A Scenario Testing of Canal Irrigation Cooperatives for Multiple Use Services: A Case study of Major Irrigation Project in Gujarat (India)

India has cautiously embarked on a process to transfer the management of public irrigation systems to Water Users’ Associations/Irrigation Cooperatives (ICs), with the stated objectives of providing sustainable and adequate financing for operation and maintenance and of facilitating investment in the required rehabilitation of irrigation and drainage systems. It is likely that most of the failed co-operatives are weak in their financial position. There is a need to find out the various critical factors that ensure financial strength of the ICs, and the various steps taken by the co-operatives to increase their revenue for better financial management. The study tries to identify and analyze the scope for charging multiple use of water including domestic, livestock and industrial purpose by making non farming users as members of the irrigation cooperatives, assess the capacity of the farmers/non farmers to pay and elicit the conscious steps taken by the government and farmers for ensuring the financial strength of ICs. The study refers to a multi-disciplinary approach which involves simulations and scenario-testing, acknowledging that there are costs incurred by supplying water and water-related services to farmers and other users. The farmers tap into their monetary resources to pay these water service fees. The outcome of the study suggests that there is a need to include non-farmers as members with a membership fee and charge non-farm uses to make ICs financially sustainable in the long run.