reservoir storage created to support these facilities required detailed knowledge of the hydrological characteristics of the river on which they were placed. Thus, hydrological skills were developed in state irrigation departments or public works departments which had responsibility for irrigation. Hydrological skills are also required for the design of road and rail systems (particularly their bridges), and for the design of hydro-electric schemes. 1. 19 Surface Water Hydrology. Surface water measurement networks were located originally for project planning and design purposes, and measurements were often discontinued after the short- term purpose had been achieved. Some early networks were established on major rivers mainly for flood warning purposes, and often observed only the iiver stages. Historically, the networks were not designed to evaluate the surface water resources of a river basin or sub-basin. While the water resources were relatively undeveloped or uncommitted, the lack of total resource information had little consequence. But as levels of development of surface water resources have increased and conflicts between riparian states and users have emerged. the need for such information has grown. Unfortunately the development of the river gauging networks has not been planned, in most cases, to meet basin water resource evaluation needs and/or to support basin water planning and management. 1.20 Apart from the relative sparsity of properly located river flow observation stations in many basins, a fundamental weakness relates to the practice of hydrometry and the poor quality of the data produced, particularly in state agencies. This can be related to many reasons--poorly chosen measuring site locations, poor hydrometric practices, inadequately maintained equipment, and poorly motivated gauging and supervisory staff among others--but the result has been to place in question the validity of the hydrological analyses which used the data. And the sparsity of data alone caused design decisions to be made for many projects on the basis of empirical formulae relating rainfall (for which long records were available) to runoff. 1.21 Groundwater Hydrology. The development of skills in groundwater hydrology expanded rapidly after the creation of the CGWB in 1972 and the SGOs early in the 1970s. The central and state agencies now have very extensive observationi networks for measuring water level fluctuations and water quality. Though the periodicity of water level observation needs improvement in most ot the networks, and pul-pose--bUilt obser-vation tubewells with water level recorders are required for key sites. a fundamenital weak-ness is apparent in how hydrological data are analyzed to provide estimates of tCe resource available for development (para 1.08). 1.22 Water Quality. In the Indian peninsula, water pollution monitoring has so far only received low-profile attention. and the interest in water qjuality has been concerned mainly with its use for irrigation and domestic water supplies. However, it is now widely recognized that rapid industrialization and urbanization processes, as well as use of fertilizers and pesticides in agriculture, will contribute conisiderably to the deteriorationi of the quality of water resources. The main government agencies involved in the project with an interest in water quality are CWC, CGWB and the State Irrigation or Water Resources Departments and State Groundwater Organizations in the participating states. The Pollution Control Boards (PCB) at central and state levels are conceerned with particular aspects of water quality and with imposing the related regulations, but the PCBs are not project implementationi agencies. 6 Future Challenges in the Water Resources Sector 1.23 Water Policy. Provision of domestic water supplies for urban and rural populations and assuring drinking water supplies for livestock are given first priority under the National Water Policy (MOWR, 1987). The document recognizes the water needs of irrigation, hydropower, thermal power, industry and navigation and identifies the need to maintain minimum flows on rivers for flushing pollutants, maintaining wildlife and other environmental reasons. The policy gives irrigation second priority in allocation, but allows that this prioritization might be modified with reference to area-specific considerations. As presently developed, the policy paper is essentially a guideline. There is a need to evolve more definite criteria for allocation of water amongst different users within the framework of the National Water Policy. But proper application of such criteria in any specific situation would demand a sound understanding of the available water resources and their existing uses supported by reliable hydrological analyses based on sufficient and accurate data. 1.24 Water Resources Planning and Management. Effective planning and coordination of water resources development are essential if India's water resources are to be efficiently managed. GOIs National Water Policy (para. 1.23) provides a framework guideline for coordinating water development for alternative uses and across state boundaries, and it emphasizes the need for river basin planning. A recent Bank policy paper on water resource management 1 emphasizes the need for development of the resource in the context of a national water strategy which reflects a nation's social, economic and environmental objectives. This paper, and the India Irrigation Sector Review (Report No. 9518-IN, December 1991), stressed the importance of the river basin as the primary unit for planning and management of water resources and for making water allocations to meet multi-purpose demands. 1.25 A major constraint to implementing such policies in India relates to the structure of the Federation and the status of water in the Constitution as a state subject (para. 1.10). Even if this constraint could be removed, other problems would remain relating to the limited and often unreliable water resource data and the absence of clearly defined mechanisms for sharing data between states and between users within states. For essentially all river basins in India, data collection facilities are inadequate for measuring stream flow, monitoring diversions and storage, and monitoring water quality and existing records provide an incomplete basis for planning development. Groundwater resource assessments are based on crude water balances which use specified norms for balance components which have little relationship to site specific conditions. And, moreover, what data is available is not always published and often is not readily accessible between the riparian states of a basin or even between departments and other agencies within states. 1.26 Environmental Issues. The Parliament of India has enacted two acts to control pollution of water bodies--the Water (Preservation and Control of Pollution) Act of 1974 amended 1988, and the Environmental (Protection) Act of 1986. These acts provided for the creation of Central and State Pollution Control Boards. They set rules for pollution control and define standards for effluent. Other environmental concerns relating to water, such as maintenance of minimum low flows on rivers and the preservation of lakes, wetlands and deltas for the protection of wildlife and the environment in general, are not clearly defined in law but are covered generally in the National Water Policy. However, application of such water environment-related laws and policies and the regulations and standards that relate to the laws requires an appropriately designed and operated l Water Resource Management; The World Bank, Washington DC, 1993 (A World Bank Policy Paper). 7 system for data collection, analysis and dissemination. Yet this is not the case in India, and these activities remain scattered and inadequate, and grossly under-funded. II. BANK INVOLVEMENT AND LESSONS LEARNED Bank Involvement in India's Water Resources Sector 2.()1 The Bank has supported a wide variety of projects involving development of water resources in India since the beginning of its lending operations in the country in the 1950s. By the end of 1990, Bank funding had been provided to some 65 projects which had some aspect of water resource development or control as their primary purpose. About 42 (65%) of the projects were for ilTigation and 13 (20%) were community water supply and/or sanitation projects. In addition, a number of urban and rural development projects have had significant water resources development components within their broader programs. 2.02 A feature of many of the projects, particularly in the irrigation subsector, has been the inadequacy and inaccuracy of the hydrological analyses which formed the basis on which the projects were planned, designed, constructed and subsequently operated. Such analytical failings almost all related to the inadequacies of the hydrological data available for computations. Despite the known shortcomings of the hydrological analyses and their impact on the actual performances of completed projects, the Bank has made only limited attempts through the lending program, to improve the hydrometric networks and practice of hydrometry which provide the data on which all hydrological analyses are made. Though Bank funding has been commonly used for preparation of surface water development projects, the studies rarely emphasized collection of accurate hydrometric data for better evaluation of the availability of water resources. The Bank-supported Madhya Pradesh Major Irrigation Project (Credit No. 1177-IN, 1982) included a clearly defined component for expanding the networks of river gauging and climate observation stations at an estimated cost of US$ 8.8 M. But the outcome was less than satisfactory. Only 40% of the program was actually completed, mainly because the project authority was predominantly concemed with construction of irrigation works and the planned effort to improve the hydrometric network was given low priority. 2.03 The Bank had an influence in causing most of the states of India to establish state groundwater organizations (SGOs) with a mandate to evaluate the groundwater resources within their jurisdiction. The massive development of groundwater for irrigation by the private sector, which was initiated in the 1960s, was supported by the Bank through a series of state and nation- wide credit projects. And the scale of the development required the establishment of specialized groundwater agencies in the states--a move which the Bank encouraged. 