¹Mr.vishal Bhalchadndra Desale and ¹Dr.Shivaji Bansilal Patil–

¹Late Annasaheb R.D.Deore Arts and Science College Mhasadi Tal-Sakri, Dist-Dhule,vishaldesalesir@gmail.com

Abstract

The Andhra river basin is famous for the ‘Phad’ irrigation syste. The total length of the Pazara river is 138 km, and its basin covers approximately 3257 sq. km. It is an important river in Dhule district. The Kan river is its major tributary.The Phad irrigation system is a traditional and community-managed water distribution method predominantly found in the Sakri tehsil of Maharashtra, India. This indigenous system has been in use for centuries, serving as a testament to the creativity of local farmers in managing limited water resources. The Phad system entails the diversion of river water through a network of canals and distributaries to irrigate agricultural fields. This article examines the historical significance, operational dynamics, and socio-economic implications of the Phad irrigation system in Sakri tehsil. It also brings to light the challenges that the system faces in the contemporary era and the urgent need for its preservation and revitalization.

Keywords

Pazara river ,Phad Irrigation,Community-Based Irrigation ,Traditional Water Management, Sakri Tehsil, Maharashtra, Sustainable Agriculture.

Objectives:

The objective of this article is …..

1. To present an extensive overview of the Phad irrigation system in Sakri tehsil, focusing on its historical and cultural significance, and its role in promoting sustainable agriculture.

2.To analyze the effects of phad irrigation system on farmers life of sakri tehsil.

3.To identify the challenges that the system confronts and propose solutions for its conservation and modernization.

Introduction

Agriculture and water have a close relationship. Water is a crucial contribution to the agricultural sector. In Maharashtra, insufficient and irregular rainfall often leads to the loss of crops that are almost ready for harvest. Consequently, numerous droughts occur. Naturally, artificial water supply becomes necessary to save the crops. In Maharashtra, attempts have been made since ancient times to supply water to agriculture through wells and canals. The Phad system is one of the irrigation methods that existed in Maharashtra in the past. The Phad system of Khandesh is a method of flow irrigation

About Sakri Tehsil

Sakri tehsil serves as an administrative subdivision located within the Dhule district of Maharashtra. The elevation varies from a low of 128 meters to a high of 1,558 meters, with an average elevation of approximately 470 meters. The region is primarily composed of Deccan Trap Basalt dating from the Upper Cretaceous to Lower Eocene periods, often intersected by dykes.Annual maximum temperatures can soar to 42°C, while minimum temperatures hover around 6.5°C. The eastern region is classified as a scarcity zone, experiencing low and erratic rainfall of about 500 mm, whereas the western region acts as a transition zone with increased rainfall ranging from 700 to 750 mm. Major Rivers: The Panzara River serves as the main lifeline for the tehsil, originating in Pimpalner in western Sakri. Other notable rivers and streams include the Burai, Kan, and Jamkhedi. Fertile black cotton soil is prevalent along the riverbanks. Approximately 30.18% of the area is covered by forests, and around 45% of the land is utilized for cultivation. Key crops cultivated in the region include bajri, cotton, groundnut, and wheat. Despite facing numerous challenges, the farmers of Sakri tehsil have successfully managed to grow crops by utilizing the Phad irrigation system. The tehsil is distinguished by its dependence on traditional knowledge and community collaboration, both of which are vital for the efficient functioning of the Phad system.

What is Phad irrigation ?:

The Phad irrigation system is a traditional water management technique that has its origins in the medieval period. It involves the establishment of small diversion weirs, known as bandharas, across rivers to channel water into a network of canals and distributaries. These canals, referred to as Phads, systematically and equitably distribute water to agricultural fields. The Pazara river basin is famous for the ‘Phad’ irrigation system. This river originates in the Sahyadri range at an altitude of 600 meters above sea level. Its source is located between 20°52′ North latitude and 73°55′ East longitude. The Panjhra river flows eastward for 99 km.  Then, turning north, it joins the Tapi river near Mudawad and Sindkheda. The total length of the Panzara river is 138 km, and its basin covers approximately 3257 sq. km. It is an important river in Dhule district. The Kan river is its major tributary. Although the banks of these rivers are higher near their source, the height decreases in the plateau region.  Moreover, there are rocks in the riverbeds at various places. Previously, these rivers flowed throughout the year. Therefore, to utilize the flowing water for agriculture, the people of this basin have built stone dams of 2 to 3 meters in height in the riverbeds. Most of the villages along the riverbanks in this basin have dams, and the Phad system exists on these dams. It would be more appropriate to call the Panzara a river of dams. According to the Panzaraproject, there are 45 dams on this river. Around 1962, the Phad system was in operation on 30 dams from Pankheda to Betawad.

