world bank document...in jammu and kashmir included 5,000 ha of village woodlots, 1,000 ha of strip...

Document of

The World Bank

FOR OFFICIAL USE ONLY

Report No. 11837

PROJECT COMPLETION REPORT

INDIA

JAMMU AND KASHMIR AND HARYANASOCIAL FORESTRY PROJECT

(CREDIT 1286-IN)

APRIL 30, 1993

Agriculture Operations DivisionCountry Department IISouth Asia Regional Office

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 Equivalent

Name of Currency: Rupee (Rs.)

Rate of Exchange: Appraisal Year (1982) US$1.0 = Rs. 8.5Intervening Years (83/84-89/90) US$1.0 = Rs. 13.1Completion Year (1990/91) US$1.0 = Rs. 18.0

Fiscal Year of Borrower: April I - March 31Weights and Measures: Metric System

Abbreviations

CSSRI - Central Soil Salinity Research InstituteERR - Economic Rate of ReturnFAO - Food and Agriculture Organization of the United NationsFRR - Financial Rate of ReturnFWE - Fuelwood EquivalentGOH - Government of HaryanaGOI - Government of IndiaPCU - Publicity and Communication UnitSCF - Standard Conversion FactorSFW - Social Forestry WingVFC - Village Forestry CommitteesVFPC - Village Forest Protection Committees

FOR OFFICIAL USE ONLYTHE WORLD BANK

Washington, D.C. 20433U.S.A.

Office of Director-GeneralOperations Evaluation

April 30, 1993

MEMORANDUM TO THE EXECUTIVE DIRECTORS AND THE PRESIDENT

SUBJECT: Project Completion Report on INDIAJammu and Kashmir and Hanrana Social Forestry Project (Credit 1286-IN)

Attached is a copy of the report entitled "Project Completion Report on India - Jammuand Kashmir and Haryana Social Forestry Project (Credit 1286-IN)" prepared by the South AsiaRegional Office, with Part II contributed by the Borrower.

ne project achieved tree planting targets and contributed to human resourcedevelopment and increased awareness of forest protection and environmental conservation. Theproject outcome is rated as satisfactory. However, objectives in community participation were notattained and the transfer to community management has barely begun. This may influence the extentto which the project's benefits will reach the poorest segments of the population. Much more needsto be done in terms of effective plantation management. Accordingly, sustainability is rated asuncertain and institutional development as partial.

The completion report provides an adequate account of project implementation. Theproject may be audited along with other social forestry projects in India.

Attachment

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.

FOR OFFICIAL USE ONLY


INDIA

JAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY PROJECT(Cr. 1286-IN)

CONTENTS

Page No.

Preface ....................... iEvaluation Summary ....................... iii

P&tI Project Review from Bank's Perspective

Project Identity ........................ 1Introduction ....................... 1

A. JAMMU AND KASHMIR STATE SUB-PROJECT

Background ....................... 2Project Objectives and Description ....................... 2Project Design and Organization ....................... 3Project Implementation ....................... 4Project Results ....................... 9Project Sustainability ....................... 11Bank Performance ....................... 11Borrower Performance ....................... 13Project Relationship . ............................................ 13Consultant Services ....................... 13Project Documentation and Data ....................... 14

B. HARYANA STATE SUB-PROJECT

Background ....................... 14Project Objectives and Description ....................... 15Project Design and Organization ....................... 15Project Implementation ....................... 17Project Results ....................... 22Project Sustainability ....................... 24Bank Performance ....................... 24Borrower Performance ....................... 25Project Relationship ....................... 25Consultant Services ....................... 25Project Documentation and Data ....................... 26

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.

Part IProject Review from Borrower's Perspective


Evaluation ot banK's kerformance ......................... 2 7

Lessons Learned .................................... .. 27Evaluation of Borrower's Performance ........... .............. 27Lessons Learned .............................................. 28


Comments on Part I ............ 29Evaluation of Bank's Performance ......................... 34Lessons Learned ...... 34Evaluation of Borrower's Performance .......................... 34Lessons Learned .......................................... 35

PartII Statistical Tables

JAMMU AND KASHMIR AND HARYANA PROJECT

Table 1 - Related Bank Loans and/or Credits .............................. 36Table 2 - Project Tinittable ........................................ 37

JAMMU AND KASHMIR SUB-PROJECT

Table 3 - Credit Disbursements ...................................... 38Table 4 - Project Implementation ...................................... 39Table 5 - Project Cost and Financing .................................. 42Table 6 - Project Results .......................................... 43Table 7 - Status of Covenants ....................................... 46Table 8 - Mission Data and Staff Inputs (Jammu and Kashmir and Haryana) .... ...... 47

HARYANA SUB-PROJECT

Table 9 - Credit Disbursements .................................... 49Table 10 - Project Implementation .................................... 50Table 11 - Project Cost and Financing .................................. 53Table 12 - Project Results ......................................... 54Table 13 - Status of Covenants ...................................... 56

ATTACHMENT 1- JAMMU AND KASHMIR STATE SUB-PROJECT

Table 1 - Per Ha - Financial Costs and Benefits of Village Woodlot ............... 57Table 2 - Per Ha - Financial Costs and Benefits of Strip ..................... 58Table 3- Per Ha - Financial Costs and Benefits of Wetlands .................... 59Table 4 - Per Ha - Financial Costs and Benefits of Farm Forestry ................. 60Table 5 - Per Ha - Financial Costs and Benefits of Rehabilitation of Degrded Forest .. . 61Table 6 - Wholesale Price Index and Exchange Rates (Janmu and Kashmir and Haryana). 62Table 7 - Economic Analysis - Jammu and Kashmir Sub-Project ................. 63

ATrACHMENT 2 - HARYANA STATE SUB-PROJECT

Table I - Per Ha - Financial Costs and Benefits of Strip Plantation ............... 64Table 2 - Per Ha - Financial Costs and Benefits of Farini .orestry ................ c

Table 3 - Per Ha - Financial Costs and Benefits of Village Woodlots .............. 66Table 4 - Per Ha - Financial Costs and Benefits of Saline/Alkaline Plantation ......... 67Table 5 - Per Ha - Financial Costs and Benefits of Sand Dune Stabilisation .......... 68Table 6 - Per Ha - Financial Costs and Benefits of RDF Plantation ............... 69Table 7 - Economic Analysis - Haryana Sub-Project ......................... 70

ATTACHMENT 3 - ECONOMIC ANALYSIS - JAMMU AND KASHMIR,HARYANA, AND OVERALL PROJECT .................. 71

i


INDIA

JAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY PROJECT (Credit 1286-IN)

PREFACE

This is the Project Completion Report (PCR) for the Jammu and Kashmir and HaryanaSocial Forestry Project (Cr. No. 1286-IN) for which Credit 1286-IN in the amount of SDR 29.4million (US$33 million) was approved on August 3, 1982. SDR 12.5 million (US$14 million) ofthe credit was allocated to Jammu and Kashmir and SDR 16.9 million (US$19 million) toHaryana. The Credit was closed on March 31, 1991, three years behind schedule. The credit wasfully disbursed on January 31, 1991 and the final allocation was SDR 12.3 for Jammu andKashmir and SDR 17.1 for Haryana.

Parts I and III of this report were prepared by an FAO/CP project completion mission whichvisited India in June/July 1991 (Preface, Evaluation Summary, Parts I and III). Part II wasprepared by the States of Jammu and Kashmir, and Haryana. Due to travel restrictions at the timeno visits were undertaken to the State of Jammu and Kashmir.

The preparation of this PCR was based inter alia on the draft PCRs prepared by the states;the Staff Appraisal Report; the legal documents; supervision reports; correspondence between theBank and the Borrower; internal Bank memoranda, and discussions with Bank project staff in theNew Delhi Office and Forestry Department staff of the State of Jammu and Kashmir.

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INDIA

JAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY PROJECT (Cr. 1286-IN)

EVALUATION SUMMARY

Objectives

1. The project's primary objectives were to increase the supplies of fuelwood to rural areasthrough the establishment of tree plantations in private and public wastelands and degraded forestareas. Secondary objectives were to generate employment, to provide poles, small timber, foddergrass, fruits, oilseeds, and other minor products, and to strengthen the social forestry organizationwithin the State Forestry Department to carry out the plantation activities. The project was toestablish, over a six-year period, plantation development in 111,000 ha in the two States: 44,000ha in the State of Jammu and Kashmir and 67,000 ha in the State of Haryana. The planting targetin Jammu and Kashmir included 5,000 ha of village woodlots, 1,000 ha of strip plantations, 2,000ha of plantations on wetlands, 17,000 ha of rehabilitation of degraded forests, and 19,000 ha offarn forestry. The planting target in the State of Haryana included 12,000 ha of village woodlots,500 ha of plantations on saline/alkali affected lands, 9,500 ha of strip plantations, 30,000 ha offarm forestry, and 15,000 ha plantations on sand dune areas. The project also provided funds forthe expansion of the existing forest guard schools and forestry staff at the operational andextension levels, and strengthening research activities.

Implementation Experience

2. Plantations. Despite budget constraints, shortage of staff, and problems of mobility, theproject started promptly and exceeded the overall planting targets set at appraisal. The technicalperformance was not always satisfactory in Jammu and Kashmir but good in Haryana. Due todelays in the recruitment of staff, the plantations established during the initial periods of projectimplementation were carried out by the territorial forestry divisions. Moreover, except in laterstages of the project, little attention was given to the community's participation aside fromemploying people as laborers. The implementation of the plantations has remained essentially aGovernment-executed program. The implementation of the strip plantations component overlappedwith the territorial forestry division. It was terminated in Jammu and Kashmir and reduced inHaryana in 1988 because of the high cost involved. Implementation of soil and water conservationtechniques, improvement of pasture, plantations on sand dunes and saline/alkali-affected areas andwetlands in Jammu and Kashmir, and rehabilitation of degraded forests in Haryana have beenbeneficial not only in providing immediate benefits in terms of fuelwood and grass to theeconomically-disadvantaged sections of the populations but also in minimizing soil erosion andwater run-off resulting in the improvement of land productivity. The farmn forestry component interms of area planted proved to be the most successful and had exceeded expectations.

3. Supportive Services. Because of the concentration of attention to achieving targets under theplantation program, inadequate attention was given to the development of the support componentsand community participation in both sub-projects. The Social Forestry Wing (SFW) of theForestry Department was handicapped with inadequate research, training and extension support.Similarly, monitoring and evaluation had not been provided with the required support and

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attention for efficient information generation and feedback to management. Major problemsencountered were budget restrictions, delays in approval and recruitment of staff, inadequate stafftraining, and lack of operational guidelines particularly on research, nursery and plantation,communication and extension, and project monitoring. From the beginning the supportive role ofresearch in nursery and plantation operations was inadequate. In addition there was no preparedplan for follow-up training of field staff who were given only initial reorientation sessions. Littleattention was given to aspects related to communication, extension techniques and a betterunderstanding of the needs of intended target groups. The effectiveness of the Publicity andExtension Unit, and the Monitoring and Evaluation Unit, have not been optimal.

4. Community Participation. Community participation throughout the project implementationperiod was limited. Little attention was given to involve the intended participants and beneficiariesin the planning process. Major problems encountered were: (a) lack of leadership and interest inthe village panchayats due to inadequate publicity and motivation; (b) lack of a defined role for,and responsibilities of, the participating villagers and village panchayats and a policy on benefit-sharing which were not adequately defined at project design; and (c) non-availability of accessiblecommunity wastelands. To some extent, these have been corrected through the village micro-planning which started recently in 1989-1990, involving discussions with representatives ofdifferent socio-economic classes. The State Governments also recently issued Orders to transferthe responsibilities for forest protection, management and utilization and specify usufruct to villagepanchayats and the newly-constituted Village Forest Protection Committees (VFPC) in Haryana.The Village Forest Committees (VFC) continued to remain informal entities in Jammu andKashmir, although the State government supported devolution of authority in principle. SFWshave also begun to hand over the established plantations to village panchayats, VFPCs (inHaryana) and VFCs (in Jammu and Kashmir). However, the forest management plans have notbeen prepared nor members of village panchayats, the VFPCs, and VFCs, been trained to carryout the given responsibilities.

Results

5. In spite of the foregoing shortcomings, the project achieved its main objectives. In additionto accomplishments in the large-scale social forestry program, the project contributed to increasingskilled manpower for forestry development, and created and served the varied purposes ofevolving interest and awareness of the rural population in tree planting and environmentalconservation. The plantations established under the project have considerably increased the forestcoverage in both States. A total of 45 million mandays of employment were generated by theproject during the implementation period compared with 29 million estimated at appraisal. Inaddition, about 700,000 farmers benefitted from the farm forestry component, of which more thantwo-thirds were marginal and small farmers. The expected forest production over a period of 30years is estimated to reach about 34 million tons. The economic re-evaluation analyses show the re-estimated economic rates of return (ERRs) of 19 percent for the total project, 14 percent for theJammu and Kashmir sub-project, and 23 percent for the Haryana sub-project, as compared toestimated ERRs at appraisal of 27 percent for the total project, 34 percent for Jammu and Kashmir,and 19.5 percent for Haryana. In the case of Jammu and Kashmir, the lower ERR is due mainly tothe significantly lower survival rates, growth and yields, delayed benefits and cost overrun.

Project Sustainability

6. Despite the fact that most of the established plantations were mature for harvesting fuelwood,minimal harvests have been carried out. Forestry management plans are required for differentplantations in each agro-climatic zone, and are important for scheduling silvicultural treatments(thinning, coppicing, etc.) for regeneration, and for harvesting. In addition they facilitate in

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establishing benefit-sharing arrangements with the communities, which is crucial to thesustainability of the project. However, the forest management plans have not yet been preparedand the benefit-sharing agreement between the committees and its villages have not yet beensigned. The concept of handing over the plantations to village panchayats, VFPCs and VFCs forprotection, management and utilization was implemented only in 1989/90. But in order to ensurethe capability of members of these entities to properly sustain plantations, intensive training shouldbe provided.

Findings and Lessons Learned

7. The project suffered from a number of shortcomings, from design stage throughimplementation. The most important constraints were organizational and institutional. Theorganizational weaknesses in research and publicity, and training and extension, have resulted inpoor services to farmers and limited involvement of people in planning and management ofplantation activities. Problems encountered were budget constraints, shortage of staff, inadequatetraining, lack of operational directions and guidelines and coordination at field level. Theinstitutional constraints encountered were lack of leadership in the village panchayats, lack ofdefined roles and responsibilities of the participating villagers and village panchayats, and a policyon benefit-sharing, and non-availability of accessible community wastelands. The implementationexperience suggests a number of lessons. The most important are the following:

(a) While emphasizing that the attainment of physical targets was important, the supportivecomponents were neglected which had affected the quality of project implementation.Although the quantitative aspect was desirable in the short run, as degradation and socialamelioration require fast and immediate reaction, focusing on quality aspects of theprogram would have resulted in a much higher pay-off in the long run;

(b) Hiring of qualified consultants in designing/developing the programs of research,publicity, and extension. SFWs in both States economized on this aspect, and, to agreater extent, sacrificed efficiency and quality of the project implementation. Theorganization of research and publicity, and extension, remained weak due to lack ofoperational direction and shortage of trained staff. For monitoring and evaluation, theFAO/Bank operational guidelines were made available in 1986, though inadequatelyapplied in Haryana for want of operational direction and trained staff.

(c) The sustained management of plantations in government/public lands is only possible ifthe communities are involved in the project planning and selection of species and if theirparticipating role and responsibilities are defined and harvest rights known at the outset;experience in both States indicated that community participation was limited due to lackof involvement in project activities, a lack understanding of the objectives of the projectand the absence of assurance on the share of the expected benefits;

(d) Project design should consider not only the plantation establishment but also plantationmanagement through village protection committees for its sustainability. A sound forestmanagement plan is a major tool in the stumpage valuation of the plantations, inscheduling the much required silvicultuiral treatments, and in programming optimalharvests;

(e) Project design should consider the availability of private and public wastelands and theproblem areas (saline/alkali and sand dune affected areas, degraded forest areas), so thatadjustments in the plantation components and innovations could be correspondinglymade.

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(f) To minimize confusion and ensure successful project implementation, project preparationand appraisal should ascertain the State's budget constraints, staff availability, existingcapability of the Forestry Department, availability of lands, capability of the villagepanchayats, and socio-economic inequalities of the participating beneficiaries, and avoidcomplex objectives and plantation components. This project had too many plantationschemes with very little variation in terms of plantation establishment, financing andcommunity participation.


INDIA

JAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY PROJECT (Credit 1286-lN)

PART I. PROJECT REVIEW FROM BANK'S PERSPECTIVE

Project Identitv

Project Name Jammu & Kashmir and Haryana Social Forestry ProjectCredit No. 1286-INRVP Unit South Asia RegionCountry : IndiaSector ForestrySub-Sector Social Forestry

Introductifl

1. Forestr in India. The pressure on the India's forest resources has been critical, and theconcept of social forestry was instrumental in changing past trends. Population growth and thecorresponding demand for fuelwood and food, the increasingly excessive numbers of cattle in non-agricultural lands, and the continuous conflicts over property rights were identified as the mostsignificant factors leading to the rapid depletion of forest resources. As in neighboring countries,India has been facing an environmental crisis where the rates of soil erosion and sedimentationwere increasing, and the risks from floods and other climatic changes were clearly visible. Theenvironmental crisis was compounded by a high demand for fuelwood by rural and urbanhouseholds, and encroachment of the landless into the forest for subsistence needs. In areaswhere forest resources were already depleted, the environmental and fuelwood crisis was directlylinked to farmers' use of cow dung, agricultural residues and waste, which were all being used asfuel rather than as organic fertilizer, causing significant changes in land productivity and foodsupplies.

2. Forest Policv. The National Forest Policy of 1952 envisaged that balance andcomplementarity in land use were important, and claims of communities living in and aroundforests should avoid conflict with these objectives. The policy also recognized the need forestablishing tree planting programs that involved local people's participation, not only to sustainthe supply of timber, but also to promote the required supplies of fuelwood and fodder. Treeswere raised in farm lands, village and community wastelands, and natural forest areas. Inaccordance with the national forest policy, the management and utilization of village forests or fuelforests was to be entrusted to village panchayats.

