Economic impact of interlinking of rivers programme

The interlinking of rivers programme (ILR) programme is aimed at linking different surplus rivers of country with the deficient rivers so that the excess water from surplus region could be diverted to deficient region. This would help in increasing irrigation intensity in the country, increasing water availability for drinking and industrial purposes, mitigating effect of drought and floods to a certain extent. Basic purpose of the this study is to assess the macro impact of the ILR programme on Indian economy. In this study macro impacts are analysed both at short- as well as long-term. Short-term impact is analysed with the help of a social accounting matrix for the year 1999-00 at 2000-01 prices. Short-term impact helps us in evaluating the impact of the ILR programme on different sectors of the economy. Longterm impact of the ILR programme is evaluated with the help of a macro econometric model.