Benefit Cost Analysis of Solar Dug Well Irrigation Project in Barind Area

Solar dug well irrigation is now a very popular adoption to change the traditional agriculture practice in north-west region of Bangladesh. The present study was undertaken to determine the financial and economic profitability of solar dug well irrigation implemented by Barind Multipurpose Development Authority and to examine whether the profitability is appropriate for such type of irrigation system or not. In this study, costs and benefits of solar dug well irrigation have been investigated. Net present value (NPV), benefit cost ratio (BCR) and internal rate of return (IRR) are the relative measures of this study which are the main components used to help the farmers in decision making activities. After three consecutive years implementation of the project, the financial and economic NPV at 12% discount rate were 625.04 and 910.20 and at 25% discount rate were 100.39 and 235.53 respectively. The corresponding BCR were 2.21 and 2.77. The project's financial and economic IRR were 27.49% and 29.54% respectively. Considering all respects, the solar dug well irrigation was more feasible and acceptable in the study area.