Positive aspects of the Phad Irrigation System

1.The Phad system allows for water distribution considering the water requirements of each crop. For example, the Kamod variety of rice requires water daily.  The next priority is sugarcane, followed by other crops

2. Water is supplied to a continuous area of ​​land through a single channel, and all the land receives equal water. This prevents water wastage, and the water does not spread to scattered fields through numerous channels. 

3.The crop rotation system allows the land to rest. Despite this system being in use for hundreds of years, the land has never become degraded or saline.

4.There are separate employees for water distribution. They distribute water in turns according to the instructions of the chairman.  Therefore, there is no excessive or unauthorized use of water.  Moreover, everyone receives equal water.

5. Since the Phad institutions carry out minor repairs to the dam and canals in this system, the government does not have to incur any expenses for them.

6. The Phad system depends on gravity for the flow of water, which lessens the requirement for external energy sources machinary and tools.

7.This system is designed to be uncomplicated and cost-efficient, requiring very little maintenance and few empoyes to maintain

8 The management of the system is conducted by local communities, who collectively decide on the distribution of water. it increse co operation between villagers 

The Phad system has significantly contributed to the cultivation of crops like wheat, millet, and pulses in Sakri tehsil. It has also been pivotal in sustaining the ecological balance of the region.

Challenges encountered by the Phad irrigation system

While the Phad irrigation system is effective, it faces several challenges in the contemporary era. These challenges are as follows:

1.Deforatation : twenty years ago, due to good forests cover the watershed area of ​​the Panzara valley, there was a perennial flow in the river. But nowdays deforestation and an increase in wells and boarwells the groundwater level decreased. The river flow diminished and now lasts only 5 to 6 months.

2.Fragmention of Holdings :  After 1950, population growth necessitated the fragmentation of already small landholdings. The one hectare of permanently irrigated land owned by a farmer was divided among his 2-3 children, creating an even more difficult situation.

3.Lacking Mmaintenance– Grass and bushes grew in the irrigation channels; silt accumulated in the dams, yet no cleaning was done.  Farmers along the riverbanks even encroached upon the silt accumulated in the dams.

4.Availability of Private Irrigation Facility : various government schemes providing easy loans and subsidies for wells became available.  Then, farmers who depended on public irrigation channels and couldn’t afford their own wells quickly dug wells, and once they had their own private resource, the publicly managed Phad system began to be increasingly neglected.

5.Construction of Dams :from 1970, the construction of government dams on Panzara and kan river began .Latipada and Akkalpada on Pazara and malngaon on Kan river is good example of it.Since these projects, the government gained control over water of rivers.

6. Climate Change: Erratic rainfall patterns and extended droughts have significantly influenced the availability of water in rivers throughout the year for irrigation purposes. The unpredictability of the rainy season makes it challenging for farmers to depend on phad irrigation.

7. Changes in Land Use Patterns: In numerous towns within Sakri tehsil, individuals residing along the riverbanks strive to build close to the river. They establish houses and factories near the riverbank. The growth of urban areas has encroached upon agricultural land and water resources.

8. Insufficient Government Support: The phad system has received scant attention from policymakers. Government initiatives favouring drip irrigation and the construction of ponds on farms have led to insufficient funding and infrastructure development.

9. Decline in Traditional Knowledge: For the effective operation of the daily irrigation schedule in the phad system, traditional agricultural knowledge is necessary. Nevertheless, the younger generation is progressively moving away from agriculture and rural communities, resulting in a loss of traditional knowledge.

To address these challenges, it is essential to modernize the Phad system. This could involve integrating modern technology, such as sensors and automated gates, to enhance water management. Moreover, government support and community awareness initiatives are vital for the preservation and revitalization of this traditional system.