2.04 Bank involvement with hydrological thinking in India has been closely integrated with the development of GOI and state thinking, and has also been paralleled by major analysis and reflection by India itself. Of particular note is the GOI and state governments' think-piece on the sector termed the "High Level Technical Committee on Hydrology (HILTECH) report prepared in 1985. This major exercise was steered by the National Institute of Hydrology (NIH) and MOWR and included a broad cross spectrum of Indian hydrologists and representatives of all national hydrology institutions and water agencies and state governments. The resultant analytical report provided a diagnostic of the prevailing situation and future needs and made recommendations regarding the future development of the sector encompassing both institutional development needs and the technical requirements for a program to upgrade India's hydrological network and service. It also recommended assistance from the Bank in the proposed program. Overlapping with the HILTECH report preparation was preparation of GOI's "National Water Policy" (NWP) by 8 MOWR in 1987. This provided an overall policy framework for the water sector and is an important document in providing the policy framework from GOI's side within which HP has been prepared. Substantial diSCuSSiOnl iS devoted in the NWP to water and basin planning and the need to upgrade hydrological data in order to achieve this. Reflection by the Bank has also been intensive (paras 2.12 to 2.15). The broader policy context for thc water sector is addressed in such papers as the Bank's "Water Resources Management" policy paper issued in 1993, and, specific to India, the 1991 "India, Irrigation Sector Review". Both reports emphasized holistic multi-sectoral water planning and allocation and the need for a strong hydrological data base for such work. For the hydrology sector itself, a special study - the "Hydrology Sector Review" was undertaken by the Bank in collaboration with government in 1987. focussing on three state's (Andhra Pradesh, Maharashtra and Madhya Pradesh). A comprehensive report was issued in draft and provided an important analytical understanding of the sector and its technical and institutional issues. setting the stage, along with the policy context documents mentioned above, for the later preparation phase of the proposed project. Issues and Lessons Learned Regarding Hydrology in India 2.05 Organizational Issues. Because water resource development in India has been dominated by the need to develop irrigation, the historical incentive to collect information on the availability of water resources has been in irrigation agencies of both Central and State Governments. As a result, the core central agencies responsible for surface water and groundwater hydrology--Central Water Commission (CWC) and Central Groundwater Board (CGWB) respectively--are placed within the Ministry of Water Resources (MOWR), which despite its name, remains dominated by interests in irrigation activities and flood protection of agricultural lands. At state levels, surface water hydrology is carried out almost exclusively by Irrigation Departments (IDs) or Public Works Departments (PWDs) with a major involvement in irrigation (some of which -- for instance, Haryana, Tamil Nadu and Orissa -- have changed their names to Water Resources Departments (DOWRs) and are broadening their roles in the water sector). The SGOs, regardless of the department in which they are located, always have a groundwater development function, with irrigation as the main user. 2.06 As noted (para 1.23). the National Water Policy recognizes the use and demands of water for a wide variety of purposes and prioritizes allocations in situations of resource shortage and conflict. But, in practice, allocations must be made on the basis of sound evaluations of the total resource and the existing commitments which have established user rights on the resource. Such hydirological evaluations can be made only by the use of appropriate data bases. In situations of conflict or competition, the producers of the data base should be seen as unbiased. Developed countries have generally resolved this problem by recognizing comprehensive data collection and documentation as an independent function in the water sector and by placing the responsibility with a non-user government agency. The India Meteorological Department (IMD) satisfies this requirement for hydrometeorological data, and may be seen to provide an unbiased information service to the public at large. 2.07 The time may not be right to separate the responsibility for provision of basic surface water and grioundwater hydrological information from the user agencies where it now resides. But a first step could be made in the states by creation of free-standing entities within the existing user departments to provide clearly-defined hydrological services to all users in government agencies and the eligible users in the private sector. Madhya Pradesh and Tamil Nadu are taking this step by creating hydrology directorates, with responsibility for surface water and groundwater quantity and quality, under a Chief Engineer reporting directly to the Engineer in Chief of their Departments of Water Resources. 9 2.08 Development of Specialized Cadres for Surface Water Hydrology. This problem refers to the situation in the State Government organizations (essentially irrigation departments) where hydrology is not treated as a "specialist" subject. Most hydrological units are staffed with generalists civil engineers who are not given specific training in the subject. Posting of professional officers tend to be temporary, and they are then posted on to carry out other duties. Even when officers have received specialist training in hydrology, there is no certainty that they will be used for this work. Since there are few specialists to set standards, the performance expected from supporting technical staff tends to be low, and these staff generally receive inadequate formal or on-the-job training. The solution to this problem is evident--specialist professional staff should be recruited or existing staff should be given adequate training, and these officers should then be provided with a career structure and incentives so that they can be retained within hydrology units. This will require creation of a surface water hydrology unit (or. preferably, a hydrology unit for both surface water and groundwater) which has a mandate and autonomy to develop a staff cadre as suggested. 2.09 Access to Data Bases. Given that water resources development is a state subject and that all the important basins of India have two or more riparian states, it is not surprising that most states do not give easy access to the water resource information that they collect, and particularly to surface water data. Processed stream flow data in the way of averages or statistical probabilities of monthly or annual flows may be available, but the raw data from which these were calculated rarely can be obtained. And reliable information on diversions and storage is, in many cases, difficult to obtain. Moreover, because the responsibility for collection and storage of hydrological data is vested at state levels with major user agencies responsible for irrigation development, the basic data produced tends to be regarded as the property of the agency and the concept of providing a need-based hydrological service to other users has to be broadened. This is in conformity with the National Water Policy which states that'the prime requisite for resource planning is a well developed information system' and 'there should be fi-ee exchange of data among the various agencies'. 2.1 0 Quality of the Basic Data. This concerns mainly the surface water data and that collected by the state agencies. The methodologies employed for obtaining instantaneous river discharge measurements are not standardized, and when procedures are clearly specified they are not always followed by the field units. Maintenance of current meters and ancillary equipment is poor, and the arrangements for calibration and overhaul of current meters and ancillaries are inadequate. These circumstances inevitably result in poor quality data. The situation can be rectified by equipping gauging stations with appropriate instruments and ancillary equipment; making proper provision foI maintenance of the equipment; training staff to calTy out measurements according to clearly defined procedures; and providinig an appropriate system of supervision by properly trained staff who are also responsible for validating the measuremenlts and discharge computations. 2. 1 Financial Constraints. These constraints are felt mainly in inadequate capital investments in offices and office equipment, laboratory buildings and equipment, and transport for field staff. Recurrent budgets are consumed mainly by personnel emoluments with limited funding for hydrological activities and effective maintenance of monitoring equipment. This is most evident in some state agencies, and particularly those involved in surface water hydrology. As the latter rarely have autonomy, their activities are usually the first to suffer when budgets are constrained. The solution lies with creating agencies that are mandated only for hydrological tasks and then providing them directly with budgets that are adequate for those tasks. 10 Project Strategy and Rationale for Bank Involvement 2.12 Government Strategy. GOI regards the core elements of the proposed project as essential inputs for implementing the National Water Policy. The policy states 'a standardized national information system (for water resources) should be established with a network of data banks and data bases, integrating and strengthening the existing Central and State level agencies, and improving the quality of data and the processing capabilities '. The longer term aim of GOI is to plan development of water resources on the basis of basin units, and the availability of reliable data bases which are easily accessible to the planners and other concerned agencies is essential to proper execution of this task. 2.13 Bank Strategy. The Bank's policy paper "Water Resources Management" (1993), covered all actions necessary to ensure the equitable, efficient and sustainable development of water resources. From within this very broad coverage, the most important concepts that relate directly to the objectives of the proposed project are that: water resources should be managed in the context of a national water strategy which reflects a nation's social, economic and environmental objectives and is based on an assessment of the country's water resources; and achievement of these objectives will require development of a comprehensive analytical framework for water resource management at the basin, region and national levels. The policy paper recognizes that inadequate and unreliable data may constitute a serious constraint to developing and implementing a country's water resource strategy and to managing water effectively. The policy paper states: 'To meet these information needs, countries should: (a) define information requirements for national water resources, taking particular account of the multiple demands for water; (b) review institutional arrangements linking the providers and users of data; (c) identify and implement new mechanisms for funding hydrological services, where such mechanisms are required to provide adequatefinancial resources; (d) select appropriate technologies for collecting data, particularlv data on water quality and on groundwater, and for implementing user friendly data management systems; (e) establish national data banks for information on water resources; and (f) define the human resources needed for hydlrological information systems and provide education and training to ineet those needs'. The major components of the proposed project are in accord with the Bank's requirements for improvements to India's capabilities to collect, collate and disseminate information on surface water and groundwater hydrology and water quality. Similar recommendations were made in the India Irrigation Sector Review (1991) which explained that improved hydrological data was essential for improved planning and design of water resource development on a multi sectoral basis. 