ADOPTION OF MICRO IRRIGATION IN INDIA: FACTORS AND POLICIES - Management, Performance, and Applications of Micro Irrigation Systems - page 12

worked out as the sum of amortized cost on wells, electric motor and equipments,
surface storage tanks and drip irrigation equipments.
The amortization of irrigation structures is calculated using Eqs. (4) and (5). The
discount rate of 5% is used in amortization refl ecting long-term sustainable rate. Simi-
larly investment on conveyance, pump-set, electrical installation, and surface storage
tanks and drip irrigation structures were amortized, where AL is average life of wells
and it is assumed to be 30 years based on the average life of well life in the study area.
Similarly, the average life of bore-wells is assumed as 20 years, electrical motors 15
years, surface storage tanks 25 years and drip irrigation equipments 10 years.

Amortized cost of well = [(Compounded cost of well)×(1+i) AL × i] ÷ [(1 +i) AL -1] (4)

where: AL = Average life of wells; and
Compounded cost of well = (Initial investment on well) × (1+i) (2008-year of con-
struction)

(5)

The analysis on well and irrigation investments revealed that the total fixed cost on
wells and other irrigation structures is worked out to high among the drip adopters
than the nonadopters in the control village. For instance, the total amortized cost is
worked out to Rs. 9,325.91 per hectare for drip adopters and Rs. 5,788 per hectare for
the control village. It is 61% higher than the control village (Table 4). The increased
investment on fixed irrigation investments is mainly due to additional investment on
drip equipments.

TABLE 4 Details of well and irrigation investment (Rupees/hectare of GCA) in the sample
farms, 2007-2008.

Investment Drip adopters Non-adopters

Investment on wells 3672.75***

(39.38)

3324.99
(57.44)

Investment on electric motors 2271.60

(24.36)

2306.65
(39.85)

Investment on surface storage tanks 54.73***

(0.59)

157.07
(2.71)

Investment on drip irrigation equipments 3326.83

(35.67)

Total investment on irrigation structures 9325.91***

(100.00)

5788.71
(100.00)

Distribution of horse power of pump
HP/pump 5.23 6.29

HP/GCA 4.45 4.50

HP/GIA 4.45 4.65

Note: Figures in parentheses indicate percentage to total.