The benefit cost analysis has been accepted as the mam criterion for establishing the economic feasibility of irrigation projects sponsored by State Governments for acceptance by the Planning Commission. This criterion is a ratio of direct benefits expected from the project to the estimated direct costs of the project, and projects showing a ratio of 1.5 and above are generally considered acceptable. The paper reviews the oriterion adopted for taking up irrigation works, prior to the acceptance of the benofit-cost ratio oriterion and the evolution of the present criterion and its various components. The illustrative study made for Bor Project has been described and the impact of the new criterion in accepting new projects in recent years has been discussed. The deficiencies obsorved in the present practice have been pointed out and certain suggestions have been offered with a view to making the analysis comprehensive and perfectly rational. The implementation of these suggestions after discussion, it is felt, would help ensure uniformity of procedure and comparability of results obtained by this method.