2.14 The Bank's policy paper indiL ates that Bank lending in the water resources sector will be seriously curtailed in countries where governments are not committed to implementation of necessary reforms to assure appropriate water resources management capability. It states: Progress in implemeniting the priorities identified will be monitored through normal Bank interactions with the country. If the absence of adequate progress on priority actions is judged to produce serious misuse of resources and to hamper the viability of water-related investments, Bank lending in this area will be limited to the provision of potable water to poor households and to operations designed to conserve water and protect its quality without additionally drawing on a country's water resourcesx. 11 Improving the quality and accessibility of hydrological data in India. as proposed under the project, would be one of several important priority actions that would have to be undertaken to improve India's water resource management capabilities in line with the Bank's policy requirements. 2.15 Rationale for Bank Involvement. As discussed above (paras 2.12-2.14), the project's objectives are in line with India's "National Water Policy" requirements, with the Bank's policy on "Water Resources Management". and with the strategy for India's water sector, developed with Government, in the "India Irrigation Sector Review". Previous experience indicates that any attempt to improve the quality of hydrological data and its availability to users of the data as an add- on component of a construction-oriented project is not likely to be successful. A free-standing project dedicated primarily to improvement of institutional aspects and staff skills in collection and management of hydrological and meteorological data, and the systems by which the data is stored and made accessible to users is considered to have a high probability of success. The project's main objectives are in line with the Bank's recent Country Assistance Strategy (CAS) (Report No. 14509-IN, May 19, 1995 discussed on June 20. 1995) which supports the deployment of IDA resources in accelerating the development of human resources, and in supporting the sustainable use of India's scarce water resources. India's interest in undertaking a hydrology project along the lines described in the report should be regarded as a 'window of opportunity' which should not be missed. III. THE PROJECT A. Project Concept. Objectives and Scope 3.01 Project Concept. The project concept is to assist the Central Government and the participating State water resource agencies in the development of valid, comprehensive, interactive, easily accessed, and user friendly data bases covering all important aspects of the hydrological and meteorological cycle, and to the strengthening of the capabilities of the institutions concerned. The data bases will therefore cover occurrences of both surface water and groundwater in terms of quantity and quality, and hydrometeorological measurements. Provision of the data bases is regarded as a service to all legitimate entities involved in management and development of water resources, and the range of information stored and its formatting and accessibility will be designed to meet the requirements of such users. The project would be supportive of GOI's stated objectives under the National Water Policy (para. 1.23), which has been endorsed by the States, of the Bank's strategy for India's water sector (expressed in the 1991 Irrigation Sector Review), and of the Bank's general policy regarding water resources management and recent CAS published in 1995. 3.02 The responsibility for development and archiving of the data bases would reside with organizations which are, to the extent practically possible, institutionally separated from user agencies. Special attention would be paid to standardization of criteria, processes and procedures for measurement of hydrological parameters and the arrangements made for storage and retrieval of this information so that data series of specific elements would be compatible. 3.03 Project Objectives. The main objectives of the project would be to improve the institutional and organizational arrangements, technical capabilities and physical facilities available for measurement, validation, collation, analysis, transfer and dissemination of hydrological, hydrometeorological and water quality data, and for basic water resource evaluations within the concerned agencies at Central Government level and in the seven participating states. The nature of the project would demand significant technical assistance and training to support the improvement of institutional and technical capability objectives. The development of the data bases would support major aspects of India's National Water Policy, particularly with regard to water allocation 12 and planning and management of water resources development at the national, state, basin and individual project levels. 3.04 Project Strategy. The project would be structured as a six-year operation. The first year would cover mainly the elaboration and launching of the institutional strengthening program and detailed preparation of work programs initiating training programs and procurement. In principle, most of the physical works and instrumentation for improving and expanding hydrological and hydrometeorological observation networks, water quality laboratories and provision of the computing facilities and communication systems for storage and transfer of data would be provided during the first three years of the project. This would leave the last three years for testing the data collection, storage and transfer systems in function and as a service to the various users of the information, and making necessary refinements to the system. However, it is recognized that many aspects of the project concept are complex and that implementation rates may differ in practice, more than anticipated in some agencies. A 'Process Approach' (para. 5.01) will therefore be applied to adequately address these considerations. This process approach provides the necessary project implementation flexibility. Progress and proposed annual work programs would be subject to an annual review process scheduled to fit with India's budgeting procedures (para 5.21). Each annual review would be preceded by an Institutional Development Review of States and national level workshops to enable the necessary focus on institutional development and user needs that are integral to the project. The review process would permit adjustments of implementation schedules to reflect user needs, institutional capabilities and actual progress made by the concerned agencies, and would allow clients' feedback and lessons learned to be incorporated, as necessary, as the project proceeds. 3.05 Project Scope. The support that the project would provide to the concerned State Government and Central agencies may be summarized as follows: Project States (a) Hydrometry and Data Management upgrading and expanding the physical infrastructure for hydrometric activities related to the quantity and quality of surface water and groundwater resources and for monitoring of hydrometeorological parameters through construction of observation site works and buildings, and provisions of measuring instruments and equipment, and laboratory facilities; - upgrading systems for collection, validation and processing of data on reservoir operations and river diversions and return flows from surface water diversions and on groundwater withdrawals, through the provisions of buildings and measuring instruments and equipment; - upgrading and standardization of data management facilities by establishment of computerized data banks for the storage and retrieval, analysis and dissemination of data related to the quantity and quality of surface water and groundwater resources and for monitoring of hydrometeorological parameters, including provision of equipment and buildings; - provision of communication systems, including equipment and services to inter-connect the project computerized data centers; 13 provision and installation of instruments and equipment, and services to improve or establish flood forecasting systems; provision of instruments and equipment, and services for sediment surveys of reservoirs; and carrying out of survey, investigation and design of hydrometric and hydrometeorological activities. (b) Institutional Strengthening strengthening existing hydrological and hydrometeorological institutions in technical and management areas through the provision of local training, incremental staffing and operation and maintenance, equipment and vehicles; and provision of consultants' services, overseas training and study tours, and studies for institutional strengthening. MOrR and MOWR Agencies (a) Hydrometry and Data Management upgrading and expanding the physical infrastructure for hydrometric activities related to the quantity and quality of surface water and groundwater resources and for monitoring of hydrometeorological parameters through construction of observation site works and provisions of measuring instruments and equipment, and laboratory facilities; upgrading and standardization of data management facilities by establishment of computerized data banks for the storage and retrieval, analysis and dissemination of data related to the quantity and quality of surface water and groundwater resources and for monitoring of hydrometeorological parameters, including provision of equipment and buildings; - provision of communication systems, including equipment and services to inter-connect the project computerized data centers; - carrying out of survey, investigation and design of hydrometric and hydrometeorological activities; - carrying out of research and development related to hydrometry, water quality measurements and data processing; and - upgrading calibration facilities through the provision of works, instruments, equipment and services. (b) Institutional Strengthening strengthening existing hydrological and hydrometeorological institutions in technical and management areas through the provision of tiraining facilities, local training, incremental staffing and operation and maintenance, equipment and vehicles; and 14 provision of infrastructural support for the National Water Academy of Pune, and the Institute of Raipur; and provision of consultants' services, overseas training and study tours, and studies for institutional strengthening. IN41) (a) Hydrometeorology and Data Management upgrading and standardization of data management facilities by establishment of computerized data banks for the storage and retrieval, analysis and dissemination of data related to monitoring of hydrometeorological parameters, including provision of equipment and buildings; provision of equipment and services to