Document of

The World Bank

FOR OFFICIAL USE ONLY FILE COPY

Report No. 2496-IN

INDIA

INLAND FISHERIES PROJECT

STAFF APPRAISAL REPORT

November 16, 1979

Agriculture D DivisionSouth Asia Projects Department

This document has a restricted distribution and may be used by recipients only in the performance oftheir official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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CURRENCY EQUIVALENTS 1/

US$1.00 = Rs 8.60

Rs 1.00 = US$0.116

Rs 1,000,000 = US$116,279

WEIGHTS AND MEASURES

1 kilogram (kg) = 2.20 pounds1,000 kg - 1 metric ton = 0.98 long ton

1 meter (m) = 1.09 yards

1 hectare (ha) = 2.47 acres (ac)

ABBREVIATIONS

ARDC - Agricultural Refinance and Development CorporationCMCC - Central Monitoring and Coordination CommitteeCPU - Central Project Unit

CIFRI - Central Inland Fisheries Research InstituteFFDA - Fish Farmer Development AgencyFSDC - Fish Seed Development CorporationGOI - Government of India

PB - Participating BankSMCC - State Monitoring and Coordination CommitteeSPU - State Project Unit

GLOSSARY

Fish Seed - Fish from the stages of egg larvae to fingerling.Spawn - Fertilized eggs and hatchlings.Hatchling - Fish larvae after emergence from egg to about 0.8 cm size.Fry - Young fish from hatchling to about 2.5 cm size.Fingerling - Young fish of about 2.5 cm or longer; 5.0 cm is standard.Composite Fish - Growing two or more species of fish in a pond to optimizeCulture productivity; often synonymous with polyculture or mixed

fish culture.Fish Hatchery - Fish seed production unit with facilities for brood stock,

artificial spawning and raising fingerlings.Fish Seed Farm - Fish seed unit with facilities for raising fingerlings

from spawn, but no hatchery for producing spawn.Tank - A pond or a small reservoir of variable size, mostly for

irrigation, general village use or fish farming.Bund Tank - Natural or man-made pond with an open side through which

runoff water can enter.Bund Breeding - A system of natural breeding of carp in captivity;

requires special natural conditions and has beenused successfully with only two major Indian carpspecies.

1/ Until September 24, 1975, the Indian Rupee was officially valued at afixed Pound Sterling rate. Since then it has been fixed against a"basket" of currencies. As these currencies are floating, the USDollar/Rupee exchange rate is subject to change. Conversions in thisreport are based on the projected exchange rate during the projectperiod.

FOR OFFICIAL USE ONLY

INDIA

INLAND FISHERIES PROJECT

STAFF APPRAISAL REPORT

Table of Contents

Page No.

I. THE INLAND FISHERIES SECTOR ........................... 1

Inland Fisheries in India ........... .. 1........... Carp Consumption and Marketing . . 2Fish Farming Development Policies and Programs ... 4Carp Seed Technology ............................. 7Potential for Fish Culture Development ........... 8Constraints to Fish Farm Development ............. 9

1I. THE PROJECT ........................................... 9

Project Concept .................................. 9Objectives and Major Features ................ 9Project Area ................ .. ................... 10Fish Hatcheries .................................. 11Hatchery Approach Roads ........... .. ............. 12Fish Farmer Development Agencies ........ ......... 12Fish Pond Credit .............. .. ................. 13Training Centers for Fisheries Extension ......... 13Technical Assistance ............ .. ............... 14

III. PROJECT COSTS, FINANCING, IMPLEMENTATIONAND DISBURSEMENT .................................... 15

Project Cost Estimates ........... .. .............. 15Financing ....... ............. .................... 18Lending Terms and Conditions ........ .. ........... 18Project Implementation ........... .. .............. 20Procurement ...... ............. ................... 21Disbursements ................ .. .................. 22Accounts and Audits ............. .. ............... 22

IV. ORGANIZATION AND MANAGEMENT ........................... 23

General ..................... ..................... 23Coordination and Implementation ......... ......... 23GOI Central Project Unit ......... .. ............ 23GOI Central Monitoring and Coordination

Committee .................................... 24State Project Units ............................ 24State Monitoring and Coordination Committees ... 25

This document has a restricted distribution and may be used by recipients only in the performanceof their official duties. Its contents may not otherwise be disclosed without World Bank authorization.

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Table of Contents (continued)

Page No.

Fish Seed Development Corporations .... ......... 25Fish Farmer Development Agencies .... ........... 27

Monitoring and Evaluation ........................ 28Credit Organization .............................. 28

V. PROJECT PRODUCTION, MARKETING AND PRICES .... .......... 29

Carp Seed Production ............................. 29Carp Production .................................. 3014arketing ........................................ 31Prices ........................................... 31

VI. FINANCIAL AND ECONOMIC ANALYSIS ....................... 31

Financial Analysis ............................... 31Economic Analysis ................................ 32Project Benefits and Beneficiaries .... ........... 32Long Term Development Impact ..................... 33Risks ............................................ 33Environmental Impact ............................. 33

VII. RECOMMENDATIONS ....................................... 34

This report is based on the findings of an appraisal mission composed ofMessrs. R. Reidinger, W. Schwermer, Y. Tang, L. Sprague, and Ms. N. Pinto(IBRD), and Messrs. B. Meeke (Consultant) and B. Shetty (ARDC) which visitedIndia in January - February, 1979.

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Table of Contents (continued)

ANNEXES

1 - Project States and Districts and Hatchery Site Guidelines2 - Project Cost Estimates3 - Financial Analysis and Cash Flow Projections4 - Economic Analysis5 - Estimated Quarterly Schedule of Disbursements6 - Related Documents and Data Available in Project File

CHARTS

GOI Inland Fisheries Organization Chart (20293)State Fisheries Departments Generalized Organization Chart (20310)Fish Seed Development Corporations Organization Chart (20294)Project Implementation Schedule (21012)Hiatchery and Approach Road Construction Implementation Schedule (20304)Plan of 25 Ha Hatchery Model (IBRD 14268)Plans of 5 and 10 Ha Hatchery Models (IBRD 14269)Plans of 10 Hia and 25 Ha Model Hatchery Building (20215)Hatchery Building Cross Section (20216)Central Channel and Perimeter Bund Cross Sections (20217)Pond Dividing Bunds (20218)Details of Subsidiary Gate (20219)Details of Division Box (20220)

MAP

Proposed Project Area (IBRD 14267R)

I. THE INLAND FISHERIES SECTOR

Inland Fisheries in India

i.01 Background. Inland fisheries in India is an important economicactivity, which in 1977 produced some 875,000 tons of food fish, accountingfor about 35% of India's total fish production of about 2.6 million tons.Inland fisheries comprises two types of activities, capture fisheries and fishfarming. In terms of total production, capture fisheries is by far the moredominant at present, accounting for some 765,000 tons out of total inlandfisheries production in 1977. Capture fisheries is practiced mostly in themajor rivers, lakes, and reservoirs of both fresh and brackish waters. Itinvolves various types of seining and gill-netting for a number of species ofcarp, catfish and miscellaneous fish in fresh waters, and hilsa and mullet inbrackish waters.

1.02 Over the past ten years, capture fisheries production has not quitekept pace with total fish production, growing at an average annual rate ofabout 6% compared to 7% for total fish production and 8% for marine fish pro-duction. It appears that a significant further increase in capture fisheriesproduction is highly unlikely because of the deterioration of the fish habitatdue to proliferation of water control structures, industrial water use, andextensive overfishing in many of the traditional grounds where the mostimportant commercial fresh water species are harvested.

1.03 Fish farming of carp, which in India is a highly preferred fishspecies and the only commercially farmed species, is the major source fromwhich an increased supply of fresh water fish can be expected in the future.As a source of carp supply, fish farming is now nearly as important as capturefisheries and provides about 40% of the total annual carp production of about290,000 tons. The area of fish ponds under carp culture in India currentlytotals about 450,000 ha. At present, however, fish seed supply to these pondsdepends mainly on river collection of spawn and fingerlings. Like capturefisheries, river collections in some regions have been severely reduced byriver habitat deterioration. In addition, wild spawn and fingerling collec-tions from rivers are highly variable from year to year and are of progres-sively lower quality, on the average containing about 40% undesirable andpredator fish species. Growth in both area and productivity of cultured fishponds is severely constrained by the lack of high quality fish seed.

1.04 India's fish farming history covers many centuries. Fish farming ispracticed throughout India, but the five leading pond-culture states (WestBengal, Bihar, Orissa, Madhya Pradesh and Uttar Pradesh) accounted for some100,000 tons of the total cultured carp production of 110,000 tons in 1977 andabout 70% of the total water area for cultured fish ponds of 10 ha or less.The main species farmed are, in order of importance, catla, mrigal, and rohu(all Indian major carp). About 500,000 households are engaged in fish farming,and typically each of these households manages a small pond less than 1 ha insize. In general, it is the lower socioeconomic segments of the populationwhich are engaged in both fish farming and the fish trade. Most Indian fishfarmers are experienced and hardworking, but they need better quality seed,credit for fish pond improvements and inputs, and training and upgrading ofpractices to improve their productivity.

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1.05 Fish Farms, Farming Practices and Yields. Indian fish ponds aretypically rainfed and generally range in size from about 0.5 ha to about 2 ha,averaging about 1 ha. Where groundwater levels are high, as in the lowerGangetic delta regions and low lying areas of other large river basins, pondsare perennial and have sufficient water for fish culture all year round.Village ponds and tanks often have several uses, and competition for waterfor other uses is high, especially during the dry season. This competitioncan limit the intensity of management, particularly with regard to input useand fish stocking and harvesting.

1.06 Under traditional fish farming practices, ponds are usually stockedwith wild carp seed which includes the species of Indian major carp. Stockingis done in June and July each year after the natural riverine spawning whichoccurs following the first monsoon rains. Marketable fish are harvested in thefollowing March and April season when pond water levels are relatively low.The supply of seed is often inadequate and the quality poor, with high contentof low value and predatory species. Little fertilizer and feed is used, exceptin West Bengal where fish farming is more highly developed. As a result,yields are low, ranging from about 100 kg/ha to about 600 kg/ha and averagingabout 350 kg/ha. Where cultural practices are more advanced as in West Bengal,however, yields sometimes exceed 2,000 kg/ha.

1.07 Fish Pond Tenure. Most fish ponds in India are owned by governmentagencies such as State Revenue or Fisheries Departments or village panchayats.Only in West Bengal, Bihar and Orissa is private pond ownership substantial,accounting for about 94% of the fish pond area in West Bengal and about 40%in Bihar and Orissa. Government entities commonly lease fish ponds to privateindividuals or cooperative societies for fish production for a period of oneor two years on the basis of public bidding or negotiations. Recently, Stategovernments have been gradually shifting toward longer lease terms for smallponds because institutional finance for developing ponds is available only withleases for nine to ten years. Operators leasing ponds usually reside near theponds. Private ponds are generally owner-operated; about 85% are owner oper-ated in West Bengal, for example. Individual fish farmers may operate severalponds.

Carp Consumption and Marketing

1.08 Market Situation and Prices. In 1977, carp consumption includingspoilage and losses totalled approximately 290,000 tons of which about 220,000tons were Indian major carp. Among fresh water fish species, the variousspecies of Indian major carp, particularly catla and rohu, are the most pre-ferred by Indian consumers. Although vegetarianism predominates in the uppersocial classes, about 70% of the Indian population is non-vegetarian, andsurveys indicate that this percentage is rising, due mainly to the changingdietary habits of the younger generations. The value of fish as a source ofanimal protein is increasingly recognized, and fish along with unfertilizedeggs constitute one of the most acceptable non-vegetable items of diet to manyvegetarian households. Fish is widely consumed in most large Indian cities;for example, a recent study of fish consumption found that 88% of the house-holds in Calcutta, 59% in Bangalore and 45% in New Delhi consume fish. Annual

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fish consumption per capita in these cities is 12 kg, 9 kg and 7 kg, respec-tively. At present, the national average annual consumption is 4 kg percapita, compared to fish requirements of 10 kg per capita as estimated by GOIon the basis of nutritional standards. In some regions of the country, theproportion of fish consuming population is especially high; for example, 94%in West Bengal.

1.09 Over the last decade, total fish production and consumption has grownat nearly 7% annually, nearly three times the annual rate of population growth.During that period fish prices have maintained rough parity with competinganimal protein sources and increased substantially faster than prices for foodin general and all commodities together. Indian consumers show a marked pre-ference for carp compared to most other fish species. In view of the rela-tively high elasticity of demand for carp, it is considered that a 10% annualincrease in carp supply could be absorbed by the market with no adverseimpact on relative prices. Furthermore, while carp is generally preferred byhigh income consumers, greater supplies of carp should free more of the lowervalue fish species for low income consumers. An increase in carp supplies of10% annually would call for a total annual supply of about 750,000 tons by1987. Since capture fishery resources for carp are essentially fully exploitedand in fact show signs of declining, most of the increase, some 460,000 addi-tional tons annually, would have to come from fish culture. Such an increasewould require an average annual growth rate in cultured carp production ofabout 18% during the decade to 1987, a requirement very difficult to fulfilleven with greatly intensified efforts. Market conditions are therefore notexpected to constrain rapid development of carp farming.

1.10 The overall average retail price of fish in Calcutta, the most rep-resentative fish market in India, advanced from about Rs 6.10 per kilo in1972 to Rs 12.75 per kilo in 1977, increasing at an average rate of about 16%annually. In recent years, carp has shown relatively strong prices comparedto other fish varieties. Pond side prices for carp in 1978 averaged about Rs4.00/kg compared to Rs 3.50/kg in 1977.

1.11 Marketing System and Structure. About 70% of the carp produced movesto the larger towns and cities through well organized commercial marketingchannels. Specific channels vary somewhat from place to place, but generallyproducers sell directly to a consigner who aggregates catches from adjacentareas, supplies local land transport, provides marketing capital and arrangestransportation of the fish to a broker in a larger market like Calcutta. Thebroker sells to wholesale traders who in turn supply retailers. The remaining30% of the carp produced is sold locally by the producers or sent to commis-sion agents and sold wholesale at auction to peddlers or retailers in ruraland small towns. Present commercial channels appear adequate to handleanticipated growth in carp supply.

1.12 Transportation of inland fish is by rail and truck. If transporta-tion time from producer to consumer is more than 24 hours, ice packing isused. Fresh fish are commonly shipped in bamboo baskets covered and linedwith burlap and holding 30 to 40 kg of fish and 20 kg of ice. The packagesare re-iced on long hauls and re-icing facilities are available along rail

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routes. Compared to marine fish, inland fish require very different trans-portation, storage and warehouse facilities. Whereas marine fish are landedat relatively few sites in large, unpredictable batches, inland fishinggrounds and ponds are widely dispersed and require many short hauls of rela-

tively small volume to assembly points for transshipment. Fish from inlandwaters, particularly from fish ponds, can be netted when market demand andprices are right. Inland fish, therefore, generally require less storagefacilities than marine fish, or most other crops for that matter, since thecrop is essentially stored in the pond until needed.

1.13 The private fish trade appears to be reasonably efficient and com-petitive. The existing marketing network for fresh water fish is integratedat. the national level with the Calcutta regional market which is the leadingmarket for inland fish in the country. Supply and demand conditions in thatmarket set the general price level for carp throughout most of India at anygiven time or season. Calcutta is the largest consuming and trading centerin the country for inland fish. Central Calcutta has nine wholesale and about170 retail fish markets. The largest wholesale market serving the Calcuttacity area is Howrah, which handles about 60% of the wholesale fish marketed inCalcutta city. Most of the fish marketed at Howrah arrives by rail from otherstates. Trade in the Calcutta wholesale fish markets is highly competitive.In Howrah market alone, there are 150 large brokers, 110 of which handle morethan Rs 1 million in sales annually and ten of which handle sales of more thanRs 4 million annually. The value of sales in the Howrah market annually totalsabout Rs 160 million. Analysis of marketing costs and margins indicates thatthe Calcutta market price yields a producer price of about 35% of the consumercost. In rural markets, the producer would get about 40% of the consumer pricefor whole fish. Marketing margins do not appear significantly different fromcomparable margins for similar fishery products in other countries.

Fish Farming Development Policies and Programs

1.14 GOI policy aims at increasing fish farm production, raising fishfarmers' net income and creating employment for the landless rural population.It is generally agreed that leasing patterns for public water bodies whichdiscourage private investment, lack of quality seed and low use of inputsare key constraints to the development of fish farming in India, and GOI givesa high priority to lifting these constraints through a number of extension,training, research and credit activities.

1.15 Fish Farmer Development Agencies. In 1973, GOI began to organizeFish Farmer Development Agencies (FFDAs) on a pattern similar to the SmallFarmer Development Agencies to spearhead implementation of GOI inland fish-eries policies and to provide a field mechanism for coordinating the agenciesinvolved and integrating the various activities connected with fish farmingdevelopment throughout the country. To date, 50 FFDAs completely funded by

GOI have been set up at the district level in various States. According torecent governmental policy decisions, FFDAs in the future will remain ascentrally sponsored schemes, but State governments will bear 50% of the FFDAcosts. At the field level, FFDAs help arrange fish pond leases betweengovernment bodies and private individuals or cooperatives, promote fishfarming, popularize improved techniques, provide training and extensionservices, assist in arranging financing and organize fish farmer cooperatives.

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FFDAs also provide a 25% subsidy to selected fish farmers for fish pond

improvements and first-year inputs to help encourage expansion of fish farming

and adoption of improved practices. FFDA staff are generally drawn from State

Fishery Departments and coordinate closely with Fishery Department activities.

In districts where they operate, FFDAs take over most extension responsibili-

ties from the State Fisheries Departments, provide short-term training courses,

and help secure fish seed and administer and supervise credit for fish pond

production expenses. Although FFDA field operations have been underway for

only three or four years, experience to date indicates that the FFDA pattern

of organization can provide an effective vehicle for the proposed project topromote fish farming development.

1.16 State Fishery Departments. State Fisheries Departments have res-

ponsibility for implementing State government policies and programs aimed at

developing inland fisheries and, in maritime states, marine fisheries. They

generally have responsibility for extension, research, training, development

of fisheries cooperatives, operation of fish seed farms, and various special

projects. Fish culture extension and development activities are primarily the

responsibility of the State Fishery Departments. Most State Fishery Depart-ments have a staff which is competent but too small to provide the intensive

extension support necessary for rapid development of fish culture, in addition

to other responsibilities. Fishery Extension Officers are stationed at the

district and sometimes block level. Fishery Departments also operate a variety

of training programs for farmers and youths as a part of their extension

programs. West Bengal, Orissa and Andhra Pradesh operate special training

schools for fish farmers where educated, unemployed youths can take several

weeks training to learn the basics of fish farming. These training programs

are generally undertaken in conjunction with the extension activities. A

recent GOI review of the State fish farming development programs under the

Fifth Five-Year Plan emphasized the need for increased State Fishery Department

involvement in development activities, particularly in expanding FFDA coverage

to more districts, establishing carp hatcheries to increase fish seed produc-

tion in support of increased FFDA operations, and developing and maintaining

fisheries management programs for lakes and large reservoirs.

1.17 Fisheries Training and Education. The Central Institute for Fishery

Education (CIFE) at Bombay provides most of the fisheries training in India,

and with its subordinate institutions, has trained a large number of fisheries

officers in fish culture techniques and extension. CIFE was established in

1961 under the GOI Department of Agriculture and Rural Development to train gov-

ernment fishery officers for service in the various States, and has a staff of

some 211 members. It has developed a comprehensive program aimed at providing

technical skills for implementing development projects for both inland andmarine fisheries. Most students come from the government service, although a

few candidates are nominees from private industry and foreign countries. CIFE

has adequate laboratory, library and training vessel facilities and maintainsa high standard of training. It offers a two-year post-graduate diploma

course in fishery science, with a syllabus covering fishery biology, fish

processing technology, fisheries administration, economics, fisheries sta-

tistics, marketing and cooperatives. Students receive extensive theoreticaltraining and practical work. Intake capacity is about 40 candidates per year,

and to date CIFE has trained a total of about 400 students.

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1.18 CIFE also conducts lover level training courses at several subordi-nate establishments. The Inland Fisheries Training Unit at Barrackpore inWest Bengal gives a one-year certificate course in inland fisheries develop-ment and administration for about 40 candidates a year, and has trainedalmost 1,000 students in total. hle Regional Training Center for InlandFisheries at Agra in Uttar Pradesh provides training in inland fish farmingpractices with a nine-month certificate course for about 80 candidates peryear, having trained to date about 350 students. At Hyderabad in AndhraPradesh, the Central Fishery Extension Training Center gives specializedin-service training in fish farming extension techniques, methods and practicesat the post-graduate level, mainly for State Fishery Department ExtensionOfficers. These centrally-sponsored training programs are effective butprovide only a fraction of the trained extension personnel needed at the Statelevel for rapid development of inland fisheries. The proposed project willbuild on existing training activities and strengthen State-level trainingcapabilities.

1.19 Fisheries Research. Research on inland fisheries is primarily theresponsibility of the Central Inland Fisheries Research Institute (CIFRI) whichhas made a major contribution to fish culture development in India throughits research on induced breeding of carp and composite fish culture. CIFRIwas established in 1947 and is now part of the Indian Council of AgriculturalResearch (ICAR). Headquartered at Barrackpore, CIFRI has several centralsubstations and 11 research units in other parts of India, with a total staffof 652 members. Also based at CIFRI are four all-Indian coordinated researchprojects involving cooperative programs with State governments. The principleobjective of CIFRI is to study the application of scientific principles tomaximize fish production from inland waters. CIFRI has adapted induced breed-ing techniques and developed carp culture practices for optimum fry, fingerlingand fish production in various parts of India. Related research includesinvestigations of riverine fish population structure and spawn behavior and thedevelopment of riverine and estuarine fish catch statistics. Virtually all thehighly-trained scientific personnel presently working on fresh water fisheriesdevelopment in India have been directly or indirectly associated with the workof CIFRI, and CIFRI research has provided the technological basis for most ofthe current programs aimed at expanding fish farm production in India includingthe proposed project.

1.20 Institutional Credit. As of June 30, 1978, the Agricultural Refinanceand Development Corporation (ARDC) had approved 42 inland fisheries schemes invarious States financed through commercial banks and Land Development Banks fora total of about Rs 64 million in lending; disbursements under the schemestotalled only about Rs 8 million. The total for these schemes is small, lessthan 1% of total ARDC commitments, and credit demand under the schemes has beenlimited by shortages of high quality fish seed, inadequate fishery extensionservices and unfavorable lease terms for publicly-owned fish ponds. The newARDC III IDA-supported line of credit includes an indicative total for lendingto the inland fisheries subsector totalling about Rs 260 million. In itsschemes, ARDC currently classifies sub-borrowers into low, medium and highincome categories depending on net annual fish farm income (based on 1972prices). Low income borrowers receive concessionary terms with interest ratesof 9.5% compared to the standard 10.5% rate, and margin money requirements as

low as 5%. Until recently, ARDC loans to fish farmers of all sizes carried auniform interest rate of 11%. ARDC also refinances fish pond credit require-ments under FFDA programs which provide a 25% subsidy as margin money.

Carp Seed Technology

1.21 Carp Seed Industry. The all-India supply of carp fingerlings orfingerling equivalents including fry currently totals about 290 million. About140 million of the 290 million are wild seed collected and used by privateoperators, and 150 million are fingerlings produced by 152 State fish seedfarms mostly from spawn collected from rivers. Only a few of these farmshave hatcheries for artificial breeding, accounting for about 8% of the totalspawn supply, and most farms simply raise riverine spawn to marketable sizefingerlings. Of the total fingerling supply, about 200 million fingerlingsare stocked in some 450,000 ha of fish ponds, and about 90 million fingerlings,mostly from State fish seed farms, are used by State governments for stockinglarge lakes and reservoirs which are not included with fish ponds in thisreport.

1.22 Most of the supply of fish seed in India originates in the rivers ofthe Gangetic basin, particularly in West Bengal and Bihar, largely in the formof spawn collected by private producers. Of the wild-caught spawn, about 60%is used by small, private fish seed producers, particularly in West Bengal,and about 25% is distributed to State-owned fish seed farms. Generallyoperated by State Fisheries Departments, State fish seed farms are a principalsource of the fish seed supply used by Fisheries Departments and FFDAs topromote fish farming. Seed produced by State seed farms is also sold locallyto private users, often at subsidized prices.

