During project appraisal in 2008, Odisha (formerly Orissa), in northeastern India, was one of the poorest states in the country. Agriculture employed 60% of its available labor and generated one-third of its gross domestic product. However, as less than half of the state’s agricultural land had irrigation, and of the irrigation schemes that were operating, a third hardly received water, agricultural productivity remained low. Poor system design, lack of field channels, limited accountability in system management, and inefficient operation and maintenance (O&M) accounted for the irrigation subsector’s weak performance.
To help improve the situation, the Asian Development Bank (ADB) approved in September 2008 a $268.8 million multitranche financing facility (MFF) for the Orissa Integrated Irrigated Agriculture and Water Management Investment Program. The MFF, to be provided in 4 tranches over 8 years, aimed to improve the productivity and sustainability of existing underutilized infrastructure by adopting participatory irrigation management (PIM).
Tranche 1 of the MFF, amounting to $16.5 million, financed this project that overall sought to enhance economic growth, reduce poverty, and institutionalize effective mechanisms to operationalize PIM-based agriculture in selected areas in Odisha. The project’s intended outcomes were (i) enhanced productivity, water use efficiency, and sustainability of irrigated agriculture in selected existing schemes; and (ii) improved institutional performance in irrigation service delivery and integrated water resources management (IWRM). It had 2 main outputs (i) productive and sustainable irrigated agriculture management systems and (ii) strengthened institutions and project management systems.
Under output 1, the project successfully rehabilitated 64,583 hectares (ha) or 95% of the irrigated area through infrastructure improvements. Water user associations (WUAs) were strengthened and engaged in participatory planning and implementation of subprojects as well as in various government agriculture and livelihood enhancement programs. Subproject O&M manuals, with an outlook toward transferring the minor schemes’ O&M to WUAs, had been prepared though not fully implemented.
Under output 2, the State Water Policy and WUA Act and Rule were revised, supporting improved water resources management; a stronger Water Advisory Committee was created to monitor water policy implementation; and a DOWR directorate to oversee project implementation and ensure PIM operationalization in command area development and other schemes was established.
Substantial delivery of the project’s key outputs allowed the project to achieve its intended outcomes. Specifically, the project improved agricultural practices in all subprojects, resulting in a 3.5−6 tons per ha increase in crop production; and a 115% increase in cropping intensity, against a target of 20%. Water resources management and water use efficiency improved, with most WUAs strengthened and regularly engaging the DOWR staff on water demand and systems operation. The irrigated area of all subprojects expanded by 56%, above the target of 40%. Although more work is required, IWRM operationalization had been initiated with the preparation of a road map and river basin plans.
ADB’s South Asia Department rated the project successful. Cofinanced by the OPEC International Fund for Development, the project was executed by Odisha’s DOWR. A project management unit, established within the DOWR, served as overall implementation agency.