inter-connect the project computerized data centers; canying out of survey, investigation and design of hydrometeorological activities; upgrading calibration facilities through the provision of works, instruments, equipment and services; and carrying out of research and development related to hydrometeorological measurements and data management. (b) Institutional Strengthening - strengthening IMD's technical and management capabilities through the provision of training facilities, local training, incremental staffing and operation and maintenance, equipment and vehicles to assist IMD in providing technical support to the Project states, MOWR, and MOWR agencies in (i) upgrading and expanding the physical infrastructure for monitoring of hydro- meteorological parameters; and (ii) strengthening related institutional arrangements; and - provision of consultants' services, overseas training and study tours, and studies for institutional strengthening. The project activities are summarized below (management features at Chapter V) and described in thematic Annexes 3 to 11 of this report and the detailed work programs and the related implementation schedules of the participating agencies are given in the Annexes. B. Detailed Features of the Project Surface Water Hydrology (US$ 31.3 million, 22.0 % of base cost) 3.06 Upgrading and Expansion of River Flow Observation Facilities (Annex 3). The CWC maintains a nation-wide network for measuring river flow characteristics in all major basins. State agencies maintain networks on river systems which flow within their jurisdictions. Most stations are permanently manned. At most regular gauging stations, measurements are made of the river stage level using a staff gauge and of the instantaneous discharge by current metering. Continuous records of river stage are collected at some stations using a water level recorder installed in a stilling well. Some observation sites are equipped to sample the stream flow for measurement of the suspended sediment load and/or to determine the chemical quality of the water. Some state agencies maintain stations where only stage level is observed and discharge is computed from a rating curve. 15 3.07 The project would upgrade and expand the river flow observation networks in the participating states. This would include improvements to the existing stations in the CWC and state agency networks by provision of additional, or replacement of existing, measuring equipment, and by expansion of all the state agency networks by installation of new stations. To finalize the annual work programs, provision is made for carrying out some additional survey, investigation and design of the existing and new networks. The existing networks in the participating states comprise 235 stations maintained by CWC and some 787 stations under the concerned state agencies. The total number of stations under state agencies would be increased to about 1096 under the project. Annex 1, Table 1 shows a breakdown of the above totals by states, agencies and parameters observed for the existing and improved observation networks. 3.08 Every observation station has site specific characteristics relating to the river geometry, the range of flow conditions to be observed, and how measurements are made. Where available and appropriate, bridge sites are used for making measurements. At other locations, cableways with winch and cradle or boat are installed or powered boats are used independently on large rivers. Flow velocity measurements are typically made using standard cup-type current meters. Propeller-type current meters are required when velocities are very high. Pigmy-type current meters are used to measure low velocities where river depths are very shallow and observations can be made by wading. River depth measurements may be made by sounding rods or echo sounders, as appropriate. Punjab-type samplers are most commonly used for taking samples for suspended sediment analyses. The types of measuring instruments and other equipment for improvement and expansion of the CWC and state agency river flow and sediment observation networks are shown with cost estimates in Annex 2. Table 2, Part A, discussed in general in Annex 3 of this report, and for individual agencies in Annexes 15, and 20 to 26. 3.09 Improvements to Surface Water Laboratory Facilities (Annex 5). Four basic types of laboratory facilities are recognized: (a) Level I laboratories which are located at flow gauging sites where chemical quality of the water is monitored and equipped to measure unstable parameters - EC, pH, total dissolved solids (TDS), dissolved oxygen (DO) and temperature (one laboratory may serve two or three sites); (b) Level II laboratories are equipped to analyze water samples for some 29 basic parameters covering the main cations and anions and general water characteristics; (c) Level II+ laboratories have capabilities for analyses of heavy metals and organic micro-pollutants in addition to the basic parameters measured by Level II facilities; and (d) Level Ti laboratories with similar capacity to Level II+, but with more advanced and accurate equipment. 3.10 The CWC has established 131 river gauging stations in the project area where water quality is monitored and, in principle, these sites should be equipped with Level I laboratory facilities. The Commission has eleven Level II laboratories in the project area. These are located with divisional offices of which eight are under the jurisdiction of the South Central Region and three under the Southern Region. The facility buildings are generally inadequate and most of the equipment has exceeded its useful life. With the exception of Maharashtra, the state agencies concerned with river flow hydrometry have made limited provisions for systematic collection of water quality data or development of their own laboratory facilities. 3.1 1 Provisions are made under the project to improve CWC's surface water quality monitoring capability by providing equipment sets and building for 75 Level I laboratories, nine Level II laboratories, and one each of Level II+ and III laboratories. All the facilities will be replacement items for existing facilities which are regarded as inadequate. The concerned agencies in the participating states would be provided with 78 Level I, eight Level II and one Level II+ laboratories, most of which require new buildings. In addition, 11 Level II and two Level II+ laboratories will be shared with groundwater organizations. The distribution of laboratories between the state agencies are shown by 16 Annex 1, Table 2. Details of the equipment provisions for each type. of laboratory are given in Annex 2, Table 2, Sheets 7-8. Analyses to be carried out by each type of laboratory are discussed in Annex 5. 3.12 Monitoring of Reservoir Operations. Diversions and Return Flows. A surface water data base for a river basin would be incomplete without information on storage, releases and diversions at reservoirs, on diversions from rivers at barrages, weirs and pumping stations, and on return flows of used water to the river system. The operating agencies at reservoirs and river diversion structures usually maintain fairly good records of water movements at their facilities. In this situation, the task of the agency concerned with surface water hydrology would be to devise and implement a process for collecting (and validating) the data from the operating agencies. The information could then be incorporated in the project data bases. 3. 13 Estimation of return flows from irrigation diversions presents a complex problem. Waste water returns by way of natural and artificial drains can include both return flow and excess rainfall runoff. Effluent groundwater to the surface water system may include both natural groundwater outflows and return flows of used water by way of the groundwater system. In general, serious attempts have not been made in India to quantify return flows to river systems from irrigation diversions, which constitute by far the largest use of surface water. 3.14 Most of the participating states have made proposals for improving their monitoring systems for reservoir operations. These involve provision of instrumentation to provide more accurate information on reservoir storage and on releases to the river and to canals. Several states have proposed pilot projects to obtain estimates of return flows from surface water irrigation schemes. The proposals typically entail stream gauging operations on key elements of the natural drainage system which evacuates waste water from an irrigation command area. The studies are described for individual states in Annexes 20 - 26. Provision is made under the project to support implementation of the above activities, and developing the water balances by which return flows will be evaluated will be supported as an R&D activity (Annex 8). 3. 15 Establishment of Flood Forecasting Systems. Flood forecasting is a specialized activity of hydrological science in that it demands that rainfall, river flow and any existing reservoir performance data be analyzed for a river basin or sub-basin on a real-time basis during a flood event. This requires secure and often dedicated communication systems--radio or space satellite--for data transmission to the flood forecasting center where computer models may be used to integrate and analyze incoming data on a continuous basis through the event. 3.16 Provision of a real-time flood warning system in Orissa for the Brahmani river delta and for operation of the Rengali reservoir would be supported under the project (Annex 26). In the first stage, the observation network would cover only the two thirds of the basin area located in Orissa, but provision would be made for a future extension of the network into the upper basin in Bihar. The telemetry would communicate river flow measurements at selected stations in the basin in real-time to a data analysis center. And the project would support development of a flood forecasting model for the Brahmani river system. The project would also provide wireless communications equipment and necessary buildings to enhance the flood forecasting capabilities of the surface water organizations in Andhra Pradesh, Kerala, Maharashtra and Tamil Nadu, and a consultancy input is provided for the development of a flood forecasting model for the Tambraparani river system in Tamil Nadu. 3.17 Reservoir Sedimentation Surveys This type of activity does not fall strictly within the broad objectives of the project to develop hydrological data bases with the concerned agencies in the project area. Nevertheless, the need to undertake sedimentation surveys in reservoirs was given a high 17 priority by all but one (Madhya Pradesh) of the participatincg states. The project would therefore support such activities. 