1.23 A major share of the spawn sold commercially moves through theCalcutta fish seed market. About 15% of the total spawn supply is bought bythe Calcutta-based Fish Seed Syndicate Ltd., which was established as a coop-erative in 1950 to promote the development of the fish seed industry and isthe only commercial operation supplying fish seed on a large scale in thecountry. The Fish Seed Syndicate buys spawn and produces marketable size fishfry. It sells to fish farmers and government entities throughout the country,in some cases shipping by air for distances over 500 km. In recent years,shipping of fingerlings oxygen-packed in polyethelene bags has enabled trans-portation times of up to 48 hours with very low mortalities.

1.24 Overall, the fish seed industry in India is at present almost entirelydependent on river collection of wild seed. The quantity of spawn suppliedfrom hatcheries by artificial breeding is small. In recent years, both quantityand quality of wild capture seed has steadily declined due to deterioration ofnatural river habitat caused by water control structures and industrial growth.Since the mid-1960s, annual spawn collection has fallen by about 30%, andcurrently collections contain at best only about 60% carp, the remainder beingundesirable species and predators. In addition, river collections vary widelyfrom year to year, and collection periods under natural conditions are short.Although the development of intermediate technologies, primarily bund breeding,has cushioned the impact of this decline and to some extent filled the gapbetween natural seed supplies and demand, the scope for further expansion of

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such techniques is limited. Bund breeding is a system of natural breeding ofcarp in captivity which requires special natural conditions which are uncon-trollable and, unlike fish hatcheries, is not independent of the monsoonseason. Future fish farming development will depend heavily on the developmentof a modern fish seed industry based on hatcheries using artificial breedingunder controlled conditions to produce adequate quantities of improved qualityseed, which is a major objective of the proposed project.

1.25 Induced Breeding and Composite Fish Culture. India has a large andwell-organized body of highly competent aquacultural scientists who haveachieved major breakthroughs in several important technical aspects of fishculture. Since about 1957, Indian scientists have succeeded in artificiallybreeding Asiatic carp, including both major Indian and Chinese carp species,by applying pituitary hormone injection techniques known as hypophysation,and have refined and adapted to Indian conditions these techniques for thereproduction of carp in captivity. This has been an important contributionto the potential for modernization of carp farming by providing a foundationfor modern carp hatchery development. All Indian major carp species spawnin rivers and only during the monsoon. Induced breeding makes possible theproduction of large quantities of high quality carp seed independently ofthe monsoon under controlled conditions, extending the breeding seasonto about six months (March through August) compared to the natural spawningseason (June and July). Building on these developments, Indian scientistscarried out large scale research on fish pond management and developed whatis now called "composite fish culture" using the proper combination of carpspecies to optimize fish pond productivity. Development of induced breedinghas enabled the production of seed with the optimum combination of desirablecarp species to exploit fish pond productive capabilities more fully and pro-duce high yields of the most financially attractive mixture of carp species.

Potential for Fish Culture Development

1.26 India has all the conditions necessary for rapid development of fishfarming. It has 1.6 million ha of water bodies potentially suitable for inten-sive fish farming, and a very large number of fish farmers experienced in fishfarm management. It also has a large number of aquacultural scientists andtechnicians specialized in artificial production of carp seed to support awell planned program of research and development activities. In addition, alarge market exists for carp, as well as a clear need for supplying additionalprotein to a large population.

1.27 At present, only about 450,000 ha out of the estimated 1.6 millionha of potentially suitable water bodies are used for fish farming. Providedappropriate measures are taken, particularly with respect to tenure practices,roughly 1.2 million ha remaining unused can be brought under fish farming overthe next 10 to 20 years. In addition, with good pond management and adequatesupplies of high quality seed and complementary inputs, it appears that a highlevel of average yields can be achieved for both the existing fish ponds andthe new ponds to be brought under culture, raising yields from an estimatedannual average of 350 kg per ha at present to over 1,200 kg per ha during thecoming decade. This increase in productivity and expansion of fish pond area

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can be accomplished on the basis of a well known and proven technology alreadypracticed in some parts of India, especially in West Bengal.

Constraints to Fish Farm Development

1.28 Four principle constraints limit rapid development of carp farmingin India: (i) a shortage of carp seed in general and of high quality seed inparticular; (ii) fish pond tenure arrangements which generally permit onlyshort-term leases and thus discourage farmers from making long-term commit-ments and investments for improvement of fish ponds; (iii) inadequacy ofextension services at the fish farm level designed to guide farmers inimproving water level control and optimizing the practices of stocking andapplying fertilizer and supplementary feed inputs; and (iv) lack of long-term credit for fish pond improvements and short-term credit for fish seed,fertilizer and supplementary inputs. The proposed project would help removethese constraints.

II. THE PROJECT

Project Concept

2.01 India has most of the necessary elements and a great potential forrapid expansion of fish farming -- an improved technology, extensive domes-tic markets, trained personnel, experienced fish farmers and substantial under-utilized fish pond resources. Lacking, however, are the high quality fishseed in large quantities and the broad institutional and organizational baseneeded to unlock this potential. The situation is analogous to that of foodgrain production in the mid-1960s when the introduction of high yielding seedfor wheat and rice triggered a green revolution in agriculture. The proposedproject would provide these missing key elements through construction of modernfish hatcheries to produce high quality fish seed, and support of substantialinstitutional development and strengthening in the inland fisheries subsector.

Objectives and Major Features

2.02 The project would assist GOI and five participating States in theirefforts to implement fish farming development programs. The main objectivesof the project would be to (i) increase carp production in West Bengal, Bihar,Orissa, Madhya Pradesh and Uttar Pradesh, and (ii) provide a basis for thefuture commercial development of the carp seed industry in India, which isessential to increase production of inland fish in the future. The projectwould provide: (i) credit to State Fish Seed Development Corporations forconstruction of about 27 modern fish hatcheries to be used to produce carpfingerlings; (ii) credit to fish farmers for improvement of fish farms; and(iii) funds for strengthening fisheries extension, establishing trainingcenters and technical assistance.

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Project Area

2.03 The project would cover a total of 58 districts in the five projectStates of West Bengal, Bihar, Orissa, Madhya Pradesh and Uttar Pradesh (seeproject districts listed in Annex 1). The area of fish ponds of 5 ha sizeor less in the project districts totals about 258,000 ha, of which about117,000 ha would be included in the project. The project districts wereselected to be contiguous areas where fish farming is generally practicedand where marketing and transportation facilities are available.

2.04 Fish Pond Models. Within the project area, three general fish pondmodels (types A, B and C representing typical conditions for project analysisand cost estimation purposes) would be developed. Details by State are asfollows:

----- Project Districts ------- --- Production Models ----Project Number of Cultivable Project Low Medium HighStates Districts Pond Area Pond Area Type A Type B Type C

(area in '000 ha)

West Bengal 11 137 34 0 3 31Bihar 17 33 26 10 8 8Orissa 7 22 16 3 6 7Madhya Pradesh 6 34 25 16 6 3Uttar Pradesh 17 32 16 9 4.5 2.5

Total 58 258 117 38 27.5 51.5

The different pond models A, B and C represent respectively low, medium andhigh production capabilities. West Bengal is expected to have by far thelargest share of the Type C high-production fish ponds largely due to thehigh concentration of private fish ponds, which account for about 97% of thefish ponds and 94% of the fish pond area in the project districts in the State.Differences in production capability under average levels of management aredue, for example, to soil type and fertility, degree of competing water use,pond water depth and social factors. Fish pond models would require corres-pondingly low, medium and high stocking rates for fingerlings, intensity ofinput used and investment in improvements. Hatchery and fish pond investmentrequirements under the project for both fish ponds and hatcheries are derivedfrom these three models. Fish pond models A, B and C represent averageconditions for the entire project area, and actual fish pond improvement andinput requirements in specific areas may differ from the models, details forwhich are given below:

Financed Fish PondFish Pond Fingerling Year 1 Annual InvestmentProduction Yields Stocking Rate Inputs Input Cost CostModel Kg/Ha Nos./Ha Rs/Ha Rs/Ha Rs/Ha

Type A 800 2,500 524 1,154 940Type B 1,500 3,800 792 2,022 2,772Type C 2,500 5,000 1,020 6,920 6,202

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Fish Hatcheries

2.05 Investments in hatcheries would be designed to remove the constraintsto increased fish farm production in the project area due to inadequate supplyand poor quality of fingerlings for stocking fish ponds. Except for verylimited supplies available from research institutions, the combination ofspecies for composite culture is unavailable to fish farmers. Project hatch-eries would produce high quality seed of the carp species required by individualfish farmers.

2.06 The project would finance in the project States about 27 hatcheriesin 10 ha and 25 ha model sizes, measured in terms of hatchery pond water area.Project hatcheries would be constructed on a contract basis and operated by aState-owned Fish Seed Development Corporation to be established in each State,which would employ suitably qualified engineers for engineering design andsupervision during the construction period. At full development, the hatcher-ies would produce a total of nearly 460 million carp fingerlings. Details aregiven below:

Number of Hatcheries Million10 Ha 25 Ha Total Fingerlings

West Bengal 5 4 9 158Bihar 4 2 6 94Orissa 2 2 4 74Madhya Pradesh 2 2 4 74Uttar Pradesh 3 1 4 57

Total 16 11 27 457

2.07 All hatcheries would be of conventional design suitable for large-scale commercial production of Asiatic carp seed and would include an indoorhatchery unit, earthen ponds, watergates and channels, tubewells (see para2.08 for iMadhya Pradesh), administrative buildings, staff residences, storagebuildings, perimeter fencing and internal roads (see Maps IBRD 14268 and 14269,and Charts 20215 through 20220). Each hatchery complex would provide adequatecontrolled environment facilities for artificial spawning (hypophysation) ofcarp, egg hatching and larval nursing in indoor hatcheries under controlledwater temperature conditions, as well as earthen ponds (approximately 18 and32 ponds, respectively, for 10 ha and 25 ha hatcheries) for husbanding ofbrood stock and rearing of carp fingerlings. About 25% of hatchery pond areawould be used for brood stock, approximately one-third of which would bereplaced each year. Provision would also be made for communications and forelectric power, with auxiliary power facilities to meet critical minimum needs,if necessary. At full operation, the two model sizes of hatcheries would becapable of producing 10 million and 27 million fingerlings respectively of 5.0cm size. In addition, about an equal number of 2.5 cm carp fry could also beproduced to supply fish farmers who are operatiag carp nurseries or raisingfry to marketable size table Eish. The hatcheries could, if necessary,produce twice as many 2.5 cm fry as compared to 5.0 cm fingerlings.

2.08 Selection of each hatchery site would be based on the results ofsoil testing for engineering and fertility analysis, availability of suffi-cient land for all facilities of the hatchery complex (14 ha for a 10 ha

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hatchery and 33 ha for a 25 ha hatchery), demand for fingerlings, availabilityof electricity and communications, avoidance of social displacement, and avail-ability of assured water supplies (see Annex 1, page 2). Details of specificcriteria for selection of hatchery sites were discussed at negotiations andthese will be incorporated in the project banking plan (see para 4.15). Anindependent secure source of water supply at the hatchery would be essentialto the comamercial viability of project hatcheries, since they would be expectedto produce fingerlings during the dry season. In all States except MadhyaPradesh, ground water supplies appear to be adequate. In Madhya Pradesh,project hatcheries would have to depend on surface water supplies. The MadhyaPradesh Irrigation Department has indicated that adequate surface water sup-plies would be available as needed provided hatcheries are located near thesluice gates of minor tanks commanded by major tanks. Alternatively, watercould be pumped from reservoir dead storage for the hatchery. Water requije-ments during the critical April to J ne period are estimated at about 2 ft /secfor each 10 ha hatchery and and 4 ft /sec for each 25 ha hatchery. The Govern-ment of Madhya Pradesh has assured that adequate surface water supplies willbe made available, and has identified a number of sites for which water sUp-plies can be assured.

Hatchery Approach Roads

2.09 The project would provide for construction of approach roads linkingproject hatcheries with existing communications. Road requirements are esti-mated to average about three kilometers per hatchery. Road construction wouldinclude design, base formation, metalling, and black topping adequate to pro-vide an all-weather communication link for the hatchery. Width of the roadswould be about 3.0 meters of bituminous carpet on stone metal over a formationsix meters wide. Road construction in West Bengal would include, where neces-sary, timber piling bulkheads due to the particularly high watertable condi-tions prevailing in the project area in that State. Road constructiorn wouldbe executed by local contractors selected t'hrough local competitive biddingand supervised by the State PWD. Arrangements for road maintenance would betrhe responsibility of PWD.

Fish Farmer Development Agencies

2.10 Under the project, 15 existing Fish Farmer Developmaerit Agericies(FFDAs) serving 16 districts would be strengt'hened in districts where GOI-sponsored FFDAs are already operating, and new FFDAs would be establishedwith State sponsorship to serve the remaining 42 districts. FFDAs wouldprovide extension services, and assistance to fish farmers in obtaining fishpond leases on improved terms and credit under the project. FFDAs would pro-vide a subsidy of up to 25% for fish pond improvement plus first year cashinput costs, depending on budgetary provisions made by GOI and project states.The subsidy and FFDA establishment costs would be borne by GOI for existingFFDAs and by the States for new FFDAs. IDA financing of FFDA incrementalcosts for staff and equipment, excluding the subsidy, would be provided toGOI on standard terms and to the States in accordance with established GOIprocedures for development assistance to States. FFDA staff and equipmentrequirements would be based on an average norm of about 100 ha of fish pondarea to be served by each fisheries extension worker. This norm wou-ld be

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modified by project States according to local conditions, including geograph-ical location, ownership patterns for fish ponds and fish pond density. FFDAswould also organize short fish farmer training programs to give practicaltraining on improved fish culture techniques. Under the current FFDA pattern,a deputation allowance of up to 20% is provided for personriel assigned toFFDAs, and this pattern would be continued under the project. FFDAs wouldbe under the overall direction of the State Director of Fisheries and wouldassume complete responsibility for fisheries extension work in the projectareas.

Fish Pond Credit

2.11 The project would provide credit through participating banks (PBs) re-financed by ARDC to individual fish farmers, groups or cooperatives to financeinvestments in fish pond improvements and first year cash inputs. Fish pondimprovement would include earth work for levelling, deepening and shaping thefish ponds as needed, inlet and outlet structures, and bamboo screens. Firstyear cash inputs to be financed would generally include fingerlings, oil cakeand fertilizers. Improvements and inputs would be financed together as aminimum package loan of up to seven years including a grace period of up totwo year. FFDAs would assist borrowers in applying for loans, and where neces-sary to obtain fish pond improvement loans, would assist borrowers in obtainingleases for government-owned ponds of at least 10 years. Project States woulddetermine the specific norms for selection of lease-holders considering bothproject promotion requirements and equity, but in general lease-holders wouldbe members of the communities which have traditionally engaged in fishing andwould fit the Small Farmer Development Agency definition of a small or marginalfarmer. To help promote improved fish culture practices and to assist smallfishermen, FFDAs would also provide to selected borrowers, a subsidy of up to25% for fish pond improvements plus inputs, which would be channelled throughPBs and disbursed in proportion to the loan. Low-income borrowers selectedto receive the subsidy would be chosen on the basis of procedures determinedby each State government, generally following the pattern of the Small FarmerDevelopment Agency. All borrowers would be pond owners, or operators with apond under a lease of at least 10 years length with specified terms during thelease period which would ensure adequate incentives to the fish farmer. PBswould disburse progress payments to the borrower for fish pond improvements,and directly to suppliers for first year cash inputs when practicable. PBsin conjunction with FFDAs would certify actual work completed and delivery ofinputs financed. Earthworks would be executed by local labor contracted bythe fish pond operator. Approximately 100,000 fish ponds comprising 117,000ha would be improved in the project area. Fish ponds included in the projectwould generally be perennial ponds. About 75% of the fish farmers in theproject area are expected to seek credit for fish pond improvement and inputsfrom institutional sources.

Training Centers for Fisheries Extension

2.12 The project would finance training centers to train extension workersfor FFDAs. New training centers would be established in West Bengal, Biharand Uttar Pradesh, while in Madhya Pradesh the existing training center atRaipur would be strengthened. Orissa would not require a training centerbecause of the new composite fish culture substation of CIFRI which is being

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established at Dhauli under the sponsorship of the Indian Council of Agricul-tural Research. The substation at Dhauli should be completed by the end of1980, and along with the existing State training center at Koshala Ganga nearDhauli, would provide training as needed in Orissa. Training centers wouldtrain primarily extension workers in fish pond culture, providing both basicand refresher courses and practical applications of fish culture and exten-sion principles. Interested farmer-demonstrators would also be trained asneeded. Training center investments would include a main building for class-rooms and offices, quarters for staff and trainees, a guest hostel, vehicles,audio visual equipment, extension kits and laboratory equipment. State Fish-ery Departments will appoint suitable qualified staff and operate the trainingcenters, which will be established by December 31, 1981 during the first twoyears of the project, and assurances to that effect were given at negotiations.

Technical Assistance

2.13 Hatchery Engineer and Hatchery Management Specialist. Technicalassistance under the project would provide for a hatchery engineer consultantand a hatchery management specialist. To date, most fish hatchery operationsin India have been done on an experimental basis and on a very limited scale,although commercial fish hatcheries are common in other Asian countries suchas China, Japan and Taiwan. The hatchery engineer would be an individual withextensive experience in the practical design and construction of carp hatcheriesof the general type envisaged for the project. He would be employed by GOIand would assist all project States during the early stages of site selection,detailed hatchery design and development and adapting of designs to localconditions and sites. He would also review hatchery tender documents, speci-fications and bid evaluations, and help supervise construction of the hatch-eries, particularly the first hatcheries in each State, to ensure thathatchery design and construction is cost-effective and operationally sound.During the project period, he would be available at the request of projectStates or GOI for consultation on hatchery construction problems which mayarise during the course of implementation. The hatchery management specialistwould be an individual with extensive experience in commercial fish hatcheryoperations. He would help train hatchery operating staff for the first oneor two hatcheries in each state prior to their completion, and he would assistwith break-in operations of these early hatcheries. He would be employed byGOI and would be available as needed for consultation on special operationalproblems during the project period at the request of the project States. Eachconsultant would be available during the project period for a total of aboutnine man-months on an intermittent basis and would be internationally recruitedat an estimated cost of about US$8,000 per man-month, including subsistenceand travel.

2.14 Project Preparation. The project also includes project preparationfor a possible reservoir management project. Composite fish culture basedon high quality carp fingerlings is a proven technology suitable for exploit-ing India's fish pond resources of some 1.6 million ha. However, an addi-tional 2.7 million ha of small reservoir and lake resources also exist, forwhich no technology for substantially raising yields has yet been proven.Under the project, a number of small reservoirs which could be controlled for

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aquacultural purposes would be selected and a 5 ha carp seed hatchery con-structed. Predatory fish would be eliminated and the reservoirs sto(ke.14ith high quality carp fingerlings. Fingerlinigs, inputs and outputs wouldbe scientifically monitored to determine the optimum stocking levels and toprovide the basic technical and cost-benefit data needed to determine thetechnical and economic feasibility of a possible reservoir management project.Hatchery and reservoir management operations and data collection would beundertaken by the Department of Fisheries in the State concerned under tthesupervision of GOI. If successful, these operations would provide the basisfor compiling a preparation report by GOI in conjunction with the relevantDepartment of Fisheries in the State (not one of the project States) wherethe hatchery and reservoir project is located.

2.15 Marketing Study. An all-India fish marketing study is currentlyunderway at the Indian Institute of Management at Ahmedabad, financed underthe ongoing Gujarat Fisheries Project (Cr 695-IN, Ln 1394-IN). That studyfocuses on marine fish marketing, and under this project additional supportwould be provided to expand the study to cover inland fish marketing. Theexpanded study will collect data on and analyze both the current and expecteddomestic market situation for inland fish, and the facilities, structure, eco-nomics and channels of the inland fish marketing system in India, particularlyin the project area. The study would be completed during the project periodand the results integrated with the ongoing stuidy of marine fish marketing.

III. PROJECT COSTS, FINANCING, IMPLEMENTATION AND DISBURSEMENTS

Project Cost Estimates

3.01 Estimated project costs including duties and taxes would totalRs 350.5 million (US$40.8 million). Detailed cost estimates, includingduties and taxes estimated at Rs 9.7 million (US$1.1 million), are givenin Annex 2 and summarized below:

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Rs millions ----- ---- US$ million ---- % ofLocal Foreign Total Local Foreign Total Total

Hatchery CreditWest Bengal 26.3 1.0 27.2 3.1 0.1 3.2 8Bihar 16.5 0.6 17.1 1.9 0.1 2.0 5Orissa 12.2 0.5 12.7 1.4 0.1 1.5 4Madhya Pradesh 13.6 0.5 14.1 1.5 0.1 1.6 4Uttar Pradesh 10.5 0.4 10.9 1.2 - /a 1.3 3

Sub-total 79.1 3.0 82.0 9.2 0.3 9.5 23

Hatchery RoadsWest Bengal 11.9 0.5 12.4 1.4 0.1 1.4 3Bihar 5.9 0.2 6.1 0.7 - /a 0.7 2Orissa 3.9 0.2 4.1 0.5 - Ia 0.5 1Madhya Pradesh 3.9 0.2 4.1 0.5 - /a 0.5 1Uttar Pradesh 3.9 0.2 4.1 0.5 - /a 0.5 1

Sub-total 29.6 1.2 30.8 3.5 0.1 3.6 9

FFDAsWest Bengal 8.6 0.4 9.0 1.0 0.1 1.1 3Bihar 9.0 0.4 9.4 1.0 0.1 1.1 3Orissa 4.5 0.2 4.7 0.5 - /a 0.5 1Madhya Pradesh 5.9 0.3 6.2 0.7 - /a 0.7 2Uttar Pradesh 8.0 0.3 8.3 0.9 0.1 1.0 2

Sub-total 36.0 1.6 37.7 4.1 0.3 4.4 11

Fish Pond CreditWest Bengal 35.2 - 35.2 4.1 - 4.1 10Bihar 15.1 - 15.1 1.8 - 1.8 4

Orissa 11.5 - 11.5 1.3 - 1.3 3Madhya Pradesh 10.0 - 10.0 1.2 - 1.2 3Uttar Pradesh 7.1 - 7.1 0.8 - 0.8 2

Sub-total 78.8 - 78.8 9.2 - 9.2 22

Training CentersWest Bengal 3.4 0.2 3.6 0.4 - /a 0.4 1Bihar 3.4 0.2 3.6 0.4 - Ia 0.4 1Orissa - - - - - Ia - -Madhya Pradesh 1.6 0.1 1.7 0.2 - Ia 0.2 - /aUttar Pradesh 3.4 0.2 3.6 0.4 - Ta 0.4 1

Sub-total 11.9 0.6 12.6 1.4 0.1 1.5 3

Technical AssistanceHatchery Engineer - 0.6 0.6 - 0.1 0.1 - /aHatchery Manager - 0.6 0.6 - 0.1 0.1 - /aProject Preparation 1.8 - 1.9 0.2 - 0.2 -IaMarketing Study 1.8 - 1.8 0.2 - 0.2 - /a

Sub-total 3.6 1.3 4.9 0.4 0.2 0.6 1Base Cost Estimate 239.2 7.7 246.9 27.8 1.0 28.8 70Physical Contingencies 27.0 0.4 27.4 3.2 - 3.2 8Expected PriceIncreases 73.6 2.5 76.1 8.5 0.3 8.8 22

Total Project Cost 339.8 10.7 350.5 39.5 1.3 40.8 100

/a Less than 0.05.

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3.02 Cost estimates are based on January 1979 prices. A physical contin-gency rate of 20% has been applied to the civil works components of hatcheriesand approach roads; a 15% physical contingency rate was used on civil worksfor fish pond improvement and training centers. Annual expected price increaserates used in estimating total project costs were 7% for civil works and 6%for equipment during the project period. Expected price increases during theproject period total about 27.7% of total project cost for both local andforeign components of cost.

3.03 Costs for Fish Hatchery Models. Carp hatcheries are the mostcomplex component of the proposed project. Cost estimates for the 10 ha and25 ha model hatcheries in the project area and for the 5 ha model under tech-nical assistance are detailed in Annex 2, Tables 4, 5 and 6 and summarizedbelow:

--- Hatchery Models -------25 Ha 10 Ha 5 ha

(Rs '000)

Civil WorksEarthwork 1,737 878 524Watergates 386 235 156Indoor Hatchery 94 67 49Water Supply 393 208 146Buildings 484 322 197Engineering 309 171 107

Sub-total 3,403 1,881 1,179Equipment 231 188 124Land 330 144 78

Total Base Cost 3,964 2,213 1,381

Estimated water supply costs in Madhya Pradesh would include an additionalRs 340,000 for the 25 ha hatcheries and Rs 331,000 for the 10 ha hatcheriesto provide water supplies from surface water sources, including constructionof a channel averaging 3 km in length for each hatchery.

