Policy Update
Manjeet Pawar
Introduction & Background
The Government of India has supported the Neeranchal National Watershed Management Project from the World Bank. It is intended to improve watershed management practices across the rain-fed areas within India through increased agricultural productivity, improved water conservation, and improved rural livelihoods. The project could be said to achieve the goals of PMKSY, the Pradhan Mantri Krishi Sinchayi Yojana, ranging from efficient water use to irrigation accessibility across the country.
The Neeranchal Project was needed as perennial difficulties have continued to afflict the country’s agricultural and water management sectors, especially in rainfed and arid areas: The Department of Land Resources (DoLR) implemented the Integrated Watershed Management Programme (IWMP) as flagship program to provide watershed development services in India since 2009-10: IWMP-the main objectives of which are encouraging an integrated approach to watershed management for soil and water conservation; improved agricultural productivity; and sustainable livelihoods in rural communities.
However, the following challenges are impeding the expected performance of the IWMP:
● Weak delivery systems with inadequate capacity at both the central and state levels.
● Most states have a low disbursement ratio, hence delaying project execution.
● Absence of an integrated monitoring and evaluation (M&E) framework to track progress
● Nodal agency within whose jurisdiction watersheds fall, and is unable to coordinate with other stakeholders.
Recognizing such observations, the Government of India realigned the IWMP scheme with the PMKSY scheme in 2015. Beginning in 2016, the Neeranchal project will address such aspects with technical assistance, institutional reforms, and development of overall capacities for watershed management.
The project was approved by the World Bank in July 2014 for a gross initial project cost of USD 357 million (INR 2,142.30 crore), in which the same proportion was shared between the World Bank as a loan and the Government of India as a grant. It commenced operations in February 2016, and its completion date was fixed for June 30, 2020. The project covered nine states: Andhra Pradesh, Chhattisgarh, Gujarat, Jharkhand, Madhya Pradesh, Maharashtra, Odisha, Rajasthan, and Telangana. It is also aimed mainly at rural communities in rainfed areas who experience agriculture-associated problems, including water, soil erosion, and low productivity. Small and marginal farmers, vulnerable groups such as women, and local communities from the project sites are the major beneficiaries of this project.
Figure 1 World Bank. (2020). Neeranchal National Watershed Project: Financial Allocations vs. Disbursements. Retrieved from https://projects.worldbank.org/en/projects-operations/project-detail/P132739.
Figure 2: Comptroller and Auditor General of India (CAG). (2018). State-level Allocation and Expenditure for Neeranchal National Watershed Project. Retrieved from https://cag.gov.in/.
Project Objectives and Implementation
The basic objectives of the Neeranchal National Watershed Management Project were:
1. Strengthen both national-and state-level institutional capacities to improve planning, implementation, and observation of watershed management programs.
2. Increase the efficiency of watershed management by integrating sound scientific knowledge, advanced technologies, and innovative watershed management practices for rainfed areas.
3. Improve agricultural productivity and adaptation to climate change through better water management, soil conservation practices, and the adoption of sustainable agricultural practices.
4. Increase the stability of rural livelihoods by increasing the productivity of small and marginal farmers, enhancing the role of women in agricultural activities, and giving watershed communities access to new market linkages.
The project is intended to enhance the efficiency of watershed management and sustainable agricultural practices toward the achievement of the broader goals of PMKSY, that is, Har Khet Ko Pani (Irrigation access to every farm) and Per Drop More Crop (Efficient use of water).
The four major project components were designed to realize the goals and objectives:
1. Institutional strengthening and capacity-building: This component emphasized strengthening watershed management institutions, particularly the Department of Land Resources (DoLR), including providing technical assistance for better planning, implementation, and monitoring of watershed projects in the country.
2. National innovation support: Emergency actions aimed at integrating science-based tools and innovations in watershed planning, hydrology, and climate resilience for technically improving watershed management.
3. Watershed management support in participating states: This component supported technical assistance at the state level to implement better watershed management practices in integration with other government programs.
4. Project Management and Coordination: This component facilitated effective management of the project with clear coordination among national, state, and local stakeholders.