3.18 The proposed programs for reservoir sedimentation surveys vary in scale between states. Equipment items required include: motor powered boats with trailers and vehicles for road transport; electronic and standard surveying equipment; trisponder satellite positioning equipment; echosounding equipment; sediment sampling and analysis sets; digital planinmeters; and walkie talkie communication sets. Computers and ancillaries are provided for computationis and graphics A list of equipment for this project component is given with detailed cost estimates in Annex 2, Table 1. Groundwater Hydrology (US$ 29.8 million, 21.0 % of base cost) 3.19 Improvement and Expansion of Groundwater Observation Facilities (Annex 4). The CGWB has established a nation-wide network at about 16,000 locations for observation of groundwater level changes and taking water quality samples, and about 8.700 of the monitoring sites are in the participating states. The SGOs of the participating states have developed their own groundwater monitoring networks to provide some 19,475 observation sites. Thus, within the project area of about 0.98 M km2, groundwater level observations are being made at some 31,090 locations, giving an average network density of about 60 km2/site. 3.20 The observation points are predominantly hand dug, open wells which are not owned by the monitoring agencies--tubewells represent only about six percent of all observation points. Except for a few, relatively small areas, the networks are designed to monitor the phreatic aquifer systems which provide by far the greatest proportion of the groundwater used for irrigation. Water levels are measured manually, except for a few tubewell locations where autographic water level recorders have been installed. Throughout the CGWB network, water levels are measured during fixed ten-day periods in January, May, August and November. State agencies follow individual practices--Tamil Nadu makes monthly measurements; in Andhra Pradesh, observation intervals by department staff range from twice yearly in most of the network to bimonthly or monthly in a few wells; Maharashtra and Madhya Pradesh make measurements four times a year; Gujarat mainly makes pre- and post- monsoon measurements; most of Orissa's network is measured only pre-monsoon; and Kerala's network is measured only pre-monsoon. The CGWB and most state agencies sample their networks for water quality immediately prior to the monsoon, but the Oiissa and Madhya Pradesh agencies have yet to start systematic monitoring of water quality. 3.21 The use of privately owned, open wells for water level and water quality observations has become an increasing problem. Some tend to go dry before the end of the dry season and others fall into disrepair after being abandoned by their owners. Both situations can cause the loss of an important observation site. The CGWB has had the intention to gradually replace open well observation sites by purpose-built observation tubewells, but has yet to make significant progress in this respect. The Karnataka state agency is adopting this practice. The project provides for replacement of key open well observation sites by purpose-built tubewells. 3.22 As noted (para 3.20), the existing networks were designed mainly for monitoring the shallow aquifers which support most of the irrigation development. This will remain a priority, and provision is made under the project for strengthening these networks by providing additional or replacement observation tubewells. However, deeper aquifers are being exploited increasingly for community water supplies, municipalities and irrigation. Sometimes this exploitation is in fragile situations with complex water quality relationships adjacent to the coast. In these circumstances, networks of properly designed observation tubewells are required to monitor piezometric relationships and changes 18 in the deeper aquifers and/or water quality relationships. The pri-Ject provides for such network improvements. 3.23 The present practice of relying mainly on manual measurements of water levels can produce data of questionable accuracy for a variety of reasons. Moreover. the intervals between measurements of levels on the CGWB networks and many of the state agency networks (para 3.20) result, at best, in a very crude hydrograph and, at worst, in a poor indication of high or low water levels. The provision of purpose-built observation wells in the CGWB and state agency networks makes installation of automatic water level recorders a practical proposition at appropriate observation sites where reasonable security can be assured. Autographic recorders with a float and clock mechanism have long been manufactured in India, but such instruments have well known problems for use on tubewells. However. a battery powered, digital recorders with a hand-held electronic instrument for data transfer to a computer are now being manufactured in India. As the probe of the digital instrument can be inserted in a smaller diameter observation well than that required to take the float of an autographic recorder, this results in a comparative cost saving. Digital water level recorders would be provided to enhance the quality of the hydrometric data from selected sites in the CGWB and state agency networks. 3.24 The improved CGWB network in the project area would comprise about 8,800 observation sites of which some 2,500 (28%) would be observation tubewells of which about 1,700 would be equipped with digital water level recorders. State agency networks would comprise about 20,500 observation sites of which some 5,242 (26%) sites would be observation tubewells, and digital water level recorders would be installed at about 3,790 of the tubewell sites. To finalize the annual GW work programs, provision is made for carrying out some additional survey, investigation and design of the existing and new networks. Annex 1, Table 1 B, shows a breakdown of the above totals by state area, agency and type of observation site for the existing and improved groundwater monitoring networks. Cost estimates for tubewells and recorders to be provided for CGWB and the SGOs are discussed in Annexes 16 and 20 to 26. Details of the monitoring facilities are discussed in Annex 4. 3.25 Field Measuring Equipment for Monitoring. All observers involved in maintaining the groundwater monitoring networks must be equipped with field instruments such as water level sounders (biaxial electric tapes), portable EC and pH meters and thermometers. These instruments should be a personal issue. Provision is made under the project for supply of the instruments in the required quantities for use by the regional office staff of CGWB and by the state agencies. Portable compressors or portable generators with submersible pumps are also provided for obtaining unstagnated samples for water quality analyses from observation tubewells 3.26 Improvements to Groundwater Laboratory Facilities (Annex 5). The CGWB has established laboratories at all 12 of its regional headquarters, with the facilities at Lucknow being designated the central laboratory of the organization under a Director. The central laboratory is intended to have full Level III capabilities to carry out analyses relating to heavy metal and micro-organic pollution. The remaining eleven regional laboratories (of which seven are in the project area) are intended to have Level II capabilities. Much of the equipment in all the laboratories has low serviceability and has passed its useful life. Moreover, some of the buildings in which the work is now carried out are inappropriate. The creation of a CGWB regional office at Madras with responsibility for operations in Tamil Nadu (para 5.04) will require the establishment of a laboratory facility to serve this office. The CGWB Training and Research Institute to be established at Raipur (para 3.45) will also require a Level I11 laboratory to support both its training and research activities. 3.27 Provisions are made under the project to improve the laboratory facilities at the 12 existing 19 regional headquarters of CGWB2 and for the establishment of a laboratory to serve a newly created regional office at Madras. The central laboratory at Lucknow will be fully equipped up to Level III capability, and thus able to undertake a wide range of pollution related analyses. Reflecting the growing need for water pollution investigations in all the regions, the remaining regional laboratories wil each be provided with an atomic absorption spectrophotometer and gas chromatograph to enable some anorganic and organic pollution analyses, in addition to the standard equipment required for Level II laboratories to upgrade them to Level 11+. The quantities of equipment to be provided assume that most existing equipments require replacement. Provision is also made for improvement to existing laboratory buildings and provision of a new laboratory building in Madras. 3.28 The SGOs of the seven participating states have each established several laboratory facilities. The standards of these facilities vary widely. Only a few can presently function as Level II facilities, although that is their intended standard. Most of the equipment has exceeded its useful life, and many of the buildings are unsuitable for laboratory work. 3.29 The project will upgrade 32 laboratories established by the SGOs of the participating states and provide four additional facilities for Madhya Pradesh and two in Kerala. Under proposed reorganizations in Madhya Pradesh and Tamil Nadu to establish water resource departments, 12 facilities (eight in Madhya Pradesh and four in Tamil Nadu) will be used to provide information on the quality of both surface water and groundwater. The remaining 26 laboratories will be used exclusively for groundwater analyses. One laboratory in each state, located in the state capital, will be upgraded to Level II+ category with equipment for pollution investigations. The remaining laboratories will be upgraded to Level II facilities. It has been assumed that most existing equipment requires replacement. Provision is also made for constructing 12 new laboratory buildings replacing 13 existing laboratory buildings and for improvements to the remaining seven laboratory buildings. The distribution between agencies and states of the laboratories to be provided is shown in Table 2 of Annex 1. Details of equipments to be provided and analyses to be carried out at each laboratory type are given in Annex 5. Hydrometeorologv (US$ 4.2 million, 3.0 % of base cost) 3.3() The IMD, CWC and various state agencies (including all the state agencies involved in surface water hydrometry excepting Orissa) have established networks to measure rainfall. All rainfall stations are equipped with standard rain gauges (SRG) and provide daily rainfall data. A relatively small proportion (18%) of the rainfall stations are also equipped with] autographic rain gauges which provide infoTmation on rainfall intensity and duration. The IMD maintains a network of climatological stations which are fully equipped to World Meteorological Organization (WMO) standards with eye-reading and autographic instruments for observation of all standard climatic parameters, including rainfall. The state agencies involved in surface water hydrometry in Maharashtra, Gujarat and Tamil Nadu have also established climatic station networks. In addition to observing rainfall, the stations are generally equipped to measure parameters for calculation of evapotranspiration. However, equipment provisions are variable. Gujarat has installed five automatic weather recording stations equipped with rainfall, wind speed and direction, solar radiation, temperature, humidity and evaporation measuring sensors, and Orissa is in the process of procuring three such facilities for installation at remote sites. 