3.04 State-owned corporations in project States would operate projecthatcheries, except for the 5 ha hatchery under technical assistance whichwould be operated by the Fisheries Department of the selected State. Theestimated annual operating costs for project hatcheries at full developmentare detailed in Annex 3, Tables 1 and 2 and summarized below:

25 Ha 10 Ha(Rs '000)

Management, Staff and Labor 144 114Materials 58 23Operation and Maintenance 99 70Travel, Interest and Miscellaneous 49 31

Total 350 238

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3.05 Costs for Project Fish Pond Credit. Estimated costs for fish pond

improvements and first year cash inputs total Rs 722 million for the total

project area of 117,000 ha. Since about 25% of the fish farmers involved in

the project are expected to finance improvements and inputs from their own ornon-institutional resources, investment requirements for fish farmers needingcredit would total about Rs 541 million. The amount of fish pond investmentincluded in the project, Rs 108 million, is calculated to provide a minimumlevel of base demand for project fingerlings and would meet only about 20% of

the estimated credit demand. Project lending terms would be the same as exist-ing ARDC terms for similar types of diversified lending, and ARDC currently

has available substantial resources earmarked for the subsector. Assuranceswere given at negotiations that after project funds for fish pond credit

are fully utilized, ARDC would give priority to financing fish pond creditrequirements in the project area from the IDA-supported general lines of

credit.

Financing

3.06 Estimated shares in the financing of project costs are as follows:

Components Borrowers PB's ARDC GOI/States IDA Total(Rs millions)

Hatcheries 36.3 16.9 30.5 - 37.3 121.0Approach Roads - - - 10.0 36.5 46.5

Fish Pond Credit 16.9 19.3 34.7 - 42.4 113.3FPDAs - - - 10.6 38.7 49.3Training Centers - - - 3.3 12.2 15.5Technical Assistance - - - 4.9 4.9

Total 53.2 36.2 65.2 23.9 172.0 350.5(percent) (15%) (10%) (19%) (7%) (49%) (100%)

3.07 The proposed IDA credit of US$20.0 million would finance about50% of the estimated total project cost net of duties and taxes. The creditwould cover the estimated foreign exchange costs of US$1.3 million and about

49% of local costs.

Lending Terms and Conditions

3.08 Subvention. IDA funds for hatchery approach roads (US$4.2 million),717Dks (U3$4.5 million), extension training centers (US$1.4 million), and tech-nical assistance (US$0.6 million) would be provided by GOI to the projectStates together with GOI's contribution out of its own resources, in accordancewith established GOI procedures for development assistance to the projectStates.

3.09 Subloans under the Credit Program. IDA funds for subloans to Fish

Seed Development Corporations (FSDCs) for fish hatcheries (US$4.3 million),

and to fish pond operators for fish pond improvements and first year cashinputs (US$4.9 million) would be on-lent by GOI to ARDC. Details of credit

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arrangements would be generally consistent with those applicable to otherBank/IDA financed credit programs administered by ARDC and would include:qualifying conditions for banks to operate as project participating banks(PBs); the requirement that FSDCs, PBs, and ARDC maintain separate accountsfor the project; insurance arrangements; debt rescheduling procedures; andARDC's obligation to ensure that financial commitments for hatcheries aremade by FSDCs on the basis of IDA procurement guidelines and project provi-sions. Actions needed by project States to ensure full utilization of projectand ARDC funds to meet credit demand for project hatcheries and fish pondimprovements and inputs would be discussed at negotiations.

3.10 The contributions required from different categories of borrowersfor various investment activities, the fractions to be refinanced and theannual interest rates chargeable would be in accordance with the followingschedule:

…----…Fish Pond Credit Categories-------- HatcheryFFDA Low Medium High Credit

Contribution Subsidized - Income Income Income for FSDCs

Borrower/FFDA 25% 5% 10% 15% 30%PB Subloan 75% 95% 90% 85% 70%ARDC Refinancing --------- 80% of PB subloans -----------------------GOI Contribution --------- 55% of ARDC refinancing ------------------IDA Disbursement --------- 55% of ARDC refinancing ------------------

Annual Interest Rates

PB Loans 9.5/10.5% 9.5% 10.5% 10.5% 10.5%ARDC Refinance 6.5/7.5% 6.5% 7.5% 7.5% 7.5%GOI Loan to ARDC /b 6.25% 6.25% 6.25% 6.25% 6.75%IDA to GOI --------------------- standard ---------------------…

/a FFDA subsidy would be up to 25%./b Repayment of the GOI loan would be 9 years for fish farmer loans and 15

years for hatchery loans with 0.25% interest rebate for timely repayment.

The maximum period of PB loans would be seven years including up to two yearsof grace for fish pond credit and 15 years including up to five years of gracefor FSDC carp hatcheries. For fish pond credit, most project borrowers areexpected to have low and medium income levels (up to Rs 2,000 and Rs 3,500,respectively, of net annual fish farm income based on 1972 prices) and wouldqualify for loans covering 95% and 90% of the investment cost. Many of thelow income borrowers, however, are expected to qualify for the FFDA subsidyof up to 25%, in which case loan coverage would be as low as 75%. Consideringall fish pond credit lending under the project, loan coverage is, therefore,expected to average about 85%.

3.11 Inflation in India over the past three years has averaged 2.1%annually. Since inflation is not expected to exceed 5% annually during theproject period, the proposed interest rates to the ultimate borrowers (9.5%and 10.5%) would be positive in real terms and compare favorably with real

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interest rates to ultimate borrowers in other developing countries. Further-

more, the interest rates to be applied under the project would be consistentwith onlending rates for institutional credit in other sectors of the Indianeconomy, and are already generally applied to all long-term lending for agri-cultural purposes.

3.12 Procedures for Sublending. For hatchery sublending, FSDCs wouldsubmit to participating banks detailed investment proposals for each hatchery

subproject, including soil, topographical, groundwater and surface water sur-veys, site descriptions, engineering designs and cash flow statements. The

Hatchery Engineering Cell which GOI would establish in its Fisheries Division(see para 4.02) would examine each design and prepare a technical review tobe used by PBs in subproject appraisal. Engineering design approval of ahatchery by GOI's Engineering Cell would be a condition of ARDC approval of

investment loans to FSDCs. Following their own appraisal, PBs would submit

the proposals together with supporting documents for approval to ARDC. Toexpedite loan approvals ARDC would consider where necessary joint appraisalof the projects by PBs, GOI's Hatchery Engineering Cell and ARDC. For fishpond credit, fish farmers guided by FFDA extension workers would submit toparticipating banks simple loan applications including information on pondconditions, lease arrangements, proposed pond improvements and financialprojections. FFDAs would assist fish farmers in filling out and submittingloan applications, and the FFDA engineering wing would help the farmers inestimating costs and preparing designs for fish pond improvements and wouldprovide participating banks with a technical review of the individual pro-posals. Participating banks would appraise the proposals and submit themto ARDC for refinancing.

Project Implementation

3.13 The project would be implemented over the five year period from1980 thrDugh 1985 (Chart 21012). Hatcheries and approach roads would beconstructed simultaneously and completed by the end of 1984 (Chart 20304).Design and construction time would average about 21 months for each 10 hamodel and about 26 months for each 25 ha model. Brood stock selection anddevelopment and hatchery staff training would be done by FSDCs during hatcheryconstruction so that the first hatchery in each State would come on stream intime to supply fingerlings in the third year of the project. FFDAs would pur-chase equipment and organize, transfer, and train most of their staff duringthe first two years. Recruitment of new staff, in addition to staff trans-ferred from State Fisheries Departments, would be done in proportion tothe development of fish pond area in years three and four. FFDAs would alsoundertake preliminary extension and promotion work in year one and beginintensive extension activities in year two. Lending to fish farmers duringthe first two years would concentrate on developing demonstration ponds inselected areas using seed from existing sources, and would expand rapidly inyear three and later as fingerlings from project hatcheries become available.Training centers would be completed in the first two years, and training ona limited scale would begin in year one as soon as initial facilities areavailable and before final completion of the training centers. The hatcheryengineer would be available intermittently to assist with hatchery siteselection, and during the early and late design stages and early and lateconstruction stages for the first two hatcheries in each State and period-ically after that. The hatchery management specialist would be available

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intermittently and on request to train hatchery staff before completion ofconstruction, and during the early stages of operation and at critical periodsafter completion, of the first two hatcheries in each state.

Procurement

3.14 Carp Hatcheries. Because hatchery sites would be widely dispersedand individual contracts relatively small, it is most unlikely foreign firmswould be interested in bidding on project hatchery construction. Contractsfor hatchery civil works (totalling US$8.0 million for 27 hatcheries) will,therefore, be awarded on the basis of local competitive bidding proceduressatisfactory to IDA administered by the State Fish Seed Development Corpora-tions. Tender documents and bid evaluations for the first hatchery in eachState and for civil works estimated to cost US$200,000 or more would be re-viewed by IDA prior to letting of contracts. Equipment for hatcheries (total-ling US$645,000 for 27 hatcheries) costing US$50,000 or more would be procuredby individual FSDCs through local competitive bidding procedures satisfactoryto IDA. Equipment costing less than US$50,000 would be procured locally byFSDCs through normal commercial channels on the basis of quotations receivedfrom interested suppliers with due regard to economy and efficiency. Bulkingof hatchery equipment to enable international competitive bidding would beimpractical due to the diversity and small size of equipment items for eachhatchery, and because of scattered sites and differing timetables for hatcheryconstruction.

3.15 Hatchery Approach Roads. The 27 sites would be widely scatteredand the value of the work at each site small, averaging about US$120,000 each.Contracts for hatchery approach roads would, therefore, be awarded on the basisof competitive bidding according to local procedures which are satisfactory toIDA, and administered by the Public Works Department in each project State.Civil works not exceeding an estimated cost of US$50,000 could be done throughforce account. Approach roads would be procured in no more than two contracts,one for earthwork and the other for road formation and surfacing, unlessotherwise agreed by IDA.

3.16 FFDAs. FFDA cost estimates include no civil works. Equipment(totalling US$3.4 million in 57 FFDAs, mostly for vehicles) for FFDAs would beprocured by FFDAs in each of the five States on the basis of local competitivebidding satisfactory to IDA according to local procedures for equipment costingUS$50,000 or more. Equipment costing less than US$50,000 would be procured byFFDAs through normal commercial channels on the basis of quotations receivedfrom interested suppliers with due regard to economy and efficiency. Bulkingof FFDA equipment, mostly vehicles, to enable procurement through internationalcompetitive bidding would be impractical due to the diverse needs, developmenttimetables and locations of individual FFDAs, and the relatively small quanti-ties required for each FFDA.

3.17 Fish Pond Improvements. Works are small, widely scattered andnumerous and would be procured by individual fish farmers according to theirpreference through local contractors or by direct hire of labor.

3.18 Training Centers. Civil works would be small (US$209,000 each)and it is most unlikely that foreign firms would be interested in such small

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individual contracts. Contracts for this work would, therefore, be awarded

through local competitive bidding in accordance with standard procedures used

in each State and administered by the State Fisheries Department. Equipmentfor training centers (US$203,000 for each center) costing US$50,000 or morewould be procured by State Fisheries Departments through local competitivebidding satisfactory to IDA. Equipment costing less than US$50,000 would be

procured locally by Fisheries Departments through normal commercial channelson the basis of quotations received from interested suppliers with due regardfor economy and efficiency. Bulking of training center equipment for inter-national competitive bidding would not be feasible due to the diversity and

relatively small size of individual equipment items required, and becauseeach State would have only one project training center.

Disbursements

3.19 Disbursement of the IDA credit would be in accordance with thefollowing schedule:

(i) 55% (about US$9.3 million) of ARDC disbursements againstPB loans for project hatcheries and fish pond credit;

(ii) 75% (about US$10.1 million) of expenditures on approachroads for project hatcheries, FFDAs for incremental staffand vehicles, and training centers; and

(iii) 100% (about US$0.6 million) of expenditures on technicalassistance (consultants, project preparation and marketingstudy).

3.20 Disbursements under (ii) and (iii) would be made against appropriatedocumentation and would not be made against any land costs. Disbursementsunder (i) would be against ARDC certified statements and certificates of expen-ditures for loans made by PBs and financed by ARDC. Documents relating to (i)would not be submitted to IDA for review, but would be retained by ARDC andavailable for inspection by IDA during project supervision. A quarterlyschedule of estimated disbursements is given in Annex 5.

Accounts and Audits

3.21 Separate accounts would be maintained for all project expendituresby all entities involved in project implementation. Accounts for activitieslisted under (ii) and (iii) of para 3.19 would be subject to standard govern-ment control and auditing procedures, which are satisfactory. For accountsunder (i), special audit requirements would not be necessary because audited

ARDC accounts are sent to IDA/Bank each year as a requirement of ongoingIDA/Bank projects and ARDC requires participating banks to maintain separateaccounts for each approved subloan and to have these accounts audited. Assur-ances were obtained at negotiations that the above arrangements would beemployed. Assurances were also obtained that FSDCs would maintain separateaccounts for project investments, that FSDC Balance Sheets, Profit-Lossaccounts and separate project accounts would be audited each year by qualified

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auditors acceptable to IDA, and that copies of the audit reports and auditedaccounts would be sent to IDA within nine months of the close of each finan-cial year.

IV. ORGANIZATION AND MANAGEMENT

General

4.01 Two Bank-group financed projects (Ln 1273-IN and Cr 816-IN) arecurrently assisting with the development of the foodgrain seed industry inIndia. In contrast to the agricultural seed industry, however, the fish seedindustry does not have a well established institutional framework for devel-opment, and a considerable effort in institution building under the projectwould be necessary. It is expected that these institution building effortswill have a long-run positive impact in facilitating future inland fisheriesdevelopment and projects. This multi-State project would be coordinated by aProject Unit in the Fisheries Division of the GOI Ministry of Agriculture,under the overall guidance of a Central Monitoring and Coordinating Committeewhich would be established to guide and review project activities in theparticipating States. State Fisheries Departments would establish StateProject Units which would be responsible for implementation of specific proj-ects in the individual States, under the overall guidance of State Monitoringand Coordination Committees. States would establish Fish Seed DevelopmentCorporations to construct and operate project hatcheries and market finger-lings. Existing Fish Farmer Development Agencies would be strengthened andnew ones established in project districts under the overall direction of theState Director of Fisheries to facilitate expansion of fish farm production.Participating Banks with ARDC refinancing would finance hatchery constructionand credit for fish farmers.

Coordination and Implementation

4.02 GOI Central Project Unit. To enable GOI to supervise and coordinateproject implementation effectively, the Fisheries Division of the GOI Depart-ment of Agriculture and Rural Development would establish a Central ProjectUnit (CPU). In addition, with the growing emphasis on inland fisheries devel-opment and increased work load and responsibilities generated by the project,upgrading the present inland fisheries section to a subdivision headed by anofficer at the appropriate level is needed, and was discussed at negotiations.To head CPU, GOI would appoint on a full-time basis an officer of the DeputyCommissioner level whose duties would be exclusively to manage CPU, and whowould have sufficient staff to: coordinate project activities among Statesand prepare quarterly progress reports on all project components; superviseoperations of GOI-sponsored FFDAs and assist project States in establishingnew FFDAs; monitor availability of credit for fish pond improvement and assistin eliminating credit shortages; review fingerling production and distributionand provide guidance in fish seed marketing and logistics; and provide supportto FFDAs and FSDCs for the development of effective financial and logisticalinformation systems. Under technical assistance, CPU would recruit interna-tionally and employ a hatchery engineer by April 30, 1980 and a hatcherymanagement specialist by April 30, 1981, and assurances to this effect were

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given at negotiations. Assurances were also obtained that CPU would designand supervise activities for reservoir management project preparation, withwork plans and timetable for studies and hatchery construction to be developedin conjunction with the relevant State Fisheries Department by June 30, 1980;and that it would contract with the Indian Institute of Management at Ahmadabadfor the marketing study by April 30, 1980. CPU would have a Hatchery Engineer-ing Cell to which the consultant hatchery engineer under technical assistancewould be attached. The cell would review proposed hatchery sites, provideactive guidance on hatchery design to FSDCs, certify the technical soundnessof each design before a hatchery proposal is submitted to the participatingbanks for financing, and assist in overall supervision of hatchery construction.The proposed organization pattern for CPU would include units for FFDAs, moni-toring hatchery operations and credit, and hatchery engineering (see Chart20293). Assurances were given at negotiations that GOI would appoint suitablyqualified key staff to head CPU sections for FFDAs, monitoring and hatcheryengineering, and CPU would develop in conjunction with project States detailedwork plans and timetables for project implementation by June 30, 1980. Acondition of credit effectiveness for the project is the establishment byGOI of CPU with responsibilities and initial staff satisfactory to IDA, andappointment of a full-time officer at the Deputy Commissioner level to headCPU.

4.03 GOI Central Monitoring and Coordination Committee. To oversee andcoordinate overall implementation of the project at the policy level, a CentralMonitoring and Coordinating Committee (CMCC) in the Ministry of Agriculturewould be established by GOI. CMCC would be chaired by the GOI Secretary forAgriculture. The CMCC secretary would be the Deputy Commissioner in chargeof CPU. Other members of CMCC would include the following or their represent-atives: GOI Secretary for Finance; Secretaries in charge of Fisheries andDirectors of Fisheries in the participating States; and Managing Directorsof State FSDCs, the Indian Council of Agricultural Research and ARDC. Secre-tariat Services for CMCC would be provided by CPU (para 4.02). CMCC wouldprovide interagency coordination and policy guidance for: physical implemen-tation of the project; flow of finance; procurement; monitoring of FFDAperformance; and assessment of needs and requirements to enhance fish farmingdevelopment. Meetings would be held quarterly. Establishment of CMCC wouldbe a condition of credit effectiveness for the project.

4.04 State Project Units. Under the project, each participating Statewould form a State Project Unit (SPU) under the Director of Fisheries (seeChart 20310). SPUs would be headed by an officer not less than Joint Directorlevel reporting directly to the Director of Fisheries. In each State, SPUwould generally oversee and coordinate all phases of project implementation.It would: assist FFDAs in developing training and extension programs andmonitor and supervise FFDA activities; construct and operate the projecttraining center; assist in efforts to improve lease terms and assure adequateand timely credit to fish farmers; monitor fish seed production quality andacceptance by fish farmers; review FFDA and FSDC work plans; and analyzeand report on project implementation progress in the State. SPU would alsoprovide to CPU as needed basic data on project implementation to enable ade-quate monitoring of project progress at the central level, and would preparequarterly reports analyzing project progress to be provided to IDA through

GOI. Assurances were obtained at negotiations that each State government

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would appoint suitably qualified key staff to head SPU sections for FFDAsand training and monitoring, and that by May 31, 1980, SPU would in conjunc-tion with CPU develop detailed work plans and timetables for project imple-mentation in the State. A condition of credit disbursement for each Statewould be the establishment by April 30, 1980 by the State government of SPUwith key staff and responsibilities satisfactory to IDA, and headed by anofficer not below the rank of Joint Director.

4.05 State Monitoring and Coordination Committees. Each participatingState would establish a State Monitoring and Coordination-Committee (SMCC)which would be chaired by the State Secretary in charge of fisheries. TheSecretary of the SMCC would be the Director of Fisheries or the officerheading the SPU which would be established under the Fisheries Department.Membership of SMCC would include the following or their representatives:Secretary for Finance; FFDA Chief Executive Officers (three on rotation);Managing Director of FSDC; Director of Fisheries; the Regional Directorof ARDC; participating banks; Secretary for Cooperatives; Secretary forPanchayats; Chief Engineers for the Departments of Public Works and Irriga-tion; other State government department heads as needed; GOI; and fishfarmers. SMCC would: provide policy level guidance; determine norms forselection of lease-holders for government-owned ponds; define general criteriafor selection of sub-borrowers who would receive the FFDA subsidy and deter-mination of the size of the subsidy up to 25%; monitor project progress; andcoordinate activities of the various project agencies to assure speedy imple-mentation and maximum assistance and support to fish farmers. Secretariatservices to SMCC would be provided by SPU (para 4.04), which would preparereports discussing project progress and implementation problems prior to eachquarterly SMCC meeting. Establishment by April 30, 1980 of State-levelSMCCs would be a condition of credit disbursement for each State.

4.06 Fish Seed Development Corporations. Each State would establish alegally and financially independent Fish Seed Development Corporation (FSDC).FSDCs would play a key role in the project, constructing and operating hatch-eries and marketing fingerlings. All States except Madhya Pradesh wouldestablished FSDCs under the Indian Companies Act of 1956. Madhya Pradesh hasestablished an FSDC under an independent State ordinance, Madhya Pradesh Ordi-nance Number 3 of 1979 titled Madhya Pradesh Rajya Matsya Vikas Nigam Adhyadesh.In West Bengal, FSDC would be an independent subsidiary wholly owned by theexisting State-owned corporation, the State Fisheries Development Corporation.FSDC equity share capital of at least 30% of total project hatchery investmentcosts plus an additional Rs 1 million would be subscribed by State governments.In West Bengal, the State government would hold a like amount of share capitalthrough the existing parent corporation. During the project period, FSDCswould limit their activities primarily to production, promotion and marketingof carp seed.

4.07 Each FSDC would be managed by a Board of Directors comprising about12 members. The Chairman of the Board would be the State Minister or theSecretary in charge of fisheries. Other members would include: the Managing

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Director of FSDC who would also act as secretary to the Board; Chief Execu-tive Officers of FFDAs (three on rotation); representatives of other Stategovernment departments associated with the project as needed; the partici-pating banks; and GOI. Major responsibilities of the Board would be to definegenerally the FSDC production program, determine selling prices for fish seed,approve investment proposals including financing arrangements, define personnelpolicies, and approve accounts and declare dividends while maintaining ade-quate financial reserves.

4.08 FSDCs would be managed on a commercial basis. Each State govern-ment, on recommendation of the FSDC Board, would appoint a full-time ManagingDirector responsible for day-to-day operations who would have the necessarypowers to enable him to discharge his responsibilities as Chief Executive ofFSDC. FSDCs would function independently from government departments. TheManaging Director would work within the policy guidelines set by the Board ofDirectors and report to the Board Chairman, but otherwise have independenceand authority in all operational matters sufficient to ensure efficient andprofitable operations.

4.09 The Managing Director would be supported by Senior ExecutiveManagers of the FSDC Divisions for Production, Marketing and Finance(Chart 20294). An Executive Engineer on deputation with assistants andsupport staff would assist the Managing Director during the hatchery con-struction period and head a hatchery engineering cell to handle design,procurement and construction supervision of hatcheries, in close coordinationwith the engineering staff of GOI's Central Project Unit. Personnel policies,particularly for key positions, would aim at attracting and keeping employeesof high caliber and performance. FSDC would recruit non-clerical grades onthe basis of national advertisement and selection. To ensure continuity ofleadership, the Managing Director would not be changed in less than two yearsexcept in cases of inadequate performance. FSDC would carry out annual per-formance reviews for all staff, and salary administration would be flexibleto reward good performance. Corporate staff size would be small to minimizeoverhead costs (see Annex 3, Table 3).

4.10 A condition of credit disbursement for each State would be (i) estab-lishment under the Indian Companies Act of the FSDCs with memoranda and articlessatisfactory to IDA, or in Madhya Pradesh under an independent act satisfactoryto IDA, (ii) appointment of a managing director, and (iii) contribution ofRs 1 million initial equity share capital for each FSDC, all to be completedby April 30, 1980 (see para 4.06). Assurances were given at negotiationsthat State governments would ensure that FSDCs would limit their activitiesprimarily to fish seed production, promotion and marketing during the projectperiod; that the FSDC memoranda and articles or the Madhya Pradesh Act wouldnot be changed without consultation with IDA; and that additional FSDC equityshare capital equal to 30% of hatchery investment costs would be provided asneeded to enable hatchery construction. Assurances were also given that theFSDC Executive Engineer would be appointed by May 31, 1980, and the SeniorExecutive Managers by June 30, 1981. Terms of Reference for the four seniormanagement and executive engineeer positions were discussed with State govern-ments during negotiations. All senior FSDC management would have demonstratedmanagement experience, and the Managing Director or Senior Executive Managers

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would have commercial experience. Assurances were obtained that FSDCs wouldselect the first two hatchery sites by May 31, 1980 and all hatchery sites bySeptember 30, 1980. State-operated fish seed farms would supply fingerlingsto FSDCs before FSDC hatcheries come on stream to enable FSDCs to developtheir marketing systems, and assurances were also obtained that after FSDChatcheries come on stream, State-operated fish farms would not sell finger-lings at subsidized rates lower than FSDC fingerling prices.