3. The 1988 National Forest Policy became an extension of the previous policy and aims toensure environmental stability, ecological balance, efficient utilization of forest produce, and tomeet the fuelwood, fodder, forest produce and small timber needs of the rural and tribalpopulations. The stated national goal is to have a minimum of one-third of the total land area of thecountry under forest cover. The policy also envisages that all village and community lands notrequired for other productive purposes should be brought under tree crops and fodder cultivation.The policy outlines ownership rights over trees for individuals, particularly the weaker sections ofthe community.

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4. The Bank's Role in Social Forestry. The Bank's first intervention in the forestry sector, theMadhya Pradesh Forestry Technical Assistance Project (Cr. 609-IN, December 1975), wasdirected primarily towards the development of plantations for the pulp and paper industry. Sincethen, the main thrust of the Bank's operations in this sector has been on social forestrydevelopment, with five projects covering nine states. Each of these projects had the objectives ofincreasing the supply of fuelwood and providing poles, small timber, fodder and other minorforest products to those living in rural areas, with special focus on increasing employment andfuelwood supplies for landless farm laborers, and marginal and small farmers, production ofwood products from government and village wastelands and strengthening the social forestryorganization within the State Forestry Departments to carry out the plantation activities. The firsttwo social forestry projects were in Uttar Pradesh (Cr. 925-IN) and Gujarat (Cr. 961-IN) whichstarted in 1979 and 1980, respectively, and were closed five years later. The West Bengal (Cr.1178-IN) and Jammu and Kashmir and Haryana (Cr. 1286-IN) Social Forestry Projects were thethird and fourth projects in the sector which started in March and December 1982, respectively.After a three-year delay in execution, both Credits were closed in March 1991. On-going socialforestry projects are the following: Karnataka (Cr. 1432-IN), Kerala (Cr. 1514-IN) and theNational Social Forestry Project (Cr. 1611-IN) covering the states of Himachal Pradesh, Rajasthanand follow-up activities in Uttar Pradesh and Gujarat.


Background

5. The State of Jammu and Kashmir, with an area of 138,214 km2, has a population of about 6million in 1981 (7.7 million in 1991), of which 80 percent reside in the rural areas spread overnearly 6,000 villages. Agriculture plays a predominant role in the State's economy, accounting forabout 50 percent of State income and providing 70 percent of its employment. Livestock formsan integral part of village life. There is also sizeable migratory goats and sheep grazing in the highAlpine pastures in the north and the Shiwalik hills in the south. Per capita income was low atUS$116 (1977), compared with the all-India average of US$160. Population pressure andincreasing numbers of livestock (estimated at 6 million) involve a continued and rising demand forfuel, fodder and essential building materials. This has resulted in indiscriminate tree-cutting,increasing erosion, creating large tracts of barren waste lands in the southern and western parts ofthe State and increasing degradation of forests in the north. To address the problem of shortages,the State has planned investments for large-scale afforestation and improved management ofexisting forests. About 35 percent of the State forests is practically devoid of tree cover andneeds reforestation. Within the State, there are some 341,000 ha of waste and marginal landsincluding areas along roads, irrigation canals and railways which are suitable for afforestation.

6. In 1979 total energy consumption in the State was estimated at 6.2 million tons of fuelwoodequivalent (FWE), of which 4.2 million tons FWE was met from fuelwood, 1.8 million tons fromdung cake and 0.2 million tons from commercial sources. Considering the low purchasing powerof the rural population, a significant increase in the use of commercial energy would be unrealisticin the future. The use of fuelwood and cow dung is expected to continue to predominate.

Project Objectives and Description

7. Prject Objectves. The project's primary objective was to increase supplies of fuelwood torural areas through the establishment of 44,000 ha of plantations located in 12 districts of the State.Secondary objectives were to provide poles, small timber, fodder grass, fruits, oilseeds and other

3

minor products. To carry out this program the project was to provide training facilities, vehicles,housing, equipment and additional staff for research and extension activities.

8. Project Description. During a five year period the project was to:

(a) establish 5,000 ha of village woodlots;(b) rehabilitate and reforest 17,000 ha of degraded forests;(c) establish 1,000 ha of strip plantings along roads, canals and railroads;(d) establish 19,000 ha of farm forestry on private lands;(e) establish 2,000 ha of plantings on wetlands;(f) establish additional nurseries to provide planting stock;(g) expand the existing Forester/Forest Guard schools;(h) provide forestry staff at the operational and extension levels, including staff to support

publicity, research, training, and monitoring activities;(i) strengthen research activities, and construct tree seed storage godowns;(j) develop training of project staff including provision of fellowships; and(k) carry out a wood balance study.

Prime responsibility for implementation would be with the Social Forestry Wing (SFW) in theForestry Department. Total project cost was estimated at US$27.9 million (Rs. 237.4 million), ofwhich US$0.7 million would be in foreign exchange. The SDR12.5 million credit (US$14 millionequivalent) was to finance 100 percent of foreign exchange costs and 48 percent of the localcosts or 49 percent of the total project costs. The remaining 51 percent was to be financed by theGovernment of India (GOI) and the State Government of Jammu and Kashmir.

Project Design and Organization

9. Project Design. In view of environmental degradation and scarce natural forest resources,the project concept was well founded and was consistent with the national forest policy,promoting tree plantings through private and community participation. The project also aimed athanding over the established plantation to local communities through the panchayat system forprotection, management and utilization.

10. The project was formulated by the Jammu and Kashmir State Forestry Department in 1980and appraised by the Bank in late 1981. Project preparation was based on methodologiesdeveloped in carrying out the various plantation components with peoples' participation in theStates of Uttar Pradesh, Gujarat and West Bengal. Project preparation and appraisal were timelysince postponement would have resulted in greater difficulties and costs, as forest degradation andsocial amelioration require fast and immediate reaction. These were adequately considered in theproject design. One distinguishing feature of the project design was its flexibility -- the capabilityfor making on-site amendment.

11. Main adjustments during project appraisal were: a reduction of the planting targets in thevillage woodlots component; strengthening of research, the Publicity and Extension Unit andtraining; establishment of the Monitoring and Evaluation Unit; hiring consultants to assist SFW inestablishing the Publicity and Extension, and Monitoring and Evaluation Units; and to carry out awood balance study. Problems and risks foreseen at appraisal were: (a) the distribution of freeseedlings to farmers might lead to waste; (b) the village panchayats may not be sufficientlymotivated or organized to manage the village woodlot and rehabilitation of degraded forest throughplantations; (c) remote locations and limited availability of accessible community wastelands would

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delay implementation; and (d) limited experience of the Forestry Department in the area of farmforestry, and the self-help village woodlot and rehabilitation of degraded forestry componentswould hamper implementation of these components.

12. At the design stage, however, prescription for research was highlighted without thoroughlyassessing the capability of the Forestry Research Division. Research could have been improvedand strengthened by engaging local consultants to help the research division in drawing up therequired program and undertake the experiments. The quality standards for nursery and plantationestablishment operations were also not clearly prescribed. Although the need for fodder wasconsidered in the overall project design for plantings, the improvement of pasture component wasnot identified.

13. While plantation establishment was exhaustively considered, subsequent arrangements fordistribution and sharing of forest produce was not adequately prescribed. The extreme need formanagement plans was and is now more than ever seriously felt in the context of large growingstocks. It is a major tool in the stumpage valuation of the plantations, in scheduling the muchrequired silvicultural treatments and in programming optimal harvest. The forest management planis a valuable guide leading to project sustainability.

14. Organization. The organization structure for the SFW, although still having some minorimperfections, was indeed well thought out. The Chief Conservator of Forests had encompassingauthority, and was entrusted the responsibilities of Project Director. He was assisted by twodistinct groups of line and staff personnel including the field operation unit with a Conservator ofForest in each circle for Jammu and Kashmir. These field units were complemented by supportstaff from headquarters.

15. One of the important and necessary functions of SFW was to win the goodwill andcooperation of the villagers and the effective conduit was through the panchayats. The structureand functions of the panchayats seem to have been tailor-fitted to the requirements of the SFW.Firstly, in the Block Panchayat Board, there is provision for the representation of women.Secondly, panchayats have two functions, one compulsory, which requires a panchayat to getinvolved in the protection of all agricultural lands from floods and erosion, and the other,discretionary, which is the right to plant trees, including fruit-bearing trees, on wastelands.SFW's Publicity and Extension Unit, in collaboration with hired motivators, established goodworking relationships in demarcating wastelands for social forestry programs. This provided thecomplete organizational structure, functional enough for effective implementation of the socialforestry program. The organization, however, was weak in three areas; (a) research; (b)publicity, extension and training; and (c) monitoring and evaluation which received low priority interms of logistics and staffing. These weaknesses were reflected in the prevailing low survivalrates and the considerable number of villagers with little knowledge about project objectives, andtechniques and benefits of the social forestry program. The plan to engage experienced localconsultants to help the SFW in developing operational guidelines for the implementation ofresearch was never implemented.

Project Implementation

16. Changes to Design. Due to the significant unutilized credit balance at the end of the originalCredit closing date in December 1988, several adjustments were made during the extensions ofclosing date between 1988/89 and 1990/91. Durinig these extensions the project was restructuredto strengthen research activities and to increase planting targets, especially for village lands and

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degraded forest areas, using cheaper and replicable technologies, including resuscitation fromviable rootstocks. The participation of the Village Forest Protection Committees (VFPC) and theVillage Forestry Committees (VFC) in forestry planning, implementation, protection andoperation, were also introduced during these extensions. Planting targets were increased from44,000 ha to 86,000 ha as follows: village woodlots, from 5,000 ha to 5,800 ha; rehabilitation ofdegraded forests, from 17,000 ha to 20,200 ha; strip plantings, from 1,000 ha to 2,300 ha;wetlands, from 2,000 to 4,100 ha; and farm forestry, 19,000 to 53,600 ha. The improvement ofpasture, designed to alleviate the shortage of fodder for nomads and landless cattle herders, wasintroduced in 1988 where stylo and napier grass for fodder production were planted on overgrazedlands, and institutional plantings were started in 1989 on unproductive and idle lands within thecompounds of government and private institutions. The village panchayats were dissolved in1984, and, since 1988, forestry protection and management functions became the responsibilitiesof village committees. That same year, the guidelines on village micro-planning, and the plantationtechnical and management manuals, were introduced.

17. General. The project started promptly in 1981 and the physical achievements exceeded thetargets set at appraisal, but the technical performance of the plantations was below expectations asindicated by the low survival rates. Poor quality of seedlings, drought, short planting season,poor maintenance and inadequate protection in early years were major reasons. In subsequentyears the overall performance improved. Poor technology and inadequate extension, however,persisted. Moreover, due to delay in the approval and recruitment of field staff positions, most ofthe plantations were carried out by the Forestry Department's territorial division as a government-run program with little people's participation. Achievements in farm forestry have far exceededexpectations but the rate of survival is low due to a lack of follow-up extension services afterdistribution of seedlings and planting. Because of the concentration of attention to achievingtargets under the plantation program, the important supportive components were only partiallyimplemented. SFW was handicapped with inadequate research, training and publicity, andextension support. Similarly, monitoring and evaluation was not provided with the requiredsupport and inadequate attention was paid to efficient information generation and feedback tomanagement. Major problems encountered were budget restrictions, delays in approval andrecruitment of the required staff, inadequate staff training, shortages of housing, and problems ofmobility. Shortage of staff housing, though a persistent problem was mitigated by the provision ofrent and travel allowances.

18. There was no doubt about the capability of the SFW to implement a social forestry programof this magnitude. The deficiency lay in the seemingly low overall response of the villagers,especially the landless and marginal farmers to the social forestry project. As mentioned earlier,because the physical target was over-emphasized, the support staff who were supposed to doextension were mobilized for the operational aspect of the project. Up to this time, the socialforestry project has remained a government-managed program overshadowing the intended widescale participation of the villagers.

19. Nurseries. SFW had established and managed a total of 310 nurseries covering an effectivearea of about 423 ha and producing a total of 213 million seedlings. There were 196 nurseries inJammu and 114 nurseries in Kashmir. By contrast, there were only 27 kissan (private) nurserieswhich produced a total of 3 million seedlings. Since there were difficulties in disposing seedlingsespecially because accessible areas for tree plantings in farm forestry have become scarce, closureof some 15 departmental nurseries (8 in Jamimu and 7 in Kashmir) covering 9 ha was necessary.Most of the species raised (Poplar and Robinia) were limited to fuelwood, pole and timber and the

6

quality was rather low due to poor seedling quality and nursery techniques. This reflected on thetechnical capability of the SFW since Poplar technology is reasonably well-developed in India.

20. Plantations. Five plantation components had different conceptual bases for establishment,management, harvesting, marketing, legal and funding. A total 44,000 ha of plantations were tobe established in 12 districts in the State. All were aimed primarily to increase supplies offuelwood to rural areas.

21. Village Woodlots. A total of 5,000 ha of plantations were to be established with emphasison fuelwood and fodder species. SFW was to establish plantations for each village panchayat,maintain the plantations for about five years with the cost to be borne by SFW but localpopulations would participate in protecting the plantations and thereafter the village panchayatwould take over management, protection and utilization.

22. A total of 5,934 ha plantations, or 118 percent of the appraisal target, were established bySFW and maintained for three years with little villagers' and panchayats' participation inprotection. Moreover, SFW began handing over the plantations to VFCs only in 1988-89 (para.16) rather than to panchayats as envisioned at appraisal (which by 1984 had become a moot issueafter the panchayats had been dissolved for political reasons). The survival rates ranged from 20percent to 40 percent, the lowest among the components. Problems in dealing with thepanchayats especially in demarcating lands for plantations were partly minimized through theinvolvement of VFC. Poor quality seedlings, inadequate maintenance and protection due to lack ofSFW's supervision during outplanting activities were major factors. It was only in 1987 whenfencing and more intensified protection were carried out and plantations attained slightly highersurvival. Close spacing of Im by Im resulted in overcrowding and slow growth.

23. Strip plantatons. SFW would establish 1,000 ha of plantations along roads, canals andrailways. Villagers nearby would be allowed to collect free of charge grass, fodder, fallen woodand tree loppings from the plantations in return for helping in the protection of plantations.Fuelwood would be the dominant species (Poplar, Robinia, Ailanthus) with fruit trees in theKashmiri plantations.

24. A total of 2,381 ha was established, or 238 percent of the appraisal target. As in the caseof village woodlots, close spacing of Im by Im and some Im by 1.5m without subsequentthinning resulted in overcrowding and poor growth. Survival rates were 65 percent in 1982-83plantations, 78 percent in 1983-84 plantations and 70 percent in 1984-85 plantations. The overallsurvival rate was reasonably good at 73 percent.

25. Wetland plantations. About 2,000 ha of plantations was to be established on state-ownedpermanently inundated wetlands. Village panchayats which are adjacent to the plantations wouldcollect fallen wood and tree loppings under the supervision of forestry staff. SFW would recoverits costs from the sale of fuelwood.

26. It was only in this component where 2m by 2m spacing was observed in the 3,431 ha ofestablished plantations. The survival rate ranged from 60 percent to 70 percent. Anticipatedproduction of fuelwood would start at Year II and once every 5 years thereafter for twoconsecutive productions; small timber at Year 11 and Year 21.

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27. Farm forestry. A total of 19,000 ha plantations was to be planted on privately-ownedwastelands and field boundaries requiring about 47.5 million seedlings which would be distributedto farmers free of charge. Replantation density was 2,500 stem per ha on spacing of 2m by 2m.

28. A total of 126 million seedlings were distributed to about 530,000 farmers and 62 institutionsand a total of 49,600 ha were established, or 261 percent of the appraisal target. Approximately80 percent of beneficiaries who received free seedlings were marginal and small farmers andhave less than 2 ha of land. Most of the participants planted trees primarily for commercialpurpose, and it was in this component that active farmer participation has gone beyond expectation.However, due to lack of adequate publicity and extension after distribution of seedlings (para. 18),the spacing was too close and seedlings used were of poor quality resulting in a low survival rateof about 50 percent. The over-supply of free seedlings to farmers by SFW, in order to achievemore physical target, likewise led to significant waste and high density of trees per ha.

29. During 1989 and 1990, SFW introduced the distribution of free seedlings with the maximumlimit of 1,000 seedlings per family and a price of Rs.0.37 per bare-root seedling and Rs.0.70 perseedling in polyethylene bag beyond the limit. However, the distribution of free seedlings wasdiscontinued and a nominal price of Rs.0.10 per seedling is now in effect. The State governmenthad recently simplified the procedure for felling of trees on private lands, but restrictions ontransportation act as disincentive to private planting.

30. Rehabilitation of Degraded Forest. A total of 17,000 ha plantations was to be established torehabilitate and reforest degraded State-owned forest reserves through replanting with fuelwood,fodder, grass and bamboo. Labor was to be recruited from nearby panchayats for establishmentand maintenance. Villagers would be free to collect fallen wood, fodder and tree loppings underthe supervision of forestry staff and at first harvest, 25 percent of yield would be given to theadjacent village panchayats to be distributed to the villagers. In return villagers would refrain fromillegal activities in state owned forests.

31. Achievement was 20,100 ha which exceeded the appraisal target by 18 percent. Closespacing of Im by Im resulted in overcrowding and poor growth. The survival rate was between13 percent and 60 percent especially for those plantations established during initial years of theproject.

32. Forestr Education. Various training and educational programmes were implemented. SFWutilized the facilities of the Soil Conservation Training School in Jammu and Kashmir fororientation seminars and staff training. A total of 72 Social Forestry Workers and 990 motivatorsreceived training and orientation seminars. Forty foresters received special training which lastedabout 37 weeks and all other staff underwent brief orientation sessions. However, training inskills related to non-technical aspects of social forestry did not receive adequate attention. Inparticular, local participation in planning and execution, communication and participationtechniques should have been focused upon. Advantage was not taken of the potential fordeveloping a well-trained and motivated cadre of junior staff since Social Forestry Workers willremain posted in SFW.

33. Local/Overseas Fellowships. SFW was to send senior staff for local and overseasfellowships in social forestry management and extension. Because training came only in the lateryears of project implementation, its impact was limited. Starting in 1988, a total of 38 senior staffhad been sent to mostly ten-day or less workshop/refresher courses on social forestry extensionwithin India. Only one officer attended an overseas workshop on monitoring and evaluation.