3.31 Table I of Annex 6 lists the numbers and types of rainfall and climate observation stations maintained by the agencies in each participating state, and indicates the improvement to the networks proposed to be undertaken by the project. It should be noted that the improvements proposed relate to the networks maintained by CWC and the state agencies responsible for surface water hydrometry. 2 The need for improvements to laboratories at the five facilities located outside the project area is as critical as that of the laboratories in CGWB Regional Offices located within the project area. 20 The proposed improvements cover both the rain gauging and manned climate station networks, and in Maharashtra and Tamil Nadu include installation of automatic weather recording stations. The project also makes provision for repair/replacement of faulty equipment at existing observation sites. Because of the unknowns related to the existing hydrometeorological facilities not under IMD control, provision is made for carrying out some additional survey, investigation and design of the existing network of climatological stations and rainfall gauges. 3.32 Upgrading of Calibration Facilities. The CWPRS and the IMD have facilities to test and calibrate scientific instruments used for hydrometric and hydrometeorological measurements. Provision is made under the project to upgrade and improve these facilities to improve the quality of the work undertaken and to reflect the increased numbers of instruments which will have to be testing and calibrated on a routine basis. Upgrading of Data Management Facilities (Annex 7) (US$ 18.8 million, 13.0 % of base cost) 3.33 General. This component would upgrade and improve data management systems employed by the CWC, CGWB and the state agencies responsible for collection and storage of water quantity and quality data relating to surface water and groundwater resources and of rainfall and climatic data using computerized systems. The IMD has a well established computerized system for handling the rainfall and climate data that it processes, but additional computing facilities will be provided for the national data center at Pune and for the meteorological centers covering the participating states. 3.34 The CWC makes fairly extensive use of computers for storage and processing of the hydrometric data collected from its river gauging networks. Raw stream flow data are processed at divisional offices on computers using software developed by CWC, and the processed data are then transferred upwards on diskettes for storage on computers at the concerned regional offices and at CWC headquarters. The CGWB makes use of computers for storage and retrieval of raw groundwater data collected from its observation network in the regional and headquarters offices. The historical data is in the process of being computerized. In general, the state agencies responsible for surface water hydrometry have made only Limited advances in using computers for data storage and processing. In contrast, several of the SGOs of the participating states have stored their groundwater observation network data on computers and have some programs for data processing. However, the data storage and retrieval systems that have been set up by the cenitral and state agencies are rarely compatible. 3.35 Establishment of Data Banks. The project plans to develop computerized data banks within CWC, CGWB and the state agencies responsible lor surface water and groundwater hydrology respectively. Thus, each agenicy will have a data banking system for the data it collects. This places responsibility for verifying data and maintainiing the integrity of the information with the collecting agency. However, the agencies will use the same progr-ams for data storage. Communication linkages (satellite or land line) will be provided, as appropriate, so that data can be exchanged between concer-ned agencies by electronic file transter. To this degree. the data bases would be semi- interactive. 3.36 Computerization) of the CWC data storage and processing system would start at the sub- divisional level which is where raw data first accumulates. The computer facility at the sub-division will be used for storage of verified raw data of iiver flows and processing of this data. Copies of this entire data base will be transferred by a dial-up NICNET linkage, or by diskette, to the controlling divisional office for further verificationi. Copies of the processed data will then be transferred by diskette or dial-up satellite commullication to the controllinig circle and regional offices. Each regional office would create a data banking system cover-ing all surface water resources and hydrometeorological information collected by CWC units under its jurisdiction. Copies of regional 21 office data bases would be transferred upwards to CWC headqualters by a satellite communication link as part of the central surface water data bank. 3.37 The CGWB will establish computerized girotundwater data banks for storage and processing of data collected by each of the regional offices. In cases where the r eglonial office has a subordinate unit office, that office will be provided with computer facilities ftor storage and processing of all data actually collected. Copies of this information will be transfelred into the regional offices' data banks by a dial-up NICNET linkage or by diskette. Copies of the data bases held in regionial office banks will be transferred upwards to CGWB headquarters by a satellite communiication link to form the central groundwater data bank. 3.38 For the establishment of data banking systems for the surface water and groundwater information collected by state agencies, entry of verified data into a computerized storage system will normally be undertaken at divisional office level or equivalent. Copies of this information will then be transferred by a dial-up NICNET linkage or by diskette to the headquarters of the state agencies to be incorporated into the state water data banking system. The sul'iace water and groundwater data bankine systems will be separate in all states even when the activities are canied out within a single Hydrology Unit, as in Madhya Pradesh and Tamil Nadu. 3.39 Hardware and Software for Data Centers. Similar computing facilities will be provided for the data centers to be established in the headquarters of CWC and CGWB. The computer hardware will be a network system based on a file server for data storage and retrieval connected to eight PCs and with provision for connection to additional PCs. The system would run the specialized hydrology and water quality data management programs selected for use in the water data centers and other appropriate hydrology program and general purpose applications. Ancillary equipment would include monitors, digitizers, scanners and plotters to assist in the production of maps - this is of particular importance for the data center established at CGWB headquarters. 3.40 The computing facilities provided for the CGWB regional offices and the state centers for suiface water and groundwater data will have similar capabilities. The computer hardware will also be a network system based on a file server connected to five PCs with provisions for connection of additional PCs. The system would run the specialized hydrology and water quality data management programs selected for use in the data centers and other hydrology program and general purpose applications. Ancillary equipment to assist with map and graphics production would be provided for the CGWB regional office and the state agency facilities. The CWC regional offices will be provided with a pair of PCs plus ancillaries, such as plotter and printers, plus surface water and water quality data management programs and other specialized hydrology and general purpose software. 3.41 Divisional offices of the CWC and of the state organizations will enter verified data into computer systems for storage and tranisfer to data banks (paras 3.36-3.38). In CWC and in some state agencies, there are intermediate command levels between the data collection units and the level at which the data banks are established. These need to have computerized filing systems for storage of data collected within their jurisdiction. All data collecting and intermediate offices would be provided with two PCs of appropriate capacity, printers and data management software suitable to the function of the office. Where unit offices of CGWB regions exist, they will be provided with similar computing facilities. Two PCs of appropriate capacity would be provided in all laboratories of Level II or Level II+ (paras 3.09 and 3.22), together with a printer and software appropriate for use in water quality data management. Level III laboratoijes will have enhanced computing and ancillary facilities. 3.42 Communication Networks for Data Transfer. Data transfer between central, regional and state water data banks would be by satellite communication using India's NICNET system. Data transfer 22 from computerized offices the data banking centers would also use the NICNET system with a backup using diskettes (para 3.34). 3.43 The CWC headquarters in New Delhi, being the location of the central surface water data bank, will be provided with a NICNET ground station to provide communication links to its regional offices in Hyderabad and Coimbatore and to the surface water data banks with the concerned agencies of the participating states in Bhubaneswar, Hyderabad, Madras, Bangalore, Nasik, Trivandrum, Ahmedabad and Bhopal. All major cities in India now have a NICNET ground station. These stations will be used for linking the CWC regional office and state agency data banking systems to CWC's central system. The CWC regional offices and the state surface water data centers will be provided with modems and dedicated telephone lines to the NICNET ground stations. The CGWB headquarters at Faridabad would be provided with a NICNET ground station to establish linkages with all of its regional offices and with the headquarters of the SGOs in the eight participating states. The CGWB regional office and the SGO groundwater data centers would be linked to the local NICNET groundstation through a modem and dedicated land telephone line. 3.44 All data collection and processing offices below CWC and CGWB regional data centers and below state surface water and groundwater data centers would communicate with superior offices using a dial-up modem connection to their local NICNET groundstation. If dial up access lines are not available or are of poor quality, data would be transferred by diskette. Research and Development Activities (Annex 8) (US$ 1.1 million, 1.0 % of base cost) 3.45 The NIH is an apex agency of the Central Government funded through MOWR with a mandate that places strong emphasis on hydrological research. The CWPRS has practical hydrological research capabilities and has particular expertise with respect to specialized instruments for surface water hydrometry. The CWC and the state agencies responsible for surface water data collection undertake very limited hydrology research that relates directly to project objectives. By contrast, the CGWB and some of the SGOs of the participating states undertake groundwater research works, in addition to their routine exploratory drilling, hydrogeological mapping and resource evaluation activities. Moreover, the CGWB is establishing a National Institute for Groundwater Research and Training (NIGRT) at Raipur., and funding to support this undertaking would be provided under the project. 