4.11 Fish Farmer Development Agencies. Fish Farmer Development Agencies(FFDAs) would be established in project districts to assist with improvementof lease terms, help fish farmers to obtain institutional finance and provideintensive extension services. FFDAs would be registered under the SocietiesRegistration Act and operated under the direction of a Managing Committeechaired by the District Collector of the respective project district. Othermembers of the Committee would include: the local Deputy Director of Fish-eries; the local Executive Engineer for Irrigation; District CooperativesOfficer; District Panchayat Officer; the Chief Executive Officer of the FFDA;and representatives of the PBs and fish farmers. The FFDA Chief ExecutiveOfficer who would be in charge of day-to-day operations of the agency wouldalso act as Secretary to the Committee. The Committee would meet at leastbi-monthly and would have overall responsibility for: ensuring that SMCCguidelines are followed in the selection of ponds for improvement with FFDAsubsidy assistance and selection of fish farmers who would be trained andwho would receive leases for government-owned fish ponds; approval of FFDAtraining, extension and pond improvement programs and budget proposals; reviewof and assistance with problems concerning fish marketing and input and creditsupply; and appointment of staff.

4.12 The FFDA Chief Executive Officer would be appointed by the Stategovernment at the level of at least Assistant Director. Each FFDA would havethree operational wings to assist the Chief Executive Officer -- extension,fish pond engineering and demonstration and training. Staffing of theoperational wings would be proportional to the project area and the numberof fish farms to be covered by the project (see Annex 2, Table 9). The Stategovernments would transfer to the FFDAs extension officers and support staffalready working for the Fisheries Departments in the project areas, and FFDAswould in addition employ as needed new recruits who would receive training asneeded at fisheries training centers in each State. Overall, for the project,new recruitment is expected to average about 40% of FFDA positions, althoughfor some States and FFDAs, the incremental staff requirements may be somewhathigher, depending on local conditions. The number of extension workers wouldbe built up over a time as project area coverage increases (see para 3.13).GOI and State budgetary provisions for FFDAs would include a subsidy toselected borrowers of up to 25% for fish pond improvements and first-yearinputs which would be channeled through the banking system in conjunctionwith the loan for fish pond improvements. The subsidy is similar to that ofthe Small Farmer Develpment Agencies and is justified in view of its proveneffectiveness in the present FFDA program and the need to promote rapidadoption of modern fish farming technology in the project area. Assuranceswere given at negotiations that GOI and project States would fund, operateand expand where necessary ongoing FFDAs in project districts, and wouldestablish and fund FFDAs in all other project districts by March 31, 1981.

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4.13 Public Works Departments. Public Works Departments (PWDs) in allproject States are experienced and well established. Assurances were givenat negotiations that PWDs would provide for design, construction supervision,and maintenance of hatchery approach roads, which would be constructed con-currently with hatchery construction on a contract basis.

Monitoring and Evaluation

4.14 Monitoring and evaluation is an important component of this project,which is the first of its kind in India_. In addition to normal progressreporting, monitoring and evaluation would cover fish pond leasing and owner-ship patterns, intensity of competitive input and water use, market prices,and adequacy of marketing facilities and infrastructure. On the basis of thedetailed project implementation plan, CPU in the GOI Fisheries Division wouldmonitor and compare actual with expected project progress. SPUs establishedin the State Fisheries Departments would provide basic data and State-specificanalysis for CPU, which would coordinate and unify monitoring and evaluationefforts, and prepare reports on overall project progress. FSDCs, FFDAs andother project entities would cooperate with SPUs in supplying data as requested.SPUs would provide to CPU quarterly progress reports covering various projectcomponents, including where applicable information on tendering, bidding,procurement and disbursements and also specific information on departmentalstaffing as related to project activities, including FFDAs. In addition, eachreport would provide specific data on the FSDCs, including staffing, progress,activities and financial performance. CPU would provide to IDA quarterlyreports based on data from project States, along with the SPU quarterlyprogress reports, and assurances to this effect were obtained at negotia-tions. Progress reports and periodic IDA supervision missions would help toensure the adequacy of monitoring and evaluation, to anticipate, identify andevaluate problems, and to take actions necessary. CPU, in conjunction withSPUs would also provide to IDA a completion report on the project shortlyafter the IDA credit is closed. The completion report would include measure-ment of the impact of various project components and the extent to whichthe project produces benefits as assumed at appraisal, and would be designedto provide information and analysis on conditions before the project, changesoccurring during the project and conditions after project completion.

Credit Organization

4.15 Agricultural Refinance and Development Corporation. ARDC would beresponsible for: (i) refinancing loans by participating banks (PBs) to FSDCsfor project fish hatcheries; (ii) refinancing loans by PBs to individuals,groups or cooperatives for fish pond improvement and financing of first yearcash inputs; and (iii) assisting PBs and prospective borrowers to prepare andevaluate investment plans. ARDC would prepare a project banking plan whichis a standard feature of other Bank Group operations involving ARDC, and itis a condition of credit disbursement for each State that the banking planfor that State is prepared and acceptable to IDA. At this time, ARDC isoperating satisfactorily in some 35 IDA-assisted projects in the agricultural

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sector. 1/ The banking plan prepared by ARDC would specify the participatingcommercial banks, detail the lending arrangements between GOI and ARDC, ARDCand PBs and final borrowers, specify the engineering and fisheries staffrequirements of PBs, provide for joint appraisal and engineering approvalof hatcheries by CPU, and specify criteria for selection of hatchery sites.A condition of credit effectiveness for the project is agreement between GOIand ARDC on financial arrangements for financing project credit components.

4.16 Institutional Assistance. Under the project, PBs would providecredit to FSDCs for hatchery development, and to fish farmers for fish pondimprovements and first-year cash inputs. ARDC would select PBs in consulta-tion with FSDCs and FFDAs. PBs would include commercial banks and RegionalRural Banks for hatchery loans, and in addition Land Development Banks forfish pond lending. Sufficient short-term credit is available as needed frominstitutional sources to meet hatchery and fish farm working capital needsin the project area, and provision for short-term credit under the projectis not necessary. A subsidy of up to 25% for fish pond improvement and first-year inputs would be provided to selected borrowers by FFDAs in conjunctionwith a fish pond improvement loan. The cost of the subsidy would be borneequally by GOI and the State governments. Assurances were given at negotia-tions that, to facilitate PB lending to fish farmers operating fish pondsleased from government entities, project States would take steps necessaryto establish 10 year lease terms in the project areas by June 30, 1980.

V. PROJECT PRODUCTION, MARKETING AND PRICES

Carp Seed Production

5.01 It is clear from past trends of carp seed production and technologydevelopment that traditional methods of wild seed collection from rivers willgradually be phased out as collections fall. More advanced existing technolo-gies, such as bund breeding, can compensate for such losses to some extent buthave relatively limited scope for expansion in the future. If fish farmingis to reach its potential, seed production from efficient, modern carp hatch-eries will have to be developed to supplement and eventually replace otherfish seed sources. Project hatcheries will play a major role in the futuredevelopment of fish farming by increasing the amount, reliability and qualityof carp seed supplies. At full development, production from project hatcherieswould total about 457 million fingerlings valued at some Rs 39 million in 1979prices. From the start of the project, seed production is expected to increaseas follows:

1/ For the most recent appraisal of ARDC, see Third Agricultural Refinaceand Development Corporation Credit Project, Report Number 2404a-IN,April 1979 for an IDA Credit totalling US$250 million.

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---------- Year From Start of Project ----------1 2 3 4 5 6 7 and later

(milion 5.0 cm fingerlings)n

Species of CarpSilver - - 23 60 91 101 110Catla - - 13 32 49 55 62

Rohu - - 16 40 60 68 72Mrigal - - 32 82 125 140 143Grass - - 3 8 11 13 20

Common - - 11 27 42 47 50

Total - - 98 249 378 424 457

5.02 Seed produced and marketed by project hatcheries would be uniformlyof high quality and of specified species and standardized sizes. It wouldcontain no undesirable or predatory species, and it would be produced frompure strains of disease and parasite free brood stock. Size grading wouldcomprise fry of about 2.5 cm size and fingerlings of about 5.0 cm and 9.0 cmsizes, with 5.0 cm fingerlings as the standard size. Seed to be transportedover long distances would be packed in sealed polyethylene bags filled withwater and oxygen to ensure high survival rates of the delivered product. Overtime, hatcheries would improve brood stock quality by selecting the fastestgrowing and most robust fingerlings of the extra large 9.0 cm size for devel-opment of brood stock, one-third of which would be replaced each year.

5.03 Unlike wild seed collections, carp seed from project hatcherieswould be marketed throughout much of the year. Hormone materials for inducedbreeding would be extracted from the pituitary glands of common carp, and if

desirable corionic gonadotropin could be imported. Using induced breedingtechniques under controlled environment conditions, project hatcheries would beable to produce spawn about two or three months prior to the normal spawningseason. Project hatcheries would market carp seed of various sizes in accord-ance with the seasonal demand of fish farmers, raising or stunting fingerlingsas necessary.

5.04 Carp seed prices vary considerably from year to year and accordingto the variety of carp due to fluctuations of market demand and supply. Alongwith maintenance of brood stock, the major costs for carp seed production arethe expenses involved in raising the seed from hatchlings to fingerlings.These costs are reasonably constant. The fluctuations in market prices forcarp seed have been influenced primarily by variations in the catch of spawnfrom the rivers and, to some extent, by market imperfections since the FishSeed Syndicate in Calcutta is the only large-scale, commercial fish seedoperation in the country. Project hatcheries are expected to both improvequality and stabilize prices in fish seed markets.

Carp Production

5.05 At full development in year seven, annual incremental carp produc-tion generated by the project in the project area is expected to total about200,000 tons valued at some Rs 800 million in 1979 prices. Present produc-

tion in the project States is estimated at about 100,000 tons.

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Marketing

5.06 Project carp fingerlings would be marketed in the project area byFSDCs in conjunction with FFDA extension activities. Incremental carp produc-tion generated by the project would be marketed through the existing privatemarketing system or sold locally by individual fish farmers. Project areasproject would increase production of carp in India by about 68%, which impliesan average annual rate of growth of about 7%, roughly the same rate as forgrowth in total fish consumption in India during the last decade (see para1.09). Considering that significant growth in inland capture fisheries or wildcollection of seed are unlikely in the future, the carp market is expected tobe able to absorb such an increase easily. Carp is a preferred species of fishwith a relatively high elasticity of demand, and future per capita incomegrowth, particularly in the industrializing growth centers of eastern India, isexpected to shift demand further in favor of carp. In addition, the proportionof the population which eats fish is rising steadily, fresh water fish isreadily accepted by Indian consumers, and consumer awareness of fish as animportant source of protein is growing. Further, under the project, productionunits would be close to local consumption centers, and seasonality of supplywould be reduced.

Prices

5.07 Prices used for project financial projections are based on averagepond side prices received by fish farmers during 1978. Given the expectedgrowth in fish demand, especially with respect to carp which is a highly pre-ferred species, and considering the increasing proportion of non-vegetariansin the population, the use of these prices held constant in real terms forthe period of project analysis is reasonable. Prices used average Rs 4 per kgor Rs 4,000 (Us$465) per ton at the pond side, for high value species of carpranging in size from about 0.3 kg to 1.2 kg depending on species, compared toretail prices for the same fish ranging from about Rs 10 to Rs 16 per kg (seeAnnex 3, Table 7). As fish farmers shift from low quality seed of mixed,low-value species to pure seed of high-value species, pond-side prices averagedfor all species and all fish pond models are expected to rise from Rs 2.90 toRs 4 per kg at full development. For fingerlings, the project's intermediateproduct, prices used average Rs 85 per 1,000 fingerlings. Prices for fishrelative to other animal protein sources are expected to remain essentiallyconstant during the period of project analysis.

VI. FINANCIAL AND ECONOMIC ANALYSIS

Financial Analysis

6.01 Project financial benefits would consist primarily of (i) thevalue of the incremental carp production resulting from the use of projectseed, investments in fish ponds improvements and more intensive extensionservices, and (ii) the value of the high quality carp fingerlings producedby project hatcheries. At full development, proposed project investments areexpected to yield incremental production valued at about Rs 677 million forcarp and Rs 39 million for fingerlings.

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6.02 Project investments in components which warrant separate financialcalculations (US$26.2 million or 63% of total project cost for hatcheries,FSDCs and fish farms) yield the following financial rates of return:

--- Hatcheries --- Selected ---- Fish Farm Models ----10 Ha 25 Ha FSDC A B C

22 37 21 55 41 27

Estimated rates of return are based on cash flow projections shown in Annex 3.The selected FSDC is based on Uttar Pradesh which, because of the expectedpattern of fingerling demand in the State, has the least financial capabilityto support corporate overhead costs.

Economic Analysis

6.03 The economic analysis for the project is based on financial data,modified as indicated below (see para 6.04). The economic rate of return forthe project investment as a whole (Rs 351.4 or 99% of total project cost) isestimated at 42%. A 20% reduction in benefits would reduce the economic rateof return to 22%, while a 20% cost overrun in hatchery and fish pond invest-ment costs would reduce the rate of return to 37%. A combined 20% reductionin benefits and 20% cost overrun in hatchery and fish pond investments wouldreduce the rate of return to 19%. With benefits lagged one year, the project'srate of return would be 22%. At a 12% opportunity cost of capital, switchingvalues would be 29% for benefits and 243% for project costs. See Annex 4 fordetails of the economic analysis.

6.04 In the economic analysis, a foreign exchange premium of 1.16(Rs 10 per US$1.00) was used to approximate the economic value to the economyof foreign exchange used indirectly and directly by the project. An averageeconomic wage rate of 70% of the financial wage rate was used in the economicanalysis to approximate the economic cost of labor used in project construc-tion and operations. The project area is generally located in regions ofrelatively high population density and underemployment, and analysis ofestimated agricultural labor supply and demand conditions in various Indianagricultural projects indicates that the economic cost of unskilled agricul-tural labor under such conditions generally ranges from about 50% to 70% ofthe financial rate. Project costs in the economic analysis exclude technicalassistance for project preparation and the marketing study, which are notnecessary for project implementation but are oriented toward future inlandfisheries development. Operating costs include fish pond lease costs as anestimate of the value of fish pond land and water.

Project Benefits and Beneficiaries

6.05 The primary benefits expected from the project would be the pro-duction and sale of some 200,000 tons of carp. For producers, the projectwould raise income and living standards for about 100,000 fish farm families,mostly low income members of the rural agricultural community. For consumers,it would significantly increase the supply of high quality protein and improvenutritional standards. Even considering outside income, which would not besignificantly affected by the project, fish farmer incomes are generally

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below poverty levels. Annual net income from fish farming for the averagefish farm family in the project area would increase from about Rs 500 withoutthe project to about Rs 2,400 with the project in 1978 prices. The projectwould provide substantial additional employment, comprising about 4,000permanent jobs for unskilled labor and 10,000 jobs for part-time unskilledand surplus family labor in fish farming, about 4,000 full-time jobs in fishmarketing, and a total of about 230,000 man-years of labor for earthwork inhatchery construction and fish farm improvement during the project period.

Long-term Development Impact

6.06 In the long-term perhaps the most important contribution of theproject would be its expected effect on the development of fish farming inIndia. At present, fish culture and production is limited by inadequate sup-plies and poor quality of seed. The project would lead the way in developingand modernizing the fish seed industry in India, which is essential for futuregrowth in fish farming. This is particularly important, given the increasinglysevere limitations on wild capture inland fisheries and seed collections dueto habitat deterioration.

Risks

6.07 The principal risks of the project relate to institution buildingwith respect to establishment of FSDCs, and to hatchery water supply in MadhyaPradesh. FSDCs will play a vital role in the operation of project hatcheries,in both providing an adequate supply of fingerlings and proving the commercialviability of fish hatchery operations. However, the FSDCs are untried andthere is a risk that they will need more time to build up the managerialcompetence than is now envisaged. This is one of the reasons why hatcherymanagement consultant is considered essential to ensure the efficient opera-tion of project hatcheries and effective marketing of fingerlings. The neces-sary assurances to achieve these objectives were obtained at negotiations (seepara 4.10).

6.08 Unlike the other project States, Madhya Pradesh has very limitedsupplies of groundwater available for hatchery water supplies. However, sur-face water supplies have been assured by the State government, either directlyfrom irrigation reservoirs or pumping from reservoir dead storage. Adequatewater supplies during the dry season are essential for the hatcheries whichwould produce fingerlings during the April-to-June dry season, and the riskis that during years of extreme water scarcity, sufficient surface water maynot be available to the hatcheries at critical periods. With adequate safe-guards (see para 2.08) these risks are justified in view of the severe short-ages of fingerlings in the State and the potential benefit from proving thefeasibility of hatchery development under difficult water supply conditions.

Environmental Impact

6.09 The proposed project would have a positive effect on the environ-ment. At present, fallow and underutilized water bodies are often breeding

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grounds for mosquitoes which carry malaria. The project would reduce thenumber of such water bodies, which would no longer be breeding grounds fordisease but would instead be put to productive use.

VII. RECOMMENDATIONS

7.01 Assurances have been obtained that:

(i) GOI will:

(a) appoint by April 30, 1980 suitably qualified key staffto head CPU sections dealing with FFDAs, monitoringand hatchery engineering (para 4.02);

(b) develop by June 30, 1980 in conjunction with each par-ticipating State government detailed work plans andtimetables for implementation of the project (para 4.02);

(c) hire by April 30, 1980 for the hatchery engineeringcell of CPU a suitably qualified hatchery engineeringconsultant acceptable to IDA, experienced in design andconstruction of hatcheries of the type and design speci-fied in the project (para 4.02);

(d) hire by April 30, 1981 a suitably qualified hatcherymanagement specialist acceptable to IDA experienced inthe optimum operation of hatcheries of the type speci-fied in the project (para 4.02);

(e) design, arrange for and supervise reservoir managementproject preparation, with work plans and timetable forresearch and hatchery construction to be developed inconjunction with the selected State Fisheries Depart-ment by June 30, 1980 (para 4.02);

(f) contract by April 30, 1980 with Indian Instituteof Management at Ahmedabad to expand the ongoing fishmarketing study to include inland fish (para 4.02);

(g) fund according to its share of costs, establish andoperate new FFDAs, and expand where necessary existingFFDAs, in project districts (para 4.12); and

(h) cause CPU to provide IDA with quarterly progress reportson project activities for the project as a whole (para4.14).

- 35 -

(ii) Each participating State government will:

(a) establish, operate and suitably staff, or strengthenas needed, fish culture extension training centers byDecember 31, 1981, except in Orissa (para 2.12);

(b) cause FSDCs to maintain separate accounts for projectcomponents and provide IDA with audited accountswithin nine months of the close of each financial year(para 3.21);

(c) cause FSDC to have its Balance Sheets and Profit-LossAccounts audited by qualified auditors acceptable toIDA and to provide copies of the auditor's reportswithin nine months of the close of each financial year(para 3.21);

(d) cause the SPU in conjunction with CPU in the GOI Fish-eries Division to develop detailed work plans and atimetable for project implementation in the State byMay 31, 1980 (para 4.04);

(e) cause FSDC to limit its activities mainly to production,promotion and marketing of fish seed during the projectperiod (para 4.10);

(f) ensure that FSDC memoranda and articles of associationare not changed during the project period without con-sulting IDA (para 4.10);

(g) provide equity contributions to FSDC equal to 30% ofhatchery investment costs, in addition to an initialshare capital of Rs 1 million to be provided byApril 30, 1980 (para 4.10);

(h) appoint to FSDC a suitably qualified executive engineerby May 31, 1980 and three Senior Executive Managers byJune 30, 1981 (para 4.10);

(i) cause FSDC in conjunction with the State Fisheries Depart-ment to select the first two hatchery sites by May 31,1980, and all hatchery sites by September 30, 1980(para 4.10);

(j) ensure that State fish seed farms and agencies do notsell fingerlings in the project area at prices lowerthan FSDC fingerling prices (para 4.10);

(k) in conjunction with GOI, establish, fund and operateFFDAs in all project districts without ongoing FFDAsby March 31, 1981 (para 4.12);

- 36 -

(1) construct in phase with hatchery construction and ade-quately maintain suitable all-weather hatchery approachroads (para 4.13);

(m) cause SPU to provide to IDA through the GOI FisheriesDivision quarterly progress reports for the projectin the State (para 4.14); and

(n) take steps as necessary to establish 10 year leaseterms for government fish ponds in the project area

by June 30, 1980 (para 4.16).

(iii) ARDC will ensure that, after project funds for fish pond

credit are fully utilized, priority is given to refinancingfish pond credit in the project area from the IDA-supportedgeneral lines of credit as necessary (para 3.05).

7.02 Conditions of credit effectiveness are:

(i) establishment by GOI in the GOI Fisheries Division of aCentral Project Unit with responsibilities and initialstaff satisfactory to IDA, and headed by an officer atthe Deputy Commissioner level (para 4.02);

(ii) establishment by GOI of a Central Monitoring andCoordinating Committee (para 4.03); and

(iii) agreement on financial arrangements between GOI and ARDC

for financing project credit components (para 4.15).

7.03 Conditions of credit disbursement for each State are:

(i) establishment by April 30, 1980 of a State Project Unitwith key staff satisfactory to IDA and headed by an

officer not below the rank of Joint Director (para 4.04);

(ii) establishment by April 30, 1980 of a State Monitoring andCoordinating Committee (para 4.05);

(iii) establishment by April 30, 1980 of a legally and financiallyindependent FSDC with a managing director and an initial

equity share capital of Rs 1.0 million (para 4.10); and

(iv) preparation by ARDC of a banking plan satisfactory to IDA(para 4.15).

7.04 With the above assurances and conditions, the proposed projectwould be suitable for an IDA credit of US$20.0 million on standard IDA terms.

- 37 -

ANNEX 1Page 1

r NDIA

INLAND FISHERIES PROJECT

Project States and Districts

West Madhya UttarBengal Bihar Orissa Pradesh Pradesh

Midnapur Paschimi Champaran 2/ Balasore 1/ Raipur 1/ LucknowBankura Purbi Champaran 2/ Cuttack Durg UnnaoHowrah Sitamarhi Puri Bilaspur Gonda 1/Hooghly Madhubani Ganjam 1/ Rajnandgaon BarabankiPurulia Saharsa Bolangir 1/ Raigarh FaizabadBurdwan 1/ Purnea Sambalpur Shahdol 1/ Jaunpur 1/Nadia Gopalganj Phulbani -' AsamgarhBarbhum 1/ Siwan BastiMurshidabad 1/ Saran GorakhpurMalda 1/ Muzaffarpur GhazipurWest Dinajpur 1/ Vaishali Allahabad 1/

Darbhanga DeoriaSamastipur BalliaBegusarai VaranasiKatihar Rae BareliPatna PratapgarhMonghyr Sultanpur

1/ District with ongoing FFDA sponsored by GOI.2/ One FFDA serves both Paschimi Champaran and Purbi Champaran.

- 38 -ANNEX 1Page 2

INDIA

INLAND FISHERIES PROJECT

Guideline Criteria forSelection of Project Hatchery Sites

1. Selection of hatchery sites will be based on technical andsocio-economic criteria, considering inter alia the following factors foreach site:

(i) availability of land in a contiguous, suitably shaped plot ofsufficient size for all facilities (approximately 33 ha of landfor 25 ha hatcheries and 14.4 ha of land for 10 ha hatcheries);

(ii) availability of assured water supplies of adequate quality;

(iii) site surveys and soil testing to determine the suitability ofthe site for the engineering works envisaged;

(iv) soil testing to determine suitability for fish culture;

(v) freedom from frequent deep flooding, such that the 10-yearreturn flood is no higher than about 1.85 meters above theaverage original ground level;

(vi) reasonable proximity to the area of demand for fingerlings;

(vii) proximity to all-weather road connections;

(viii) availability of electricity and, if possible, telephoneconnections; and

(ix) avoidance of significant social displacement, particularly inheavily populated areas.

