India: Madhya Pradesh Irrigation Efficiency Improvement Project

Project Name
Madhya Pradesh Irrigation Efficiency Improvement Project
Project Number
Country / Economy
  • India
Project Status
Project Type / Modality of Assistance
  • Loan
Source of Funding / Amount
Loan 3662-IND: Madhya Pradesh Irrigation Efficiency Improvement Project
Source Amount
Ordinary capital resources US$ 375.00 million
Strategic Agendas
  • Environmentally sustainable growth
  • Inclusive economic growth
Drivers of Change
  • Gender Equity and Mainstreaming
  • Governance and capacity development
  • Knowledge solutions
  • Private sector development
Sector / Subsector
  • Agriculture, natural resources and rural development / Agricultural production - Irrigation

Some gender elements
The Madhya Pradesh Irrigation Efficiency Improvement Project is designed to support higher irrigation efficiency and expansion of irrigation in Madhya Pradesh. It will focus on developing 125,000 hectares of new, highly efficient and climate resilient irrigation networks and productive command area under the Kundalia Irrigation Project. It will also finance a feasibility study and detailed designs for modernizing the existing Sanjay Sarovar Irrigation Project
Project Rationale and Linkage to Country/Regional Strategy

India requires irrigation water use efficiency and productivity improvement. Water plays a critical role in India's food security and welfare of the rural poor as 84% of all water withdrawals are dedicated to agriculture and 42% of all agricultural land is irrigated. India benefits from only 4% of the world's renewable fresh water but has 16% of the world's population. With intense urbanization and industrialization, the need for water from the nonagriculture sector is fast increasing and water shortage is becoming a major concern for industries. At the same time, population growth and change in dietary habits require continued growth in agricultural production. By 2050, annual water availability per capita in India is expected to drop from 1,530 cubic meters to 1,140 cubic meters, indicating severe water stress. The current average irrigation water use efficiency of 38% points towards the need for serious performance improvement in this sector. The productivity of irrigation water is further hampered by low crop yields and cultivation of low- value crops. Therefore, most of India's utilized water not only supports activities with low economic value but is also inefficiently used. In the meantime, water shortages are constraining water-dependent power production and the development of high-value industries that are required to fuel the country's economic growth. These problems will worsen in the future with the projected impacts of population and economic growth, and with climate change, which will increase both irrigation water demand and uncertainty around the reliability of water resources.

Irrigation modernization is a key strategy to reducing water wastage. The Government of India recognizes the situation. Both the Three Year Action Agenda (2017-2018 to 2019-2020) and the 2015 Pradhan Mantri Krishi Sinchayee Yojana program have acknowledged the necessity to improve water use efficiency in irrigation. In 2014, the Asian Development Bank (ADB) funded the Scoping Study for a National Water Use Efficiency Improvement Support Program. The study identified the following three main causes for low water use efficiency: (i) inadequate irrigation and drainage infrastructure because of faulty designs and lack of maintenance; (ii) inadequate management, operation and maintenance (MOM) of the irrigation systems; and (iii) inadequate capacity building and training services. The study highlights the need to modernize the design and management of major- and medium-sized irrigation (MMI) schemes to reduce system inefficiencies and substantially improve water delivery services to farmers. It proposed a framework for assessing and improving water use efficiency on MMI schemes. Under a subsequent regional technical assistance, the framework was successfully pilot tested on such schemes within South Asia. The study also developed comprehensive modernization strategies for existing irrigation systems and recommended a tailored investment plan for the SSIP.


India farmers' income doubled by 2023

India's "more crop per drop" achieved

Resilience of farmers in the project area to ongoing and uncertain future climate change increased

Project Outcome

Description of Outcome

Higher irrigation efficiency, agricultural water productivity and climate resilience in Madya Pradesh achieved

Progress Toward Outcome
Project commissioning is planned by Q4 2022 which will pave way enhanced water use efficiency, agricultural water productivity and building climate resilience.

Implementation Progress

Description of Project Outputs

Kundalia Irrigation Project infrastructure constructed

Kundalia Irrigation Project performance-based operation and maintenance established

Farmers capacity for rapid uptake of micro-irrigation technology in the KIP command area enhanced

Modernization of the Sanjay Sarovar Irrigation Project well-designed with project readiness criteria met

Status of Implementation Progress (Outputs, Activities, and Issues)

Two DBO contracts awarded in 2018. Pipe laying has commenced and ongoing. Left Bank- 363/363 km (100%) and Right Bank- 329/332 km (99%).

Construction of the pumping stations and distribution chambers are completed.

3,647 (30 ha) OMS controls installed (Left Bank- 1,999 no.'s and Right Bank- 1,648 no.'s).

DBO contract signed with 5 years operation and maintenance period signed in 2018 and ongoing.

Not yet due.

Not yet due.

Not yet due.

Not yet due.

Consultation with farmers ongoing. Total 346 meetings with farmer groups held at village level (Left bank 146 and Right bank 200). Training to commence once system is commissioned.