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34. Research. The research support for SFW remained weak dLue to budget and staff limitations.The non-hiring of an experienced local consultan1t to guide the Forestry Research Division wasanother contributory factor to the ineffective support from research. It was only in 1990 that aresearch laboratory was constructed in JammLu and several works have been in progress includingthe following: (a) standardization of nursery techniqiues; (b) comparison of the germination of pre-treated and non-treated Eucalyptus seeds; (c) study of the performance of Eucalyptus hybrid; (d)germination studies on Dalbergia sisso. Emblica officinalis and fruit trees; (e) sowing studies onLeucaena leucocephala; and (f) vegetative propagation of 11 forest tree species. The programincluded: species selection and provenance trials; growth and yields modelling; and silviculturemanagement; but no socio-economic studies were undertaken.

35. Extension. Communication and Publicity. Support was provided for the creation of aPublicity and Communication Unit (PCU) to develop materials and carry out public relationsactivities. PCU launched special campaigns, whic'h it developed, during the planting seasonthrough mass media and distributed handouts and pamphlets. PCU and forestry field staffundertook various types of activities related to motivation and demonstration with farmers, villagerleaders, schools, other government institutions and the public at large. During 1983-90,community participation programmes were condtucted for 1,347 farmers camps, 178 orientationsessions, 259 school seminars, 139 field excursions, 330 motivation camps for 1,020 motivatorsinvolved in social forestry activities and 15 drawings sponsored.

36. Monitoring and Evaluation Unit. This unit was created in late 1982 and its performance wasgenerally satisfactory. It prepared a number of quarterly progress reports and undertook a series ofuseful studies related to extension contact, community participation, distribution of benefits, socio-economic characteristics of the participant beneficialries, and feedback from farmers and communityleaders on SFW's activities. Its work in later years was carried out with the use of the"Operational Guide to Monitoring and Evaluation of Social Forestry in India" prepared jointly bythe Bank, the Food and Agriculture Organization, and the Central Inspector General of Forest.However, M&E reports were generally not made available annually due to time taken to collect dataand delays in processing them. Moreover, it appears that the former project management did notgive adequate attention to make use of the findings and recommendations but the situationimproved during the latter part of project implementation. Due to shortage of staff and funds and alack of management's attention, the Monitoring and Evaluation Unit has not carried out growth andyield assessments.

37. Studies. Because of a lack of accurate information on consumption and availability offuelwood and forest-based products in the State, a wood balance study was undertaken andcompleted in 1987 by the Jammu and Kashmir Directorate of Economics and Statistics. Fiveadditional studies, including the Nomadic Cattle Grazers, VFC, Eucalyptus marketing, andFuelwood Consumption in Srinagar City and Management of Social forestry Plantations, wereundertaken as recommended by the Bank during the implementation period. The wood balancestudies lacked a clear statement on methodology used and merely presented information on thepros and cons of various methods of determining household energy consumption and futuredemand, and the estimated availability of wood products from the natural forests and privateplantations. Information provided in the study on VFC was useful for planning of social forestryprogram with people and community participation. Initially there was difficulty in getting long-term local consultants for the development of the faculty in communication and extension; thenthere was reluctance (in both Jammu and Kashmir and in Haryana) to engage them even for short

9

periods, and the reason given was that State officials were receiving training, within and outsidethe State, in the same discipline.

38. Participation of Villagers and CommLunity. A model contract between communities and SFWwas developed at appraisal which specified the nature of the participation expected from each partyand the arrangement for cost-benefit sharing. The employment of labor under the project was tobenefit mainly the landless and the disadvantaged sections of the rural population. Regardingpeople's participation (paras. 21-25), SFW would encourage villagers' participation and assistvillage participants in demarcating wastelands for village woodlots and rehabilitation of degradedforest plantations, as the panchayats had been dissolved in 1984.

39. The model contract provided a good conceptuall framework for people's participation in theprotection and management, and distribution of benefits but did not specify who the project wasexpected to benefit and how the benefits were to be shared, resulting in insufficient attention todocumentation of the beneficiaries, and different views on the distribution of benefits. Generally,there was little participation of the villagers in the planning and execution of SFWs plantations. Atbest, village leaders have been consulted about the site and the responsibilities including selectionof farmers who need seedlings and kissan nurseries and villagers for employment in SFW 'splanting activities. The Monitoring and Evaluation report indicated that majority of landless,marginal and small farmers benefited from employmlenit generation and the distribution of seedlings(para. 28).

40. Initially, the SFW, with assistance of the Social Forestry Workers, carried out villagewoodlot and rehabilitation of degraded forest activities through village panchayats. However, dueto political reasons the village panchayat system was dissolved in 1984, so SFW tended to workinformally with villager leaders. When village woodlots and degraded forest rehabilitation wereestablished in earlier years, an agreement was nomially, but not always, signed between SFW andthe respective village panchayats. Since 1988 the State issued an order to institutionalize VFCsand entrust them with the responsibilities of plantation protection and management. To date 145village forest committees have been formed. Village forest committees formed around villagewoodlots have signed agreements with SFW but none of the committees formed aroundrehabilitated degraded forests had signed any agreemenits due to lack of clear policy on the rightsof the communities. Moreover, although agreements have been signed with VFCs, in some cases,the VFC's members do not know about the provisions since these were neither read nor discussedwith them, which indicate a lack of attention given to participation by SFW. The micro-planningwhich was supposed to involve people's participation in the development of social forestryactivities has so far not yet started.

41. Though village forest committees have been formed, little effort has been put into thearrangements for the distribution of benefits between these committees and villagers. Since mostof plantations were mature for harvesting, and more woUld become so, there is an urgent need todevelop such arrangements.

Project Results

42. Overall, the project achieved its main objectives. In addition to implementing a large-scalesocial forestry program in 12 districts, the project also contributed to increasing skilled manpowerfor forestry development and awareness of the rur1al population in forest protection andenvironmental conservation. By 1990, the project had generated a total of about 15 million man-days of employment compared to 12 million mandays estimated at appraisal. However, though a

10

majority of the poorer segments of the population benefited from employment, women accountedfor only 3 percent. About 530,000 farmers benefited from the distribution of seedlings, ofwhich 80 percent have less than 2 ha of land. Despite the low survival rates, growth and yieldsof all the plantations, the expected increase of wood production is estimated to be about 8.6 milliontons compared with the appraisal estimate of about 10.6 million tons. There would be about 3.8million tons of fuelwood, 4.6 million tons of small timber, 0.2 million ton of fodder and grass,and 44,000 tons of leaves. At appraisal, these were estimated to be 4.2 million tons of fuelwood,5.0 million tons of small timber, 414,000 tons of fodder, 836,000 tons of fruits, 105,000 tons ofleaf charcoal and 64 million pieces of bamboo/poles. The significantly lower production, despite86 percent increase in the planting areas, is due mainly to the extremely low plantation survivalrates, growth and yields brought about by a combination of low site quality, poor silviculturaltreatment and poor seedling quality. The reported raltes of survival were 40 percent for villagewoodlots and rehabilitated degraded forests, 50 percent for farm forestry, 65 percent forwetlands and 70 percent for strip plantations. The aInnIal yields at harvest are estimated to be 2.2t/ha for fuelwood, 2 t/ha for small timber, 0.3 t/hal for fodder and grass compared with theappraisal estimates of 2.2-7.5 t/ha for fuelwood, 5-15 t/ha for small timber, 0.1- 4.0 t/ha forfodder and grass. There is no production of bamboo due to non-availability of bamboo seedlings,while production of fruits would be insignificant. To date, the most common benefit received fromvillage woodlots and rehabilitated degraded forests are fodder and grass, and in almost all caseslocal villagers can cut and carry without charge.

43. The financial and economic analysis was undertaken in 1990 constant prices. The financialcost and benefit streams of the five plantation mocdels are presented in Attachment 1, Tables 1-5.Survival rates, growth and yields of plantations were based on sample surveys conducted by theMonitoring and Evaluation Unit. The establishment and maintenance costs were based on SFW'sactual costs incurred in 1990. The financial value of forest produce was calculated using theaverage financial stumpage prices prevailing in the project areas. The results of financial analysescalculated over a period of 21 years, show the estimated financial rates of return (FRR) at 32percent for the farm forestry, 23 percent for village woodlots, 17 percent for the wetlandsplantation, 16.5 percent for the strip plantation and 1 2 percent for rehabilitated degraded forestplantation. The economic re-evaluation was carried out over a period of 30 years. All project costsincurred during the implementation period were included in the analysis and adjusted to 1990constant prices by using the wholesale price index as shown in Attachment 1, Table 6. Local costsand unskilled labor were further adjusted into border price by applying the Standard ConversionFactor (SCF) of 0.80 and Specific Conversion Factor of 0.60 respectively. Recurrent costs afterproject completion, excluding fellowships, Monitoring and Evaluation, and studies, have beenassumed at 25 percent of its 1990 actual costs. The economic benefits of forest produce werevalued at the financial prices adjusted by SCF of 0.80. The economic cost and benefit streams ofthe Jammu and Kashmir sub-project are presented in Attachment 1, Table 7. The result of theanalysis show a re-estimated economic rate of retUrn (ERR) of 14 percent, which is 20 percentlower than the appraisal estimate of 34 percent. The lower ERR is due mainly to thesubstantially low survival rates, growth and yields, delayed benefits and cost overrun.

44. Impact. The impact of the project is examined against the following background: (a) thetopography of Jammu and Kashmir is rugged and the State experiences extremes of climaticchanges; (b) the highly diverse socio-economic and cultural backgrounds of the population resultedin varying perceptions, needs and attitudes towards environnmental rehabilitation and management;(c) the organizational and institutional aspects for implementation was satisfactorily defined; and(d) the project components were implemented in different agro-climatic zones -- flat lands, slopingto mountainous areas. Viewed in this light, the project, despite its setbacks, managed to proceed in

11

accordance with the schedules and targets. It also served the varied purposes of evolving interestamong the rural population in community forestry development. The establishment of about49,000 ha of farm forestry and 27 kissan nurseries increased people's participation in plantingtrees and establishing private nurseries by landless and marginal farmers. The establishment ofplantations in rehabilitated degraded forests and the improvement of pasture areas created forestryawareness among nomads.

45. The increased production of wood products from the lowland plantations and theemployment generated by the project helped reduce exploitative human activities on the alreadydegraded environment. Correspondingly, the nutrient cycling by the community plantations willprogressively improve soil build-up most especially in the higher slopes. Rainfall interception bythe forest canopy and litter will likewise cushion the impact of throughfalls protecting the groundsurface from the scouring effects of rain, at the same time increasing percolation, retardingdownslope movement of water which otherwise would result in sheet and gully erosion. Theincreased percolation recharges aquifers which gradually release water in the form of springs thatfeed waterways and irrigation systems. The increase in supply of water in the lowlands helps theagricultural system and improve land productivity. SFW's plantations, if allowed to developprogressively, would result in the stability and productivity of the agricultural system whichstabilizes the human settlements. The magnitude of the social forestry program definitely has acorresponding broader impact on the social as well as economic well-being of the local people.


46. SFW has successfully implemented the first large-scale social forestry program throughvarious schemes with the Bank's assistance. During the implementation period, the publicdemands for this program and community awareness of the environmental conservation havegrown beyond expectations although active community participation had not proceeded to theanticipated levels. SFW has demonstrated its capability to implement its present program and evenan expanded social forestry programme in the future. However, qualitative aspects of programimplementation remain weak. The organizational weaknesses in research, training and extension,and monitoring and evaluation, have resulted in poor service to farmers. Despite the fact that mostof the established plantations were and more would become mature for harvesting, little effort hasbeen put into the distribution of benefits and marketing of produce. These are critical to thesustainability of the established plantations. The concept of handing over the plantations oncommunity and forest lands to the community for protection and management had not beeneffectively implemented until 1988-89 when these responsibilities were entrusted to village forestcommittees in place of the panchayats. To date 145 of these committees have been formed andinformal agreements on benefit sharing between them and the SFW were arranged for committeesformed around rehabilitated degraded forest areas. But forest management plans and the formalagreement for distribution and sharing of benefits between the committees and its villagers have yetto be signed and intensive training are required for both SFW and committee staff in order toensure their capability to properly sustain the plantations.

Bank Performance

47. A total of ten missions were fielded with appropriate staff specialists. However, lack of staffcontinuity and coordination resulted in differing views, and disjointed recommendations had madeit difficult for the Borrower to fully benefit from such missions' suggestions. Generally, theintervals between missions were appropriate. Recognizing the urgency and importance of theproject, the Bank remained flexible and when the Government needed more time for project

12

completion, it granted the requests for extension. This allowed the Government to plan itsactivities and achieve the physical targets. Overall, Bank's assistance to the Government fromproject appraisal to its completion had been beneficial.

48. The following Bank's recommendations to the Government of Jammu and Kashmir werehelpful and useful:

(a) setting a limit on number of seedlings distributed to marginal farmers and pricing ofseedlings to minimize waste and to ensure proper maintenance and protection ofplantings;

(b) involvement of rural people in the planning and execution of the social forestry program,and the introduction of the village micro-planning;

(c) preparation of forestry management plans for different agro-climatic zones andplantations, and arrangements for distribution and sharing of benefits between VFC andvillagers;

(d) to carry out plantation growth and yields assessments;

(e) to carry out social, economic and technical studies to monitor farmer beneficiaries,people's participation, plantation performance, as well as a wood balance study, in theState and;

(f) to undertake research on nursery techniques, species, plantation/ silvicultural studies.

49. There were, however, some areas where the Bank should have given closer attention evenbefore the start of the project and during implementation:

(g) hiring of consultants to provide technical guidance in planning and execution of technicaloperations in project implementation;

(h) specification of quality standards for nursery operation and plantation establishment;

(i) providing a methodology to arrive at a common approach in estimating the area of theestablished plantations which remained a nagging problem. This was compounded bythe absence of an operational map even in the district level so that targets and boundariescould have been delineated along natural features making ground verification moreconvenient and reliable. The role of the Monitoring and Evaluation Unit in this regardwas very important in enforcing adherence to quantity standards and specification;

(j) supportive components should have been given equal priority with plantation operations.Experience in Jammu and Kashmir showed that implementation of research, extensionand peoples' participation lagged far behind and remained weak and;

(k) preparation of plantation management plans for different plantations in each agro-climatic zone and the arrangements for distribution and sharing of benefits should havebeen a condition for Credit extension.

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Borrower Performance

50. The Borrower performed satisfactorily during project preparation and implementation. SFWhas shown its capability to implement a large-scale social forestry project. It introduced importantinnovations in the improvement of pasture and institutional planting schemes compatible with theprimary objective. In spite of the constraints in counterpart financing and staffing, and thecomparatively difficult topography, SFW was able to achieve its physical targets. It had to dealwith national, State, district and local Government institutions, which at times had conflictingviews on land use for village woodlots, restrictions on extraction of forest products from thenatural forests and private plantations resulting in some degree of delays and inconvenience. Theoverall project coordination through the State and District Policy Review Committees was adequateand beneficial for annual program planning. However, implementation of the supportivecomponents were not given adequate priority and remained weak throughout the implementationperiod. Financial and staff resources and training and extension were deployed below the requiredlevel. Consultant services were never provided to the extent required for the development ofprograms for research, communication and extension, monitoring and evaluation. Little attentionhas been given to involve villagers in planning and execution of plantations and the distribution ofbenefits.

51. The Borrower substantially complied with the Credit covenants and the Bank'srecommendations during supervision missions (para. 48). However, late submission of thecertificate of audit reports delayed approval of Credit extension and disbursements. Delays inissuing an order for the formation of VFC and policy on the distribution of benefits between VFCand villagers had greatly affected the community participation. The Borrower has so far failed toprepare plantation management plan and growth and yield assessments, but partially complied withthe provision of staff housing. The latter had minimal effect on implementation.

Project Relationship

52. The Bank, through its Resident Mission, maintained good relationships with the CentralGovernment and the Government of Jammu and Kashmir. This relationship was particularlyuseful and significant when the Borrower was unable to utilize 50 percent of the Credit by theend of the original Credit closing date in December 1988. The Bank responded quickly toGovernment's request to extend the project implementation period by three years and to increasethe disbursement rates. The Bank initiated low-cost technology for soil and water conservationand its assistance in the preparation of the plantation technical manual, and the guidelines on thevillage micro-planning and monitoring and evaluation (para. 48) were useful and appreciated by theBorrower.

Consultant Services

53. Funds for 120 man-months of local consultancy time were provided to cover monitoring andevaluation, communication and extension. Due to budget constraints and lack of attention in SFW,only a few local consultants were utilized for studies (para. 37). The data and findings proveduseful for the planning of social forestry activities. Under Central and State governments'procedure of local competitive bidding, no difficulty was encountered for the construction ofbuildings and procurement of vehicle and equipment.

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Project Documentation and Data

54. The main documents governing project implementation were the Staff Appraisal Report andits project files and the legal documents. These documents were generally well prepared andprovided useful conceptual frameworks for the Bank and the Borrower to implement the projectand monitor its progress. However, the Staff Appraisal Report did not provide sufficientoperational guidelines on the implementation of the research program, the identification ofbeneficiaries, the role of community, the mechanism for distribution of benefits, monitoring andevaluation of the project, including growth and yields.


Background

55. The State of Haryana, with an area of 44,212 kM2, has a population of 16.3 million, ofwhich 80 percent live in rural areas spread over nearly 7,000 villages. About 20 percent of thepopulation is scheduled castes. Since its formation in 1966, the State has made excellent progressin increasing agricultural production, which in 1988/89 accounted for 45 percent of its total Stateincome and 65 percent of its employment. With an annual per capita income of US$300 (1988),Haryana is ranked second among the Indian States.

56. The total forest area in Haryana increased from 1,600 km2 in 1981 (3.7 percent of the totalgeographical area) to about 3,400 km2 in 1988 (7.7 percent). About 50 percent of the presentforest area is plantation and about 35 percent in narrow strips along roads, canals, railways andembankments. Most forests are of the northern tropical deciduous type. In 1986/87, forestry'scontribution to State income was estimated at 1 percent. These figures, however, took noaccount of the considerable quantities of fuelwood, small timber, thatching grass and medicinalherbs taken by villagers as well as illicit felling. Total wood production from the State forests was46,000 m3 of timber and 187,000 m3 of fuelwood. In addition, minor forest products wereextracted, including bamboo, gum/resin and fruits. So far, nearly two-thirds of the land availablealong roads, rails and canals have been planted to trees. Most wastelands belonging to panchayatshave also been planted to trees, but a substantial amount of village common lands and wastelandsis still available in the southern part of the State. These areas have been affected by alkali/saline(600,000 ha), mobile sand dunes (620,000 ha), and forest degradation (200,000 ha) in theShiwalik and its foothills and the Aravalli hills, which need to be improved and protected fromfurther environmental degradation.