Mainly, the minor restructuring of the project was carried out in 2015 to align it with PMKSY; after the realignment, a restructuring was undertaken. This minor restructuring adjusted project objectives to coincide with the revised goals of PMKSY. As such, Level 1 restructuring occurred in December 2015 with a closure date extension of 21 months to March 31, 2022, to cure implementation challenges. However, these obstructions, along with several other hurdles in project execution, hindered the project and its counterparts, putting it in suspension, leading to a cancellation of the project by 2019.
Functioning & Implementation Mechanism
The Neeranchal National Watershed Management Project was carried out in the larger Pradhan Mantri Krishi Sinchayi Yojana under implementation by the Department of Land Resources (DoLR) in association with the State Level Nodal Agencies (SLNAs). India has put an improved watershed management system in place with the focus on rainfed areas, which constitute a large part of its agri-landscapes.
The Institutional Strengthening and Capacity Building component is intended to empower the DoLR and state agencies through training, building a Management Information System (MIS), and a better monitoring and evaluation framework. Building institutional capacity by workshops, training programs, and other knowledge exchange efforts has failed to take off owing to late initiation and poor follow-through. The late establishment of a full-fledged Project Implementation Unit (PIU) delayed the guidance to be provided to state-level agencies.
The Innovation and Knowledge Support component promoted scientific and innovative approaches to watershed management. The use of Decision Support Systems (DSS) and hydrological models was carried out in this area in order to guide better planning and implementation of watershed management practices. The planned project improved upon the use of GIS and remote sensing technologies for creating accurate maps of watershed areas so as to enable better planning and monitoring. However, constraints on data collection, integration, and technology adoption hindered this component from delivering its anticipated benefits.
The Watershed Management Support in Participating States component offered direct technical support for watershed planning, implementation, and monitoring at the state level. The project intended to integrate community-based efforts with state efforts to build sustainable systems for watershed management. This particular component sought to strengthen the capacities of state-level agencies to effectively implement watershed management programs, which would then lead them to the greater goals of PMKSY. Sadly, this component suffered from low disbursement rates and fragile field-level coordination.
The Project Management and Coordination component is said to refer to the effective execution of the project, so clearly, points are there for national and state-level agencies. A Project Implementation Unit (PIU) was established to oversee the project’s implementation, coordinate with state-level agencies, and ensure effective monitoring and evaluation. However, the resource was insufficient because of unqualified staff and the delay of key positions. The slow pace of disbursement and insufficient coordination at the field level also delayed the project activities. The good, well-intentioned design has a great impediment to its implementation, resulting in the project being under-implemented.
Despite being very expertly crafted, the challenges that arose during project implementation were great, leading to considerable underperformance and final cancellation of the project.
Challenges & Evaluation
The good idea behind the design of the Neeranchal Project underwent several challenges during its implementation. It was divided into the categories of institutional challenges, financial challenges, and technical problems.
Institutional Challenges
One of the largest concerns was the paucity of an institutional framework at the national and state levels. The responsibility to execute the project lay with the DoLR, while the Project Implementation Unit (PIU) capacity was very low, whilst coordination and field execution of watershed management programs by the State Level Nodal Agencies (SLNA) were hampered. The full-fledged establishment of the PIU had been delayed, resulting in the de facto unavailability of guidance to state-level agencies.
Moreover, a large turnover of key staff within government institutions made a major contribution to inconsistent project implementation. The World Bank found in 2018 that weak institutional coordination and a lack of personnel with technical skills within the PIUs of the project actively impeded the realization of the outputs of the project.
Figure 3 Department of Land Resources (DoLR). (2016). Project Structure of Neeranchal National Watershed Management Project. Retrieved from https://rural.nic.in/.
Financial Challenges and Slow Disbursements
Just like another challenge, financial disbursement was also slow. Given a huge budgetary outlay of USD 357 million, actual disbursements were very minimal. When the project was suspended in 2019, only USD 1.2 million had been disbursed-the tiniest fraction of the funds allocated.
The slow disbursement was partly due to bureaucratic processes delaying approval in the first instance and, at the second stage, delays in financial clearance at the state level. The inability of the project to utilize funds for on-the-ground activities further affected its efficiency. The financial bottleneck contributed heavily to the project not achieving its stated objectives, leading to the project’sproject cancellation.
