Institutional Reforms in Irrigation Financing: A Case of Krishna Bhagya Jal Nigam Limited

K.V. Raju (kvraju@isec.ac.in), Ashok Gulati (agulati@cgiar.org) and Ruth Meinzen-Dick
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K.V. Raju: Institute for Social and Economic Change, Bangalore, India.
Ashok Gulati: International Food Policy Research Institute, Washington D.C., USA.

Journal of Social and Economic Development, 2003, vol. 5, issue 2, 241-266

Abstract: Canal irrigation in India has been moving towards financial crisis in recent years. Some states have introduced innovative institutional reforms to mobilise the required funds. Karnataka is one such state that has set up Krishna Bhagya Jal Nigam Limited for this purpose. Although adequate funds were mobilised since its establishment and the physical works are on schedule, ‘soft components’ were neglected, thereby missing an opportunity to embark upon major institutional reforms to enhance irrigation efficiency and to move towards financial sustainability of the irrigation project. This paper discusses the background of the setting up of a financial institution, its achievements, inadequacies, and potential of the innovative efforts made in irrigation financing reforms.

Date: 2003
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