2. The project banking plan to be prepared by ARDC would provide forprocedures and technical specifications to ensure selection of hatchery siteswhich meet the above criteria, and other requirements as necessary. The GOICentral Project Unit would assist in preparation of the hatchery site selectioncriteria for the banking plan, development of the technical and economicspecifications required to make the site selection criteria operational, and.review of hatchery sites as they are selected.

ANNEX 2Table 1

INDIA

INLAND FISHERIES PROJECT

TOTAL PROJECT COST ESTIMATES____________________________

(RS '000>

WEST MADHYA UTTAR - - - ALL SrATES - - - US, 000BENG3AL BIHAR ORISSA PRADESH PRADESH LOCAt FO*EIGN TOTAL EQUIVALENT

HATCHERIES

CIVIL WORKS 23017 14330 10568 12044 9046 68227 778 69005 8024EOUIPMENT 1864 1214 83S 838 795 3662 1887 5549 645LANB 2040 1236 948 948 762 5934 0 5934 690FSDC HEADGUARTERS 319 319 319 319 319 1275 320 1595 185

SUBTOTAL BASE COST 27240 17099 12673 14149 10922 79098 2985 82083 9544PHYSICAL CONTINGENCIES 4603 2866 2114 2409 1809 13663 138 13801 1605PRICE ESCALATION 9506 5251 3546 3984 2796 23829 1254 25083 2917

TOTAL COST 41349 25216 18333 20542 15527 116590 4377 120967 14066

APPROACH ROADS

CIVIL WORKS 12150 5940 3960 3960 3960 28772 1198 29970 3485LAND 270 180 120 120 120 810 0 810 94

SUBTOTAL BASE COST 12420 6120 4080 4080 4080 29582 1198 30780 3579PHYSICAL CONTINGENCIES 2430 1188 792 792 792 5753 241 5994 697PRICE ESCALATION 4208 1955 1174 1174 1174 9200 485 9685 1126

TOTAL COST 19058 9263 6046 6046 6046 44535 1924 46459 5402

FFDA 'S

INCREMENTAL STAFF 4554 5148 2377 2970 4752 19801 0 19801 2302EQUIPHENT 4475 4296 2326 3222 3580 16279 1620 17899 2081

SUBTOTAL BASE COST 9029 9444 4703 6192 8332 36080 1620 37700 4383PRICE ESCALATION 2892 2830 1491 2071 2365 11036 613 11649 1355

TOTAL COST 11921 12274 6194 8263 10697 47116 2233 49349 5738

FISH POND IMPROVEMENT

CIVIL WORKS 22426 8309 6607 4746 3518 45606 0 45606 5303EQUIPMENT 7661 3870 2823 2797 1948 19099 0 19099 2221FIRST YEAR INPUTS 5099 2962 2020 2433 1626 14140 0 14140 1644

SUBTOTAL BASE COST 35186 15141 11450 9976 7092 78845 0 78845 9168PHYSICAL CONTINGENCIES 3364 1246 991 712 528 6841 0 6841 795PRICE ESCALATION 13292 4909 3928 3170 2271 27569 0 27569 3206

TOTAL COST 51842 21296 16369 13858 9891 113255 D 113255 13169

TRAINING CENTERS

CIVIL WORKS 1800 1800 0 0 1800 5220 180 5400 628EQUIPHENT 1745 1745 0 1745 1745 6504 476 6980 812LAND 75 75 0 0 75 225 0 225 26

SUBTOTAL BASE COST 3620 3620 0 1745 3620 11949 656 12605 1466PHYSICAL CONTINGENCIES 270 270 0 0 270 786 24 810 94PRICE ESCALATION 617 617 0 274 617 1934 193 2127 247

TOTAL COST 4507 4507 0 2019 4507 14669 873 15542 1807

TECHNICAL ASSISTANCE

HATCHERY ENGINEER 0 0 0 0 0 0 620 620 72HATCHERY MANAGER 0 0 0 0 0 0 620 620 72PROJECT PREPARATION 0 0 0 0 0 1844 54 1898 216MARKETING STUDY 0 0 0 0 0 1800 0 1800 209

TOTAL COST 0 0 0 0 0 3644 1294 4938 569

TOTAL PROJECT

CIVIL WORKS 59393 30379 21135 20750 18324 147825 2156 149981 17440EQUIPMENT 15745 11125 5987 8602 8068 45544 3983 49527 5759LAND 2385 1491 1068 1068 957 6969 0 6969 810TECHNICAL ASSISTANCE 0 0 0 0 0 3644 1254 4898 570OTHER2/ 9972 8429 4716 5722 6697 35216 320 35536 4132

SUBTOTAL 87495 51424 32906 36142 34046 239198 7713 246911 28711PHYSICAL CONTINGENCIES 10667 5570 3897 3913 3399 27043 403 27446 3191FRICE ESCALATION 30515 15562 10139 10673 9223 73568 2545 76113 8851

TOTAL PROJECT 128677 72556 46942 50728 46668 339809 10661 350470 40753

1/ Technical Assistance will be responsibility of GOI.2/ Includes FSDC headquarters, first year inputs and FFDA incremental staff.

INDIA

INLAND FISHERIES PROJECT

Project Costs Expected Price Increases

(Rs '000)

1979 1980 1981 1982 1983 Total

Expected Price Increase RatesCivil Works 7% 7% 7% 7% 7%Equipment 6% 6% 6% 6% 6%

Civil Works i/Base Cost Estimate 8,249 40,722 49,441 39,965 18,573 156,950Physical Contingencies 930 7,032 9,012 7,319 3,153 27,446

Subtotal 9,179 47,754 58,453 47,284 21,726 184,396Expected Price Increases 1,140 9,088 15,320 16,090 9,300 50,938Total Civil Works 10,319 56,842 73,773 63,374 31,026 235,334

Equipment 2/Base Cost Estimate 8,891 18,491 14,093 19,489 24,099 85,063Expected Price Increases 1,147 3,606 3,746 6,591 10,085 25,175Total Equipment 10,038 22,097 17,839 26,080 34,184 110,238

Technical Assistance 1,386 1,306 942 666 598 4,898

Total Expected Price Increases 2,287 12,694 19,066 22,681 19,385 76,113

Total Project Cost 21,743 80,245 92,553 90,121 65,808 350,470

Price Increase as Percentof Base Cost Plus Contingencies 27.7%

1/ Includes Civil works and land.2/ Includes equipment, FFDA incremental staff,FSDC headquarters equipment, and financed first

year inputs.

-41 - ANNEX 2

Table 3Page 1

INDIA

INLAND FISHERIES PROJECT

ESTIMATED PROJECT COSTS AND PHASING-----------------------------------

WEST BENGAL

(RS '000)

------------------------------------------------------------- __--------------__-----------------------------

1 2 3 4 5 TOTALS FOR. EXCH.

HATCHERIES

CIVIL WORKS 250 3806 6124 7608 5229 23017 259EQUIPMENT 146 535 564 461 158 1864 636

LAND 474 804 618 144 0 2040 0FSDC HEADQUARTERS 319 0 0 0 0 319 64

BASE COST 1189 5145 7306 8213 5387 27240 959PHYSICAL CONTINGENCIES 50 761 1225 1522 1046 4603 46

PRICE ESCALATION 162 1139 2243 3277 2684 9506 475

SUBTOTAL 1401 7046 10774 13011 9117 41349 1480

APPROACH ROADS

CIVIL WORKS 608 2430 3645 3645 1822 12150 486LAND 90 90 90 0 0 270 0

BASE COST 698 2520 3735 3645 1822 12420 486PHYSICAL CONTINGENCIES 122 486 729 729 364 2430 97PRICE ESCALATION 101 567 1161 1467 912 4208 210

SUBTOTAL 920 3573 5625 5841 3099 19058 793

FFDA'S

INCREMENTAL STAFF 137 273 364 1275 2505 4554 0EQUIPMENT 448 1387 492 1253 895 4475 407

BASE COST 585 1660 856 2528 3400 9029 407PRICE ESCALATION 72 317 225 855 1423 2892 174

SUBTOTAL 657 1977 1081 3383 4823 11921 581

FISH POND IMPROVEMENT

CIVIL WORKS 0 2378 4755 7133 8160 22426 0

EQUIPMENT 0 785 1571 2356 2949 7661 0FIRST YEAR INPUTS 0 520 1040 1561 1978 5099 0

BASE COST 0 3683 7366 11050 13087 35186 0PHYSICAL CONTINGENCIES 0 357 713 1070 1224 3364 0

PRICE ESCALATION 0 784 2163 4196 6148 13292 0

SUBTOTAL 0 4824 10242 16316 20459 51842 0

TRAINING CENTERS

CIVIL WORKS 900 900 0 0 0 1OO 60EQUIPMENT 873 872 0 0 0 1745 119LAND 75 0 0 0 0 75 0

BASE COST 1848 1772 0 0 0 3620 179PHYSICAL CONTINGENCIES 135 135 0 0 0 270 8

PRICE ESCALATION 248 369 0 0 0 617 56

SUBTOTAL 2231 2276 0 0 0 4507 243

TOTAL WEST BENGAL

CIVIL WORKS 1758 9514 14524 18386 15211 59393 805EQUIPMENT 1467 3579 2627 4070 4002 15745 1162LAND 639 894 708 144 0 2385 0OTHER 1/ 456 793 1404 2836 4483 9972 64

BASE COST 4320 14780 19263 25436 23696 87495 2031PHYSICAL CONTINGENCIES 307 1739 2667 3321 2634 10667 151PRICE ESCALATION 583 3177 5792 9796 11167 30515 915

TOTAL WEST BENGAL 5209 19696 27722 38552 37497 128677 3097

1/ rncl,des FSDC headquarters, first year inputs and FFDA incremental staff.

- 42 -ANNEX 2Table 3Page 2

IND0 A

INLAND FISHERIES PROJECT

ESTIMATED PROJECT COSTS AND PHASING

BIHAR

(RS '000)

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _- - _ _ _- - _ _ _ __--- - - -- - - --_ _ _-- _ _- -- - - - - - - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _-

1 2 3 4 5 TOTALS FOR. EXCH.- - -_ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - _ _ - - _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _

HATCHERIES

CIVIL WORKS 217 3732 4310 6071 0 14330 164EQUIPMENT 146 419 333 316 0 1214 408LAND 474 474 288 0 0 1236 0FSDC HEADQUARTERS 319 0 0 0 0 319 64

BASE COST 1156 4625 4931 6387 0 17099 636PHYSICAL CONTINGENCIES 43 746 862 1214 0 2866 29PRICE ESCALATION 157 1026 1516 2551 0 5251 263

SUBTOTAL 1356 6398 7309 10152 0 25216 928

APPROACH ROADS

CIVIL WORKS 297 1188 2376 1782 297 5940 238LAND 60 60 60 0 0 180 0

BASE COST 357 1248 2436 1782 297 6120 238PHYSICAL CONTINGENCIES 59 238 475 356 59 1188 48PRICE ESCALATION 51 281 757 717 149 1955 98

SUBTOTAL 468 1766 3668 2856 505 9263 384

FFDA'S

INCREMENTAL STAFF 206 360 721 1493 2368 5148 0EQUIPMENT 687 1976 344 516 773 4296 392

BASE COST 893 2336 1065 2009 3141 9444 392PRICE ESCALATION 110 446 280 679 1315 2830 142

SUBTOTAL 1003 2782 1345 2688 4456 12274 534

FISH POND IMPROVEMENT

CIVIL WORKS 0 1818 3636 2035 820 8309 0EQUIPMENT 0 601 1201 1312 756 3870 0FIRST YEAR INPUTS 0 398 796 933 835 2962 0

BASE COST 0 2817 5633 4280 2411 15141 0PHYSICAL CONTINGENCIES 0 273 545 305 123 1246 0PRICE ESCALATION 0 600 1654 1579 1076 4909 0

SUBTOTAL 0 3690 7833 6164 3610 21296 0

TRAINING CENTERS

CIVIL WORKS 900 900 0 0 0 1800 60EQUIPMENT 873 872 0 0 0 1745 119LAND 75 0 0 0 0 75 0

BASE COST 1848 1772 0 0 0 3620 179PHYSICAL CONTINGENCIES 135 135 0 0 0 270 8PRICE ESCALATION 248 369 0 0 0 617 56

SUBTOTAL 2231 2276 0 0 0 4507 243

TOTAL BIHAR

CIVIL WORKS 1414 7638 10322 9888 1117 30379 462EQUIPMENT 1706 3868 1878 2144 1529 11125 919

LAND 1/ 609 534 348 0 0 1491 0OTHER I- 525 758 1517 2426 3203 8429 64

BASE COST 4254 12798 14065 14458 5849 51424 1445PHYSICAL CONTINGENCIES 238 1392 1883 1876 182 5570 85PRICE ESCALATION 567 2722 4207 5526 2540 15563 559

TOTAL BIHAR 5059 16912 20155 21860 8571 72557 2089

1/ Includes FSDC headquarters, first year inputs and FFDA in,cremental staff.

- 43 - ANNEX 2Table 3

Page 3

INDIA

INLAND FISHERIES PROJECT

ESTIMATED PROJECT COSTS AND PHASING-----------------------------------

ORISSA

(RS '000)

1 2 3 4 5 TOTALS FOR. EXCH.

HATCHERIES

CIVIL WORKS 217 3732 4075 2544 0 10568 118EQUIPMENT 146 419 273 0 0 638 290LAND 474 474 0 0 0 948 0FSDC HEADQUARTERS 319 0 0 0 0 319 64

BASE COST- 1156 4625 4348 2544 0 12673 472PHYSICAL CONTINGENCIES 43 746 815 509 0 2114 21PRICE ESCALATION 157 1026 1338 1024 0 3546 177

SUBTOTAL 1356 6398 6501 4077 0 18332 670

APPROACH ROADS=_______________

CIVIL WORKS 198 1386 1584 792 0 3960 158LAND 60 60 0 0 0 120 0

BASE COST 258 1446 1584 792 0 4080 158PHYSICAL CONTINGENCIES 40 277 317 158 0 792 32PRICE ESCALATION 37 325 492 319 0 1174 59

SUBTOTAL 335 2049 2393 1269 0 6046 249

FFDA'S

INCREMENTAL STAFF 95 143 214 594 1331 2377 0EQUIPMENT 279 814 278 303 652 2326 210

BASE COST 374 957 492 897 1983 4703 210PRICE ESCALATION 46 183 129 303 830 1491 75

SUBTOTAL 420 1140 621 1200 2813 6194 285

FISH POND IMPROVEMENT

CIVIL WORKS 0 1119 2238 2186 1064 6607 0EQUIPMENT 0 370 739 941 773 2823 0FIRST YEAR INPUTS 0 245 490 645 640 2020 0

BASE COST 0 1734 3467 3772 2477 11450 0PHYSICAL CONTINGENCIES 0 168 336 328 160 991 0PRICE ESCALATION 0 369 1018 1416 1124 3928 0

SUBTOTAL 0 2271 4821 5516 3761 16369 0

TOTAL ORISSA

CIVIL WORKS 415 6237 7897 5522 1064 21135 276EQUIPMENT 425 1603 1290 1244 1425 5987 500LAND1 534 534 0 0 0 1068 0OTHER- 414 388 704 1239 1971 4716 64

BASE COST 1788 8762 9891 8005 4460 32906 840PHYSICAL CONTINGENCIES 83 1191 1468 995 160 3897 53PRICE ESCALATION 240 1904 2978 3063 1954 10139 311

TOTAL ORISSA 2111 11857 14336 12063 6574 46941 1204

1/ Includes FSDC headqu,arters, first year inpuits and FFDA incremental staff.

- 44 -

ANNEX 2Table 3Page 4

INDIA

INLAND FISHERIES PROJECT

ESTIMATED PROJECT COSTS AND PHASING

MADHYA PRADESH

(RS '000)

----------------------------------------------------------------- __----------__----------------------------_

1 2 3 4 5 TOTALS FOR. EXCH.------------------------------------------------------------------ __---------__-----------------------------

HATCHERIES

CIVIL WORKS 245 4299 4600 2900 0 12044 132EQUIPMENT 146 419 273 0 0 838 290LAND 474 474 0 0 0 948 0FSDC HEADQUARTERS 319 0 0 0 0 319 64

BASE COST 1184 5192 4873 2900 0 14149 486PHYSICAL CONTINGENCIES 49 860 920 580 0 2409 24

PRICE ESCALATION 161 1154 1501 1168 0 3984 199

SUBTOTAL 1394 7206 7294 4648 0 20542 709

APPROACH ROADS

CIVIL WORKS 198 1386 1584 792 0 3960 158LAND 60 60 0 0 0 120 0

BASE COST 258 1446 1584 792 0 4080 158PHYSICAL CONTINGENCIES 40 277 317 158 0 792 32PRICE ESCALATION 37 325 492 319 0 1174 59

SUBTOTAL 335 2049 2393 1269 0 6046 249

FFDA'S

INCREMENTAL STAFF 89 149 208 683 1841 2970 0EQUIPMENT 226 806 354 838 998 3222 291

BASE COST 315 955 562 1521 2839 6192 291

PRICE ESCALATION 39 182 148 514 1188 2071 104

SUBTOTAL 354 1137 710 2035 4027 8263 395

FISH POND IMPROVEMENT

CIVIL WORKS 0 1748 1472 806 720 4746 0EQUIPMENT 0 578 865 664 690 2797 0

FIRST YEAR INPUTS 0 383 611 651 788 2433 0

BASE COST 0 2709 2948 2121 2198 9976 0PHYSICAL CONTINGENCIES 0 262 221 121 108 712 0PRICE ESCALATION 0 577 845 769 979 3170 0

SUBTOTAL 0 3548 4014 3011 3285 13858 0

TRAINING CENTERS

CIVIL WORKS 0 0 0 0 0 0 0EQUIPMENT 873 872 0 0 0 1745 119LAND 0 0 0 0 0 0 0

BASE COST 873 872 0 0 0 1745 119PHYSICAL CONTINGENCIES 0 0 0 0 0 0 0PRICE ESCALATION 108 167 0 0 0 274 25

SUBTOTAL 981 1039 0 0 0 2019 144

TOTAL MADHYA PRADESH

CIVIL WORKS 443 7433 7656 4498 720 20750 290EQUIPMENT 1245 2675 1492 1502 1688 8602 700LAND 534 534 0 0 0 1068 0OTHER-I/ .408 532 819 1334 2629 5722 64

BASE COST 2630 11174 9967 7334 5037 36142 1054PHYSICAL CONTINGENCIES 89 1399 1458 859 108 3913 56PRICE ESCALATION 345 2405 2986 2770 2167 10673 387

TOTAL MADHYA PRADESH 3064 14978 14411 10963 7312 50728 1497

1/ Includes FSDC headquarters first year inputs and FFDA incremental staff.

-45- ANNEX 2Table 3Page 5

INDIA

INLAND FISHERIES PROJECT

ESTIMATED PROJECT COSTS AND PHASING-----------------------------------

UTTAR PRADESH

(RS '000)

1 2 3 4 5 TOTALS FOR. EXCH.

HATCHERIES

CIVIL WORKS 196 3651 5199 0 0 9046 105EQUIPMENT 146 419 230 0 0 795 263LAND 474 288 0 0 0 762 0FSDC HEADQUARTERS 319 0 0 0 0 319 64

BASE COST 1135 4358 5429 0 0 10922 432PHYSICAL CONTINGENCIES 39 730 1040 0 0 1809 18PRICE ESCALATION 154 966 1676 0 0 2796 140

SUBTOTAL 1328 6055 8145 0 0 15528 590

APPROACH ROADS

CIVIL WORKS 198 1386 1584 792 0 3960 158LAND 60 60 0 0 0 120 0

BASE COST 258 1446 1584 792 0 4080 158PHYSICAL CONTINGENCIES 40 277 317 158 0 792 32PRICE ESCALATION 37 325 492 319 0 1174 59

SUBTOTAL 335 2049 2393 1269 0 6046 249

FFDA'S

INCREMENTAL STAFF 203 503 870 1335 1841 4752 0EQUIPMENT 704 1886 260 347 383 3580 320

BASE COST 907 2389 1130 1682 2224 8332 320PRICE ESCALATION 112 456 297 569 931 2365 118

SUBTOTAL 1019 2845 1427 2251 3155 10697 438

FISH POND IMPROVEMENT

CIVIL WORKS 0 1119 1203 735 461 3518 0EQUIPMENT 0 370 591 546 441 1948 0FIRST YEAR INPUTS 0 245 411 466 504 1626 0

BASE COST 0 1734 2205 1747 1406 7092 0PHYSICAL CONTINGENCIES 0 168 180 110 69 528 0PRICE ESCALATION 0 369 637 638 626 2271 0

SUBTOTAL 0 2271 3022 2495 2101 9890 0

TRAINING CENTERS

CIVIL WORKS 900 900 0 0 0 1800 60EQUIPMENT 873 872 0 0 0 1745 119LAND 75 0 0 0 0 75 0

BASE COST 1848 1772 0 0 0 3620 179PHYSICAL CONTINGENCIES 135 135 0 0 0 270 8PRICE ESCALATION 248 369 0 0 0 617 56

SUBTOTAL 2231 2276 0 0 0 4507 243

TOTAL UTTAR PRADESH

CIVIL WORKS 1294 7056 7986 1527 461 18324 323EQUIPMENT 1723 3547 1081 893 824 8068 702LAND G / 609 348 0 0 0 957 0OTHER -522 748 1281 1801 2345 6697 64

BASE COST 4148 11699 10348 4221 3630 34046 1089PHYSICAL CONTINGENCIES 214 1310 1537 269 69 3399 58PRICE ESCALATION 552 2486 3102 1526 1557 9223 373

TOTAL UTTAR PRADESH 4913 15495 14987 6016 5256 46668 1520

1/ Includes FSDC headquarters, first year inputs and FFDA incremsental staff.

- 46 -ANNEX 2Table 3Page 6

INDIA

INLAND FISHERIES F'ROJECT

ESTIMATED PROJECT COSTS AND PHASING-----------------------------------

TOTAL FROJECT

(RS '000)

1 2 3 4 5 TOTALS FOR. EXCH.

HATCHERIES

CIVIL WORKS 1125 19220 24308 19123 5229 69005 778EQUIPMENT 730 2211 1673 777 158 5549 1887LAND 2370 2514 906 144 0 5934 0FSDC HEADQUARTERS 1595 0 0 0 0 1595 320

BASE COST 5820 23945 26887 20044 5387 82083 2985

PHYSICAL CONTINGENCIES 225 3844 4862 3825 1046 13801 138PRICE ESCALATION 791 5312 8276 8020 2684 25083 1254

SUBTOTAL 6836 33101 40024 31888 9117 120967 4377

APPROACH ROADS

CIVIL WORKS 1499 7776 10773 7803 2119 29970 1198LAND 330 330 150 0 0 810 0

BASE COST 1829 8106 10923 7803 2119 30780 1198PHYSICAL CONTINGENCIES 300 1555 2155 1561 424 5994 241PRICE ESCALATION 263 1824 3395 3141 1061 9685 485

SUBTOTAL 2392 11485 16472 12505 3604 46459 1924

FFDA'S

INCREMENTAL STAFF 730 1428 2377 5380 9886 19801 0EQUIPMENT 2344 6869 1728 3257 3701 17899 1620

BASE COST 3074 8297 4105 8637 13587 37700 1620PRICE ESCALATION 380 1585 1078 2921 5686 11649 613

SUBTOTAL 3454 9882 5183 11558 19273 49349 2233

FISH POND IMPROVEMENT

CIVIL WORKS 0 8182 13304 12895 11225 45606 0EQUIPMENT 0 2704 4967 5819 5609 19099 0FIRST YEAR INPUTS 0 1791 3348 4256 4745 14140 0

BASE COST 0 12677 21619 22970 21579 78845 0PHYSICAL CONTINGENCIES 0 1227 1996 1934 1684 6841 0PRICE ESCALATION 0 2699 6318 8599 9954 27569 0

SUBTOTAL 0 16604 29932 33503 33216 113255 0

TRAINING CENTERS

CIVIL WORKS 2700 2700 0 0 0 5400 180EQUIPMENT 3492 3488 0 0 0 6980 476LAND 225 0 0 0 0 225 0

BASE COST 6417 6188 0 0 0 12605 656PHYSICAL CONTINGENCIES 405 405 0 0 0 810 24PRICE ESCALATION 853 1274 0 0 0 2127 193

SUBTOTAL 7675 7867 0 0 0 15542 873

TECHNICAL ASSISTANCE 1386 1306 942 666 598 4898 1254

TOTAL PROJECT

CIVIL WORKS 5324 37878 48385 39821 18573 149981 2156EQUIPMENT 6566 15272 8368 9853 9468 49527 3983LAND 2925 2844 1056 144 0 6969 0OTHER I/ 3711 4525 6667 10302 15229 40434 1574

BASE COST 18526 60519 64476 60120 43270 246911 7713PHYSICAL CONTINGENCIES 930 7032 9012 7319 3153 27446 403PRICE ESCALATION 2287 12694 19066 22681 19385 76113 2545

TOTAL PROJECT 21743 80245 92553 90121 65808 350470 10661

1/ Includes FSDC headquarters, first year inputs, FFDA incremental staff and technical assistance.