Technical and Data Challenges
The Neeranchal project planned to create a watershed management and agricultural framework by integrating Decision Support Systems (DSS), Geographic Information Systems (GIS), and the application of hydrological models. However, the implementation of this technology into the project faced a multitude of barriers. The most daunting of these waswere the lack of reliable data for the watershed area, thus hampering the accurate formulation of hydrological models and GIS maps for watershed management.
While the project sought to integrate community-based approaches with government initiatives, in some states, the top-down method adopted meant that local communities tended to participate less. This non-participatory approach, in turn, made the watershed management interventions less sustainable after project completion.
Challenges in Stakeholder Engagement and Sustainability
The project’s intent was to stimulate community participation and inclusiveness in watershed management with special emphasis on women and marginalized groups. Nevertheless, the implementation process had the problem of integrating local communities effectively into the decision-making processes. There was some disconnect between the community expectations and the top-down approach of project implementation.
Another area of concern was that of post-project sustainability. Much of the improvement made in watershed management was predicated on the active participation of the communities, which was something that could not be built into and become part of the project framework. So, without local participation in sustaining these practices and institutional support, it remained uncertain whether the benefits from improved water conservation and agricultural practices would last.
Project Management and Coordination Issues
Another challenge was that frequent poor coordination within the government agencies involved in the project hinderedslumbered all projects. The overlapping scopes of the DoLR, PMKSY, and SLNAs created a confused situation regarding roles and responsibilities and a redundant affair regarding assignments. Furthermore, after its restructuring in 2015 to fall under the PMKSY framework, no clear timelines for implementing the project were specified, nor were KPIs that would help in effectively assessing the project’s progress.
Figure 4World Bank. (2019). Neeranchal National Watershed Project: Project Execution Timeline. Retrieved from https://documents1.worldbank.org/curated/en/611711565450643163/text/Disclosable-Restructuring-Paper-Neeranchal-National-Watershed-Project-P132739.txt.
Performance & Impact
Neeranchal has been a project underwhelmingunder-whelming in performance, leading to its suspension and ultimate cancellation. By August 2019, cumulative disbursements stood at approximately USD 1.06 million out of an allocation of USD 178.5 million, reflecting substantial under-utilization of resources. Underperformance in all legal aspects and institutional setup brought the project under suspension with effect from February 6, 2019. Following its suspension, the project was formally canceled in July 2019 after disbursing a mere USD 1.2 million in dribs and drabs, representing a meager share of the funds allocated.
Due to limited execution, comprehensive impact evaluations specific to NNWMP are few and far between. However, impact analyses of similar kindskind of watershed management projects can provide insights into what may have been achieved.: Research done by the JSW Foundation variously assessed the impact that integrated watershed management initiatives had on soil and water conservation, agricultural productivity, and community participation. Specifically, it found that such soil conservation, along with agricultural yield improvement was witnessed, and community participation in similar projects increased.
An impact analysis of the IWMP projects by NITI Aayog evaluated changes in income, employment, skill enhancement, and expenditure patterns among watershed communities. The findings indicated that beneficiaries of effectively implemented watershed programs had witnessed positive economic change and skill development.
Comparing the NNWMP against successful watershed management projects will provide interesting context:
The Mid-Himalayan Watershed Development Project (MHWDP) in Himachal Pradesh was able to effect significant change in agricultural yields and rural household incomes. Rehabilitation of irrigation infrastructure, sustainable agricultural practices as necessary for agriculture, and improvement of community participation were emphasized.
The Karnataka Watershed Development Project was geared toward participatory watershed management, leading to increased agricultural productivity and improved farmers’ livelihoods. Community participation and sustainable land management practices were given priority in this project.
These comparative cases illustrate what the Neeranchal Project would have attained under more favourable circumstances. In general, forecasting the benefits of a successful watershed management scheme would include:
- Water conservation and management.
- Agricultural productivity improvement in rain-fedrain fed areas.
- Resilience to climate change.
- A livelihood for rural communities.
- Sustainable land management practices.
- Low soil erosion and good soil health.
The unfortunate events during the course of implementation led to an early cancellation of the project, which meant that none of these were realized as set out in the impact assessment. Limited implementation of the project implies that there is little actual impact on watershed management and agricultural productivity in these states.