57. Haryana's domestic energy requirement is met primarily by fuelwood and cow dung.Although all villages are electrified, commercial sources of energy are too costly for widespreaduse as domestic fuel, and these sources supply only about 5 percent of the total needs. In 1979total annual energy consumption in Haryana was estimated at 12 million tons of fuelwoodequivalent (FWE), of which only 0.5 million tons FWE was met from commercial energy and thebalance from fuelwood (8 million tons FWE) and cow dung (3.5 million tons FWE). Due to lowper capita income of the rural populations a significant increase in the household use of commercialenergy cannot be expected in the near future. The use of fuelwood and cow dung is expected tocontinue to predominate.

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Project Objectives and Description

58. Project Objecties. The project's primary objective was to increase the supplies of fuelwoodto rural areas through the establishment of 67,000 ha of plantations located in all 12 districts (now16) of the State. Secondary objectives were to provide poles, small timber, fodder grass, fruits,oilseeds and other minor products. In order to carry out this program, the project provided fortraining facilities, vehicles, housing, equipment and additional staff for research and extensionactivities.

59. Project Description. During a six-year period the project was to:

(a) establish 12,000 ha of village woodlots;(b) establish 500 ha of plantations on alkali lands;(c) establish 9,500 ha of strip plantings along roads, canals and railroads.(d) establish 30,000 ha of farm forestry on private land;(e) establish 15,000 ha of plantations on sand dunes;(f) establish additional nurseries to provide planting stock;(g) expand the existing Forester/Forest Guard Schools;(h) provide forestry staff at the operational and extension levels, including staff to support

publicity, research, training and monitoring activities;(i) strengthen research activities, and construct seed godowns;(j) develop training of project staff including provision of fellowships; and(k) carry out a wood balance study.

60. Prime responsibility for implementation would be with the Social Forestry Wing (SFW) ofthe Forestry Department. Total project cost was estimated at US$39.2 million (Rs. 333.1 million),of which US$0.7 million would be in foreign exchange costs. The Credit of US$19 million(SDR15.2 million) was to finance 100 percent of foreign exchange costs and 48 percent of thelocal costs making up in all 49 percent of the total project cost. The remaining 51 percent was tobe financed by GOI and the State Government of Haryana (GOH).

Project Design and Organization

61. Project Design. In view of the environmental degradation and scarce natural forestresources, the underlying assumptions and concept of the project were to increase supplies offuelwood, small timber and fodder for rural populations. The project concept was well-foundedand consistent with the national forest policy which promoted tree plantings through private andcommunity participation. Rehabilitation of degraded forests was introduced in 1988 andafforestation of saline and alkaline lands augmented. The project also aimed at handing over theestablished plantations to local communities through the village panchayat system for protectionand management.

62. The project was formulated by the Haryana Forestry Department in 1980 and appraised bythe Bank in late 1981. The design of the project was based on earlier methodologies developed andexperiences gained in carrying out various plantations with various levels of people's participationin other States. The design had also drawn lessons from earlier experiences of the ForestryDepartment in implementing social forestry programs since 1960. The substantial area ofwastelands in the southern portion of Haryana available for tree plantations was considered in theproject design. These areas included the vast sand dunes and saline/alkali lands needingstabilization and rehabilitation. Besides tree plantations, there was little or no appropriate

16

technological package suitable for the environmental development and conservation of the degradedforest area.

63. Main adjustments during project appraisal were: reduction of planting targets in thesaline/alkali lands; strengthening of research, communication/extension and training; establishmentof the Publicity and Extension, and the Monitoring and Evaluation Units, hiring of localconsultants to assist SFW in establishing such units; and to carry out a wood balance study.Problems and risks foreseen at appraisal were that: (a) village panchayats may not be sufficientlymotivated or organized to protect and manage the self-help village woodlots and strip plantations;(b) limited experience in the Forestry Department to implement the saline/alkali plantations; and(c) potential difficulties in obtaining State's approval for adequate fund and staff for a larger scaleprogram. These necessitated establishment of both the Monitoring and Evaluation, and Publicityand Extension Units to monitor performance of the project's various plantations, and people'sparticipation, and strengthen various forestry programs of education, training, publicity andextension, as well as revitalization of SFW staffing.

64. The strip plantation component was terminated in 1988 because its activities overlapped withthe regular operations of the territorial forestry divisions in Forestry Department. Rehabilitation ofdegraded forests was included during the project extension period in order to address theenvironmental problems in the foothills of the Shiwalik. Implementation of this new component ledto innovations in social forestry which resulted in increased supplies of fuelwood, fodder andgrass to the poorer sections of the population and in reducing soil erosion and water run-offresulting in improvement of land productivity (para. 80). The group farm forestry was another newapproach in the social forestry program. SFW organized villagers in saline/alkali- and sand dune-affected lands into contiguous blocks for tree plantations to take turns in maintaining and protectingthe plantations. This approach is similar to the group farm forestry initiated by SFW in WestBengal.

65. At the design stage, however, prescriptions for research was highlighted without thoroughlyassessing the capability of the Forestry Research Division. The required research programs tosupport nursery and plantation operations were also not adequately identified. Similarly, thearrangements for distribution and sharing of forest produce and the forest management plans,which valuable elements of project sustainability, were not prescribed. Later however the StateAgricultural University at Hissar was involved in various related contract research andconsultations between the SFW and the Central Saline Soil Research Institute in Karnal concerningsaline and alkaline soils were held.

66. Organization. The organizational structure of SFW was reasonably sound. The successfulimplementation of the social forestry program depended very much on the effectiveness of socialforestry staff whose main responsibility was to work with rural people and motivate them towardsgreater participation in community forestry. The Publicity and Extension Unit, in collaborationwith Village Forestry Workers, established a good working relationship with village panchayatsand farmers in demarcating marginal and wastelands for the self-help village woodlots and thesaline/alkali and sand dune plantations. SFW's Staffing details are provided in Part III, Table 10.This provided the complete organizational structure, functional enough for effective implementationof social forestry programs. However, the recommended staffing and training were not fullyprovided for research, publicity and extension, and monitoring and evaluation, which resulted inpoor generation of technical information to guide operational staff in carrying out project activities,inadequate motivation and extension to foster peoples' participation in forest protection andmanagement, and inadequate assessment of the project performance. Due to budget constraints,

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the staffing position of SFW at project completion was only 71 percent of the requirementenvisaged at appraisal.

Project Implementation

67. Changes to Design.. Due to a significant unutilized credit balance at the end of the originalcredit closing date in December 1988, several physical, organizational and institutionaladjustments to the project were made during the extension period between 1988/89 and 1990/91.Main purpose of such adjustments were to enlarge the planting program, to address theenvironmental problems, to strengthen forestry support activities, and to encourage communityparticipation in project planning and plantation establishment, protection and management. Theplanting targets were increased from 67,000 ha to 98,400 ha as follows: village woodlots, from17,000 ha to 23,700 ha; sand dune stabilization, from 15,000 ha to 19,000 ha; saline/alkali, from500 ha to 4,700 ha; and farm forestry, from 30,000 ha to 38,500 ha. The strip plantationcomponent under the project was terminated in 1988 and transferred to the territorial forestrydivisions in the Forestry Department and the rehabilitation of degraded forests was initiatedthrough the in-situ soil and water conservation activities in the Shiwalik foot hills on sloping areas.This was done by digging staggered trenches and planting forest trees with 2m x 4m spacing andgrasses at Im x lm.

68. General. The project started promptly in 1981 and the physical achievements exceededappraisal targets. The plantations had a relatively high survival rate of about 80 percent. SFWsucceeded in establishing a total plantation of 104,000 ha, including 38,000 ha of farm forestry, or155 percent of the appraisal target of 67,000 ha. Similar to social forestry projects in other states,the plantations on government and community wasteland remained essentially a government-executed program with limited community participation. Due to lack of attention, budgetrestrictions, delay in the approval and recruitment of staff, and inadequate training, several supportactivities were only partially implemented. From the beginning, the support role of nurseryresearch and plantation operations was inadequate. There was no training plan for field staff incommunication, extension techniques and a better understanding of the needs of intended targetgroups. The Publicity and Extension had not been effective due to weak coordination with staff atfield levels. Community participation had been mainly in terms of panchayat members beingconsulted by SFW about site selection and employment.

69. Nursery. The nursery requirements were based on the area coverage of the plantationcomponents by district as follows: village woodlots in seven districts; sand dune stabilization insix districts; saline/alkali plantations in four districts; farm forestry in seven districts andrehabilitation of degraded forests in three districts. In each district at least one department's centralnursery was established with many subsidiary nurseries. Many kissan nurseries were alsoestablished with SFW 's assistance. A total of 1,784 nurseries were established which produced atotal of about 180 million seedlings. SFW had established 163 nurseries producing about 120million seedlings, while 1,523 nurseries were established by farmers (kissan) and 98 nurseriesestablished by schools, together producing a total of 40 million seedlings (para. 74). Most ofseedlings raised (Eucalyptus. Poplar. Dalbergia. Acacia tortiles and Prosopis juliflora. Acacianilotica. etc.) were species for fuelwood, poles and small timber. Fruit trees of seed origin werealso supplied. The nursery operations remained poor due to low quality seedlings and nurserytechniques.

70. Plantations. 67,000 ha was to be established in 12 districts (now 16 districts). Allcomponents were aimed primarily to increase the supplies of fuelwood, poles and small timber to

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rural areas. About 104,000 ha of plantations were established and its technical performance wasgood as indicated by the high survival rates ranging from 80 percent to 90 percent.

71. Vil age Woodlio. 12,000 ha of plantations was to be established. SFW was to establish aplantation in each village panchayat, maintain the plantation for 5 years with local people'sparticipation in protection. Starting in the fifth year, protection and maintenance would be theresponsibility of the village Panchayat (para. 89).

72. A total of 25,293 ha of plantations were established, or 210 percent of the appraisal target.Main species planted were Acacias on public lands and Eucalyptus on private lands. The averagesurvival rate was good at 80 percent. Conflicting views of village panchayats over the use ofvillage or community lands resulted in delay in the plantation establishment in some areas which,however, was minimized through more consultations between SFW and the village panchayats.

73. Strip plantations. A total of 9,500 ha of plantations were to be established along roads,canals and railways. The plantations would be owned by the Forestry Department but villagesadjacent to the strip plantations were allowed to collect grass, fodder, fallen wood and treeloppings free of charge while helping SFW in protecting the plantations (para. 89). By 1987, atotal of 9,500 ha of plantations were established, slightly exceeding the appraisal target. Mostspecies planted were Eucalyptus and the spacing was at 2m x 3m. Cattle intrusion and browsingwere the main problems during implementation but these were minimized by leaving open spacesfor cattle passage ways.

74. Farm Forestry. At appraisal it was estimated that about 75 million seedlings (2,500 per ha)would be distributed to owners of private wasteland for plantings on about 30,000 ha. SFW wasto provide seedlings free of charge and to transport them to distribution points in villagepanchayats. Priority would be small farmers with less than 2 ha of land holdings. A total ofabout 87 million seedlings were distributed to about 171,000 farmers for the planting areas of40,200 ha. Of the total seedlings distributed, about 40 percent and 50 percent reached marginaland small farmers, respectively. Main species were Eucalyptus and Poplar. The planting spacingwas 2m by 3m for both species. The average survival was good at 90 percent. The problem laynot only in how to motivate people towards farm forestry but also to regulate the conversion ofgood agricultural lands into pure tree plantations which was, and is, contrary to the State's aim ofincreasing food production. Initially, the farm forestry appealed more to large farmers, especiallythe absentee landowners, who used their lands for tree plantings to prevent encroachment bylandless and marginal farmers. Small and marginal farmers joined later. The study conducted byMonitoring and Evaluation Unit indicated that about 80 percent of the total seedlings distributedby SFW were planted on lands which were previously cropped, and 25 percent of farmers whohad taken seedlings diverted agricultural lands to tree plantings. Initially, SFW started distributingfree seedlings to all recipients. In 1984 SFW distributed seedlings with an upper limit of 400 perfamily to marginal and small farmers and charged a nominal price of Rs.0. 15 per seedling to largefarmers and institutions. However, since 1985, due to administrative difficulties in managing thesystem, SFW stopped the distribution of free seedlings and introduced a uniform seedling price ofRs.0.25 per seedling to all recipients. However, seedlings continue to be subsidized so that theactivity is not self-sustaining.

75. Sand dune stabilization. SFW was to establish 15,000 ha of plantations on sandy individualor panchayat-owned lands. SFW would establish at least 15 ha of plantations for each sand dunewoodlot and provide for water transport since water was scarce on the site. The establishment andmaintenance costs over a period of three years would be borne by SFW which would expect to

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recover these costs from the first major harvest. However, afforestation of private sand duneswith project funds continued which should have been borne by the owner.

76. SFW established a total 20,270 ha of sand dune plantations, or 135 percent of the appraisaltarget. Most of the areas were planted to Acacia tortilis with 2m x 4m spacing. Trees attained anaverage survival rate of 80 percent. Castor seeds were interplanted as nurse crop during the first2-3 years to minimize the adverse effects of frost on the trees. It was in the sand dune plantationswhere SFW has shown its capability to grow trees even in very hot, dry and drought conditions.

77. Due to difficulties in motivating village panchayats, most of the plantations were establishedon private lands where a group of farmers, mostly large farmers, with contiguous stretchwastelands, organized themselves for tree plantations. Therefore, there were no socially relatedproblems encountered during project implementation. The stabilization effects of tree planted in thesand dune areas showed desirable impact in holding the soil-sand mixture. However, the size ofeach plantation in many areas appeared to be too small to have adequate impact on stabilizing sanddune in adjacent agricultural lands.

78. Saline/Alkali Lands. A pilot scheme of 500 ha of plantations was to be established onsaline/alkali affected private or panchayat lands. SFW was to establish, maintain and protect thepilot plantations and all costs were to be borne by SFW. The performance of the plantations wouldbe carefully monitored by the Central Soil Salinity Research Institute (CSSRI) at Karnal. SFW wasalso to provide funds to meet the costs of materials and equipment for establishing trials andmonitoring of results (para. 83).

79. Physical achievements of 5,142 ha of plantations has far exceeded the appraisal target. Theimplementation has also gone beyond the pilot scheme. SFW has adopted the farmer groupapproach which was workable under the sand dune stabilization component and would recover theestablishment and maintenance costs, excluding the cost of seedlings, free of interest fromparticipants. The plantations were established using saline resistant species such as Prosopisjuliflora. Terminalia arjuna and Acacia nilotica as the main species for fuelwood. The problemwith juliflora was its long spines, although it was found to thrive well on the site. Anotherspecies, Tamarix articulata was planted in 1988-89 and was found adaptable to saline/alkali lands.Spacing of 4m x 2m was observed in saline/alkali land plantings and a survival rate of about 90percent was obtained. Pit preparation was necessary to assure survival but besides beingcumbersome and tedious, it was also costly. A pit is normally 120 cm deep and 20 cm wide,requiring an exacting soil mixture of 3 kg gypsum, 8 kg manure, 10 kg silt and the rest to fill thepit consisting of local soils. To overcome the tedious pit preparation, a mechanical auger with adiameter of 20 cm attached to a farm tractor was tried and found to be more efficient and effective.

80. Rehabilitation of Degraded Forests. This was an innovation introduced by the Bank in 1988with the primary objective of controlling erosion and enhancing water conservation. A total ofabout 3,510 ha were established using various species mostly Acacia spp. Cedrela, and Dalbergiaspp. with spacing of 3m x 4 m. No serious problems were encountered during implementation.Staggered trenches with grass plantings were the main features of this component which is themainstay of the in-situ water and soil conservation techniques. The plantations attained an averagesurvival rate of about 80 percent. The work carried out was impressive and proved to generateimmediate benefits in terms of fuelwood and grass.

81. Forestry Education. The training program did not proceed as anticipated at appraisal nor didthe GOH sanction the required posts in the forestry schools. Moreover, no consultant was hired to

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assist in developing the training course for the Village Forestry Workers. 580 new recruits weretrained at Pinjore using the syllabus for forest guards. In addition, 35 Deputy Rangers and 98Foresters were trained at the Forestry Training School at Pinjore. Twenty women were recruitedduring the first half of the project but none of them attended training at Pinjore. The women'sdormitory constructed under the project was, therefore, never used by women but by men trainees.

82. LocaVOverseas Fellowships and Training. During project implementation, five SFW staffwere sent for overseas courses of more than 8 weeks in the UK where three attended a course onsocial forestry and two attended a course on land survey and planning. In addition, six other staffwere also sent overseas for about two weeks of study tours and seminars on social forestry. Twofellowships were given for a diploma course in social forestry at the India Forest Research Institutein Dehradun. This appeared to be a particularly good course and appropriate people were selectedto attend. In addition, a wide range of staff from SFW attended local workshops on social forestryfrom 2 to 17 days duration. In a few instances the same persons were sent to more than onecourse or workshop. A total of 55 staff benefitted from attending various courses and workshops.However, teaching staff at Pinjore, with a few exceptions, have benefited neither from overseasnor local fellowships and training.

83. Research. Throughout the implementation period, research remained weak. Although SFWfelt the need for research support, budget, staff and logistics were not sufficient for a functionaland effective research unit. There was also a lack of a clear direction on research methodologyalthough a framework was prepared by the Bank at appraisal. It was only during the projectextension period that the cooperative efforts between SFW and the Department of Agro-forestry inthe Haryana Agricultural University have been formalized and some meaningful research work wasundertaken. The success of SFW in its saline/alkali lands rehabilitation activities was among thefew impressive results of forceful research undertaking. A number of research programs had alsobeen drawn up including the silvicultural studies (nursery and plantations), management (rotation,growth and yield studies), agro-forestry (cropping intensity in combination with forest species),biomass utilization (alternative uses of other products aside from wood), protection, wildlifemanagement, and socio-economic studies.

84. Extension. Communication and Publicity. Support was provided for the creation of twoPublicity and Communications Units to develop materials and carry out public relations activities.Eight Publicity Officers were to be employed in each of the eight divisions to coordinate all thepublicity activities. The staff complementarity was to be reinforced by field staff from otherdivisions so that PCU was able to reach farmers with motivational messages through mass media.Funds were also provided for a local consultant to help in developing publicity and extensionprogrammes.