47 ANNEX 2Table 4

INDIA

INLAND FISHERIES PROJECT

25 Ha Hatchery Complex

Estimated Base Cost as of January 1979(Rs '000)

Total US$'000Local Forei-E Cgot Equivalent

CIVIL WORKSSite Preparation 1/ 121 - 121 14.1Earthworks 2/ 679 - 679 79.0Clay Soil 3/ 174 - 174 20.2Bank Protection 4/ 116 - 116 13.5Pitching Central Channel 5/ 192 - 192 22.4Site Finishing 6/ 247 - 247 28.7Surfacing of Hatchery Roads 7/ 208 - 208 24.2Watergates 8/ 374 12 386 44.9Hatchery Building 9/ 90 4 94 10.9Water Supply 10/ 390 3 393 45.7Administrative Building 11/ 48 2 50 5.8Staff Quarters 12/ 171 7 178 20.7Storage Building 13/ 119 5 124 14.4Fencing and Gates 14/ 64 3 67 7.8Electricity Supply 15/ 65 - 65 7.6Engineering (10%) 309 - 309 35.9

Subtotal Civil Works 3,367 36 3,403 395.7

EQUIPMENTLight duty truck 16/ 15 1 16 1.9Pick-up truck 17/ 55 5 60 7.0Jeep 18/ 59 6 65 7.6Trailer for Jeep 4 0 4 0.5Portable water pumps (2) 19/ - 74 74 8.6Hatching Nets 20/ 1 - 1 0.1Office Furniture 9 - 9 1.0Miscellaneous 21/ 2 - 2 0.2

Subtotal Equipment 145 86 231 26.9

BASE COST ESTIMATECivil Works 3,367 36 3,403 395.7Equipment 145 86 231 26.9Land (27 ha) 330 - 330 38.4

Total Base Cost 3842 122 3,964 460.9Physical Contingencies 22/ 674 7 681 79.2Total with Contingencies 4,516 29- 4,645 540.1

1/ Stripping of vegetation and leveling, 301,430 m2at Rs 0.4/m

2.

2/ Excavation for cut-off walls, ponds and bund formation, 126,796 m3

at Rs 5.4/m3.

3/ Delivered at site, used bund construction; 11,173 m3

at Rs 15.6 m3.

4/ 13,333 m at Rs 8.7/m.5/ 4,803 m

2at Rs 40/m

2.

6/ Trimming pond bottoms, establishment of grass area above water level,trimming channel beds; 338,254 m

2.

7/ Stone metal surface, 2.5 m wide, 5,956 m2

at Rs 35/m2.

8/ Subsidiary gates and division boxes.9/ Building includes utilities and tanks; 116 m

2at Rs 810/m

2.

10/ Three large tubewells, 25 1/sec. capacity with storage tank and pipework;for Madhya Pradesh, additional cost would be Rs 340,000 for lined channelof 3 km length with 3 cusec capacity.

11/ Includes utilities; 65 m2

at Rs 775/m2.

12/ Includes utilities; 230 m2

at Rs 775/m2.

f3/ Includes utilities; 250 m2 at Rs 995/m2.

14/ 2,436 m of fencing at Rs 26/m and I pair of gates at Rs 3,100/pair.15/ Electricity connection fee and distribution system.16/ One 3-wheel truck.17/ One 3-ton diesel truck.18/ One 4-wheel drive diesel engine jeep.19/ Two 7.5 hp low-lift turbine pumps, 1 cusec capacity delivered for Rs 37,000 each.20/ Seventy hatching nets.21/ Includes 10 shovels for Rs 250, 4 box nets for Rs 200, 2 drag nets for Rs 900

and I gill net for Rs 900.22/. Estimated at 20% of civil works,

48 - ANNEX 2Table 5

INDIA

INLAND FISHERIES PROJECT

10 Ha Hatchery Complex

Estimated Base Cost as of January 1979(Rs '000)

Total US$ '000Local Foreign Cost Equivalent

CIVIL WORKSSite Preparation 1/ 51 - 51 5.9Earthworks 2/ 348 - 348 40.5Clay Soil 3/ 83 - 83 9.6Bank Protection 4/ 51 - 51 5.9Pitching Central Channel 5/ 116 - 116 13.5Site Finishing 6/ 110 - 110 12.8Surfacing of Hatchery Roads 7/ 119 - 119 13.8Watergates 8/ 227 8 235 27.3Hatchery Building 9/ 64 3 67 7.8Water Supply 10/ 207 1 208 24.2Administrative Building 11/ 30 1 31 3.6Staff Quarters 12/ 119 5 124 14.4Storage Buildings 13/ 71 3 74 8.6Fencing and Gates 14/ 41 2 43 5.0Electricity Supply 15/ 50 - 50 5.8Engineering (10%) 171 - 171 19.9

Subtotal Civil Works 1,858 23 1,881 218.7

EQUIPMENTLight duty truck 16/ 15 1 16 1.9Pick-up truck 17/ 41 4 45 5.2Jeep 18/ 59 6 65 7.6Trailer for Jeep 4 0 4 0.5Portable water pumps (3) 19/ - 48 48 5.6Hatching Nets 20/ 1 - 1 0.1Office Furniture 7 - 7 0.8Miscellaneous 21/ 2 - 2 0.2

Subtotal Equipment 129 59 188 21.9

BASE COST ESTIMATECivil Works 1,858 23 1,881 218.7Equipment 129 59 188 21.9Land (14.4 ha) 144 - 144 16.7

Total Base Cost 2,131 82 2_,21 257.3

Physical Contingencies 221 371 5 376 43.7Total with Contingencies 2,502 87 2,589 301.0

1/ Stripping of vegetation and leveling, 127,999 m2at Rs 0.4/m3

2/ Excavation for cut-off walls, ponds and bund formation, 64,952 m3at Rs 5.4/m

3.

3/ Delivered at site, used in bund construction, 5,305 m3

at Rs 15.6/m3.

4/ 5,281 m at Rs 8.7/m.5/ 2,902 m2 at Rs 40/m

2.

6/ Trimming pond bottoms, establishment of grass area above water level,trimming channel beds; 148,455 m

2.

7/ Stone metal surface, 2.5 m wide, 3,410 m2.

8/ Subsidiary gates and division boxes.9/ Building includes utilities and tanks, 82 m

2at Rs 810/m

2.

10/ Three small tubewells, 12 1/sec. capacity, with storage tank and pipework;for Madhya Pradesh, additional cost would be Rs 331,000 for lined channelof 3 km length with 1.5 cusec capacity.

11/ Includes utilities; 40 m2

at Rs 775/m2.

12/ Includes utilities; 160 m2

at Rs 775/m2.

13/ Includes utilities; 150 m2

at Rs 495/mZ.14/ 1,534 m at Rs 26/m of fencing, and 1 pair of gates at Rs 3,100/pair.

15/ Electricity connection fee and distribution system.16/ One 3-wheel truck.17/ One 1.5 ton diesel truck.18/ One 4-wheel drive diesel engine jeep.19/ Three 5 hp low lift turbine pumps, 1/2 cusec capacity delivered for Rs 16,000 each.20/ Forty hatching nets.21/ Includes 6 shovels for Rs 150, 6 box nets for Rs 300, 1 drag net for Rs 450,

and 1 gill net for Rs 900.22/ Estimated at 20% of civil works.

_49 - ANNEX 2Table 6

INDIA

INLAND FISHERIES PROJECT

5 Ha Hatchery Complex

Estimated Base Cost as of January 1979(Rs '000)

Total US$ 0oo0Local Foreign Cost Equivalent

CIVIL WORKSSite Preparation 1/ 27 - 27 3.1Earthworks 2/ 205 - 205 23.8Clay Soil 3/ 50 - 50 5.8Bank Protection 4/ 29 - 29 3.4Pitching Central Channel 5/ 74 - 74 8.6Site Finishing 6/ 59 - 59 6.9Surfacing of Hatchery Roads 7/ 80 - 80 9.3Watergates 8/ 151 5 156 18.1Hatchery Building 9/ 47 2 49 5.7Water Supply 10/ 145 1 146 17.0Administrative Building 11/ 30 1 31 3.6Staff Quarters 12/ 56 2 58 6.7Storage Building 13/ 33 1 34 4.0Fencing and Gates 14/ 28 1 29 3.4Electricity Supply 15/ 45 - 45 5.2Engineering (10%) 107 - 107 12.4

Subtotal Civil Works 1,166 13 1,179 137.1

EQUIPMENTLight Duty Truck 16/ 15 1 16 1.9Jeep 17/ 59 6 65 7.6Trailer for Jeep 4 - 4 0.5Portable Water Pumps (2) 18/ - 32 32 3.7Hatching Nets 19/ 1 - I 0.1Office Furniture 5 - 5 0.6Miscellaneous 20/ 1 - 1 0.1

Subtotal Equipment 85 39 124 14.4

BASE COST ESTIMATECivil Works 1,166 13 1,179 137.1Equipment 85 39 124 14.4Land (7.8 ha) 78 - 78 9.1Total Base Cost 1,329 52 1,381 160.6

Physical Contingencies 21/ 233 3 236 27.4Total with Contingencies 1,562 55 1,617 188.0

1/ Stripping of vegetation and leveling, 68,014 m2 at Rs 0.4/m2.2/ Excavation for cut-off walls, ponds and bund formation; 38,227 m3 at Rs 5.4/r3.3/ Delivered at site, used in bund construction, 2,926 m3 at Rs 15.6/m3.4/ 3,368 m at Rs 8.7/m.5/ 1,850 m2 at Rs 40/m 2 .6/ Trimming pond bottoms, establishment of grass area above water level, trimming

channel beds; 78,898 m2.7/ Stone metal surface, 2.5 m wide, 2,298 mZ at Rs 35/m2.8/ Subsidiary gates and division boxes.9/ Building includes utilities and tanks; 60 m2 at 810/m2.10/ Two small tubewells, 12 1/sec capacity, with storage tank and pipe work.11/ Includes utilities; 40 m2 at Rs 775/m .12/ Includes utilities; 75 m2 at Rs 775/m2.13/ Includes utilities; 70 m2 at Rs 495/m2.14/ 1,010 m of fencing at Rs 26/m, and 1 pair of gates at Rs 3,100/pair.15/ Electricity connection fee and distribution system.16/ One 3-wheel truck.17/ One 4-wheel drive diesel engine jeep.18/ Two 5 hp low lift turbine pumps, 1/2 cusec capacity delivered for Rs 16,000 each.19/ Twenty hatching nets.20/ Includes 4 shovels for Rs 100, 4 box nets for Rs 200, 2 drag nets for Rs 900.21/ Estimated at 20% of civil works.

- 50 -

ANNEX 2Table 7

INDIA

INLAND FISHERIES PROJECT

Hatchery Approach Roads (3 km)

Estimated Base Cost as of January 1979(Rs 'OQO)

US$ '000Local Foreign Total Equivalent

Civil WorksRoadbed Formation 1/ 182 - 182 21.2Pavement Construction 2/ 441 - 441 51.2Bituminous Carpet 3/ 26 39 65 7.6Drainage Works 4/ 212 - 212 24.6Engineering 5/ 90 - 90 10.5Subtotal 951 39 990 115.1

Land 30 _ 30 3.5Total Base Cost 981 39 1,020 118.6

Physical Contingencies(20%) 190 8 198 23.0Total with Contingencies 1,171 47 1,218 141.6

1/ Includes stripping and disposal of topsoil, earthwork for formationof six meter wide roadbed, establishment of grass slopes and trimming.borrow zones into drainage ditches, costed at Rs 61 per running meterof road length.

2/ Includes delivery and placement of brick flat soling, jhama metal andstone metal costing together Rs 147 per running meter.

3/ Includes delivery, placement, binding and rolling of bituminous carpetand tack coat at Rs 22 per running meter.

4/ Drainage costs are assumed to be 33% of other construction costs.5/ Engineering estimated at 10% of total cost.6/ 3 ha at Rs 10,000/ha.71 For West Bengal, costs would include an additional Rs 450,000 per 3 km road

for timber piling where roads border on ponds.

- 51-

XNNEX 2Table 8

INDIA

INLAND :ISHERIES PROJECT

FISH FARMER DEVELOPMENT AGENCIES

INCREMENTAL STAFF COSTS AND VEHICLE COSTS

(RS '000)

1 2 3 4 5 TOTALS FQqEXC

WEST BENGAL (11 FFDAS)

PONDS IMPROVED('000 HA) 0.0 3.4 10.2 20,4 34.0 60.0 0.0

INCREMENTAL STAFF COSTS I 137,0 273.0 364.0 1275,0 2505.0 4554.0 0.0VEHICLE COSTS2! 448.0 1387.0 4921.0 1253,0 895.0 4475.0 C,07,0

TOTAL INCREMENTAL COSTS 585.0 1660.0 856.0 2528.0 3400.0 9029.0 407,0

BIHAR (16 FFDAS)

PONDS IMPROVED('000 HA) 0.0 2.6 7,8 15,6 26.0 52.0 0.0.

INCREMENTAL STAFF COSTSV 206.0 -360.0 721.0 1493,0 2368.q - 5148.0 0,0VEHICLE COSTS?! 687.0O 1976.0 344.0 516.,~ 773,0 4296,0 392,0

TOTAL INCREMENTAL COSTS 893.0 2336,) 1065.0 2009.0 3141.0 9444.0 392.0

ORISSA (7 FFDAS)

PONDS IMPROVED('000 HA) 0.0 1.6 4.8 9.6 16.0 32.0 0.0

INCREMENTAL STAFF COSTSI/ 95,0 143.0 214.0 594,0 1331,0 2377.0 0.0VEHICLE COSTS.?' 279,0 814.0 278.0 303.0 652.0 2326.0 210.0

TOTAL INCREMENTAL COSTS 374,0 957.0 492.0 897.0 1983.0 4703.0 210.0

MADHYA PRADESH (6 FFDAS)

PONDS IMPROVED('000 HA) 0,0 2.5 7.5 15.0 25,0 50.0 0.0

INCREMENTAL STAFF COSTS1" 89.0 149.0 208.0 683,0 1841.0 2970.0 0.0VEHICLE COSTS2?! 226.0 806.0 354.0 838,0 998.0 3222,0 291.0

TOTAL INCREMENTAL COSTS 315.0 955.0 562.0 1521.0 2839.0 6~-92.0 291.0

UTTAR PRADESH (17 FFDAS)

PONDS IMPROVED('000 HA) 0.0 1.6 4.8 9.6 16.0 32,0 0,0

INCREMENTAL STAFF COSTSV 203,0 503.0 870.0 1335,0 1841.0 4752.0 0,0VEHICLE COSTS2?! 704.0 1886.0 260.0 347.0 383.0 3,t30-0 320.0

TOTAL INCREMENTAL COSTS 907,0 2389.0 1130,0 1682.0 2224.0 8332.0 320,0

TOTAL PROJECT (57 FFDAS)

PONDS IMPROVED('000 HA) 0,0 11,7 35.1 70.2 117.0 234.0 0.0

INCREMENTAL ST~FF COSTS1' 730,0 1428.0 2377.0 5380,0 9g~86.0 19801.0 0.0

VEHICLE COSTS.? 2344.0 6869.0 1728.0 3257,0 3701,0 17899.0 1620.0

TOTAL INCREMENTAL COSTS 3074,0 8297.0 4105.0 8637,0 13587.0 37700.0 1620,0

I/ Existing fisheries department staff in project districts would be absorbed by FFDA.Incremental staff costs include incremental staff requirements estimated at 40% oftotal staff in year 5, plus a deputation allowance of 2071 of staff costs beforeaddition of 40% fringe benefits

2/ Each FFDA would have two 4-wheel drive (Rs. 65,000 per jeep) diesel jeeps for generaluse. Each training team would also be provided with audio-visual equipment estimatel]at Rs 20,000 per set, Motorcycles estimated at Es. 8,000 each would be providedfor extension staff and junior engineers.

- 52 -

ANNEX 2INDIA Table 9

INLAND FISHERIES PROJECT

Fish Farmer Development Agency

General Staffing Plan 1/

Average AnnualPosition Number of Posts Salary 2/ (Rs)

1. General Administration

Chief Executive Officer. 1 18,000Head Clerk-cum-Accountant 1 7,200Typist-cum-Correspondence Clerk 2 4,200Stenographer 1 4,200Driver 1 3,600Attendant 2 2,400Watchman 1 2,400

2. Extension Wing

Senior Fisheries Extension Officer One per ten Extension Workers 8,400Fisheries Extension Worker One per 100 ha of

project pond area 4,200

3. Engineering Wing

Assistant Engineer 3/ 1 14,400Junior Engineer 3/ 1 7,200

to be improved per annumDriver 1 3,600Attendant 1 2,400

4. Demonstration and Training Wing

Fisheries Extension Officer 1 4/ 8,400Fish Pond Production Specialist 1 4/ 5,400Fish Pond ImprovementSpecialist 1 4/ 5,400

1/ For typical FFDA; may differ between FFDAs.

2/ Excluding fringe benefits and deputation allowances of about 40% and 20% respectively.

31 Engineers would be taken on deputation from State Government Departmentsfor the project period during which fish pond improvement will be carried out.

4/ Number of posts would depend on number of farmers to be trained per annum.A team consisting of one extension officer and two subject matter specialistswould train annually some 20 batches of about 25 fish farmers each.

-53 -

AUfX 2Table 10

INDIA

INLAND FISHERIES PROJECT

Fish Pond Improvements and Input Costs -

(Rs'000)

Uttar West Madhya 1/ US$'000Bihar Pradesh Bengal Orissa Pradesh Total- Equivalent

Model ANumber of ha ('000) 10 9 0 3 16 38Earthwork 2/ 4,800 4,320 0 1,440 7,680 18,240 2,121Inlets and Outlets @/ 2,600 2,340 0 780 4,160 9,880 1,149Fish Pond Equipment 4/ 2,000 1,800 0 600 3,200 7,600 884First Year Inputs 5/ 5,250 4,725 0 1,575 8,400 19,950 2,320

Subtotal Model A 14,650 13,185 0 4,395 23,440 55,670 6,474

Model BNumber of ha ('000) 8 4.5 3 6 6 27.5Earthwork 6/ 13,296 7,479 4,986 9,972 9,972 45,709 5,315Inlets and Outlets 7/ 2,080 1,170 780 1,560 1,560 7,150 831Fish Pond Equipment 8/ 6,800 3,825 2,550 5,100 5,100 23,375 2,718First Year Inputs 9/ 6,336 3,564 2,376 4,752 4,752 21,780 2,533

Subtotal Model B 28,512 16,038 10,692 21,384 21,384 98,010 11,397

Model CNumber of ha ('000) 8 2.5 31 7 3 51.5Earthwork 10/ 37,296 11,655 144,522 32,634 13,986 240,096 27,918Inlets and Outlets 11/ 2,720 850 10,540 2,380 1,020 17,510 2,036Fish Pond Equipment 12/ 9,600 3,000 37,200 8,400 3,600 61,800 7,186First Year Inputs 137 8,160 2,550 31,620 7,140 3,060 52,530 6,108

Subtotal Model C 57,776 18,055 223,882 50,554 21,666 371,933 43,248

TotalNumber of ha ('000) 26 16 34 16 25 117Earthwork 55,392 23,454 149,508 44,046 31,638 304,038 35,353Inlets and Outlets 7,400 4,360 11,320 4,720 6,740 34,540 4,016Fish Pond Equipment 18,400 8,625 39,750 14,1CO il,900 92,775 10,788First Year Inputs 19,746 10,839 33,996 13,467 16,212 94,260 10,960

Subtotal Base Cost 100,938 47,278 234,574 76,333 66,490 525,613 61,117

Physical Contingencies (15%) 8,309 3,518 22,426 6,607 4,746 45,606 5;303

Total with Contingencies 109,247 50,796 257,000 82,940 71,236 571,219 66,420

1/ Cost estimates are for entire project area; financed first year inputs are fingerlings,mahua oil cake and superphosphate. All costs are local.

2/ 400 m3 /ha at Rs 1.2/m3; includes deepening of pond and strengthening of dikes.3/ Bamboo screen at Rs 130/set.4/ Hand tools and nets at Rs 200/set.5/ Per hectare cash inputs financed in the first year are 2,500 fingerlings at Rs 90/1,000

and 300 kg of mahua oil cake at Rs 1/kg for Model A.6/ 1,000 m3/ha at Rs 1.2/m3; includes deepening of pond and strengthening of dikes.7/ Bamboo screen at Rs 130/set.8/ Hand tools and nets at Rs 850/set.9/ Per hectare cash inputs financed in the first year are 3,800 fingerlings at Rs 90/1,000,

300 kg of mahua oil cake at Rs 1/kg and 250 kg of superphosphate at Rs 0.6/kg for Model B.10/ 2,500 m3/ha at Rs 1.2/m3 ; includes deepening of pond and strengthening of dikes.11/ Bamboo screen at Rs 170/set.12/ Hand tools and nets at Rs 1,200/set.13/ Per hectare cash inputs financed in the first year are 5,000 fingerlings at Rs 90/1,000,

400 kg of mahua oil cake at Rs 1/kg and 283 kg of superphosphate at Rs 0.6/kg forModel C.

- 54 ANNEX 2

Table 11

INDIA r

INLAND FISHERIES PROJECT

Training Center

Base Cost Estimate(Rs '000)

US$ '000Local Foreign Total Equivalent

Civil Works

Main Building 1/ 480 20 500 58.1Trainee Hostel 2/ 192 8 200 23.3Staff Quarters 3! 662 28 690 80.2Guest House 4/ 48 2 50 5.8Garage-Godown 5/ 58 2 60 7.0Model Farm 300 - 300 34.9

Subtotal 1,740 60 1,800 209.3

Equipment

Jeeps (3) 6/ 177 18 195 22.7Audiovisual Van (1) 91 9 100 11.6Bus (1) 182 18 200 23.3Audiovisual 7/ 471 47 518 60.2Laboratory 273 27 300 34.9Furnishings 8/ 232 - 232 27.0Books-Journals 200 - 200 23.3

Subtotal 1,626 119 1,745 202.9

Base Cost Estimate

Civil Works 1,740 60 1,800 209.3Equipment 1,626 119 1,745 202.9Land 75 - 75 8.7

Total Base Cost 3441 179 3,620 420.9Physical Cont. 15% 261 9 270 31.4Total with Cont. 3,702 188 3,890 452.3

1/ Main building houses classrooms, laboratory, library, office, tool roomand workshop, 625 mn2 at Rs 800/m2.

2/ 250 m2 at Rs 800/m2.3/ Officer quarters, demonstrator and caretaker quarters and support staff.-

watchman and driver quarters, 920 m2 at Rs 750/m2.4/ 62 m2 at Rs 800/m2.5/ 100 m2 at Rs 600/m2.6/ Diesel engine, 4-wheel drive jeeps.7/ Includes projector and ancillary equipment, extension kits, salinometer,

photographic equipment, artists tools and duplicator.8/ Furniture for classrooms, laboratory, library, office, hostel and guest

house, and refrigerator.