3.46 The Hydrology Project (HP) would support demand driven applied research in all relevant aspects of surface water and groundwater hydrology and of water quality through funding specifically identified research studies which are approved by a Research and Development Evaluation Committee (RDEC) to be established under the project. The evaluation process is aimed at the applied research activities that may be undertaken by NIH, CWPRS, or any other qualified research agency, on behalf of the central and state surface water and groundwater organizations using funds provided by the project. 3.47 As most of the applied research activities to be undertaken using project funds have yet to be fully identified and approved by the RDEC, the funding for these activities is covered by a lump sum allocation of some Rs. 40.0 million (excluding physical and price contingencies) in the project budget. Some Rs. 5.0 and 15.0 million respectively support the NIH and CWPRS for their on-going R&D programs. The remaining Rs. 20.0 million will be placed in a project applied research fund to be drawn on by qualified research agencies when a proposed study on behalf of a central or state agency has been approved by the evaluation committee and confirmed by the Bank. Some applied research inputs to be undertaken by CGWB and the SGOs have been identified and their fundings are specified in the detailed cost estimates for the specific agencies. 23 Institutional Support (Annex 9) (US$ 46.2 million, 31% of base cost) 3.48 The recipients of institutional support will be central and state surface water and groundwater agencies. Institutional capability needs to be strengthened for organization and management in general and, in particular, for survey, investigation and design, and for the collection, validation, storage and dissemination of data (Annex 7). An incentive structure would be developed conducive to sustainable professional performance. Methods of supervision and quality control must be strengthened as well, to ensure data validity. Appropriate skills would have to be developed to operate the computing and laboratory facilities provided by the project and to maintain the expanded hydrometric networks. A high level of inter-agency coordination would be required for development of computerized data banks which are inter-active between data centers, and readily accessible by the concerned agencies and other legitimate users in the public and private sectors. 3.49 The project would finance institutional strengthening costs directly related to implementation and administration of programs undertaken departmentally and through local consultants' services (for some SID activities). For the first three years of the project period, almost all incremental operating costs relate to organizational strengthening, staffing and support for project implementation. It is anticipated that, from the fourth year of the project period, incremental operating costs would relate mainly to routine operation of the upgrading and expanded observation networks and data processing facilities. The incremental O&M costs would be supported on a declining scale, including project staff and other inputs to support the new institutional initiatives to be undertaken under the project and training programs. To ensure sustainability of hydrological activities in the future after external financing is withdrawn, Bank funding of O&M costs would be phased out during the project period and substituted by government funding of O&M. An assurance was obtained from GOI and the participating states that they would provide in a timely manner all the funds needed for O&M of the project. This funding would reflect the phasing-out of Bank funding and provide full O&M funding once Bank support is withdrawn. The O&M support would include provision of: office facilities, equipment and services; vehicles and their operational costs; consultancy services; and project-specific staff training. Training (Annex 10) (US$ 5.9 million,4.0 % of base cost). 3.50 The project would provide both formal training and on-the-job training, particularly for state agencies. Though most of the training would be carried out by trained staff of the national and state agencies. The NIH, CWPRS. IMD and the training consultants (para 3.51) would assist in running courses for training of trainers. The project would assist the CWC in the establishment of an academy for teaching surface water hydrology which would become a source of training under the project for professionals involved in surface water hydrology and hydrometry. The project would also support CGWB in the establishment of a groundwater research and training institute which is expected to become the main source of training for professional staff in hydrogeology. Sub-professional staff would be given formal training in groundwater hydrology through courses which could be run using the facilities of the several Water and Land Management Institutes (WALMIs) in the project area. Specialized consultant services (para 3.51) would be directly employed on training-specific assignments. Provision is also made for training fellowships in foreign and Indian institutions, advaniced training in NIH, and for study tours in India and abroad. Consultancy Services (Annex 11) (US$ 7.9 million, 5.4 % of base cost) 3.51 Consultancy services would be employed to assist the project implementation agencies at national, regional and state levels. Local consultant services would be employed to assist in the survey, investigation and design of project works, facilities and services. In addition, the main 24 consultants' services would consist of general technical assistance for project implementation, and specific assistance in the project training activities (Annex I 1). The consultancy would be a joint team of about 251 foreign consultant months and some 709 local consultant months of which about 162 foreign and 596 local consultant months would be for general project assistance and 89 foreign and 1 13 local consultant months would be for training. The arrangements, specializations and scheduling for the consultancy are discussed in Annex 11. Further elaboration of international and national consultancy details and adjustment as needed would be made during the "project launch" mission and in annual reviews. The main consultant teams would be based in New Delhi. They would be required to visit the participating states to support the local consultants posted in the capital of each participating state to work with concerned state agencies and regional offices of the national agencies. An assurance was obtained from GOI that it would employ consultant services, not later than March 31, 1996 to assist with the implementation and supervision of the project, under terms of referenice satisfactory to IDA. 3.52 The main tasks of the general assistance consultanits would include: (a) general assistance to the project coordination group and the national and state agencies involved, in both institutional development and technical areas; (b) standardization of technical criteria and procedures relating to all aspects of hydrometry including water quality and suspended sediment; (c) review/preparation of specifications for specialized equipment items to be procured under the project; (d) selection of hardware and software for data storage systems and other hydrological applications; (e) devising methods and criteria by which historical stream flow data may be adjusted and improved; (f) review of annual work programs; and (g) monitoring of project progress. The training consultants would be concernied mainly with preparation of training course curricular, preparation of seminars and workshops, provision of formal training of trainers from state agencies, and monitoring the effectiveness of training activities. Local consultanits posted with the states would have similar duties to support the state surface water and groundwater agencies. Short-term foreign and local constultants would be employed on special training and other technical assistance assignments. C. Status ot Preparation and Implementation Schedule 3.53 Status of Preeparatiotn. T he project has been prepared by the central and state government agencies concernied, steered by MOWR, CWC and CGWB and with the assistance of the Bank, FAO/CP. the UK's Overseas Development Agency (ODA) and the Netherland's Directorate General for Inter-national Cooperation (DGIS). An initial preparation report covering surface water and TrounJdwater proposals (including water quality) was submnittt-d by Government in July 1993. and an updated proposal for groundwater was issued in October 1993. A revised proposal for groundwater related activities by CGWB aund the SGOs was issued in July 1994. The IMD prepared its proposal in August 1994. Consultancy iniputs, financed by the Japanese General Trust Fund and the Dutch andi Danish TruLst Funids, were available from Octobei' 1993 thlough September 1994 to provide for technical review of the project proposals and to assist central and state agencies in finalizing the project scope. Work programs for the first year of the project were reviewed during project appraisal. Management and institutional arrangements were further reviewed subsequent to appraisal by the Bank, DGIS and ODA in consultationi with Government, and adjustments to reflect this review wvere also incorporated in the project design and its management features (Chapter V). 