85. Only one unit was established at Ambala District in the northern forestry circle. Two ChiefPublicity Officers and two Publicity Officers were recruited but the local consultant was neverhired. Nevertheless, the Unit carried out a commendable program. It trained 27,362 farmers (11percent women) at one-day farmer camps, provided motivational and instructional training to 2,738school teachers (27 percent women), and 3,845 village volunteers workers in the Ministry ofHuman Resources. Through mass media and public relations activities, it had created an awarenessamong policymakers and village leaders.

86. To expand extension coverage at the village level, the Unit was drawn into working with theextension network where the Greening of Haryana Program was launched in 1990. The Unit haddeveloped monthly extension messages to be communicated to farmers through the network.

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However, the extent to which the messages were passed through the network had not yet beenstudied. With the emphasis given to tree plantings under the Greening of Haryana Program, it islikely that some extension agents have used these messages.

87. Monitoring and Evaluation Unit. This Unit was established in 1982 but its efforts werehampered by serious shortages of staff and a lack of guidelines on monitoring and evaluation. Thereports produced were not made available on time due to delays in data analyses and reportfinalization. Moreover, inadequate attention was given by management in utilizing the findings ofthe analyses in project planning and implementation. Nevertheless, the Unit's work in the latterpart of project period was carried out with the use of the "Operations Guideline to the Monitoringand Evaluation of Social Forestry in India" prepared jointly by the Bank, FAO and the Office of theInspector General of Forests of India. The Monitoring and Evaluation Unit produced onecomprehensive report in 1990. The surveys included plantation survival rates in one district,people's participation and selected growth and yield assessments. The Unit could have preformedbetter had the services of an experienced consultant been availed of in developing a Monitoring andEvaluation Guideline in the earlier years of the project.

88. Studies. At appraisal funds were provided a socio-economic study and a wood balancestudy to provide a data base for planning of social forestry development activities in the State. Awood balance study was carried out by the National Council of Applied Economic Research in1986-87 and published in 1988. The study, however, did not define the methodology used andmerely presented information on the pros and cons of various methods of determining householdenergy consumption, future demand, and the estimated availability of forest products from theState forests and private plantations. Due to SFW's lack of attention, the socio-economic studywas not undertaken.

89. Participation of Villagers and Community. The Model Contract between communities andSFW was developed at appraisal which specified the nature of the participation expected from eachparty and the arrangement for cost-benefit sharing. It pointed out that the distribution of seedlingsfor private plantings and the right to gather minor produce from plantations on government andcommunity lands would particularly benefit the poor. The employment of labor under the projectwas to benefit mainly the landless and the disadvantaged sections of the rural population.Regarding community's participation, SFW would encourage villagers' participation and assistvillage panchayat in demarcating wastelands for village woodlots and plantations for rehabilitationof degraded forests. SFW was to establish the plantations and maintain them for five years butlocal people would participate in protection and thereafter the villagers and village panchayatswould take over the full responsibilities and rights over the management, protection andutilization. After SFW's recovery of the direct cost of a plantation, excluding the cost ofseedlings, from the first major harvest, the remaining sale revenues would be given to the villagepanchayat for use in either financing public works or establishing additional village woodlots.Villagers would be allowed to collect fallen wood and tree loppings from plantations and share aminimum of 25 percent of the harvestable yields. Regarding the strip plantation, in exchange forprotection, villagers would be permitted to collect minor forest produce, fallen twigs and leaves,and to cut and carry grass free of charge. At every thinning/harvesting, the net proceeds fromsales, after deducting the plantation and maintenance costs, would be given to village panchayatsand villagers adjacent to the plantations.

90. The Contract Model provided a good conceptual framework for people's participation in theprotection, management and distribution of benefits but did not specify the beneficiaries and howthe benefits would be distributed, resulting in insufficient attention being given to documentation

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of the beneficiaries and different views on the distribution of benefits. Throughout theimplementation period, with the exception of village leaders, there has been generally very littleparticipation of the villagers in the planning and execution of SFW's plantation. At best, villageleaders have been consulted about the site and the responsibilities including selection of farmerswho needed seedlings and kissan nurseries and villagers for employment in SFW's plantingactivities. The Monitoring and Evaluation report indicated that the landless and majority ofmarginal and small farmers benefitted from employment generation and the distribution ofseedlings.

91. Initially, people's participation has mainly been through consultations between SFW andvillage panchayats. In some cases the agreements were signed, otherwise there was only a generaldiscussion. With the introduction of the village micro-planning in the last three years of projectimplementation, more attention had been given to involve villagers in the selection of speciesdesired.

92. Since village panchayats have numerous functions, greater attention to forest protection wasshifted to the VFPCs, a sub-committee of the village panchayat, which were institutionalizedunder the State's Order in 1990. Although there were about 3,700 villages involved in 63,500 haof SFW's plantations on government/community lands, to date only 160 VFPCs have been formedand some 7,300 ha of three year old plantations were handed over to them. However, because theplantations which were handed over were not adequately protected and maintained, SFW haddecided to hand over the plantations after five years when trees are fully established. The need forthe SFW to continue to protect the plantations also suggests the insufficient involvement of thelocal people in planning and managing the plantation. Furthermore, members of VFPCs have notyet received training on forest management to make them feel confident about taking over the givenresponsibilities. Since most of the plantations were, and more would become, mature forharvesting, there is an urgent need to accelerate the involvement of more VFPCs for betterparticipation.

93. GOH in 1990 issued a State's Order on cost recovery of SFW's plantations and the benefit-sharing between VFPC and villagers. Regarding the cost recovery, there is only one uniformsystem for all SFW's plantations. The Order stipulated that SFW will recover the direct plantationestablishment and three-year maintenance costs, excluding the cost of seedlings, free of interest,from proceeds of sales from the first and/or second major harvests, the balance would bedistributed between VFPCs and their members. Under village woodlots and the rehabilitateddegraded forest plantations, 75 percent of the benefits are retained by VFPCs for communitydevelopment and the remaining 25 percent are distributed equally among members in addition tofree collection of minor forest products. However, the guideline given to VFPCs by SFW statedthat the forest produce would be sold to village members of VFPCs at the average auction prices ofthe last three years. This would not permit the economically disadvantaged sections of thecommunity to benefit from the benefit-sharing system but would give unfair advantage to thosewealthy villagers who could pay for the forest produce. In regard to strip plantations, in manycases the village panchayats still have not designated people to protect the plantations.

Project Results

94. Overall, the project achieved its main objectives. In addition to implementing a large-scalesocial forestry program in the 16 districts, the project also contributed to increasing skilledmanpower for forestry development and awareness among the rural population in forest protectionand environmental conservation. Up to 1990, the project generated a total of about 30 million man-

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days of employment and created 1,050 permanent jobs as compared to 17 million man-days and1,420 permanent jobs estimated at appraisal. Employment of women accounted for about 20percent. In terms of the increased wood production, it is estimated to be about 25.1 million tons, ornearly double the appraisal estimate of about 13 million tons of wood products and grass. Therewould be about 15 million tons of fuelwood, 3.9 million tons of small timber, 88,300 tons ofcastor seeds, 3.4 million tons of grass and fodder, 1.7 million tons of Bhaber grass and 1 milliontons of dry fallen wood. At appraisal, these were estimated to be 9.7 million tons of fuelwood, 1.2million tons of small timber and 1.6 million tons of fodder, 0.4 million tons of fruits, 120,000 tonsof grass and 18,000 tons of castor seeds. The significant higher production is due mainly to thesubstantial increases in the planting areas by 55 percent rather than in growth and yields. Basedon the sample surveys conducted by the Monitoring and Evaluation Unit, the reported annualyields at harvest range from 4.2 t/ha for fuelwood, 1.9 m3/ha for small timber, 2.8 t/ha for grassand fodder and 0.2 t/ha for castor seeds compared with the appraisal figures of 1.9-8.7 t/ha forfuelwood, 0.3-1.4 m3 /ha for small timber, 2 t/ha for fodder and 0.4 t/ha for castor seed.

95. The financial and economic analysis was undertaken in 1990 constant prices. The financialcost and benefit streams of the six plantation models are presented in Attachment 1, Tables 1-6.Survival rates, growth and yields of plantations are based on sample surveys conducted by theMonitoring and Evaluation Unit. The establishment and maintenance costs are based on SFW'sactual costs incurred in 1990. The financial value of forest produce was calculated using theaverage financial stumpage prices prevailing in the project areas. The results of financial analysescalculated over a period of 21 years, showed the estimated financial rates of return (FRR) of 24percent for the farm forestry, 11 percent for village woodlots, 34 percent for sand dunestabilization, 13 percent for the strip plantation, 7 percent for rehabilitated degraded forestplantation and 2 percent for saline/alkaline plantation. The low financial rates of return for thesaline/alkali and rehabilitated degraded forest plantation components is due mainly to the relativelyhigh plantation costs including soil treatment and soil and water conservation. The economic re-evaluation was carried out over a period of 30 years. All project costs incurred during theimplementation period were included in the analysis and adjusted to 1990 constant prices by usingthe wholesale price index as shown in Attachment 1, Table 6. Local costs and unskilled labor werefurther adjusted into border price by applying the Standard Conversion Factor (SCF) of 0.80 andSpecific Conversion Factor of 0.60 respectively. Recurrent costs after project completion,excluding fellowships, Monitoring and Evaluation, and studies, have been assumed at 25percent of its 1990 actual costs. The economic benefits of forest produce were valued at thefinancial prices adjusted by SCF of 0.80. The economic cost and benefit streams of the HaryanaSub-project are presented in Attachment 2, Table 7. The result of the analysis show a re-estimatedeconomic rate of return (ERR) of 23 percent, compared with the appraisal estimate of 19.5percent.

96. Impact. The impact of the project can be assessed in terms of achievement of the projectobjectives of the generation of employment, increases in the supplies of wood production andnumber of beneficiaries, and environmental impact. Despite several drawbacks in the supportivecomponents and people's participation, SFW successfully accomplished all the planting programand even far exceeded expectations especially in the saline/alkali, sand dune and farm forestryplantations. The accomplishment in the plantations since 1976 significantly increased the forestcoverage in the State from about 4 percent to about 8 percent. SFW also successfully createdpublic demands for tree plantings and awareness among rural people and policymakers onenvironmental conservation. About 171,000 farmers benefitted from farm forestry, of which 90percent of total farmers were marginal and small farmers. Total employment generated during theproject implementation period was about 30 million man-days, of which women accounted for

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20 percent. The increased forest produce and employment generation benefitted the majority ofthe poor sections of the populations and helped in reducing further damage to the already degradedenvironment.

97. The project has significantly positive environmental impact. The rehabilitated degradedforests, sand dune and saline/alkali plantations helped to improve soil and water conservation, sanddune stabilization, micro-climatic conditions and soil fertility restoration. Protection of plantationsfrom grazing and browsing, and the cut-and-carry method of fodder and grass harvest also helpedimprove the soil and increase water infiltration.


98. SFW successfully implemented the first large-scale social forestry program through variousschemes with IDA's assistance. It had demonstrated its capability to implement its own programand has the capacity to implement expanded social forestry activities in the future. However, thequalitative aspects of program implementation remained weak. The organizational weaknesses inresearch, training and extension resulted in poor services to farmers and insufficient involvementof local people in planning and managing the plantations, as evidenced by the need for SFW tocontinue to protect and manage the three year old plantations. Although 6,350 ha of plantationswere already handed over to 160 VFPCs, none of VFPCs' members have received training onforest management, and common property joint management and protection, which are critical tothe sustainability of the plantations which were handed over. Since most of the plantations were,and more would become, mature for harvesting, there is urgent need to accelerate the handing overof the established plantations and the involvement of more VFPCs for management, protection andutilization.

Bank Performance

99. During the eight-year project period there were ten missions in Jammu and Kashmir andeleven in Haryana. Six out of seven missions between June 1984 and April 1988 was staffed,among others, by a forester, and all the five missions thereafter, allowing for continuity in projectsupervision which benefitted project implementation. Overall, the Bank's assistance to the State,from project appraisal to its completion, had been generally beneficial. Recognizing the urgencyand importance of the project, the Bank remained flexible and when the Borrower needed time forproject completion, it granted the requests for extension. The following Bank's recommendationsto the State and SFW were useful and helpful to project implementation: (a) to involve ruralpopulation in project planning and execution, and the introduction of the village micro-planning;(b) setting a limit on number of seedlings distributed to marginal and small farmers and pricing ofseedlings to large farmers and institutions; (c) to prepare forestry technical management plans fordifferent plantations in each agro-climatic zone; (d) to carry out plantation growth and yieldassessments; and (e) to involve the Department of Agro-Forestry in the Haryana AgriculturalUniversity and the Central Soil Salinity Research Institute (CSSRI) in carrying out experiments onagro-forestry and in saline/alkali lands on species adaptability, planting technique, and monitoringthe performance of plantations.

100. There were, however, some areas where the Bank should have given closer attention andrequired some conditionalities for Credit extension: (a) development of supportive componentsshould have been given equal priority with plantation operation. Experience showed that theimplementation of research, publicity and extension, and people's participation lagged far behindand have remained weak; (b) hiring of qualified consultants to provide guidance in planning and

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execution of technical operations in project implementation; and (c) providing recommendation toSFW to revise the method of the distribution of benefits using the average auction price of the lastthree years which prohibited the participation of the disadvantaged sections of the populationwithin VFPCs (para. 84).

Borrower Performance

101. The overall performance of the Borrower was satisfactory. SFW proved its capability toaccomplish a much larger planting program. Public demands for, and awareness of, tree plantingsand environmental conservation have grown beyond expectations and were recognized by ruralpeople as well as by policy makers. The implementation of the saline/alkali component wentbeyond the pilot scale and was well accepted by farmers. SFW followed the Bank'srecommendations and implemented the rehabilitation of degraded forests component in order toaddress the environmental problem and to provide fuelwood and grass to the disadvantagedsections of the population. However, the much-needed plantation management plans, which was arequirement in scheduling silvicultural treatments, harvesting regime and regeneration forsucceeding cycles, was not given priority and adequate preparation. Moreover, the stand-and-stockinformation on SFW's plantations had not yet become available which is important for theestimation of future wood supply and stumpage valuation. The overall project coordination throughthe State and District Policy Review Comrnmittees was beneficial for annual program planning.

102. The Borrower substantially complied with the legal covenants and most of the Bank'srecommendations (para. 99). However, many of the required staff positions remained unfilledresulting in ineffective operations, weak supervision and insufficient support services to farmers.SFW failed to employ consultants to help in designing/developing program of research, publicityand extension, and Monitoring and Evaluation. GOH was slow in giving policy directives on thetransfer of the responsibilities of plantation protection, management and utilization to villagepanchayats and VFPCs. This had seriously affected the community's participation in the projectdue to lack of assurance on the expected share of benefits. Although GOH partially complied withthe provision of staff housing, housing rental was only provided in the latter periods of projectimplementation.

Project Relationship

103. The Bank maintained a good relationship with GOI and GOH through its resident mission.This relationship was particularly useful and significant when the Borrower was unable to utilize50 percent of the Credit by the end of the original Credit closing date in December 1988. TheBank responded quickly to Government's request to extend the project implementation period bythree years and to increase the disbursement rates. The Bank's recommendation on rehabilitationof degraded forests with soil and water conservation techniques was beneficial. Its efforts inhelping to integrate the SFW's extension with the extension network and assistance in thepreparation of the plantation technical manual and the guidelines on the village micro-planning andmonitoring and evaluation were useful and appreciated by the Borrower.

Consultant Services

104. Funds for 96 man-months of local consultancy were provided to cover monitoring andevaluation, publicity and extension, and a wood balance study. Due to budget constraints and lackof attention in SFW, only one local consultant was utilized for the wood balance study. Under

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GOI/GOH procedure of local competitive bidding, no difficulty was encountered in theconstruction of buildings and procurement of vehicles and equipment.

Project Documentation and Data

105. The main documents governing project implementation were the Staff Appraisal Report andits project files and the legal documents. The documents were generally well prepared and provideda useful framework for the Bank and the Borrower to implement the project and monitor itsprogress. However, the Staff Appraisal Report did not provide sufficient operational guidelineson: (a) the implementation of the research program; (b) the identification of beneficiaries,specification of the role of community, and the mode of benefit distribution; (c) the nursery andplantation management; and (d) project monitoring and evaluation.

27

PART II. PROJECT REVIEW FROM BORROWER'S PERSPECTIVE------------------------------------------

(Jammu and Kashmir)A. Evaluation of Bank's Performance and Lessons Learned

1. The Bank personnel were professional in allrespects and contributed to the development ofProject. They encouraged the shiFt irn the Projectdesign from uni-tier to multi-tier system ofplantation. The review missions stressed on theresult orientation of the Project andresponsibility of the Project in sharing benefitswith the people. They also assisted inidentification of bottlenecks and suggested ways toremove themn.

LESSONS LEARNED.

2. Overall commun.ications between the Bank andB4orrower should be improved and well documented.

B. EVALUATION OF BORROWER'S OWN PERFORMAtNCE AND LESSONSLEARNED.

3. The overall performance of the project has beensatisfactory. The project has evolved significantlyat the planning and implementation level. The voidcreated by the dissolLution of Panchayats in 1984was filled by forming Village Forest Committessince 1988 which thad the bene-ficial effect ofbringing user community in closer touch with theProject. The intr-oduction of " cut and carry "system o-f produce assured better understanding ofthe objectives of the Project by the People.

4. Micro-planning was introduced in the last few yearsand a need based site specitic technology wasdeveloped . The user communities were involvedlargely to the extent sharing of benefits whichresulted in better protection o-f Project areas.

5. A significiant achievement was the introduction offodder grasses and legumes in plantation areasunder silvipasture. The plantation design waschanged to multi-tier system from uni-tier systemand by tending r-,atural regeneration which ensuredbetter productivity. Stress was laid on totalbiomass rather than nlumber of plants planted.Besides there was shift from predominantlymonoculture to mixed plantatiorns.