Emerging Issues & Reasons for Failure
Multiple key issues and constraints surfaced during the implementation of the Neeranchal Project, leading to its failure:
1. Weak Institutional Coordination and Capacity Issues: Delay in establishing Project Implementation Units (PIUs) and poor coordination between the Department of Land Resources and State Level Nodal Agencies (SLNAs) resulted in execution delays and ineffective oversight. The failure to fully staff and operationalize the PIU within the agreed-uponagreed timeframe became a bottleneck for decision-making and resulted in slowed implementation.
2. Slow Financial Disbursements: Bureaucratic delays and poor financial management allowed slow disbursement of funds, which hampered the full utilization of funds allocated for the project. Disbursement procedures were long and cumbersome, such that by the time funds were to be disbursed, project implementation would have already been impeded.
3. Limited Community ParticipationParticipations: The project had not catered to communities sufficiently at the planning and implementation stages. The top-down approach to watershed management was not localized to meet the local ecosystem needs, resulting in very limited ownership and participation in sustainable development efforts.
4. Lack of Operating Monitoring and Evaluation Systems: The lack of an integrated monitoring and evaluation (M&E) framework made it difficult to track progress, assess the impacts, and implement strategy adjustments based on in-time data.
5. Challenges in Technological and Data Integration: Challenges in data integration includeincurred the misalignment of advanced technologies with inconsistent data collection, limited technical support, and infrastructural development.
6. Fragmentation of Policy and Institutions: The Existence of contradictions between IWMP and PMKSY and fragmentation in implementation across various government departments led to confusion in the definitions of roles and responsibilities. The realignment of IWMP within the framework of PMKSY has given rise to more confusion regarding the roles of different stakeholders.
Way Forward
Strengthening Institutional Capacity Why is the font different here?
The challenges faced by the Neeranchal National Watershed Management Project offer some valuable lessons for future policy intervention for sustainable agricultural development, conservation of water, and enhancement of rural livelihoods. The foremost need of the hour is to strengthen the institutional capacity at all levels. The future projects would require a major focus on the institutional framework, with clearly defined roles for each agency, and capacity-building programs at the state and local levels. This includes setting up well-staffed Project Implementation Units with clear mandates and adequate resources for functioning; continuous training of personnel, providing stability to key positions for implementation continuity, and developing clear operational guidelines in terms of roles and responsibilities.
Improvements in Financial Management
The future watershed projects need a more streamlined financial management mechanism. Such a system would entail the speedier disbursement of funds in addition to better accountability measures. Procedures for financial disbursements must be made simpler so that funds can be disbursed readily,; complemented by real-time monitoring of expenditures through effective tracking systems. Financial responsibilities should be decentralized to the relevant levels so that actions may be taken faster. The expectation will be that placing clear accountability mechanisms will ensure that resources are used for the intended purposes.
Community-Driven Approaches
In future watershed management policies, the community-driven approach must take precedence. This will ensure a sustained form of community ownership and sustainability. It means involving local land users from the planning stage of projects and forming community-based governance structures for watershed management. Traditional knowledge should be acknowledged and integrated into watershed planning, and incentives should be created to promote community participation and ownership of projects.
Ensuring Long-Term Sustainability
In ensuring that watershed interventions yield long-lasting benefits, solid post-project sustainability plans must be put in place. This must entail developing clear exit strategies and mechanisms for continued management after project closure, provision for creating self-sustaining financial models, linking watershed initiatives with ongoing government programs to ensure continuity, and provision for training local institutions to sustain and build upon project achievements.
Technology Integration
In watershed management, the full gamut of GIS, remote sensing, and decision support systems would have to be exploited fully. This involves putting in place strong institutions for data collection and management, and training of local officials and community members to use the technological tools. This also means that user-friendly applications for watershed monitoring should be developed, as technology integration into watershed management should remain attuned to local realities and capacities.
Enhanced Monitoring and Evaluation
Free and Fair Monitoring and Evaluation are mainly concerned with the performance of watershed projects, with progress tracking and timely adjustment. Comprehensive indicators are necessary for both processes and outcomes and should be backed by real-time monitoring systems using appropriate technologies. Regularly undertaken independent evaluations would assess project impact against what came up at a certain point or program of the project, and would be continuously used in improving implementation strategies.
Policy Coherence and Coordination
The watershed management activities of the next decade should integrate with other wider policy frameworks toin order to obtain wider effectiveness. This will involve clarifying the relationships between the various schemes and programs and establishing appropriate coordination arrangements between departments; developing all the inclusive directions for rural development and policy consistencyconstancy, but at the same time, adaptive management with the lessons of actual implementation.