3.54 Implementation. The project implemeniting agencies are listed in Chapter 5 of this report, described further in Annex 9 andl detailed' in the respective Annexes. An assurance was obtained fronm GOI and the participating states that they would implement the project in accordance with technical, finanicial, administrative, environmenital and hydrololgical practices, standards and criteria satisfactor-y to IDA. 25 3.55 The project investment program and implementation schedule are summarized in Annex l, Table 4 and shown schematically in Annex 9, Figure 1. The annual investment schedule shown underTable 4, Annex I would be subject to review during the annual project review process. Estimated expenditures and physical investments are shown by state and agency in Annex 1, Table 3. and by agency and component expressed as annual expenditures in Annex 2, Table 4. The estimated expenditures for each project agency by items in physical and financial terms are given in Table 1 in each of the Annexes 15 to 26. These estimates are likely to vary by agency depending on their implementation progress and stage of achievement of their institutional development objectives. The management process discussed in Chapter V provides the mechanism for steerage of the project and attainment of its institutional and physical development targets. The annual implementation review (para 5.22), and its supporting and preceding workshops and Institutional Development Reviews allows the program planning process and implementation schedules for any agency to be updated and adjusted annually to reflect institutional and technical development progress in the previous year and adjustments to reflect the agencies water sector objectives and feed-back from state and central authorities and water sector stakeholder. An assurance was obtained from GOI and the participating states that they would: (i) undertake in collaboration with IDA, not later than October 31 of each year, starting October 31, 1996, an annual review of the project, and shall incorporate the findings of such review in work programs for the following year; and (ii) furnish to IDA for its review and comments, not later than December 31 of each year, starting December 31, 1996, work programs, cost estimates, and budget proposals for the project for the following fiscal year. Assurances were also obtained from GOI and the participating states that they would make budgetary provisions sufficient to implement the agreed work programs for the fiscal year FY 1995/96 and each subsequent fiscal year thereafter until project completion. D. Environmental Aspects 3.56 By improving hydrological data necessary for sound water planning, allocation and management which is responsive to the country's physical, economic and environmental needs, the project would have strongly beneficial impact on the sustainability of water resources development including its environmental management. The negative environmental impacts of the project would be minimal, infrequent and temporary. The physical works are individually small and scattered, and do not cause any permanent disturbance. The construction of water gauging stations, observation wells, meteorological data collection sites, or buildings would constitute the maximum type of disturbance envisaged under the proposed project. In most locations, there would be some flexibility in the siting of physical infrastructure to accommodate local needs. On the other hand, the beneficial effects of having a reliable and accessible scientific data for future planning and management of surface and groundwater resources will be substantial and far outweigh any such small and temporary disturbances. Of special importance, the proposed strengthening of the water quality data base and the importance given to water pollution would provide substantial environmental and social benefits to a large array of development and preservation/conservation issues which at present cannot be effectively evaluated or managed because of the lack of reliable data. IV. PROJECT COSTS AND FINANCING Project Costs 4.01 Total project cost, including physical contingencies and expected price increases, is estimated at US$ 162.4 million equivalent. The direct and indirect foreign exchange component is estimated at about US$ 33.9 million, or about 21% of total costs. The cost estimates are based on July 1994 prices and include local taxes and duties computed at about US$ 4.0 million. Cost estimates for works are derived from costs of activities recently completed by CWC, CGWB and state agencies, updated to 26 reflect price increases. Cost estimates for equipment, materials and vehicles are based on recent price quotations from suppliers, or prices of similar goods recently purchased, or being procured bv various government agencies. Consultant staff costs are based on experience with recent contracts for foreignand local consultant services in India. Physical contingencies to allow for possible quantity and design variations were applied at 10% of works, equipment and incremental operating costs, 5% for training activities and zero for consultancies and R&D activities. Price contingencies were applied to the foreign exchange component at 1.5% in 1995, 1.8% in 1996, 2.6% in 1997 and 2.5% in 1998 and thereafter. For local costs, price contingencies were applied at 9% in 1995, 8.5% in 1996, and 8% in 1997, 7% in 1998, and 6% in 1999 and thereafter. The cost estimates take into account the expected changes in the currency equivalent over the project period. Project cost estimates are summarized in Table 4.1 below and in Annex 1, Table 3 by States, agencies and components. The cost estimates are further detailed in Annex 2 and given by item for each participating agencies in the respected annexes. Table 4.1 Suornn tsat. b/ Item Description ary Local Foreign rowte FE T. ofl (Rs. million) (USS Million) % Base Cost A Civil Works I SW Observation Sites 217.7 27.9 245.6 6.9 0.8 7.7 10 5 2 GWObservationTubewells 264.4 73.3 335.7 8.6 2.3 10.9 21 8 3 Buil&ngs 554.7 68.3 623.0 17.7 2.2 19.9 il 14 B Vebicles 124.2 53.2 177.4 4.0 1.7 5.7 30 4 C Equipment and Materials I SWNetworklEquipment 244.7 45.1 289.8 7.8 1.4 9.2 15 6 2 GW Network Equipment 146.0 27.4 173.4 4.6 0.9 5.4 16 4 3 HydromeL Network Equipment 57.7 10.2 67.9 1.8 0.4 2.2 18 2 4 Laboratory Equipment 63.2 12.3 75.5 2.0 0.4 2.4 16 2 5 Data ManagementHard/Software 317.2 230.6 547.8 10.1 7.3 17.4 42 12 6 Communication Equipment 22.3 22.2 44.5 0.7 0.7 1.4 50 1 7 Survey Equipment 39.3 19.3 58.6 1.3 0.6 1.9 32 1 8 Office&Training Equipment 60.7 10.7 71.4 1.9 0.3 2.2 15 2 9 R&D Equipment 5.6 4.2 9.8 0.2 0.1 0.3 43 0 e Consitant Services I Geneal Consultants 90.6 97.8 188.4 2.9 3.1 6.0 52 4 2 Training Consultants 11.6 48.5 60.1 0.4 1.5 1.9 81 1 F Research&Development(R&D) 24.0 2.0 26.0 0.7 0.1 0.8 # I * Training I LocalTraining 171.8 0.0 171.8 5.5 0.0 5 0 4 2 Overseas Training 0.0 13.0 13.0 0.0 0.4 0.4 100 0 H Incremental Operting costs I Instituitional Support 321.1 17.5 338.6 10.2 0.6 10.8 6 7 2 Comsmunication Services 2.8 0.1 2.9 0.1 0.0 0.1 3 0 3 O&M support 864.9 172.1 1037.0 27.5 5.6 33.1 17 23 Total Baseline Costs 3604.5 953.7 4558.2 114.1 30.4 145.2 21 100 Physical Contingenies 303.8 62.0 365.8 9.7 2.0 11.6 17 8 Price Contingencies 866.1 237.7 1103.8 4.1 1.5 5.61 27 4 Total Costs 4774.4 1253.4 6027.8 128.6 33.9 162.41 21 112 Note: SW = urtacewater: GW = groundwater a/ Including taxes and duties, estimated at USS 4.0 million equivalent. b/ rounded to one decimal place. Project Financing 4.02 The proposed IDA Credit of US$ 142.0 million equivalent would finance about 90% of the total project costs net of taxes, or about 88% of total costs including taxes. It would finance 100% of direct and indirect foreign exchange costs and about 84% of the local currency costs. GOI would finance the 27 remaining project costs of US$ 20.4 million from its development budget. The project financing plan is summarized in Table 4.2 below. Table 4.2 Project Financing Plan Funding Source Local Cost Foreien Cost Total Cost Percentage --------------------US$ Million--------- - - IDA 108.1 33.9 142.0 89 GOI 20.4 au 11 Totals 128.5 33.9 162.4 100 In this respect, prior to negotiations, GOI obtained an approval for the project of the Expenditure Finance Committee (EFC) of the Ministry of Finance, and each of the participating seven states confirmed the financial clearance of their respective programs under the project. In addition, since this is a project involving central agencies, GOI cabinet approval of the project would be obtained prior to Board presentation. Procurement (Annex 13b) 4.03 The procurement under the project would be undertaken by the implementing agencies at national and provincial levels, as appropriate. To expedite procurement and promote the standardization of specification, processes and procedures where possible, prior to negotiations, GOI would cause CWC, CGWB and IMD to set up Project Procurement Committees satisfactory to IDA as detailed in Appendix 1 of Annex 13b. An assurance would be sought from GOI that it would maintain the Project Procurement Committees with terms of reference and membership agreed with IDA. 4.04 The civil works (US$ 42.8 million), including construction of surface water observation stations. climate observation sites, observation tubewells and buildings, would be widely dispersed at many locations in the participating states. Works would therefore be procured by the concerned central and state agencies under LCB contracts acceptable to IDA up to an aggregate of US$ 28.5 million and force account procedures acceptable to IDA would be used for contracts costing less than US$ 20,000 each, up to an aggregate of US$ 14.3 million. 4.05 Instrumentation and ancillary equipment and laboratory equipment (US$ 21.8 million) would be procured partly following ICB procedures (US$ 13.9 million), and where available and readily serviced locally and in contracts of less than US$ 200,000 equivalent, following LCB procedures acceptable to IDA (US$ 4.7 million) and through local shopping procedures acceptable to IDA (US$ 3.2 million). Computers, ancillaries and software and communication equipment (US$ 21.6 million) would be procured partly following ICB procedures (US$ 17.0 million) and, where required, in contracts less than US$ 200,000 equivalent following LCB procedures acceptable to IDA (US$ 3.1 million), with some propriety equipment and software directly purchased in accordance with procedures acceptable to IDA up to an aggregate of US$ 1.5 million. Specialized survey equipment. office and training equipment and equipment of use in R&D studies (US$ 5.1 million) would be required by scattered project offices in the States over the six year project period. The procurement would therefore be, either by LCB contracts let by the concerned agencies (US$ 2.2 million), or local shopping procedures (US$ 2.9 million), acceptable to IDA. Vehicles (US$ 6.1 million) would be required by each of the various implementing agencies and at various times during the life of the project. The vehicles required for the first six months of the project (15% of total requirements) would be procured by the concerned agencies following local shopping procedures in packages below US$ 50,000 equivalent, up to an aggregate of US$ 0.9 million. Subsequent procurement 28 would follow ICB procedures (US$ 2.5 million) and prudent shopping procedures acceptable to IDA, depending on the contract size, up to an aggregate of US$ 2.7 million. 4.06 Incremental Operating Costs (US$ 49.5 million) and training activities (US$ 6.4 million) would be provided using administrative procedures acceptable to IDA. Services related to research and development (US$ 0.7 million) would be provided by the concerned agencies using administrative procedures acceptable to IDA. Consultancv services (US$ 8.4 million) would be procured under "Guidelines for the Use of Consultants by World Bank Borrowers and the World Bank as the Executing Agency". 4.07 The procurement arrangements are summarized in Table 4.3 below Table 4.3: Procurement Plan alb/ Ref. Project Element ICB NCB Other c/ Total - Works 28.5 14.3 42.8 22.8 11.6 34.4 2 Goods 2.1 Vehicles 2.5 2.7 0.9 6.1 2.4 2.6 0.8 5.8 2.2 Equipment 30.9 10.0 7.6 48.5 29.2 9.4 Z7 45.7 3 Consultant Services 3.1 Policy Support 0.8 0.8 0.7 0.7 3.2 Implementation Support 3.4 3.4 3.3 3.3 3.3 Capacity Support 4.2 4.2 4.1 4.1 4 Training 4.1 Local Training 5.8 5.8 5.7 5.7 4.2 Training, Study Tours 0.6 0.6 0.5 0.5 5 Research & Development 0.7 0.7 0.6 0.6 6 MiscellaneouFs 6.1 Incremental St