28

6. The sUipport: activitiesf in the fields of training &fellswship,Research evaluation, extension were notuptC. the Je>is. r eci l evel D Due to i nadeqLuateLItiIli at:itDn of trair,ing and fellowship facilitiesthe projec:t management was not abreast wi th theLatest techi ques in mi cropI arini rig, plantiang

techFni. qteS wthi Ch e rC?sul teCl in slower pace ofdCvel cpmEn-it of the PrOject.. The absence of adequateref scsearrh s.i> pport advErsely a+iected wider choicr-of spe ieis inattent:ion towards shrubs,neglect ofnatural .rop. *The rnai r, re>ason -fcor tht-i.s wa-s:i na deq at:e i r-fr a-t:ru ur-. a lI s u pp or-t to theseAc t: i vi t i es.

7 Thr*e Prc. .j inc t ' si CUorcii nati tDn w:i i h pro rgrarms of othera gen-, i es Ii ke fiyri (itl tLr- , An i mal Husbandry,

?e r i CtLtl tLire, Horti cul turfE was' weca k- Thi s al sCa f ef;: t e fd ex tens: i .n actl i vi ty and consequent 1 yFr o-{j ci: t per.l f orz mace- :f

LESSONS LEARNED:

B. Pc t.i ve piAr ti ci p.o1ti on ocf t hr:E u rser omMLuni ty i npli.tnning and management needs to be given prior-ity.Only then it will ne poss:i ble i:o hand over vi I 1. agewoodI ot s tro the user cfimmlii t.i es after- 5 years as.en vi sag ed in the Project.

9. TThe 'i 1 l age For-est Committees have to be br-oadb.Yased to ensure parti cipAt:i on ot ai.L sections of

Society ton avoid conf .ic:ts. These-! committees hla vet t.r be I eq aal 1 y backed an-rd s.;h ari r) ot usuIf ru.cts

wi th them rccoqn i AsreJ

I i°. TiH-e F)nfr.c-k str .uct.t ur e to- thf?- support. ac ti vi t.i es of

iR-*f;(_,Eirch P ub li city, Evcai 'at i on Tr a,i ri ni1 ,:- ntr-2r7.' ic- .nl d b. .. t r eriqthothened:i - mprovce tIhre

.--, f '.I :i ency )!. the; FSrjctjC?:f

:i:! Nf_:ed :i Y .iL t. tr:, ntrnti-duce. princ.iapfs orO irntegratedI, (J *t --t'S; f::-a I.L i or-i.9 . f orestrv, and Wi 1 dJ Li fe

i~ ri ons i-j- f{z t. )Fre pl anrl i ng.

29

3JBJWECT JAMMJ & KASHMIR A14D HARYANA SOCIAL FCRCSrRY PROJt=.(Cr. 1286-IN)

PROJEC OOMPLtTION REFOx

Broadly speaking, the Forest Department,Heryana Social

Forestry Wing agrees with Project Completion Report prepared by

the Wbrld Bank Resident Mission in India, New Delhi. There are

some points of dis-agreement we are offering our parawise comments:-

COMMENrS PERTAINING TO PART-I

4. PROJ=CT CMSIGN AND ORGANISArION

4.1 It is submitted that the major concept of the project

was fully achieved. The changes were made in the components after

approval in 1988 during the extended period. Component vizRehabilitation of Degraded Forests was introduced in view of

environment degradation and the component of saline alkali

plantations was augmerted.

4.s 5It is true that research activities were not adecfately

identified at the time of formulation of the Project. It is also

true that the capability of the Forest Research Division was mot

taken into account while highlighting the prescriptions for .researchbut some of the research activities were handed over the Haryana

Agriculture University, Hisar who have the necessary infrastructure

and capability to carry out research programme. The C.S.S.R.I.,

Karnal was also associated in the research programme concerning saline

alkali soils. Thus, inadequacies of the Research Division hawi mot

in any way affected the research programme.

Sharing of user/ructs has been described in the constitu-

tion of village Forest Protection and Management Committees. However,

Management plans will be prepared in due course of time.

4.6 It is true that staff as provided in the project was mot

sanctiored by the Covernment but there has been excellant adhievement.

by the existing staff in carrying out plantations and spreading the

message of social forestry to the rural masses Publicity,Monitoring

and Lvaluation units were not fully equipped as envisaged in the

project. Poor generation of technical information is, however, denied.

4.7 It is not possible in any such project to obtain full

involvement and participation of the beneficiaries at the initial

stage. However, its participation increases with the passage of

time and change of attitude of the target groups. This/poasible

Contd.p. 2 -

30

s2

due to training of farmers, teachers, students and other

concerred persons. Bit nmw with the introduction of village

Forest Protection and Management Committee, the beneficiaries

are taking keen interest in the managament of plantations on

community lands.

In the beginning the project aimed at creating village

wood lots under the control and management of Village Penchayats.

Accordingly the beneficiary was the village Panchayat. However,

with the passage of time It was realised that unless the individual

are involved and their participation ensured the project would not

make much headway. So far the achievement of the new object of

Management village Forest Protection and Management Committees have

been constituted. These have become functional only recently.

ILI Regarding nursery, it is pointed out that the quality

of nursery stock raised by the forest department in general and

the social forestry in particular has been excellent. The target

under Farm Forestry were exceeded during every year when the nursery

stock was liked by the farmers. Fruit trees of seed origan

were raised and supplied to the farmers in penalty. Fodder trees

like prosopis cineraria, Albizia, Subabul were supplied to the

farmers. It is wrong to suggest that the nursery operation were

poor.

5-111 Main species planted was nmt Eacalyptus but Kikar.However,

in suitable areas where adequate moisture was available, people

preferred planting of eucalyptus. Other species included Jand, Rohera,

A.tortilis, Beri and Sirns. In Haryana State performance in Village

wood lots has been 43xcellent. It is worth mentioning that Busthala

Panchayat plantation raised under Social Forestry Programme was

adjudged the best plantation in the country during 1988 and Indira

Priya Darshni Veriksh Mitra Award granted to the village Panchayat.

s.tO It is not denied thot some marginal farm lands have been

diverted to farm Forestry but fmost of t}e farm forestry work was

carried out in the form of lenear strips along the field boundaries

and water channels. This did not affect crop production in any way.

Moreover, total food grain in the State is increasing year after year

It can be safely said that plantation of trees has not been against

the envisaged State policy of higher food grain production. Tee

cultivation is actually beneficial to agriculture.

In Haryana availability of wastelands is limited, to the

trees have to be raised on the farm lands to achieve the national

Jpal of 33% area under tree cover.

Contd.p.3/-

31

13:

Farm Forestry as the very name suggests is the plantingof ttees on farm lands in conjunction with agricultural crops.No doubt, farm forestry appealed more to large farmers but, in theinitial stage it is only the progr ssive farmers wtn come forwardto adopt such programmes. Haryana was no exception. Block planta-

tions were done uostly on marginal lands constituting about 5%only whereas 95% plantations were carried out in the form oflinear strips along field boundaries. This does not amountto diversion of coopped lands to forestry.

2;A Though plantation under sand dure programme have been

carried out in small groups at some of the places. Yet theirproductive impact for water chennels, Communication lines and

agriculture fields has been significant. It is appreciated thatexpending desertification is controlled by trees, shrubs andgrasses.

Small size of the plantations may not have adequateimpact on stabilizing sand dunes in adjacent agricultural field

but they do help in controlling the winds velocity and by theirimpact they serve as agents of change in attitude by includingother farmers to give more areas for plantations under this

component.

It is true that afforestation of salire alkali land was

envisaged over 500 ha. only but keeping in view the environmentalconcept, the appraisal World Bank Mission suggested that more areas

nmay be taken up under this component irrespective of owership.Prosopis cineraria is not a suitable species for planting on alkali'saline lands and so it was not planted. It appears that this specieshas inadvertantly been included in the report. Which in fact is not

suitable species for salt affected lands. The following are actuallythe suitable species for such areas prosopis juliflora, Tammaris,A.nilotica, Terminalia Arjuna Cassuarine,Pongemea pinnate,Beutia

nDmspherma and Azadirachta Ficus infactoria.

S. 18 Forest Education: No doubt the training programme did notproceed as envisaged in the Fbrest Training School, Pinjore. However,extension training was not neglected all together. Yiddle forExtension Workers at Nilokheri. These officers further treined

the junior level staff working under them. Need for hiring the

service of consultants was therefore, obviated.

:X21 Research: The programme undertaken by. the CSSRI, HAU,CAZRI Jodhpur and FRI,Dehradun have come in good stead for

implementation of Social Forestry Programme in the State. TheState Research DLvision tiough mt fully equipped with desired

infrastructure, yet it is taking up the research activities

Contd.p. h/-

32

:4sin the right Brnest. The Social Forestry Wing has been utilisingtheir results according to the problem faced and the situation.

5A22 For this programme full advantage of T&V system ofAgriculture Department was taken by the Social Forestry Wing.However, sincers efforts were made by the DFO Publicity andExtension to carry out message of tree planting from All IndiaRtadio, Television and by showing films in the villages. Suitableofficials from Public Relations Department were not deputed.Some good literature have been produced in the form of a pamphlet.A 'Harivali' patrika is being published bio-monthly by Publicityand E;xtension Unit accordingly.

Services of Government of India and Public Relations Deptt.were utilised for this purpose which have a more professionalout look.

=5 The M&U Unit is functioning smoothly at present. OperationGuide Lines to the Monitoring and Evaluation of Social Forestryin India were prepared jointly by the Bank, FAO and the office ofthe Inspector Cernral of Forests of India after good deal of delibeer-ations so there was no point in engaging an other consultant for thepurpose. The staff put on Monitoring and Evaluation needed sometraining and experience. With the passage of time they gainedrequisite experience and accordingly M&E reports were prepared.

5;2Z The wood balance study gives the methodology adoptedfor estimation and projection of demand/supply in chapter II ofthe report at pages 6-21.

SU Villagers freely participated in Farm Forestry Programme.Necessary training was given to the individual farmers by CF0Publicity and Extension. Villa ge leaders also participated in thetraining. T&V system of the Agriculture Department was utilisedfor dissemination of information.

94,1 W;lRROW4I PSIFORKANCE:Plantation Management Plans are being prepared as suggested

by the World Bank. There has been shortage of staff so the %orkoould not be taken up earlier. The training of VFPMCs workers willalso be jIven due consideration. However, most of the worker beingemployed for execution of Social Fbrestry 'Wing are from the ruralareas of Haryana. They are well corversant with the Forestryoperatiorn and so they do mt need any formal training in Msnagementof Panchayat Land Plantations. The Forest Department on its part

33

:5:

provides technical know hoiv as and Zen required. It has

been the prectice in the departmrent to assess the prices of

plantations whenever these are planned to be sold.

Financing pattern of the W,]rd Bank has been not veryencouraging. As a consequence, the State Covernrient oould

sanction many key posts meant for supporting activities. Itshould oonsider enhancing the aid componrint so that there areno financial constraints in timely implementation of the

aniticipated programme.

0 ....

34

PART II. PROJECT REVIEW FROM BORROWER'S PERSPECTIVE (continued)

(Haryana)

A. Evaluation of Bank's Performance and Lessons Learned

We are extremely grateful to the World Bank and Danida authorities and its officers forproviding financial assistance and technical guidance in preparation and implementation of theSocial Forestry Project in Haryana. Bank personnel and supervision mission members were veryexperienced and highly qualified in their respective fields. They followed a regular schedule andappropriate time for the supervision missions. On their guidance, wood balance study, alternateuses of eucalyptus wood, status of social forestry in Haryana, and the preparation of technologymanual, was done, which are very important documents for future planning. We did not feel anydifficulty in implementation of the project and all reimbursements were made in time.

Government of India decided vide their letter No. F-13/32/87-FB- dated 29-5-1989 thatsubsidy on schemes, including World Bank-aided schemes, implemented in the rural sector maybe raised to 100%. But the World Bank did not approve the increased contribution percentage ofthe expenditure to be financed in the rural sector.

Lessons Leamed

In a developing country like India where the pressure of rising population, both of humanand livestock, on the land, is so enormous, we could not have achieved tangible results in anyfield without World Bank/Foreign Aid.

The constraints in the project could have been avoided had the Bank's monitoring begunimmediately after negotiations. When a supervision mission found significant delays inimplementation, it should have informed the authorities in the Government and requested them toremove the constraints without delay. Problems and their effects could have been avoided if theBank took note of them at the initial stage.

B. Evaluation of Borrower's Own Performance and Lessons Learned

Haryana State has successfully implemented the socially forestry program by achieving155% physical and 180% financial targets. And against the provision of 17 million mandays in theappraisal report, 30 million mandays jobs were created up to 31/3/1991. We have got appreciationfrom all the concerned authorities including World Bank and members of the SAARC countries infulfilling the objectives as provided in the appraisal report. But we could not utilize the wholeamount within the stipulated period of five years due to less budgetary provision by StateGovernment, owing to its resource crunch and meager financial resources, shortage of staffespecially village level workers, and enhancement in the value of SDR. These were the majorconstraints in the program.

We did not utilize even the 50% of the external fellowship. People's participation in theprogram was not significant in the village woodlot component as envisaged in the appraisal report.Now we have formed village forest protection and management committees to involve more peoplein the program. We do admit these lapses. On the whole, however, social forestry in Haryana hasbeen implemented with great success and has worked very well. It has now entered a phase ofconsolidation, diversification and further expansion and it is fast emerging as a new institution forrural development in the State. The program needs continuous help if it is to avail of the fullbenefits of trained manpower, infrastructure and enthusiasm of the people.

35

Lessons Learned

(i) The needs and aspirations of the local people must be recognized before taking upthe project. Unless a project is aimed at meeting their distresses, solving their problems andappeasing their hardship, it will not succeed.

(ii) People's participation must be ensured if social forestry programs are to succeed.But people's participation is difficult to achieve unless they are first persuaded that they can deducetangible benefits from the program.

(iii) People, especially the farmers, are very versatile and they can adopt any forestryspecies under farm forestry component if they are provided remunerative prices at the time ofharvest.

(iv) Social Forestry Programs can be very successful if infrastructure for marketing anddistribution of its production is also created in anticipation.

(v) Social Forestry Program can be made more successful if it is made an integratedand multisectoral rural development program. Livestock management and energy conservationshould also form part of the social forestry program as straying cattle are a hazard for man andnature.

(vi) Extension activities like formation of village forest protection and managementcommittees, household survey for the choice of species, micro-planning, raising of nursery stockand advance earth work may be made in the year preceding the implementation program.

(vii) All the natural resources must be equally distributed among all the families of thevillage.

(viii) Decentralized nurseries should be allotted to those persons who raise saplings andtake responsibility for further distribution at his own level. There should be an agreement on this.

Problems

The implementation of every big project envisages within it certain inherent problems andlikewise the Haryana Social Forestry Project is no exception. Securing of land for plantations,paucity of field staff, decline of interest in farm forestry due to fall in eucalyptus prices, andprotection due to excessive grazing by domestic cattle, are the main problems that we faced duringimplementation of the program.

Future Analxsis

(i) To introduce new agro-forestry species especially exotics like paulownia elongataP.fortunei and Moso bamboo (phyllostachs pubescens) from China should be tried. Very littlework has been done on research in this field. Special efforts are needed in this direction.

(ii) Very little attention has hitherto been paid to the aspect of evaluation. Primary aimsof conducting evaluation of any program is to improve it. There is also a great scope to study theimpact on beneficiaries of village woodlots, farm forestry, sand dune stabilization and reclamationof alkali lands.

(hi) More fellowships and short duration study tours may be provided in the project forstaff.

36

INDIAJAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY PROJECT

(Credit 1286-IN)

Part IIL STATISTICAL INFORMATION

Table 1. Related Bank Loans and Credits

(Jammu and Kashmir and Haryana)

Credit No./ Year ofProject Name Purpose Approval Status

Cr. 925-IN To increase supply of fuelwood in rural 1978 CompletedUttar Pradesh areas, provide poles, bamboo, small tim-Social Forestry ber, fodder grass and minor forestry pro-

ducts and strengthen the social forestryorganization to carry out project works.

Cr. 961-IN " 1979 CompletedGujarat SocialForestry

Cr. 1178-IN " 1982 CompletedWest BengalSocial Forestry

Cr. 1286-IN " 1982 CompletedJammu andKashmir andHaryanaSocial Forestry

Cr. 1514-IN " 1984 OngoingKerala SocialForestry

Cr. 1432-IN " 1984 OngoingKarnataka SocialForestry

Cr. 161 1-IN To assist the States of Gujarat, Uttar 1985 OngoingNational Social Pradesh, Himachal Pradesh, and RajasthanForestry to expand and improve their social forestry

activities.

37

INDIA

JAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY PROJECT(Credit 1286-IN)

Table 2. Project Timetable


Item Date Planned Revised Date Actual Date

Preparation 1980

Appraisal Oct./Nov. 1981

Negotiations June 1982

Board Approval August 1982

Credit Signing Sept. 1982

Credit Effectiveness Dec. 1982

Completion March 1987 Dec. 1988Dec. 1989Dec. 1990 Dec. 1990

Closing March 1988 March 1989March 1990March 1991 March 1991

38

INDIA


Table 3. Credit Disbursements(Cumulative in SDR millions)

(Jammu and Kashmir)Actuals as %

IDA Fiscal Appraisal of AppraisalYears Estimate Actuals Estimate

83 1.1 0.5 4

84 2.7 1.2 10

85 5 3.1 25

86 8 5.5 44

87 11.8 6.6 53

88 12.5 6.6 53

89 10.1 a/ 81

90 11.3 90

91 12.3 b/ c/ 98

a/ Disbursement resumed after submission of audit report.b/ Final Disbursement was in January 1991.c/ Actual disbursement of SDR 12.3 million (US$15.2 million equivalent).

39

INDIA


Table 4. Project ImplementationKey Indicators

(Jammu and Kashmir)Actual as %

Appraisal Revised Actuals of AppraisalA. Plantations Estimate Estimate Achieved Estimate

(in ha)

Strip Plantation 1000 2300 2400 238%

Wetland Plantation 2000 4100 3400 171%

Rehabilitation of DegradedForests 17000 20200 20000 117%

Village WoodlotPlantation 5000 5800 5800 116%

Pasture Improvement - - 600

Institutional Plantation - - 200

Farm Forestry 19000 53600 49600 261%

Total 44000 86000 82000 186%

No. of Villages Involved 6000 - 2400 40%

40

INDIA

JAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY PROJECT(Credit IN-1286)

Table 4. Project Implementation (continued)Key Indicators

(Jammu and Kashmir)

ActualsAppraisal Revised Procured

B. Vehicle Procurement Estimate Estimate (thru 3/91)(Nos.)

Jeeps/Wagonettes 17 22Vans/Matadors 10 10Trucks 2 2Buses 2 2Motorcycles 25 25Bicycles 250 400 400Car 2Pick-up 1Tractor 1Trolley 1

C. Civil Works(Nos.)

DCFs Residence Quarters 2 2Staff Quarters 16 10 l/Teaching Staff Quarters 4 4Mali Quarters 20 4Rural Training Centers 10 5 1/Store Godown 10 6Extension of Forestry Schools 2 2Dormitories 4 4

1/ Under Construction.