Conclustion

The Phad irrigation system found in Sakri tehsil is a notable example of traditional water management that has supported agriculture in a difficult environment for centuries. The block system established for water distribution from dams in 1903-1904 was modelled after the Phad system. The recommendation made by the Bombay Inquiry Committee in 1938 to create farmers’ cooperative societies or water panchayat institutions for water distribution was also influenced by the Phad system. This method had been carefully observed by a prominent engineer, Sir M. Visvesvaraya., who had resided in Dhule for some period . Since the early 20th century, the Phad system has been regarded as a benchmark for water distribution from dams. It is essential that all possible actions are taken today to protect this Phad system, which was innovated by Indians, fosters collaboration, and is recognized for its fair water distribution.

References:

1. Pawar, S. (2015). Community-Based Water Management: A Case Study of Phad Irrigation in Maharashtra. International Journal of Rural Studies.

2. Deshpande, R. S. (2005). Traditional Water Management Systems in Maharashtra. Indian Journal of Agricultural Economics.

3. Mishra, A. (2001). The Radiant Raindrops of Rajasthan. Research Foundation for Science, Technology and Ecology.

4. Agarwal, A., & Narain, S. (1997). Dying Wisdom: Rise, Fall and Potential of India’s Traditional Water Harvesting Systems. Centre for Science and Environment.

5.Government of Maharashtra. (2010). Report on Traditional Irrigation Systems in Maharashtra. Department of Agriculture.

¹Mr. Paresh Prakash Torawane, ²Dr. Sanjay N. Tupe

¹V.V.M.’s Sitaram Govind Patil Arts, Science & Commerce College, Sakri Tal. Sakri Dist- Dhule

Email: pareshtorawane1991@gmail.com

²Insurance Institute of India, BKC, Bandra, Mumbai

Abstract

In the contemporary knowledge-driven economy, the structure of business assets has shifted significantly from tangible resources to intangible and innovation-based assets. Intellectual Property Rights (IPR) has emerged as critical financial and strategic instruments influencing enterprise valuation, credit assessment, and investment decisions. This research paper examines the role of Intellectual Property Rights within the Indian banking and financial system, focusing on their impact on firm valuation, access to finance, and investor confidence. The study adopts a doctrinal and analytical research methodology based on secondary data sourced from statutes, policy documents, institutional reports, and recent scholarly literature. The findings reveal that enterprises with strong IPR portfolios demonstrate enhanced creditworthiness, reduced information asymmetry, and improved funding opportunities, particularly in the case of MSMEs and startups. The paper concludes that integrating IPR valuation mechanisms into banking and financial frameworks is essential for fostering innovation-led growth and strengthening India’s economic competitiveness.

Keywords

Intellectual Property Rights, Banking, Finance, Enterprise Valuation, MSMEs, Intangible Assets, India

Introduction

The evolution of global and Indian economies has witnessed a gradual transition from asset-intensive production systems to knowledge-based economic models. In this changing environment, intellectual assets such as patents, trademarks, copyrights, software, and proprietary technologies have assumed greater importance than traditional physical assets. For modern enterprises, value creation increasingly depends on innovation, branding, and technological capability rather than land or machinery alone.

This transformation poses new challenges for banking and finance. Traditional lending models rely heavily on tangible collateral, whereas innovation-driven enterprises often possess limited physical assets but substantial intellectual capital. Intellectual Property Rights (IPR) provide a legal mechanism through which intangible assets can be protected, commercialized, and converted into economic value. Consequently, IPR has gained relevance not only as a legal safeguard but also as a determinant of enterprise valuation, creditworthiness, and investment potential.

In India, the rapid expansion of startups, MSMEs, finTech firms, and technology-oriented businesses has intensified the interaction between intellectual property and financial systems. Financial institutions, venture capitalists, and investors increasingly consider IPR portfolios while evaluating funding proposals. This paper analyses the role of Intellectual Property Rights from a banking and finance perspective, highlighting their contribution to enterprise valuation, lending decisions, and economic growth.