ANNEX 3Table 1

INDIA

INLAND FISHERIES PROJECT

25 Ha Carp Hatchery Model

Financial Rate of Return 1/(Rs)

… - - - - - - - - - - - - - - - - - - - - -…Year- - - - - -

1 2 3 4 5 6-7 8 9-14 15

I. RevenueSale of 5 mm fingerlings 2/ - - 1,147,500 1,721,250 2,295,000 2,295,000 2,295,000 2,295,000 2,295,000

II. Costs

Operating CostsBrood Stock 3/ 18,750 7,500 3,250 - - - -Cow Dung 4/ 7,500 10,000 12,500 15,000 15,000 15,000 15,000

Superphosphate 5/ 1,500 2,250 3,000 3,000 3,000 3,000 3,000Mahua Oil Cake 6/ 2,500 3,750 5,000 5,000 5,000 5,000 5,000Mustard Oil Cake 7/ 4,000 5,000 7,000 8,000 8,000 8,000 8,000Rice Bran 8/ 7,500 8,250 9,750 11,250 11,250 11,250 11,250Wheat 9/ 1,500 2,100 2,400 3,000 3,000 3,000 3,000Wheat Flour 10/ 1,880 2,630 3,000 3,800 3,800 3,800 3,800Shipping Bags 11/ 4,000 6,000 7,000 8,000 8,000 8,000 8,000

Light Duty Truck 12/ 2,040 2,270 2,920 2,920 2,920 2,920 2,920Jeep 13/ 8,300 9,060 12,700 12,700 12,700 12,700 12,700Pick-up Truck 14/ 5,200 6,660 8,040 8,040 8,040 8,040 8,040Portable Pump (7.5 hp) 15/ 9,900 12,380 17,070 17,070 17,070 17,070 17,070Tubewell Pump 16/ 13,500 14,300 31,350 31,350 31,350 31,350 31,350Earthwork/Repair 17/ 26,100 26,100 26,100 26,100 26,100 26,100 26,100Nets and Hand Tools 900 900 900 900 900 900 900Management, Staff & Labor 19/ 72,240 144,480 144,480 144,480 144,480 144,480 144,480Travel 9,000 13,500 18,000 '18,000 18,000 18,000 18,000Miscellaneous 4,000 4,000 4,750 4,750 4,750 4,750 4,750Interest on Working Capital La/ 17,200 23,109 26,020 26,170 26,170 26,170 26,170

Subtotal 217,510 304,239 345,230 .349,530 349,530 349,530 349,530

Investment Costs 21/ 594,600 3,171,200 198,200 - - - 121,800 - (1,770,400)

Total Costs 594,600 3,171,200 415,710 304,239 345,230 349,530 471,330 349,530 (1,420,870)

III. Net Benefits (594,600) (3,171,200) 731,790 1,417,011 1,949,770 1,945,470 1,823,670 1,945,470 3,715,870

IV. Financial Rate of Return 37% (without physical contingencies) 32% (with physical contingencies)

1/ Based on January 1979 prices.2/ Production at full development (Year 5) is expected to be 27 million fingerlings sold at Rs 85/1000. Production in

Years 3 and 4 is assumed to be 50% and 75%, respectively, of full development production.3/ 2.5 tons at Rs 7,500/ton. Brood stock would be produced totally by the hatchery after the third year of operation (Year 5).4/ Rs 60/ton; 250 tons annually at full development.5/ Rs 600/ton; 5 tons annually at full development.6/ Rs 1,0

00/ton; 5 tons annually at full development.

7/ Rs 1,600/ton; 5 tons annually at full development.8/ Rs 750/ton; 15 tons annually at full development.9/ Rs 1,200/ton; 2.5 tons annually at full development.

10/ Rs 1,500/ton; 2.5 tons annually at full development.11/ Rs 8/dozen; 12,000 annually at full development.12/ Rs 0.1135/km for operating and maintenance; 25,700 km annually at full development.13/ Rs 0.453/km for operating and maintenance; 28,000 km annually at full development.14/ Rs 0.333/km for operating and maintenance; 24,000 km annually at full development.15/ Re 4.95/hour for operating and maintenance; 3,500 hours annually at full development.

16/ Rs 0.0447/m3

of water; 700,000 m3

of water annually at full development.17/ 1.5% of total earthworks cost.18/ 25% of total cost of nets and hand tools.19/ Hatchery staffing plan based on the following:

No. of Ave. Annual Total Salary IncludingPosition Posts Salary (Rs) 40% Benefits (Rs)

Hatchery Manager 1 16,800 23,520Asst. Ifatchery Manager 1 10,200 14,280Field Supervisor 1 9,000 12,600Technician 10 4,200 58,800Support Staff 5 3,360 23,520Salesman 1 8,400 11,760

Total 19 5,430 144,480

20/ Interest at 14% annually; average working capital estimated at Rs 122,854 in Year 3; Rs 165,063 in Year 4; Rs 185,857 inYear 5; and Rs 186,929 thereafter. -

21/ Investment costs detailed in Annex 2, Table 4. Portable pumps and vehicles would be replaced in Year 8, when residualvalue of the initial equipment is estimated at 40% of original costs. Salvage value in Year 15 is estimated at Rs 1,701,500for land and civil works and Rs 18,900 for equipment.

-56 - ANNEX 3Table 2

INDIA

INLAND FISHERIES PROJECT

10 Ha Carp Hatchery Model

Financial Rate of Return 1/

(Rs)

… - - - - - - - - - - - - - - - - - - - - -…Year- - - - - - -1 2 3 4 5 6-7 8 9-14 15

I. RevenueSale of 5 mm fingerlings 2/ - - 425,000 637,500 850,000 850,000 850,000 850,000 850,000

II. CostsOperating Costs

Brood Stock 3/ 7,500 3,000 1,500 - - - -

Cow Dung 4/ 3,000 4,000 5,000 6,000 6,000 6,000 6,000Superphosphate 5/ 600 900 1,200 1,200 1,200 1,200 1,200Mahua Oil Cake 6/ 1,000 1,500 2,000 2,000 2,000 2,000 2,000Mustard Oil Cake 7/ 1,600 2,000 2,800 3,200 3,200 3,200 3,200Rice Bran 8/ 3,000 3,500 4,000 4,500 4,500 4,500 4,500Wheat 9/ 600 800 1,000 1,200 1,200 1,200 1,200Wheat Flour 10/ 750 1,000 1,200 1,500 1,500 1,500 1,500Shipping Bags 11/ 1,600 2,400 3,000 3,200 3,200 3,200 3,200

Light Duty Truck 12/ 2,040 2,270 2,920 2,920 2,920 2,920 2,920Jeep 13/ 8,300 9,060 12,700 12,700 12,700 12,700 12,700Pick-up Truck 14/ 8,300 9,060 12,700 12,700 12,700 12,700 12,700Portable Water Pumps 15/ 7,950 10,560 14,640 14,640 14,640 14,640 14,640Tubewell Pump 16/ 5,360 6,260 13,490 13,490 13,490 13,490 13,490Earthworks/Repair 17/ 13,000 13,000 13,000 13,000 13,000 13,000 13,000Nets & Hand Tools 18/ 650 650 650 650 650 650 650Management, Staff & Labor 19/ 57,120 114,240 114,240 114,240 114,240 114,240 114,240Travel- 6,000 9,000 12,000 12,000 12,000 12,000 12,000Miscellaneous 2,700 2,700 3,300 3,300 3,300 3,300 3,300Interest on Working Capital 20/ 9,866 13,688 15,651 15,651 15,651 15,651 15,651Subtotal 140,906 209,588 234,991 238,091 238,091 238,091 238,091

Investment Costs 21/ 221,300 1,991,700 - - - - 97,800 - (980,400)

Total Costs 221,300 1,991,700 140,906 209,588 234,991 238,091 335,891 238,091 (742,309)

III. Net Benefits (221,300) (1,991,700) 284,094 427,912 615,009 611,909 514,109 611,909 1,592,309

IV. Financial Rate of Return 22% (without physical contingencies) 18% (with physical contingencies)

1/ Based on January 1979 prices.2/ Production at full development (Year 5) is expected to be 10 million fingerlings sold at Rs 85/1000. Production in

Years 3 and 4 is assumed to be 50% and 75%, respectively, of full development production.3/ One ton at Rs 7,500/ton. Brood stock would be produced totally by the hatchery after the third year of operation (year 5).4/ Rs 60/ton; 100 tons annually at full development.5/ Rs 600/ton; 2 tons annually at full development.6/ Rs l,OOO/ton; 2 tons annually at full development.7/ Rs 1,600/ton; 2 tons annually at full development.8/ Rs 750/ton; 6 tons annually at full development.9/ Rs 1,

200/ton; l ton annually at full development.

10/ Rs 1,500/ton; 1 ton annually at full development.11/ Rs 8/dozen; 4,800 annually at full development.12/ Rs 0.1135/km for operation and maintenance; 25,700 km annually at full development.13/ Rs 0.453/km for operation and maintenance; 28,000 km annually at full development.14/ Rs 0.453/km for operation and maintenance; 28,000 km annually at full development.15/ Rs 3.3/hour for operation and maintenance; 4,400 hours annually at full development.16/ Rs 0.0447/i

3of water for operation and maintenance; 300,000 m of water at full development.

17/ 1.5% of total earthworks cost.18/ 25% of total cost of nets and hand tools.19/ Hatchery staffing plan based on the following:

No. of Ave. Annual Total Salary includingPosition Posts Salary (Rs) 40% Benefits (Rs)

Hatchery Manager 1 14,400 20,160Asst. Hatchery Manager 1 9,600 13,440Field Supervisor 1 8,400 11,760Technician 6 4,200 35,280Support Staff 5 3,360 23,520Salesman 1 7,200 10,080

Total 15 5,440 114,240

20/ Interest at 14% annually; average working capital estimated at Rs 70,473 in Year 3; Rs 97,770 in Year 4; Rs 111,791thereafter.

21/ Investment costs detailed in Annex 2, Table 5. Portable pumps and vehicles would be replaced in Year 8, when residualvalue of the initial equipment is estimated at 40% of original costs. Salvage value in Year 15 is estimated at Rs 940,500for land and civil works and Rs 39,900 for equipment.

INDIA

INLAND FISHERIES PROJECT

Fish Seed Developeent CorporationFinancial Analysis for Uttar Pradesh 1/

(Rs '000)

- - -T- - - - - - - - - - - - - - - - - - - - - - - - - -Years- - - - - - - _

1 2 3 4 5 6-7 8 9 10-13 14 15 16 17-20

I. Cash InflowGross Sales 2/ (1) - - 1,573 3,209 4,420 4,845 4,845 4,845 4,845 4,845 4,845 4,845 4,845

Equity 3/ 1,600 1,600 900 - - - - - - - - - -

Loans g - 3,500 4,150 - -7 - - - - - - -

Total Cash Inflow 1,600 5,100 6,623 3,209 4,420 4,848 4,845 4,845 4,845 4,845 4 4,845 4,845 4,845

IT. Cash OstflowHatcheries Inveotmento 5/ 816 4,358 5,429 220 196 220 196

Headquarters InvestmentsOffice Equipment 6/ 55 - - 47 2/ - 47 9/

Cars end Jeep 7/ V 170 - - 145 2" - 145 9/

Motorcycles 8f 64 - - 54 i/ - 54 9/

Miscellaneous 30 - - 26 9/ - 26 9/

Subtotal Investments (2) ,35 11,1351 45,429 1 -9 '96 - 196

Hatcheries Operating Costs 2/ - - 358 796 999 1,064 1,064 i,o64 1,064 1,0641 1,0641 1,064 1,064

Headquarters Operating CostsSalaries and Wages

General Management 10/ 73 73 73 73

Finesce & Administration 11/ 38 77 77 77

Production 12/ - _ 35 35 35

Marketing 137 - - 32 65

Engineering 14/ 43 43 43 -

gringe Benefits (40%) 62 91 104 100

Office Rent 4o 40 40 40Cars & Jeep Operation and

Maintenance 15/ 14 27 27 27

Motorcycles Operation andMaintenance 16/ 4 7 7 7

Travel Allowance 17/ 5 10 10 10

Office Supplies 20 40 40 40 -

Utilities 25 50 50 50

Miscellaneous 10 20 20 20

Working Capital Interest jjl 23 36 41 4o

Subtotal Operating Costs (3) 357 549 955 1,378 1,651 1,W 1 Tfl646 1,646 31,64 TT6 Y69 31,646

Estimated Tncome Taxes 19/ - - - - 441 1,048 1,049 1,137 1,254 1,399 1,399 1,399 1,399

Debt Service 20/ - - - 1,333 1,333 1,333 1,333 1,333 1,333 - - - -

Total Cash Outflow 1,492 4,907 6,384 2,711 3,355 4,027 4,569 4,312 4,233 3,045 3,537 3,241 3,045

III. Net Cash Is (Out) Flow 108 193 239 498 1,065 818 276 533 612 1,800 1,308 1,6o4 1,800

IV. Net Benefits (l)-(2)-(3) (1,492) (4,907) (4,811) 1,831 2,839 3,199 2,707 3,003 3,149 3,199 2,707 3,003 3,199

V. Financial Rate of Return: 21% (before physical contingencies) Rate of Return on Equity: 18% (after tames)

37 Based on January 1979 prices. FSDC in Uttar Fredesh would sperata three hatcheries of 10 ha each and a fourth hatchery of 25 ha. Construction of one 10 ha hatchery and one 25 ha

batchery would commence in year 1. Construction of the other hatcheries would start in year 2. Of the project FSDCs, Utts Pradeah FSDC will have the lowe-t fingerling capacity.

2/ From Annex 3, Tables 4, 5 and 6.Equity would cover 30% of investient costs, the operating losses in initial years and margin money for working capital financing.

70% of investment costs.3| From Annex 2, Tables 4 and 5.

Includes typewriters, accounting machines and office furniture.r/ Three cars at Rs 35,000 sach and one jeep at Rs 65,000.a/ Eight motorcycles at Rs 8,000 each.9/ Projected useful life seven years; residual value estimated at 15% of original costs.

1-0/ Includes annual salaries of managing director (HR 30,000), company secretary (Rs 18,000) and seven support staff yRn 3,600 each)T1/ Includes annual salaries of division manager (Rs 21,600), audit end accounts officer (16,800), financial analyst (Rs 10,800), two accounting assistants (Rs 3,400 each) and

three ouppnrt staff (RH 3,600 each). Staff coots in year 1 estimated at 50% of costs in s-bsequent years.includes annual salaries of division menager (Rs 24,000) and three support staff (Rs 3,600 each). Staff would ho hired in yearS,

13/ Cncludes annual salaries of division manager (Rs 21,600), sales and promotion officer (R6 16,800), quality control officer (R. 12,000) and f..e support otsff SRo 3,600 each).

The division would be fully staffed in year 4.114/ Includes annual salariec of one executive engineer (RH 21,600), one anoistant engineer (as 14,400), and two oupport otaff (So 3,600 oach). Engineering staff would be taken

on deputation during the three year -onstruction period.15/ In year 1 30,000 km at RH 0.453/* thereafter 60,000 bE annally.16/ In year 1 30,000 be at Rs 0.112/be; thereafter&60,000 kb anually.7/ In year 1 250 days at Rs 20/day; thereafter 500 days.

1g/ Interest at 14% annually; average working capital required for headquarters estimated a1s Rs 167,,000 it ye-r 1; RS 057,000 in year 2; TS 2 i',tto in yeor 3; and Rs 21 ,000

thereafter.19/ Calculated at 50% of gerns sales minus operating costs depreciation and interest on ong-term loans. Taene hove been ocerowod fir years 6 sod .ond 10 thro-gh 13.

/ Interest at 10.5% annually; interest of year 3 capitalied; loan mamrtiied over years 4 through 13.

ANNEX 3- 58 - Table 4

INDIA

INLAND FISHERIES PROJECT

Cash Flow Projections

Fish Farm Model A (L Ha)

(Rs)

Without -With Project…----- --- …---------

Project Year 0- Year 1 Year 2 Year 3-7 Year 8-10

I. CASH INFLOW

Gross sales 2/ (1) 175 1,800 2,700 3,200 3,200

Loan amount 3/ 893 499Borrower's contribution 4/ 47 26

Total Inflow (2) 175 940 2,325 2,700 3,200 3,200

11. CASH .OUTFLOWOperating CostsFingerlings 4/ 0 225 225 225 225

Mahua Oil Cake 5/ 0 300 300 300 300Cow dung 6/ 0 330 450 450 450Lease 50 200 200 200 200

Pond preparation 7/ 0 320 320 320 320Maintenance of equipment 8/ 0 190 190 190 190Operator's wages 9/0 108 108 108 108Harvesting 10/ 12 18 18 18 18Interest on working capital i_ 6 0 118 122 122 122Total Operating Cost (3) 62 1,809 193 1,933 1,933

Investment CostsEarthwork 12/ 480Inlet and Outlet 13/ 260Fish pond equipment 14/ 200Investment Cost Total r(4) 940Debt Service 15/ 94 324 324

Total Outflow (5) 62 940 1,905 2,257 2,257 1,933

III. NET CASH FLOW: (2) - (5) 113 0 420 443 943 1,267

IV. FI1NBNCIAL B$NEFITS/COSTSBenefits (1) (6) 175 0 1,800 2,700 3,200 3,200

Costs (3) + (4) (7) 62 940 1,809 1,933 1,933 1,933Net Benefits (8) 113 (940) (9) 767 1,267 1,267

Incremental Net Benefits (1,053) (122) 654 1,154 1,154

V. EINANCIAL RATE OF RETUXNf:16/ 55%

1/ Fish pond imprevements are assumed to be carried out at the beginning of year 1, or for cash flow purpo*sesat the end of the previous year (year 0).

2/ Based on without project yields of 100 kg/ha of low quality, mixed fish at an average pondside price ofRs 1.75/kg and full development yields of 800 kg/ha for high quality carp at an average pondside price ofRs 4.00/kg; yields in years 1 and 2 are assumed respectively to be 50% and 80% of full development yields.

3/ Loan is assumed to cover 95% of fish pond improvement costs and first year cash inputs (fingerlings, mahuaoil cake and chemical fertilizers) in years 0 and 1 respectively. Percentage loan coverage under standardARDC terms would range from 85% to 95% depending on borrower's income; loan coverage for selected borrower's

receiving an FFDA subsidy could be as low as 75% depending on size of subsidy.4/ Stocking rate of 2,500 fingerlings/ha at Rs 90/1,000 fingerlings.5/ 300 kgs at Rs 1/kg.6/ 5.5 tons/ha in year 1 and 7.5 tons/ha thereafter at Rs 60/ton.7/ Dewatering of pond and repairing of dikes.

8/ Maintenance of hand tools, nets and bamboo screens.9/ Eighteen mandays at Rs 6/manday.10/ Two mandays without project and three mandays with project at Rs 6/manday.11/ Interest at 14% annually; average annual working capital estimated at Rs 840 in year 1 and at Rs 869 thereafter.12/ Deepening of pond and strengthening of dikes, 400 m3 at Rs 2/m

3.

13/ Bamboo screens at Rs 130/set.14/ Hand tools and nets at Rs 200/set.15/ In year 1 interest only; principal and interest amortized over years 2 through 7. Interest rate is 10.5% annually.16/ For 0.5 ha model, rate of return would be 25%.

ANNEX 3

59 Table 5

INDIA

INLAND FISHERIES PROJECT

Cash Flow Projections

Fish Farm Model B (H Ha)(Rs)

Without ------- ------- With Project…-------------------------------Project Year 0-7 Year 1 Year 2 Year 3-7 Year 8-10

1. CASH INFLOWGross sales 2/ (1) 795 3,600 5,400 6,000 6,000Loan amount 3/ 2,633 752Borrower's contribution 139 40Total Inflow (2) 795 2,772 4,392 6,400 6,000 6,000

II. CASH OUTFLOWOperating CostsFingerlings 4/ 50 342 342 342 342Mahua Oil Cake 5/ 0 300 300 300 300Cow Dung 6/ 150 450 600 600 600Superphosphate 7/ 0 150 150 150 150Rice Bran 8/ 0 620 750 750 750Lease 200 500 500 500 500Pond preparation 9/ 0 338 338 338 338Maintenance of Equipment 10/ 25 405 405 405 405Operator's wages 11/ 108 108 108 108 108Harvesting 12/ 18 30 30 30 30Interest on working capital 13/ 28 204 239 239 239Total Operating Cost (3) 579 3,447 3,762 3,762 3,762

Investment CostsEarthwork 14/ 1,662Inlet and Outlet 15/ 260Fish pond equipment 16/ 850Investment Cost Total (4) 2,772Debt Service 11_ 277 789 789Total Outflov (5) 579 2,772 3,724 4,551 4,551 3,762

III. NET CASH FLoS: (2) - (5) 216 0 668 849 1,449 2,238

IV. FINANCIAL BENEFITS/COSTSBenefits (1) (6) 795 0 3,600 5,400 6,000 6,000Costs (3) + (4) (7) 579 2,772 3,44776 3,762 3,762Net Benefits (7) - (8) (8) 216 (2,772) 153 1,638 2,238 2,238

Incremental Net Benefit (2,988) (63) 1,422 2,022 2,022

V. FIN1ANCIAL RATE OF RETURN:18/ 41%

1J Fish pond improvements are assumed to be carried out at the beginning of year 1, or for cash flow purposes atthe end of the previous year (year 0).

2/ Based on without project yields of 300 kgs/ha of which 60% would be low quality mixed fish at an averagepondside price of Rs 1.75/kg and 40% major carp at an average paodside price of Rs 4/kg. Yields at projectfull development are expected to be 1,500 kgs/ha at an average pondside price of Rs 4/kg. Yields in years Iand 2 are assumed respectively to be 60% and 90% of full development yields.

3/ Loan is assumed to cover 95% of fish pond improvement costs and first year case inputs (fingerlings, mahuaoil cake and chemical fertilizers) in years 0 and I respectively. Percentage loan coverage under standardARDC terms would range from 85% to 95% depending on borrower's income; loan coverage for selected borrowersreceiving an FFDA subsidy could be as low as 75% depending on size of subsidy.

4/ Without project, pond is stocked with riverine fingerlings at rate of 500 fingerlings/ha at Rs 100/1,000.With project, pond is stocked with project fingerlings at rate of 3,800 fingerlings/ha at Rs 90/1,000.

5/ 300 kgs at Rs 1/kg.6/ 2.5 tons without the project, 7.5 tons in year 1 and 10 tons thereafter at Rs 60/ton.7/ Two hundred and fifty kgs at Rs 0.6/kg.8/ 0.82 tons in year 1, 1 ton thereafter at Rs 750/ton.9/ Dewatering of pond and repairing of dikes.10/ Maintenance of hand tools, nets and bamboo screens.11/ Eighteen mandays at Rs 6/manday.12/ Three mandays without the project and five mandays with the project at Rs 6/manday.13/ Interest at 14% annually; average annual working capital estimated at Rs 1,445 in year 1 and Rs 1,710

thereafter.14/ Deepening of pond and strengthening of dikes; 1,000 m

3at Rs 2/m

3.

15/ Bamboo screens at Rs 130/set.16/ Hand tools and nets at Rs 850/set.17/ In year I interest only; principal and interest amortized over years 2 through 7. Interest rate is 10.5%

annually.

18/ For 0.5 ha model, rate of return would be 25%.

ANNEX 3-60- Table 6

INDIA

INLAND FISHERIES PROJECT

Cash Flow Projections

Fish Farm Model C (1 Ha)(Rs)

Without …-----------With Project-----------------------Projact Year 0- Year 1 Year 2 Year 3-7 Year 8-10

I. CASH INFLOWGross sales 2/ (1) 1,860 0 7,500 9,000 10,000 10,000Loan amount 3/ 5,892 969Borrower's contribution 310 51Total Inflow (2) 1,860 6,202 8,520 9,00 10,000 10,000

II. CASH OUTFLOWOperating Costs

Fingerlings 4/ 100 450 450 450 450Mahua Oil Cake 5/ 0 400 400 400 400Cow dung 6/ 300 620 750 750 750Superphosphate 7/ 0 170 225 225 225Rice bran 8/ 0 1,700 2,250 2,250 2,250Lease 500 1,200 1,200 1,200 1,200Pond preparation 9/ 30 338 338 338 338Maintenance of equipment 10/ 25 509 509 509 509Operator's wages 11/ 312 312 312 312 312lHarvesting 12/ 30 48 48 48 48Interest on working capital 13/ 56 335 438 438 438Total Operating Costs (3) 1,353 6,082 6,920 6,920 6,920

Investment CostEarthwork 14/ 4,662Inlet and Outlet 15/ 340Fish pond equipment 16/ 1,200Investment Cost Total (4) 6,202Debt Service 17/ 619 1,599 1,599Total Outflow (5) 1,353 .6,202 6,701 8,519 8,519 6,920

III. NET CASH FLOW: (2) - (5) 507 0 1,819 481 1,481 3,080

IV. FINANCIAL BENEFITS/COSTSBenefit (1) (6) 1,860 0 7,500 9,000 10,000 10,000Cost (3) + (4) (7) '1353 6,202 6,082 6,920 6,920 6,920Net Benefit (7) - (8) (8) 507 (6,202) 1,418 2,080 3,080 3,080

Incremental Net Benefit (6,709) 911 1,573 2,573 2,573

V. FINANCIAL RATE OF RETURN: jaf 27%

1/ Fish pond improvements are assumed to be carried out at the beginning of year 1, or for c-ash flow purposesat the end of the previous year (year 0).

