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NDCWWC Journal (A Half Yearly Journal of New Delhi Centre of WWC)
Year : 2016, Volume : 5, Issue : 1
First page : ( 58) Last page : ( 60)
Print ISSN : 2278-8395. Online ISSN : 2278-8409.

Review of economic appraisal of water resources projects in fast changing & complex

Scenario Development, Purandare Vidya

WALMI, Aurangabad, Maharashtra

Online published on 3 March, 2016.


This paper reviews the present Economic Appraisal Techniques viz. Benefit Cost Analysis, Internal Rate of Return being carried out for Water Resources projects (WRP). Considering the fast changing & complex development scenario, it is high time to introduce the Social Benefit Cost Analysis for appraisal of water resources projects. Social Benefit Cost Analysis (SBCA) is a methodology for evaluating projects specifically designed for welfare of either the entire community or nation or a section. Because of the serious distortions in market prices, highly dynamic economy, the usual benefit -cost–Cost analysis approach does not reflect the true social valuation of benefits and costs. The need for Social Benefit-Cost Analysis in preference to market valuation arises mainly due to; market imperfections, uncertainties & risk, externalities, concern for income distribution and concern for environment and environment impact assessment. Valuation of social benefits and costs, SBCA assigns weights for merit goods. It is indeed a very complex exercise, however some clear guidelines may help carryout the SBCA. The paper also emphasizes the need for a “Third Water & Irrigation Commission” at centre, for river basin wise planning and to review the whole process of appraisal of water resources projects.



Economic Appraisal, Benefit Cost Analysis, Social Benefit Cost Analysis.


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