41

INDIA

JAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY(Credit 1286-IN)


(Jammu and Kashmir)

Appraisal Total Actuals as ofD. Staffing Estimate Sanctioned 3/3/91

(Nos.)

Forestry Staff:CCF/P.D. 1 1 1CF/R.D. 2 2 2DCFs 12 12 5ACFs 10 12 18Deputy Directors 2 2Assistant Directors 2Publicity officers 2 2Divisional Publicity Officers 10 10 1Rangers 34 33 40 1/Foresters 150 122 126Forest Guards/SFW 245 203 203

Other Categories: 48Sr. Mali 25 25Jr. Mali 50 50Cameraman 2 1Draftsman 3 0Projector Operator 2 2

Support Staff: 240Statistical Officers 7 5Asst. Accts. Officer 1 1Accountants 11 11Accounts Assistants 2 2Statistical Assistants 3 3Superintendent to P.D. I IHead Assistants I ISenior Assistants 15 14Personal Assistant to P.D. 1 1Superintendent to R.D. 2 2Drivers 35 30Junior Assistant 63 60Steno Typist 4 4Jarnadar 3 3Orderlies 62 62Motivators 1400 1120 1120Consultants (120 manmonths) 6 4

1/ One Range Officer working as Publicity Officer.

42

INDIA


Table 5. Project Cost and Financing

(Jammu and Kashmir)I. Project Cost

Appraisal Estimate ActualsProject Components Rs. million US$ million Rs. million US$ million

Project Organization 74.20 8.79 124.10 9.19Training and Fellowships 10.30 1.21 0.80 0.06Research 2.00 0.24 1.60 0.12Plantation 144.40 16.99 329.30 24.39Communication and Extension 3.90 0.46 5.70 0.42Monitoring and Evaluation 0.80 0.09 0.70 0.05Wood Balance Study 1.30 0.15 1.80 0.13

Total 236.90 27.93 464.00 34.36

1/ Including physical and price contingencies.

II. Project FinancingPlanned Final

US$ million % of Total US$ million % of Total

IDA 13.80 49% 15.20 44%

GOI/GOJAK 14.80 51% 19.20 56%

Total 27.90 1.00 34.40 100%

43

INDIA


Table 6. Project Results

(Jammu and Kashmir)

Appraisal Actual/PCREstimate 1990 Estimate

(June 1982)Production Production

A. Direct Benefits (000 tons) (000 tons)

Fuelwood mt 4215 3800Poles/bamboo pieces 64000Small timber m3 7219 6571 a/Fodder mt 414 200 b/Fruit mt 836Leaf charcoal mt 105 44 c/

No. of Beneficiaries 160000 530000

Employment generated mandays 12 million 15 millionno. of perm- 754 676anent jobs

SAR Estimate PCR EstimateB. Price of Outputs Financial Economic d/ Financial Economic d/

(Stumpage Value) Unit Rupees per unit Rupees per unit

Fuelwood mt 200-239 248-533 e/ 270 215Poles piece 5.4-6.6 4.3-5.3 - -

Bamboo piece 3.6-4.4 2.9-3.5 - -

Timber mt 2000 1600 1200 g/ 960 g/Fodder mt 30 24 30 h/ 24 h/Fruit mt 300 240 - -

Castor mt 1500-2327 1200 - -

Leaf f/ mt 2000 1600 55 i/ 44 i/Grass mt 60 48 - -

Footnotes:a/ Small timber/polesb/ Fodder/grassc/ Fresh leafd/ Financial prices adjusted by SCF of .80.e/ Represents 30% and 70% weighted average of pine and fir prices expressed in border pricesand reduced by 20% to reflect 20% less Kcal content for project-produced fuelwood.f/ Expressed on charcoal basis.g/ Small timber.h/ Fodder and grass.i/ Fresh leaf.

44

INDIA

JAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY PROJECT

(Credit 1286-IN)

Table 6. Project Results (continued)

(Jammu and Kashmir)

C. Economic Impact Appraisal Actual (PCR)Estimate Estimate

Economic Rate of Return (%) 34 14

Assumptions:Project Life (Years) 25 30Full Development (Years) 15 20Standard Conversion Factor (SCF) 0.8 0.8Conversion factor for unskilled labor 0.8 0.6

D. Financial Impact

Financial Rate of Return (%): a/Strip Plantation NA 17Wetland Plantation NA 17Rehabilitation of Degraded Forest 10 12Village Woodlots > 100 23Farm Forestry 34-50 32

Social VillageForestry Protection

E. Proposed Benefit Sharing Wing Committees

Strip Plantation 50 50Wetland Plantation - l00Rehabilitated Degraded Forests 75 25Village Woodlots 25 75Pasture Development - 100

a/ See Attachment I Tables 1-5 for cash flow of individual plantation models.

45

INDIA



(Jammu and Kashmir)

F. Studies Proposed as Appraisal Status Impact

Wood Balance Data on demand and supply Done in 1987 Consultedof wood for planning forestdevelopment

Nomadic Grazers Study grazing patterns and Incompleteidentify feasible interven-tions. a/

Village Forest Committees Assess functioning and Done 1991 Used for PCR and socialrecommend future arrange- forestry planning.ments. a/

Eucalyptus Marketing Data on status of supply Preliminary report Planning future program.to assess if interventions submitted.required. a/

Fuelwood Consumption Assess demand among Completed Consulted in programin Srinagar City different sectors. a/ planning.

Management of SocialForestry Plantation a/

a/ These studies were identified during implementation and not during appraisal.

46

INDIA

JAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY PROJECr(Credit 1286-IN)

Table 7. Status of Covenants

(Jammu and Kashmir)

Project (PA) OriginalAgreement Compliance Level of a/

Section Summary DescripUon Type Date Compliance Remarks

PA 202 Employment of Consultants Managementfor development of faculty incommunications and extension 6/30/83 S Dropped

PA 2.05e Preparation and submission Reporting 3/31/83 1of mid-term evaluationreport on project progress.

PA 207 Preparation of Wood Balance Studies - IStudy under IDA Termsof Reference.

PA 2.08(i) Establishment of State Policy Organization 12/31/82 2Committee to ensure inter-departmental coordination onimplementation and socialforestry policy.

PA 2.08(ii) Establshment of district Organization 12/31/82 2committee in each districtto ensure inter-departmentalcoordination.

PA 108(iii) Establishment of Monitoring Organization 12/31/82 Iand Evaluation Unit withDeputy Conservator ofForest in charge of adequatestaff.

PA 3.01 Submission of annual accounts Financial 2 for 1988-89and financial statement within submitted innine months after end of 9/90.each year.

PA 3.02 Establishment of one Organization Iadditional forestry circle

PA 3.03 Ensure that staff live in or Organization 2near areas of their operationswith housing, rent or otherallowances as necessary.

a/ Level of ComplianceI - Fully complied2 -Partially complied-not affecting implementation3- Non-compliance4 - Not yet due5 - Covenant no longer applicable-should be deletedVmodified6 - Compliance date requires revisionAl- Audit 1 year overdueA2 - Audit 2 or more years overdue

INDIA


Table 8. Mission Data and Staff Inputs


Type of of Date No. of Mandays Special- Perrormance Rating b/ Trend c/ Type or Problems d/Mission (MoJYr.) BY Persons in Fidd Izatlion a/ GOJAK GOII GOJAK COH GOJAK GOH

Preation 0/0/80 GOJAKJHAppraisal 10-11/81 IDASupervisions:1 12/0/82 IDA 2 4 D. E I I na na na na2 04JI/83 1 3 A - I na na na na3 09/0/83 2 15 A, I I - 2 - M -

4 06/0/84 el 1 12 F I I I I M. T M, T5 4-5/85 2 25 F. S I I. I M M6 10/0/85 e/ 1 11 A I I I IM M, T7 07/0/86 2 10 F, P - I na na - F, T8 11/0/86 1 8 F I - na na F. T9 10/1/87 1 5 F - I na na - F, T10 4/0/88 2 14 F. F I - na na F. T11 10/0/88 el 2 17 A, F 2 1 na na F,M,T F. T12 1,6/89 e/ 1 13 F 2 2 na na F, M F. M, T13 1210/89 e/ 1 9 F - 2 na na F, M, T14 12/0/90 2 10 F. F 2 2 na na F, T F, T

Completion 6-7191 FAO/CP 3 33 E, F. S 2 2 2 2 F,M.T F. T

a/ A=Agriculture; D=Rural Development; E-Econornist; F=ForesLry I=institution; P--Project Advisor. S=Sociologyb/ Performance Rating: I=problem free or minor problems; 2=moderate problerns; 3=major problems.c/Trend: I=improving; 2&stationy, 3=deteriorating.d/ Type of problems: P=Fnanciai; M=Magement; T=TechiWcai.e/Two separate trip to the individual states.NA=not availabic

INDIA


Table 8. Mission Data and Staff Inputs (continued)

(Jammu and Kashmir and Haryana)Staff Inputs (sws)

Stage of Project FY82 FY83 FY84 FY85 FY86 FY87 FY88 FY89 FY90 FY91 FY92 TotalCycle

Identification pation 16.00 16.00Appraisal 84.20 3.60 87.80Negotiations 1.40 0.50 1.90Lending Operations 6.00 2.20 8.20Supervision 7.30 13.70 15.60 16.90 9.30 8.00 4.20 2.90 2.40 80.30Project Completion

10.40 15.60 26.00Project Administration 2.70 0.30 3.00

Totals 107.60 16.30 14.00 15.60 16.90 9.30 8.00 4.20 2.90 12.80 15.60 223.20

49

INDIA


Table 9. Credit Disbursements(Cumulative in SDR millions)

(Haryana)Actuals as %

IDA Fiscal Appraisal of AppraisalYears Estimate Actuals Estimate

83 1 1.2 7

84 3.4 2.5 15

85 6.7 4.8 28

86 10.9 6.5 38

87 15.3 8.4 50

88 16.9 10.3 61

89 12.2 72

90 14.2 84

91 17.1 a/ b/ 101

a/ Final Disbursement was in January 1991.b/ Actual disbursement of SDR 17.1 million (US$21.4 million equivalent).

50

INDIA


Table 10. Project Implementation

Key Indicators

(Haryana)Actual as %

Appraisal Revised Actuals of AppraisalA. Plantations Estimate Estimate Achieved Estimate

(in ha)

Village Woodlots 12000 23700 25243 210%

Saline/Alkaline 500 4700 5142 1028%

Strip 9500 - 9320 98%

Sand Dunes 15000 19000 20276 135%

Farm Forestry 30000 38500 40201 134%

Rehabilition of DegradedForests - 3000 3509

Total 67000 88900 103691 155%

No. of Villages Involved 6731 - 3692 55%No. of VFPCs formed 160

51

INDIA



(Haryana)

Actual as %Appraisal of Appraisal

B. Vehicle Procurement Estimate Actual Estimate(Nos.)

Staff Car (& replacement) 3 6 200%Jeep 10 10 100%Van 3 1 33%Pickup Van 8 4 50%Bus 1 0 0%Truck 1 0 0%Tractor 24 36 150%Total 50 57 114%

C. Civil Works(Nos.)

Residential:DCFs Residence 8 8 100%Forest Rangers' quarters 32 33 103%Teaching Staff Quarters 6 1 17%

Non-Residential:Chief Conservator's Office 0 1 0%Research Station 2 1 50%Women's Dormitory 2 1 50%Rural Training Center 8 1 13%Garage 15 10 67%Seed Store 10 10 100%

52

INDIA

JAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY(Credit 1286-IN)


(Haryana)

Actual as %Appraisal of Appraisal

D. StaMng Estimate 1/ Actual Estimate(Nos.)

Add. Chief Cons. of Forests I 1 100%Conservator of Forests 2 2 100%Deputy Cons. of Forests 12 2 17%Asst. Cons. of Forests 11 6 55%Establishment Officer 1 0 0%Chief Publicity Officer 2 1 50%Div. Publicity Officers 8 2 25%Asst. Publicity Officers 2 0 0%Forest Economist 1 0 0%Statistical Officer 2 0 0%Research Investigator 2 0 0%Statistical Assistant 2 0 0%Forest Rangers 38 36 95%Deputy Rangers 32 36 113%Foresters 154 135 88%Village Forestry Workers 766 510 67%

Total 1036 731 71%

1/ Excludes Appraisal provision for ministerial and other staffof 395, of which 309 are in position.

53

INDIA


Table 11. Project Cost and Financing

(Haryana)I. Project Cost

Appraisal Estimate ActualsProject Components Rs. million US$ million Rs. million US$ million

Project Organization 112.10 13.20 160.09 11.56Training, Fellowships, Research 6.70 0.80 6.18 0.45Plantation 208.70 24.55 429.47 31.01Communication, Extension andMonitoring and Evaluation 4.30 0.50 3.18 0.23

Wood Balance Study 1.30 0.15 0.60 0.04

Total 333.10 39.20 599.52 43.29

1/ Including physical and price contingencies.

II. Project FinancingPlanned Final

US$ million % of Total US$ million % of Total

IDA 19.00 48% 21.40 49%

GOI/GOJAK 20.20 52% 21.89 51%

Total 39.20 100% 43.29 100%

54

INDIA


Table 12. Project Results

(Haryana)

Appraisal Actua[UPCREstimate 1990 Estimate

(June 1982)Production Production

A. Direct Benefits (000 tons) (000 tons)

Fuelwood mt 9680 15000Poles/bamboo piecesSmall timber m3 1720 5571Fodder mt 1570 3400Fruits mt 445 980

Fallen WoodCastor mt 18 88Kana grass mt 120 1730Total 13553 25099

No. of Beneficiaries 290000 171000

Employment generated mandays 17 million 30 millionno. of pern- 1420 1050anent jobs

SAR Estimate PCR EstimateB. Price of Outputs Financial Economic al Financial Economic a/

(Stumpage Value) Unit Rupees per unit Rupees per unit

Fuelwood mt 200-239 160-191 b/ 250 200Poles piece 5.4-6.6 4.3-5.3Timber mt 2000 1600 1070 c/ 860 C/Fodder mt 30 24 50 e/ 40 e/Fruit mt 300 240Castor mt 1500-2327 1200-1862Leaf d/ mt 2000 1600Grass mt 60 48 25 20Dry Fallen Wood mt - - 200 160

Footnotes:a/ Financial prices adjusted by SCF of .80.b/ Based on financial stumpage price on border price.cl Small timber including poles.d/ Leaf charcoal.el Fresh fodder.

55

INDIA

JAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY PROJECT

(Credit 1286-IN)


(Haryana)

C. Economic Impact Appraisal Actual (PCR)Estimate Estimate

Economic Rate of Return (%) 19.5 23

Assumptions:Project Life (Years) 29 30Full Development (Years) 21 21Standard Conversion Factor (SCF) 0.8 0.8Conversion factor for unskilled labor 0.8 0.8

D. Financial Impact

Financial Rate of Return (m):Village Woodlot >100 11Rehabilitation of Degraded Forest 7Strip 13Farm Forestry 24Saline/Alkaline 2Sand Dunes >100 34

E. Study Purpose Status

Wood Balance Study To provide a data base for social forestry Completed indevelopment planning. 1988

56

INDIA


Table 13. Status of Covenants

(Haryana)

Project (PA) OriginalAgreement Compliance Level of a/

Section Summary Description Type Date Compliance Remarks

PA 2.02 Employment of Consultants Management 6/30/83 5 Droppedfor development of faculty incommunications and extension

PA 2.05e Preparation and submission Reporting 3/31/85 1of mid-term evaluationreport on project progress.

PA 2.07 Preparation of Wood Balance Studies - IStudy under IDA Termsof Reference.

PA 2.08(i) Establishment of State Policy Organization 12/31/82 2Committee to ensure inter-departmental coordination onimplementation and socialforestry policy.

PA 2.08(ii) Establishment of district Organization 12/31/82 1committee in each districtto ensure inter-departmentalcoordination.

PA 2.08(iii) Establishment of Monitoring Organization 12/31/82 1and Evaluation Unit withDeputy Conservator ofForest in charge of adequatestaff.

PA 3.01 Submission of annual accounts Financial Iand financial statement withinnine months after end ofeach year.

