ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Turnaround in Financial Recovery in Maharashtra's Irrigation Sector

Despite a number of policy measures in almost all the states, the financial performance of the irrigation sector has been deteriorating over the years because of rising operation and maintenance expenditure as well as low and revised water rates. Meanwhile, Maharashtra has achieved an over 100 per cent recovery rate in the irrigation sector since the beginning of 2002-03. This study analyses the factors behind this impressive turnaround in the financial recovery rate. It specifically studies the water rates, working expenditures as well as financial recovery in Maharashtra vis-à-vis other states since the 1970s. The study suggests clearly that the financial recovery rate of the irrigation sector can be increased if economic and institutional reforms are packaged and sequenced appropriately along with an upward revision of water rates.

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