Conclusion
Even though it was called off too early, the Neeranchal National Watershed Management Project holds important lessons for India’s watershed management strategy as well as agricultural development programs. Such learning can therefore be critical for informing future approaches despite the project having met huge implementation challenges of institutional weaknesses, financial bottlenecks, and shallow community involvement. As such, while India pursues such goals of water conservation, improvement in agricultural productivity, and rural development, the lessons learned from Neeranchal will prove useful to future initiatives in broader terms under the PMKSY umbrella program and other rural development initiatives. Future watershed projects could achieve better outcomes by building capacity within institutions, ensuring financial efficiency, fostering genuine participation from communities, and establishing robust monitoring systems. This remains an important aspect, therefore, of India’s sustainable development. Indeed, watershed management has a very substantial role to play in realizing this vision with better implementation strategies, based on lessons learned.
References
● JSW Foundation. (2019). Impact assessment of integrated watershed management initiatives. Retrieved from https://www.jsw.in/sites/default/files/assets/JSW_Watershed_Final_Report.pdf
● NITI Aayog. (2023). Impact assessment of IWMP projects in India. Retrieved from https://www.niti.gov.in/sites/default/files/2023-03/IMPACT%20ASSESSMENT%20OF%20IWMP%20PROJECTS%20IN%20INDIA.pdf
● World Bank. (2015). Neeranchal National Watershed Project: Strategic Environmental and Social Assessment. Retrieved from https://documents.worldbank.org/en/publication/documents-reports/documentdetail/492091468267913935/strategic-environmental-and-social-assessment
● Wikipedia. (2023). Mid-Himalayan Watershed Development Project. Retrieved from https://en.wikipedia.org/wiki/Mid-Himalayan_Watershed_Development_Project
● PROFOR. (2014). Watershed development in India: Case study summary. Retrieved from https://www.profor.info/content/watershed-development-india-case-study-summary
● Comptroller and Auditor General of India (CAG). (2018). Appropriation Accounts 2018-19: General Government and Union Ministries. Retrieved from https://cag.gov.in/uploads/state_accounts_report/account-report-897-05fc9e2d600d7b6-90510120.pdf
● Comptroller and Auditor General of India (CAG). (2016). Report No 6 of 2016: Madhya Pradesh State Finances. Retrieved from https://cag.gov.in/webroot/uploads/download_audit_report/2016/Report%20No%206%20of%202016%20Madhya%20Pradesh%20State%20Finances.pdf
● Comptroller and Auditor General of India (CAG). (2017). Chhattisgarh Finance Accounts Volume II 2016-17. Retrieved from https://cag.gov.in/uploads/state_accounts_report/Chhattisgarh_Finance_Account_2016_17_Vol_II.pdf
● Press Information Bureau (PIB). (2021). Neeranchal National Watershed Management Project for the Watershed Component of PMKSY. Retrieved from https://pib.gov.in/newsite/printrelease.aspx?relid=128501
● Government of India. (2019). Neeranchal National Watershed Project: World Bank Assisted Project. Retrieved from https://documents1.worldbank.org/curated/en/611711565450643163/text/Disclosable-Restructuring-Paper-Neeranchal-National-Watershed-Project-P132739.txt
● World Bank. (2020). Implementation Status & Results Report: Neeranchal National Watershed Project. Retrieved from https://documents1.worldbank.org/curated/en/394861468052138154/pdf/India-Neeranchal-National-Watershed-Project-P132739-Implementation-Status-Results-Report-Sequence-04.pdf
About the Contributor:
Manjeet Pawar is a Master’s student in Natural Resources and Governance at Tata Institute of Social Sciences (TISS), Hyderabad, and a Policy Research Intern at IMPRI. Their work focuses on policy research, evidence-based policy formulation, and climate advocacy.
Acknowledgment – The author extends sincere gratitude to the IMPRI team for reviewing the article and for providing the opportunity to write the article.
Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.
Read more at IMPRI:
The Ministry of Minority Affairs: Empowering India’s Diverse Fabric
Unlocking Public Assets – Evaluating India’s Asset Monetization Plan 2025-30
