The total cost per ha in this category is Rs. 8060/- which comes Rs. 40.30 lakhs for direct investment in development of land and water resources within the micro watershed. Besides, as per cost table given in the programme appraisal report, the communities have to be mobilized to contribute about Rs.1200/- per ha which brings to a total amount of Rs.9260/- per ha for direct investment.

The percentage of contribution should be fixed by the  community depending upon the landholding of the households and the nature of assets, being created. At least 10% contribution must be ensured from the tribal households while a minimum of 20% contribution must be ensured from non-tribal households in case of activities in community land. In case of private lands, the VDC must negotiate with the concerned user groups and facilitate as much contribution as possible. A general norm should be agreed on contribution by the VDC prior to starting the activities under this component. This component will cover all activities on mechanical structures and agronomic practices for conservation of soil and water resources would be creation of small irrigation structures like check-dam, Farm pond, WHS etc, development of the agricultural lands (contour bonding, terracing etc.), treatment of the nalas, soil conservation measures (gully control, contour trench, staggered trench, contour plantation etc.), contour plantation, conservation tillage, DCP, promotion of improved agronomic practices of horticulture and agriculture in highly degraded lands to restore top soil and soil moisture. The funds under this component will be released to the VDCs and the VDCs have to release the funds to the respective VLSCs depending upon the activities proposed in the VDLP. In all the cases, the funds shall be spent through the user groups, common interest groups, or similar institutions. In addition, this component will also include procurement of small equipments/tools required by the villagers for planning, designing of the structures and carrying out the activities at the village level. The allocation towards the equipments/tools is Rs. 60/- per ha which comes Rs.30, 000/- per MWS. The purchase of these equipments/tools is to be made by the respective ITDAs on recommendation of the FNGOs for use as and when required by them and the village communities.

The ITDAs should work out the packages of tools/ equipments required for the field work envisaged under this component. The packages of tools/ equipments are to be kept at the micro watershed level. The trend of proposed utilization of funds under this component has been demonstrated graphically in the figure above.