2/ Based on without project yields of 600 kgs/ha of which 40% would be low quality mixed fish at an averagepondside price of Rs 1.75/kg and 60% major carp at an average pondside price of Rs 4/kg. Yields atproject full development are expected to be 2,500 kgs/ha at an average pondside price of Rs 4/kg. Yieldsin years 1 and 2 are assumed respectively to be 75% and 90% of full development yields.

3/ Loan is assumed to cover 95% of fish pond improvement costs and first year cash inputs (fingerlings,mahua oil cake and chemical fertilizers) in years 0 and 1 respectively. Percentage loan coverage understandard ARDC terms would range from 85% to 95% depending on borrower's income; loan coverage forselected borrowers receiving an FFDA subsidy could be as low as 75% depending on size of subsidy.

4/ Without project, pond is stocked with riverine fingerlings at rate of 1,000 fingerlings/ha at Rs 100/1,000.With project, pond is stocked with project fingerlings at rate of 5,000 fingerlings/ha at Rs 90/1,000.

5/ 400 kgs at Rs 1/kg.6/ Five tons/ha without the project, 10.3 tons/ha in year I and 12.5 tons thereafter at Rs 60/ton.7/ Two hundred and eight-three kgs in year 1, 375 kgs thereafter at Rs 0.6/kg.8/ 2.27 tons in year 1 and 3 tons thereafter at Rs 750/ton.9/ Five mandays of labor without the project. Dewatering and leveling of pond bottom and repairing of dikes

with the project.10/ Maintenance of hand tools, nets and bamboo screens.11/ Fifty-two mandays at Rs 6/manday.12/ Five mandays without the project and eight mandays with the project at Rs 6/manday.13/ Interest at 147% annually; average annual working capital estimated at Rs 2,395 in year 1 and Rs 3,130

thereafter.14/ Deepening of pond and strengthening of dikes; 2,500 m

3/ha at Rs 2/im

3.

15/ Bamboo screens at Rs 170/set.16/ Hand tools and nets at Rs 1,200/set.17/ In year 1 interest only; principal and interest amortized over years 2 through 7. Interest rate is

10.5% annually.LJQ For 0.5 ha model, rate of return would be 20%.

- 61 -

ANNEX 3Table 7

INDIA

INLAND FISHERIES PROJECT

Estimated Marketing Costs for Carp, 1978Rs/kg 1/

--- Calcutta Market--- Rural MarketPrice Range Average Price

Producer LevelPond Side Price 2.50 8.00 4.00

Consigner LevelLocal Handling .20 .20 .20Ice and Packing .30 .30 -Transportation 2/ .32 .32Auction Fee .60 .60 .60Consigner Margin 3/ .50 1.80 -Price to Wholesaler 4.42 11.22 4.80

Wholesale LevelTransportation and Handling .54 .54 .34Wholesaler Margin 4/ .95 1.80 1.00

Price to Retailer 5.91 13.56 6.14

Retail LevelHandling .62 .62 .62Retail Margin 1.40 3.25 1.80Price to Consumer 5/ 7.93 17.43 8.56

1/ Costs and prices for whole fish averaging about 1 kg size.2/ Shipping distance averages about 600 km to the Calcutta market.3/ Includes losses and spoilage; ranges from about 15% to 35% depending on

size of fish, fish supplies and seasonal demand.4/ Includes losses and spoilage; ranges from about 8% to 30% depending on

size of fish, fish supplies, and seasonal demand.5/ Consumer price for cut-up fish would be about 15% higher than for whole

fish.

Note: In specific cases, several levels in marketing chain may be linked;for example, producer may act as consigner, or wholesaler may operatea retail outlet.

INDIA

INIAND FISHERIES PROJECT

Economic Rate of Return 1/(R. '000) -

Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 Year 11 Year 12 Year 13-14 Year 15

1. PROJECT FISH PYOD AREA DEVELOPED (ha)Fish Pond Modal A - - 8,600 38,000Flsh Pond Model B - - 6,800 20.700 27,500Fish Pond Model C - 11,700 28.300 40_900 51_500

Total Fish PFod Area - 11,700 35,100 70,200 117,000 117,000 117.000 117,000 117.17;000T7 117,n00 117,000 117,000 117,000

II. PROJECT BENEFITSGroon sal.n of fish with project 2/ 87,750 254,280 463,140 692,380 772,2Z0 801,600Gross sa1-e of fish without project 3/ 21,762 58,043 94 035 124 302 124 302 124 302Incremental Benefits 65,988 196,237 369 105 568,078 647,98 677 298 677,298 77,i 677,29 77,298 67 77 677 677,293

TII. PROJECT COSTSt.Fmmt vots-H tchary f 3,984 20,433 22,614 16,794 4,558 - 1,142 1,141 486 - - _ (28,7702FSKD Hecdqorters 5/ 1,595 - - - - 272 -Appro.c.hRoada 5/ 1,603 6,965 9,270 6,605 1,759 _ _ - _ _ _Fish Pond Improvement 6/ 56,196 95,188 98,961 89,770 - - - - - -FFDAO Vehicles and Equipm.ent 5/ 3,825 11,284 2,808 5,395 6,062 _ - 1,253 3,697 920 1,768 1,986Training Centers 2/ 407 6,099 6,099 - - - - 3,285 - - - -T-chnical Aeaistanco 7/ 321 160 561 241 160 - - - - - - - -Physical Coetingenrie- j/ 546 4,550 5 952 4 899 2, 284

Subtotal Investment Canto 68,477 144,679 146,215 023,704 14,823 - - 5 ,952 4,838 1,406 1,768 1,986 - (28,770)Operating Costs

Project Fingerlings Production 8/ - - 1,764 4,599 6,560 7,315 7,462FSDCS Overhead 9/ 1,785 2,745 2,985 2,910 2,910 2,910 2,910Transportation of Project Fingerlings LO/ - - 483 1,245 1,885 2,215 2,285Procurement of Riverine Fingerlings lI 5,850 6,970 5,690 8,000 1,400 -Fish Pond Operatione 12/ - 56,265 164,572 291,248 417,442 432,112 432,112FFDAs Incramental Operating Conto L,/ - 1,063 2,783 4,398 8,857 15,786 3,920Approach Roads Maintenance 14/ - 75 464 1,002 1,393 1,499 1,499Training Centers Incremental Costs 15/ _ _ 320 640 640 640 640

,subtotal operating Coats 1,785 65,998 180,541, 311,732 447,687 463,877 450,828 450,828 450,829 450.828 450,828 450,828 450,928 450,829

Cost of fish production without project 16/ - 1 4520 38 807 62,475 81,021Incremsental Costs 70,262 196,157 287,799 372,961 381,489 382,856 369,807 375,759 374,645 371,213 371,575 371,793 369,807 341,037

TV. NET INCRSMENTAL BENEFITS (70,262) (130,169) (91,562) (3,856) 186,589 265,062 307,491 301,539 302,653 306,085 305,723 305,505 307,491 336,261

V. ECONOMIC RATE OF RETURN 4 2%

1/ Based on January 1979 prices after duties and txeno, u0i01 sn economic wage rate for unekilled labor equal to 70/. of financial wage rates and a foreign exchange preium of 1.16.i/ Gross sales in the project area would increase in accordanc. with fish pond area developed for Models A, B, and C asumning a one year lag between invegtuenta in pond improwessets (see fortnote 65 and

esulting production increases. For yield asn-ptions, see Annex 3, Tables 4, 5, and 6.3/ For without project price and yield assumptions., ee AD..x 3, Tables 4, 5, and 6.4/ For financial investment canto, see An.ex 2, Tables 4 and 5. Equipnent will be replaced after 7 yearn with salvage value of hatcheries in year 15 estimated at 40/. of civil works cost and 100% of land value.

/ For financial caste see Annox 2, Table 3. F8DC equipment will be replaced after 7 years.6/ Fish pond improvement in total project area of 117,000 ha would be phased over a period of four years (years 1-4). For financial investment corst for fish pond model6 A, 9, and C, see Ann.. 3, Tables 4, 5, and 6.7/ Financial costs for technical assistance for project imple-entation (expatriate hatchery engineer and hatchery management specialist) are estimated at Rs 620,000 each.8/ For the number of fingerlings produced see pars 5.01. F.r financial operating costs see Ann.. 3, sable= 1 and 2./ See Annex 3, Table 3.lOf Financial transportation costs are estimated at Rs 5/1,000 fingerlings.LI/ Fingerlings from existing sources at a cost of Rs 100/1,000 are required in initial project years before hatch-ries go fully operational. a121 For financial operating costs for fish ponds aee Annex 3, Tables 4, 5, -d 6 for modelt A, B, and C respectively. Wlithout project lease costs have been included as an estimate of annual land and .ater value... / For incremental staff oste see Annex 2, Tabfe 9. Vehicle operating costs have been estimared at Ra 0.453/Io for jeeps and Rn 0.112/hk for motorcyclon; niscelloneous operating costs hove been estisated at 20% of

incresental stlff nosts before deputation allowances.1

4f Estimated at 5% of investment costs.

15/ Incremental operating cost per training center have been estisated at 4/. of total onnual speroting coat of Rs 400,000. Training centers would be operational by year 2 and fully staffed by year 4.v1/ For financial operating costs without the project, see An.ec 3, Tables 4, 5, sod 6.

- 63 -

ANNEX 5

INDIA

INLAND FISHERIES PROJECT

Estimated Quarterly Schedule of Disbursements I'

IBRD FY Cumulativeand Quarters Disbursements Disbursements

…(tJ--___----(US$ 000) …

June, 1980 0 0

September, 1980 50 50December, 1980 50 100March, 1981 95 195June, 1981 205 400

September, 1981 200 600December, 1981 375 975March, 1982 300 1,275June, 1982 550 1,825

September, 1982 540 2,365December, 1982 660 3,025March, 1983 885 3,910June, 1983 890 4,800

September, 1983 1,000 5,800December, 1983 1,300 7,100March, 1984 1,550 8,650June, 1984 1,950 10,600

September, 1984 2,400 13,000December, 1984 3,095 16,095March, 1985 2/ 3,905 20,000

1/ Credit effectiveness is assumed to be April 1, 1980.2/ Credit closing date would be September 30, 1985.

- 64 -

ANNEX 6

INDIA

INLAND FISHERIES PROJECT

Related Documents and Data Available in Project File

1. IBRD, India: High Quality Carp Hatcheries Project, Draft,August 8, 1978.

2. IBRD, Inland Fisheries Project, Draft, October 11, 1978.

3. F.F.D.A. Champaran, Guidelines, rules and norms for the workingof Fish Farmers Development Agency, Champaran, Bihar.

4. The Marine Products Export Development Authority, IndiaStatistics of Marine Products Exports, 1975.

5. Ministry of Food and Agriculture, Government of India,(Department of Agriculture), Report of the Fish Seed Committee,1966.

6. Ministry of Agriculture and Irrigation, New Delhi, Government ofIndia, Report of the National Commission on Agriculture,Part VIII Fisheries, 1976.

7. Ministry of Agriculture and Irrigation (Department of Agriculture)Government of India, New Delhi, Tenth Meeting of The CentralBoard of Fisheries, New Delhi, 22nd & 23rd March, 1976.

8. National Council of Applied Economic Research, Demand for Fish andits Transportation and Storage in Selected Cities, 1977.

INDIAINLAND FISHERIES PROJECT

GOVERNMENT OF INDIAInland Fisheries Organization Chart

SecretaryDepartment of Agriculture

and Rural Development

Additional SecretaryAnimal Husbandry and

Fisheries

Joint SecretaryFisheries

Administration Fisheries Division

Plan Coordination Inland Fisheries

I…I

| nland isheries Infand Fisheries ll|General Development | l Projectll

I Project Fish Farmer Monitoring HatcheryFresh Water Fisheries Brackish Water Fisheries Inlard Fisheries Training Development Hatchery Operations, Engineering

Programs Programs and Extension Agencies Credit and Reporting Cell

CENTRAL PROJECT UNIT

World Bank - 20293

- 66 -

INDIAINLAND FISHERIES PROJECT

State Fisheries DepartmentsGeneralized Organization Chart-1

SecretaryFisheries

Additional SecretaryFisheries

lzil_zIJoint Secretary

Fisheries

Director ofF ishe ries

STATE PROJECT UNIT

r ---------- _-_--_-Administrationll

. l ~~~~~~~~~~Proectl

L Stati.sticsl

Fish Farmer Monitoring I,Development Agencies Fish Seed Operations

and Training Credit and Reporting

General Programs Field Operations MarineramsherndInland Fisheries Inland Fisheries Programsan

*..

_ Extension Zones

> Reservoirs ||11 Specific organizational structure is different in each project State.

_{ Planning B

VVorld Bank -20310

INDIAINLAND FISHERIES PROJECT

FISH SEED DEVELOPMENT CORPORATIONOrganization Chart

Board ofDirectors

Managing[_Director

r Hatchery__CopnSerty|Engineering [F nycretar

Planning, Finance & Manager Manager Marketing | a

Administration Production & Quality Control

Financial Audit and [ Hatchery Quality Control Sales and PromotionAnalyst Accounts Officer Managers Officer Officer

Accou nting HatcheryAssistants Staff j

World Bank - 20294

INDIAINLAND FISHERIES PROJECT

Implementation Schedule

Year 1 Year 2 Year 3 |Year 4 Year 5

Hatcheries andRr B -

Establishment * -[ _______________

Establishment "**";:_5i5i s|i[t5it_ __

|Planning, Contracting lmm11;L GI6

H atcherigSuy Egi_nee 4 r i~~~

World Bank k-21012

INDIAINLAND FISHERIES PROJECT

Hatchery and Approach Road Construction1'Implementation Schedule

_ Pond Year 1 Year 2 Year 3 Year 4 Year 5

State No. 1 ---- 1 -rea T -m- A-~~FMAMJTJ,AS ONDJFMFJJASOND T M~IMJ JA MAMJSO T MJJA7NF+N

VVest 4 25Bengal T 25 P.

3 25

4 10 HPradesh 3 25

Uttar gl

m - m Construction World Bank-20304

IBRD 14268hMAy 1979

CHINA

w~~~~-'<T ~~~~~~~INDIA

PAK I sfA " g a,.~ GUIINGS _ _ROAD_ S CENTRALCHANNEL INLAND FISHERIES PROJECTINDIA B~ OUNARS FEC USDIV R S GN ATOES

5,015 ',, INDIA l-yk8)NauA BOUNDARYTENCE r SUS~SIDIARYGATES PLAN OF 25 HECTARE HATCHERY MODELTFLL IEMAANKMENTI F PONDS

TUBEWELLS 0 50 100 2L0

APAPARK~~~~~~~~~~~~~~~~~~~~~~~~~ EANd77ZP i

C- S-F- --

Q~~~~~~~~~~~~~~~~RTA I yS 4 i F KA

N r A fF 0|0

IBRD 14269AMAIY 770

PAKISTAN > L 'V. RTUTAN_-r auezcos/cNMae

.9II> -- ,,^INLAND FISHERIES PROJECTIND A \9BAU LD NGS G - CENTRAL CHANNELS

NSA INO ESTA ,, <,ROADS _ 911 C- DIVISI ONBOXES PLANS OF 5 AND 10 HECTARE HATCHERY MODELS205RAD DIVISION BOXESOF H T ER

\ d .> eSe ....... q- 1. .BOUNDARY FENCES SUBSIDIARY GATES

F -LIEMSAN-MENTB_ PONDS L . - _

TUBEWELLS

- '1; - SI R-

I~~~~~~OS Of C . t4.sEL;.... .......

T , / Be ; \S]Ed)<EAC E OSfAD) ST _TE

d~ ,SSASE -…- -uv -

I -

BN- CA

L ~ ~ Li

j CAKES AR~~~~~~~AAAf [ (SEES SEASTS~~~~~~~~

J II

5 HECTARE HATCHERY MODEL 10~~~~~~~~~~~~~~~~~~-~~I HECTAR HACHR MODEL

INDIAINLAND FISHERIES PROJECT

Plan of 10 Ha and 25 Ha Model Hatchery Building

19.00

15.90 _25

! ;_,~~~~~ ~ ~~~~~~~~~~~~~~~~~~~~~Water

To Drain :10 Ha Model 5HaModel Water Supply p

V~~~~~~~~~~~~~~~~~~~~~~~~

Scale 1:100 ___ ____

in Metres - i =_//_1 y_

Store

2.3~~~~~.

L@ Hatchling Tank -f|_($ Hatchling Collecting

Channel (below floor level)./

I I L X J ~~~~~~~Removable

Wooden Bridges \

| DrainageG iTo Drain 10HaModelHaModelVy5 Ha Model 10.0 m Long

g Tk10 Ha Model 13.4 m Long

03 Breeder Holding Tank ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ Wrd an -201

INDIAINLAND FISHERIES PROJECTHatchery Building Cross Section

Reinforced Concrete Roof Slab

Insulating Screen Water Proofing

Rubble Masonry or Block Work

in Cement Mortar PlasteredBoth Faces

Hatchling Tank with10 Nets Each 0.5 Dia.

3.80 0 0.70 0.90

_ Wate~~~r SUPPlY/v3.50 2 No Faucets Per Tank

B / ~~~~~~~~~~~~~~~~Overflow %

Reinforced 'Tnk Drain to Canl. DrainageConcrete Tank

.. . ':.. Hatchling Collectin g hne o ̂ . ', :. ~with Wooden Bridges Between Tanks / ., .. |

6.10 m Plain Concrete

Scale 1:50 Building Foundedin Metres at Top Bund Level,

approximately 2 mabove OGL (Original Ground Level)

World Bank -20216

INDIAINLAND FISHERIES PROJECT

Central Channel and Perimeter BundCross Sections

Central Channel

2.0 .75 2 5 75~~~~~~~~7.

1 .85 ~ ~ +.8

Sce 1 100Ma Water Leve 1.5 +25Ma75

<<: Cut-off Wall* CROSSCentral Channel A uto Wa OGL o ef

_ -- f-)t ~~~~-0.5 < 0.15 6 -- jZ5

_ X ~~~~~~~~~~~~~~~~~~~~~~~Rubble Maso nry .__15tVegetation Approx

J i ~~~~~~~~~~~~~~~ ~ ~~~~~~~~Pitching <2 eoe

6.70 3.8 6.70 .'0.5

Scale 1:100 CROSS SECTION A-A '8 Cut-off Wall to be of soilI

All Levels Measured from of 20% to 30% clay content, -u

OGL (Original Ground Level) placed and compacted. Depthto be minimum of 1.0 m below

Perimeter Bund pond bottom,, _ ~~~~~~~~~~~14.0

10 Yr Return Flood +1.8i etr

+ 1.5 Max

>]~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ol Ban - 2021

n Boundary Fence .T Cu-of _ <

tl Wall _ _ 2 | ~~~~~~~~~~~~~~~~~~~~~~~~OG L ? Pond

><Drainage I _.% Channel ws _1 0 ~ ~~~~~~~ Vegetation ~~~~~~~~~~~~~~~~~Removed -1.5*

10 1.5 1 1.0 1 1.5 kS

-1- -1- - ' a W S~~~~~~~~~~~~~~~~~~~~~~~~iCn MetrreOs

1.85

Min .

CROSS SECTION B-B

World Bank-20217

INDIAINLAND FISHERIES PROJECT

Pond Dividing Bunds

+1.50 Max.! 17 +1.50 Max.

-0.5 Approx ~~~~~~~~~~~~~~~~~~~~~0. ppo

VegetationStripped 1.5-

Scale 1:100in Metres

CROSS SECTION C-C

All levels measured fromOGL (Original Ground Level)

*Cut-off Wall to be of soil **Pond bottoms to be trimmed

of 20% to 30% clay content, to falls to drain to subsidiary

placed and compacted. Depth gates. Levels to be such as to

to be minimum of 1.0 m below provide fill materials for pondspond bottom. but to be at least 0.4 m below OG L.

World Bank -20218

- 74 -

INDIAINLAND FISHERIES PROJECT

Details of Subsidiary Gate

I ~~~~~~~~~~~~~Road:.75 2.5 75 1

Water Level +1.80 +1.80 +1.80 |Water Level

Ceante;.Kral Mound tLCut-off VVa l 3 No. Grooves

1 ^ -< r L |o g Dia. Concrete Pipe | --0.5 Approximately

7 Pitfched t 2l ass ConcreteChannel Eed Foundation Slab

CROSS SECTION

R:' Road- ...

Top Water -25 Top Water MarkMark

MortaredRubble

] Access > ; ;0 it;;;;; 00 0 j j ;00;;T;Access .3 1.5 32 t \ t ~Mound Jit;:l;0000 ::03.f:$0

1.0

. ... .... ... ma Central Channel { t=-t H: : HH _J .... - 1.4- Pond

f t .::l,,::00 -1 ','l ...... .... ..

....... ;;;:;::;;g;:0;0;: 1;;;;;00-0:0:0:0:0-0: \ | ReinforcedI. .. l l ;;:;; -;: ;-: 0 0 t gf 0 0g:t;ft ;E:i:igg:0000f i: l Concrete Head

Structure withTop of ....... 2 TumberPitched Stop Boards andSlope 1 Screen

Scale 1 :100

PLAN in Metres

All Levels Measured fromOGL lOriginal Ground Levell

For details of cut off wail see chart nos. 3 and 4For locations of subsidiary gates see IBRD nos.

World Bank -- 20219

- 75 -

INDIAINLAND FISHERIES PROJECT

Details of Division Box

Road

1.5 4.0 2.5 4-0 1

+1.5 Max. +1.85 +1.5 Max.

| Earth Fill | | 2 No. Grooves

OGL~~~~~~~~~~~~~~~~~~~~~~~O Pitc h e.9 Dia d Reinforced +OGL

-0.5 Concrete PiPe j +0.5 -_ __----

Concrete Pipe O Pitched BedPitched Bedding to Channel

Bed to Channel Mass Concrete

CROSS SECTION Foundation 0.3 Thick

Bed ofMTo…ortaredCentrlRubble Masonry o 1 - -

Wall .5 Thick

Cha l P2.5 | ReinforcedAllLeeMeasuredfromA in MesConcrete Head

G (Origil G d LlStructure with

1 i3 | ! WrBoard and

\t t l l ~~~~~~~~~~~~~~~~~~Screen

Bed of Top | I l TChannel |Top

-CentralI-Edge of - H § 1.14 -Central -Edge of

Channel Pitching | l4_--_;=4----|11|Bed of Pitching

Scale 1:1 00All Levels Measured from PLAN in Metres

OGL (Original Ground Level)

World Bank -20220

IBRD 14267R

7B- SEPTEMBER 1979

\'.\ Bus X vnqr, A itz ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~28--28- U T T , ,P ' s j

INLAND FISHERIES PROJECT 'BHUTANPROPOSED PROJECT AREA PR 4/DA L,

PROJECT STATE BOUNDARIES

PROJECT D STRICTS (' 'gf'!J/)>, ONGOING F.F.D.A's,

i PROPOSED HATCHERIES

D SIRIC HEADQUARIERS

® SlATE CAPIIALS 4

RIVERS /

MAJOR ROADS

SELECTED MAJOR RAIL L NES

INTERNATIONAL BOUNDARIES M D24~~~ ~ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~2-

' 50 0 I5 200 250 300 K2CMETES-

AFGhANhT4r~~ '__ '"' ,' t- ' >' ,,< rctc\1

50~~~ ~~~~ ~ ~ ~ .10 200', 2' / , ,'ltil. 'I / .5.0§$

DEM REP OF f_ /t<,j

C H I N A

PAh,STANI *Ž ( :7- MmA HAM A 5HTRAA

R F§•iUA g ,/ - 0IA I 20'

. 9 X MAO 01AA 1' -

•1 0' ' RAOOSi / <86R1A uV U- ' ,( - ,'' i

N D A - CfSSA | AB0F0f/

A NADHRAy i 9 E i :: PRA DESH 'O ..I

Th _p has bso Mr ha 1-ks -.aff ', lb.-d._hesodeoc

Rk / 0t ,,~~~~~~~~~~~~~~~~~~~~~~~~o ,h epsnAsn pf oeF nD//ess, o,,f tfatcn h kss,ioSue n h

en ,ANKA -. thk,sOh 4o hpc \,,,ph,, SE 'a,rshths Won/S SOons andts

: 2 tt: :/S>tAKAr J r ;: 2: '.\E > 82 >,.: .: f n 8;f)~~~~~~~~-hh