Social studies of the future command area ongoing. Voter list and base document preparation on-going.

EA planned to establish 8 FSCs and out of eight 2 have been completed and remaining 6 are under progress.

Selection of 1250 ha demonstration farms done. All 43 nos. demonstration farms [21 nos. in Left bank & 22 nos. in Right bank] to be commissioned in Q4 2023.

Not started. This output will be reassessed during midterm review.

MPWRD suggested dropping Sanjay Sarovar Irrigation investment from the project scope. To be decided before the MTR mission for a preparing another similar project.

Geographical Location
Madhya Pradesh

Safeguard Categories

Involuntary Resettlement
Indigenous Peoples

Summary of Environmental and Social Aspects

Environmental Aspects
The project is classified as category B in accordance with ADB's Safeguard Policy Statement (2009). ADB screened and assessed the impacts using Rapid Environmental checklist. ADB prepared an initial environmental examination (IEE) report in line with ADB's SPS 2009.The study area for IEE report covers the cultural command area (CCA) of 125,000 ha spread over in four blocks that is two blocks (Zirapur & Sarangpur) of Rajgarh District and two block (Susner & Nalkheda) of Agar District and the area required for project component.The IEE report identified that most impacts, such as noise, dust, impacts on vegetation because of land clearing and excavation occur during the construction period. Mitigation measures were included accordingly in the EMP. Stakeholders have been consulted and will continue to be consulted during implementation.All the potential impacts identified due to proposed project activities are temporary and insignificant likely to be localized and will occur over a relatively short period during the construction period. However, as precautionary measures, the environmental management plans (EMP) for construction camp management, waste management plan, construction plan and equipment management plan and health and safety management plan have been formulated as a part of environmental mitigation and management plan which are common for all the activities. Stakeholders have been consulted and will continue to be consulted during implementation. An integrated social and environmental grievance redress mechanism to receive feedback and complaints from affected parties and address these complaints during construction and operation has been established. The IEE report is disclosed on the ADB and Water Resources Department Madhya Pradesh (MPWRD) websites.
Involuntary Resettlement
Permanent land acquisition is limited for the pumping stations and distribution chambers. Most land acquisition will be temporary for laying the irrigation pipelines underground and this will affect land owners during construction. Two sample resettlement plans (land acquisition plans) were prepared. One resettlement plan was prepared for distribution pipes covering 500 ha of cultivable command area that will affect 96 households and requires 4.81 ha of land (4.78 ha of temporary acquisition, and 0.03 ha of permanent acquisition). The second resettlement plan was prepared for installing a pumping station, which will affect 25 households and require 31.14 ha of land, 2.21 ha of which is private land. For the rest of the project areas, the DBO contractors will prepare the resettlement plan(s) in accordance with the project's resettlement framework. The resettlement framework for this project was prepared to guide the preparation of the resettlement plan(s) during project implementation. The sample resettlement plans and resettlement framework were prepared in accordance with the ADB SPS, Madhya Pradesh Pipeline Act (2013), the Madhya Pradesh Consent Land Purchase Policy (2014), and the Indian land legislation on The Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act (2013).
Indigenous Peoples
There are no indigenous peoples, as defined by the ADB SPS in the project-affected areas.

Stakeholder Communication, Participation, and Consultation

During Project Design
Focus group discussions with future beneficiaries to understand their needs and constraints
During Project Implementation

Business Opportunities

Consulting Services

All consultants will be recruited according to ADB's Guidelines on the Use of Consultants (2013, as amended from time to time).

Four individual consultants are engaged and one consulting firm contract is awarded.


All procurement of goods and works will be undertaken in accordance with ADB's Procurement Guidelines (2015, as amended from time to time).

Both the DBO contracts were awarded in 2018.


Responsible ADB Officer
Goyal, Vikas
Responsible ADB Department
Sectors Group
Responsible ADB Division
Agriculture, Food, Nature, and Rural Development Sector Office (SG-AFNR)
Executing Agencies
Water Resources Department Madhya Pradesh


Concept Clearance
15 Dec 2015
Fact Finding
27 Jun 2017 to 07 Jul 2017
15 Nov 2017
31 May 2018
Last Review Mission
Last PDS Update
29 Nov 2023


Loan 3662-IND

Approval Signing Date Effectivity Date Closing
Original Revised Actual
31 May 2018 29 Aug 2018 22 Nov 2018 31 Mar 2026 - -
Financing Plan
  Total (Amount in US$ million)
Project Cost 535.71
ADB 375.00
Counterpart 160.71
Cofinancing 0.00
Loan Utilization
  Date ADB Others Net Percentage
Cumulative Contract Awards 17 Jul 2024 262.13 0.00 92%
Cumulative Disbursements 17 Jul 2024 229.09 0.00 80%
Status of Covenants
Category Sector Safeguards Social Financial Economic Others
Rating - Satisfactory - - - Satisfactory

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