Economic Feasibility of Tank Restoration under Mission Kakatiya: Impacts on Cropping Intensity and Farm Income

Abstract

The study assessed the economic feasibility of restoring two tank systems each in Nalgonda and Warangal districts of Telangana state under Mission Kakatiya. The costs and benefits of tank restoration, as well as the financial feasibility of investing in tank restoration and the benefits accruing to farmers after restoration, were analyzed. The restoration works included de-silting, repairing sluice and weir, and strengthening bunds, with a total investment spent. The study found that cropping intensity was significantly higher (186.05%) in sample farms with a tank than in those without (125.22%). Additionally, silt application in the field had a positive impact on crop yields. The investment analysis revealed a positive net present worth (NPW), benefit-cost (B:C) ratio greater than unity, and internal rate of return (IRR) exceeding the opportunity cost of capital in both restored tanks, indicating the economic feasibility of tank restoration.