PA 3.02 Establishment of one Organization Iadditional forestry circle

PA 3.03 Ensure that staff live in or Organization 2near areas of their operationswith housing, rent or otherallowances as necessary.

a/ Level of ComplianceI - Fully complied2 - Partially complied-not affecting implementation3 - Non-compliance4 - Not yet due5 - Covenant no longer applicable-should be deleted/modified6 - Compliance date requires revisionAl-Audit I yearoverdue

A2 - Audit 2 or more years overdue

IND IAJan 9 KaSiner a..d laryana Social Forestry Project

Project loaiIetlon Report((r.0o.1276-.1)J_u I Kashmir Sub project

Atlschetmi 1:1ble I-Per Ha Flbsnclal tosts &no Sr..eotts of Village Woodlot

Tear l Y.ar.? Teau-l Tar-4 lear-S leae-6 ie^r- le-S V Tear-9 Year-10 Year-il Vear.1? Year-13 Tear-I4 Year-IS Year-16 Tear-11 Vear-IS Year-19 Ytear-20 ear-Tl

COsIS IN,.):- Istallsbent 12S0-al..tenaoce - 1200 100 3o0 3S0 3SP IS0 350 lSo 350 350 350 350 lS0 )S0 350 lS0 3S0 lS0 3S0 3S0

lGtol Colts 1(s./ha) 1250 1200 P00 so0 3s0 3s5 S50 350 350 3 J0 3s0 0 350 350 350 350 350 350 350 350 iS0

WLIPUIS:lueluod 1 f - . - - .5 - - -Z. S - - - 1 5.0

Saa1l llaber () - - - - - - - - - 11.5 - - - 11.5 - - - - 26.0

foder S "at. 9'ass (iN) * 0.02 0.07 0.02 0.03 a.0! 0.06 0.0I 0.09 0.12 0.2 0.0 0. 5so 0.5so o.so o.s 0.so o.so 0.0 o.so o.sLeaces nIn) - - . - - -- - - 0.1 0.10 0.20 0.0 0.20 a.2 .0.20 0.20 0.20 0.20 0.2 >

UMIIIS (i.) Iloeluied IRs.2101.I- 2295.0 2025.0 4050.0

Small lIlmber (ps.940/a) . 9660.0 9660.0 21840.0

fodder & mat.grassifts)0/s) - 0.6 O.t 0.6 0.9 2.4 2.4 2.4 2.1 3.6 6.0 IS IS IS IS 15.0 Is IS Is 15 I5.0

lemes (*s.5mt) - 5.5 5.5 5.5 55 5 5.S 5.5 It II it tt 11.0

lolal te let 1 (It.) o0.60 0.60 0.60 0.90 2.40 7.40 2.40 2.10 3.60 1196.5 20.50 20.50 20.50 20.50 1110S.S 26.00 26.00 26.00 26.00 S.916.0

lotal pet b-el Ihi (Ps.) 0 -1199.4 -6s94 31494 -3491 .141.e -311.6 -10.6 -341.3 -346.4 11616.S -329.5 -3m.5 -329.S -3m9.5 Il3SS.S -324 -324 -124 -324 ZSS66.0

GUI 23231

Jam. I. tishmir and Itaryana Social forestry ProjectP-Ject (ooplelon Report(Cr.lo l?B1M-l1t)Jamu It £ ashol, Sub-projeci

Attaclment 1lIable 2-Per Ha.-flnancial (stS and 1-nellts of SIRIP

Year-I Year-2 Year-3 Year-4 Ye,a Y-T ari6 \ear-Y Year-B Year-9 Yev-10 Year-il Year-12 Year-1l Year-14 Year-IS Year-16 Year-1l Year-16 Year-19 Yef-?O YHr-21

COStS fps./ha)- Istabtlit ent 18000- Itulngenance - 2700 1000 SO SDO S0O SO SOO SOO StlO SO SO SOO SOO SO SO SOO SOO SDO SO SOO. .. . . . .. . . -- --- -- --- -- -- -- - -- -- - - . . - - - -- --- -- -- --- -- --- -- - - --- - - - - -- - - --- - - - -- - - - - . - - -- --- - - - - --- -- -- - - - -- -- - - - --feal (osts 180K0 2fOG lOoo SOO SOO sn soo So0 SOO5 500o S0o SOO S0 SOO SOO SDO SOO SOO SD 500 SO0

OUtl'UIS:fvei..ood Emil - - - - - - - - - - 10.00 - - - - 6.00 - - - - 10.50Sall Iber E1m) - - - - - - - - - - 19.00 - - - - - - - - - 213.00tea,gs lIt. ) ' - - ' - - - ' ' - 0.10 0.10 0.10 0.10 0eto 0.30 0.10 0.10 0.10 0.10 0.10KlUtf IIS ERs.)fuuIood EPsa?lO/t ) ?100 1620 2815Small tliber EPS6JO/-1i I 16960 193120legoes fmsE 552/)

5.5 6. S.S . S 6S SS. 5.S S. S.S S.S S.S S.S nlotal bentItts (Rs.) 000 0.00 0 00 0.00 0.00 0°00 0.00 0 00 0.00 10666 6.60 S.50 5.50 S.50 1O626.5 5.50 5.50 SSO 5.50 22160.Slotal Net benefits (PRs) 0 -ZO00 -1000 -SO( -500 -SOt' -SOO -60 -0 6-SOO -SOO 16165.5 -494.5 -494.5 -494.S -494.5 1125 5 -494.S5 -494.5 -494.5 -494.5 21660.5

IRlt 16 631

I Ile: (IIIIIAIIIV.Wr I I IttOIA

Ja-, I I ashbi and Ilartana Social foresiry Projectihnject lo.plet.on Rcport((r.No I?b6 IN)J..-u L atsh ir Sub project

Allath.ant I:lable l-II nb.f I P*( Ila. (GSl t nd .rnei IIs of WIt AiIOS

Yea.FVear-7 Year-i Yer T Y..;S Year 6.i7J Year-6 Year-9 Year-10 Year-11 Year-12 Year-1l Year-1l Year-IS Year-16 Year-1l Year-lS Year-19 Vear-?O Year-fl

(OSIS:lsaltitsh--l (O_ Hainltne e 25 * 50 ISO Y10 3S0 3O )lS Oo 350 350 335 35O 350 350 3lS 350 350 31so 350

Ictal Cosls PI /hal 4S00 1125 4*50 lSO 35O lSO 3SO lSO 3SO 350 350 3SO 350 3SO 350 350 5O 3lSO 350 350 350

UIlPUIS:or.l od l-l. - -- 20.00 - - 10.00 0- - - 2.00 o

S-all Ilaber I-3l - - - - - - - - - 25.00 - - - - - - - 25.00fodder t(m.) A

tllural Urast - - - - - - - 0 50 - - 0.30 0.IS 0.15 0.15 0.S 0.15teates (s.D - 00- - - - - - - - . SO - - - - 0.3 O.IS 0.15 0.1 0.IS 0.15

BNIFIIS (Rs.)Juel.ood (P%.2?0/mt) 5400.0 7100.0 5400.0ISall Il.ber (Ps.840/-l) 21000.0 71000.0fodder ,Natural grass (RS.30/-t) 15.0 9.0 4.5 4.5 4.5 4.5 4.5Leaves (RsSS/al) 21.5 16.5 5.3 1.3 5.3 0.3 0.3

lolal bmnent i (Ps.) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 26442.5 0.0 0.0 0.0 0.0 2125.5 12.5 12.0 12.8 12.8 26412.8

letal MIet benelIts (Ps.) -4500.0 -1125.0 -450.0 -350.0 -350.0 -350 0 -l50.0 -350.0 -350.0 -350.0 26092.5 -350.0 -350.0 -3SO.0 -3SO.0 2315.5 -331.3 -311.3 -117.3 -311.3 26062.5

FIR 16.SIY

IMPIA

Pvogecit oepietlo. Repo.t((r. Ito 16-Jaoeu I Kashmir- Sub-project

Allach.eat I:lable 4.-Per ii.. financIal (tsts a.-d 11-nellis of FAR" !ORISIRT

- - ______ - ear-I a.'-T -Yea-iT Ye&--I -ita, iVF rTTiC ear-9 Year-10 Year-Il V*Ar-I? Year-I) Yta,-14 Year-Il Year-16 Vear-1l Year-18 Vear-Il Vesr-?0 year-U1

(DSIS (Ri./ha)* stabltish.rrt hO . - -- 00

- . - --Italotenance - 350 310s 3s I 350 3o 310 )1o 31o 310 310 31o 310 3so 310 310 310 310 310 310 310bloat Costs 2100 310 3s0 3so 350 310 )1o 310 310 310 310 310 310 3s0 310 310 310 310 31o 310 310

lueI.pcod (at.) - - . - . - - 23.00 - . - - 12.00 . - - 23.00~-all limber (.31 - - - - - - 100 - - - - 0.00ladder (at.I 0.10 0 10 .30 010 0.10 0.10 a.t 0 .to 0.30 0.10 0.10 0.10 iMF III fits.)tuaI.mod (Ps./27) 1210.0 3240.0 1210.0$&aII limber 411s.110/s.3) 4200.0 42000.0fodder (Iks./Jo) 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0 3.0total benefhis (Ps.) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 45211.0 3:0 3.0 3.0 '3.0 3?43.0 3.0 3.0 3.0 3.0 461213.0

loal Ret btnefits IRS.) -2100.0 -350.0 -310.0 -310.0 310.0 310 0 -J5-.0. -350.0 -310.0 -310.0 41663.0 -341.0 -341.0 -410.0 -341.0 24013.0 -341.0 .341.0 -341.0 -347.0 41663.0

IU ~~~32.275

9jnm A asimir and iHaryani Social forestry Project

project Completion. Reporl(Cr. No 1286-IN)Jammu £ aishair Sub-project

Attach.ent Liable 5-Pei Hai. financial Costs and Benefits of AIdIKiAOLAIION of 0(GAAO(O FORMS

Year-I Year-? Yea,-3 Vear-4 Year-S lear-6 ya- Year-) l Tear- 9 Y ear- IC Year-10 Year-II Year-1 J Year- Id Tear-IS Year-1 S Tear- Il ear-1SVarI Year-?0 Year-?I

C0sts (Ri.):- tfilblisheent 620 0 - - - -- - -- aintenjance - 12OO00 000100 0 S.0 ?50 00 750 00 250 0 5)00 250 00 250.00 250 00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.001 250.00

lolal Costs (Ps./ha) 6250.00 1200.00 100.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00 250.00

(AJIPUI 5:1oeI-vced (*.)I I/ - . - -- - - - - 0.00 P. (0 0.00 0.00 0.00 0.00 1.00 0.00 0.00 0.00 0.00 13.50Small limber (mi - - - - - - - - - 10.50 - - - - 10.50 . -- 34.50FodderM'assfai) - 0.02 0.02 0.02 0.0? 0.80 0.80 0.90 0.1? 0.20 0.50 0.50 0.50 0.50 0.50 0.50 0.so 0.50 0.50 0.50 0.50oleaves Imi - - - - - - - 0.10 0.10 010D 0.10 0.10 0.10 0.20 0.20 0. 20 0.70 0.20 0.?0

WIMeS.o IRS.)7/tluel ~~~~~Od (AS.21010t) ~~~~~~~~~0.0 2160.0 0.0 0.0 0.0 0.0 1890.0 0.0 0.0 0.0 0.0 3645.0 aSma11ll ater (Rt-810/aiJ)

8802 1110.0 28980.0fodde,6q,asi (As.]O/mI) 0.6 0.6 0.6 0 6 24.0 ?4o 21.0 3.6 6.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0 15.0teaves (P!.S5/at) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0Inlal benef itt (Rs.) 0.0 0.6 0.6 0.6 0.6 24.0 2M. MO. 3.6 6.0 10995.0 15.0 15.0 IS.0 15.0 10125.0 15.0 15.0 15.0 15.0 32640.0 lotal Met benelits (Rsi.) -6250.0 -1199.4 -699.4 -2-19.4 -249.4 226.0 -276.0 -223.0 -246.4 -244.0 10145.0 -235.0 -23S.0 -235.0 -23S.0 10115.0 -235.0 -23S.0 -PIS.0 -235.0 32390.0

FAR 11.61,1

62

Attachment 1: Table 6. Wholesale Price Index and Exchange Rates

Exchange Rate J/

GOI - FY Wholesale Price Deflator Rs to USS US$ to SDRS/Index /

81/82 102.2 177 8.9 1.22

82/83 104.9 172 9.6 1.13

83/84 112.9 160 10.3 1.08

84/85 120.1 151 11.9 1.02

85/86 125.4 144 12.2 1.04

86/87 132.7 , 136 12.8 *1.16

87/88 143.6 126 13.0 1.32

88/89 154.3 117 14.5 1.39

89/90 166.3 109 16.7 1.33

90/91 180.8 100 18.0 1.37

?/ International Financial Statistics, IMF, June 1991.

h/ Ministry of Industries, Office of Economic Advisers (Base 1981/82 = 100).

sl IDA's financial years.

43 -00, '-e- GoOp- -P.%&

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45 ~~~ *j5 155 itt as~~~~~~~ Pt 510 iLt iii. at S . a, a . ite a.0 S It.0. SOS too asI all as a. a i. as a. a a

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a. as. ast C as as0 a. a. a. i as I c as a. a a. a aSt a. asZ a.0 a. as o. aS as* IS. lot as. as as ',to.I .1. . *s9 "0 I 1 at ,I Uk 8 , E St* to. "S' logoi. los 5I*Ia. aC C, it iS. iI K Is s. a a. s55 a.0 a. a.~ a. . a. as"ase

Si. as ai a, s~~~~~~~-t. a-: W.l atO: "": . " a. at a at Si no to its a a as 5. a.: a. as a. : a. as a. a asPs-Omis. is. cc. as a. ,ee 5.. as at~~~~~ ~~~~~~~~~~ no a ot a S.C S ti i,S. 'a O et 55 ei 1 Ce ii ti se 5 ai a

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isa an an an isa an sea an an son an ma isis an an sea an an an sea an uii isa an an tin eta isa use 05.0 0 e at~~~~~~~~~~~~~~I.0 N:

a. as ai as a. as as as a. as as as as a. as as as as as ai as its 0*5 a. no tis no .5. a. at~~~~~~~~~~~~~~~~~~~~~l I" mlfelt alo eas as as as as as a. a. as as as as ai ai as is. a. as as as as as is. as ets to. a. t5~~~~~~~~~~~~~~~~~~~~~~~~~~Mo :: 'm I's SasI"as. 5a. as ai as as a. a. as a. ai as as as a. as as as as as as me its to. us its vs as us its as ot~~~~~~~~~~~~~~~~~~~~~~~ta LCI el m It 'W

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K S. a 0 cc. of~~~~~~~~~~~~~~~~~~~~~~~~~~~~~(at iol

K n. Snm a.i0 5 i5 n

IN DIA

JIM S KASl & P a.nd IIAR1AJA Social forestry Project

PRO,IICI COlWtI10 RiPORI(Er.Mo1286.111)KARYAdA SUAI.PROICI

Alttlh_.. 7:t.ble I Per la. Ilna .al Coiost nd 8Se-fits of Strip PI*ntOltooP I P I 0 I'

~~~~~_ ; __ __ __ _ ____ ____ _ Mt ~clie thIt Ps. I 7 3 4 5 6 1 8 9 10 it 12 13 14 IS 16 I1 Is 19

Istab I I 61. 11.. 6600 1370 6POaIlten,.Ke Pt/lb 0 0 0 350 3SO 350 3lS 350 35O 350 350 3]0 3so 350 350 350 350 3S0 350

iOIAt s.lIa. - 600 9370 660 350 350 350 350 350 350 350 3lS 3l0 3s0 3l0 350 350 0SO 350 350

GRlOSS elRKsivclonod t. 3 1 4 _ 14

S.a9 Il9 ber i l 3 - 6 24 _

leaf foder Nt. - - - - - - 2 2 2 2 4 4 4 4 4 4 4 4 4

Uetwea grasses mIt. - - 3 3 3 3 1 11 1 1 1 1 1 1 1 1 1

Dry- follenonod mt. 0 0 0 0 0 0 0 0 0

t;ROSS tHlofltllS

I nlInod at. 250 - 600 - - - 3500 - - 350O - - -

Soel 1 1.6r as. I50 _ - - - - - - - 4200 - - - 17820 - - -

laf fodder Pi. SO - - - 100 I00 900 900 o00 ?00 200 200 200 zoo 200 200 200 200

hIIo.r1 grasses Pt. 25 6 63 61 63 63 25 25 25 25 25 25 25 25 ?5 25 25 2S 25 25

Dry- tolle. Vod pi. 200 - - - - - ? - 2 20 20 20 20 20 20 20 20

0lOAt 0 63 63 63 63 125 925 125 195 125 Y945 245 245 249 245 21565 245 745 245

alltl KF1115 p. -6600 92So -596 -27C -231 -225 SyS -225 75 5. -275 7595 -10S -10S -105 -IOS 21215 -105 -I0 -90S

FR 139304

I/ Total .- peoses per Ha. Inclding mrsery, earth -ort.pl.tlg. |"Iten*n# *nd protctiln.

A,,4MJ i M AIAIA SAAW l eA.I . ,lc

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71

INDIA Attachment 3

JAMMU AND KASHMIR AND HARYANA SOCIAL FORESTRY PROJECT(Credit 1286&IN)

Economic Analysis(Jammu and Kashmir, Haryana, and Overall Project)

OVERALLJAMMU AND KASHMIR HARYANA PROJECT

NET NET NETFY COSTS BENEFITS BENEFITS COST BENEFITS BENEFITS BENEFITS

81 2.31 0 -2.31 0 0 0 -2.3182 12.58 0 -12.58 34.47 0 -34.47 -47.0583 32.18 0 -32.18 33.03 2.7 -30.33 -62.5184 43.36 0 -43.36 53.96 5.57 -48.39 -91.7585 57.59 0 -57.59 58.08 24.34 -33.74 -91.3386 60.11 0 -60.11 60.3 37.29 -23.01 -83.1287 51.27 0.01 -51.26 47.82 40.07 -7.75 -59.0188 46.05 0.01 -46.04 59.12 39.21 -19.91 -65.9589 44.24 0.02 -44.22 63.75 41.19 -22.56 -66.7890 46.65 0.04 -46.61 91.24 51.68 -39.56 -86.1791 19.19 3.17 -16.02 24.69 65.28 40.59 24.5792 19.19 26.82 7.63 24.69 161.7 137.01 144.6493 19.19 95.85 76.66 24.69 176.09 151.4 228.0694 19.19 127.76 108.57 24.69 252.01 227.32 335.8995 19.19 174.66 155.47 24.69 305.8 281.11 436.5896 19.19 207.51 188.32 24.69 216.92 192.23 380.5597 19.19 176.96 157.77 24.69 160.24 135.55 293.3298 19.19 181.91 162.72 24.69 190.57 165.88 328.699 19.19 133.95 114.76 24.69 158.6 133.91 248.67

2000 19.19 129.75 110.56 24.69 281.42 256.73 367.291 19.19 46.88 27.69 24.69 130.52 105.83 133.522 19.19 70.64 51.45 24.69 403.59 378.9 430.353 19.19 125.93 106.74 24.69 398.85 374.16 480.94 19.19 246.76 227.57 24.69 543.04 518.35 745.925 19.19 337.14 317.95 24.69 1417.34 1392.65 1710.66 19.19 396 376.81 24.69 452.25 427.56 804.377 19.19 232.16 212.97 24.69 233.23 208.54 421.518 19.19 221.41 202.22 24.69 284.95 260.26 462.489 19.19 193.16 173.97 24.69 256.17 231.48 405.45

10 19.19 110.97 91.78 24.69 379.92 355.23 447.0111 0 0 0 0.84 19.18 18.34 18.34

IRR 14% 23% 19%

world bank document...in jammu and kashmir included 5,000 ha of village woodlots, 1,000 ha of strip...

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