Positive externalities of irrigation from the Sardar Sarovar Project for farm production and domestic water supply

A detailed study was conducted in six districts of Gujarat, India, in gravity- and lift-irrigated commands of the Sardar Sarovar Project to assess the direct and indirect benefits of canal irrigation. Benefits such as savings in the cost of energy used to pump groundwater for irrigation, reduction in well failures, and increased income of well irrigators from farming (crops and dairy) were remarkable. Groundwater augmented by recharge from gravity irrigation resulted in large economic returns to the well irrigators in the command areas and reduced the cost of domestic water supply in villages and towns (through improved yield of agro-wells and drinking-water wells, respectively). Canal irrigation also raised wages for workers, through enhanced agricultural labour demand along with appreciation of land markets.