Objectives of the Study

The objectives of the present study are as follows:

1. To examine the role of Intellectual Property Rights in enterprise valuation from a banking and finance perspective.
2. To analyze the relevance of IPR in banking credit appraisal and lending decisions.
3. To study the impact of IPR ownership on investment, funding, and financial performance of enterprises.
4. To assess the influence of international IPR frameworks on the Indian financial system.
5. To identify challenges associated with IPR valuation and financing in India.

Hypotheses

The study is based on the following hypotheses:

1. Intellectual Property Rights positively influence enterprise valuation and financial credibility.
2. Enterprises with strong IPR portfolios face fewer constraints in accessing finance.
3. Integration of IPR frameworks into financial systems supports innovation-led economic growth.

Research Methodology

The study adopts a doctrinal and analytical research methodology. It relies exclusively on secondary data, collected from:

• Indian intellectual property statutes
• Reports of the Reserve Bank of India, WIPO, WTO, OECD, and Government of India
• Peer-reviewed national and international journals
• Books and policy documents related to banking, finance, and intellectual property

The collected data is analyzed qualitatively to evaluate the financial and commercial implications of Intellectual Property Rights in India.

Review of Literature

The shift toward knowledge-based economies has prompted extensive scholarly inquiry into the financial relevance of Intellectual Property Rights. Recent literature recognizes IPR as a strategic financial asset influencing firm valuation, investment attractiveness, and access to institutional finance.

Hall et al. (2024) demonstrate that patents and trademarks function as reliable indicators of innovation capability and growth potential. Their study finds that firms with protected intellectual assets enjoy higher market valuation and improved financing outcomes due to reduced information asymmetry between enterprises and financial institutions.

Kumar and Sharma (2023) focus on emerging economies and highlight that intellectual property significantly strengthens enterprise valuation where physical collateral is limited. Their findings indicate that IPR enhances goodwill and balance-sheet strength, thereby positively influencing investor and lender perceptions.

From a banking perspective, the OECD (2023) observes a gradual global shift toward intellectual property-backed financing. While advanced economies have begun incorporating IPR valuation into credit frameworks, developing economies such as India face challenges related to valuation uncertainty, enforcement risks, and institutional capacity constraints.

Venture capital literature further emphasizes the importance of IPR. Lerner and Nanda (2024) argue that strong patent portfolios and brand protection improve bargaining power during investment negotiations, leading to higher valuations and favorable funding terms.

Studies on MSMEs reveal that registered intellectual property improves access to formal finance and enhances long-term sustainability (Singh & Mehta, 2023). However, limited awareness and procedural complexity continue to restrict effective utilization of IPR among small enterprises.

International organizations such as WIPO (2023, 2024) and WTO (2023) underline that harmonized intellectual property regimes under the TRIPS framework strengthen investor confidence, promote technology transfer, and support financial stability. Despite these insights, the literature reveals a lack of focused research on integrating IPR valuation into Indian banking systems, creating a clear research gap addressed by the present study.

Review of Literature Summary Table

Author & Year	Focus Area	Key Findings
Hall et al. (2024)	IPR & firm valuation	IPR enhances market value and financing outcomes
Kumar & Sharma (2023)	Emerging economies	IPR strengthens goodwill and enterprise valuation
OECD (2023)	IPR-backed financing	Valuation challenges limit banking adoption
Lerner & Nanda (2024)	Venture capital	Strong IPR attracts higher investment
Singh & Mehta (2023)	MSMEs	IPR improves access to institutional finance
WIPO (2023, 2024)	Global IPR regime	Harmonization improves investor confidence

Theoretical Framework

The study is grounded in the Resource-Based View (RBV), which identifies unique and inimitable resources as sources of sustained competitive advantage. Intellectual Property Rights qualify as such resources due to their exclusivity, revenue-generating potential and legal enforceability.

Additionally, Signaling Theory explains how enterprises use patents and trademarks to signal quality, innovation capacity, and growth potential to banks and investors. By reducing information asymmetry, IPR enhances trust and influences financial decision-making.

Intellectual Property Rights as Financial Assets

Intellectual Property Rights convert innovation into legally protected economic assets. Patents generate royalty income, trademarks create brand-based revenue, and copyrights support monetization through licensing. During mergers and acquisitions, intellectual property significantly contributes to goodwill and enterprise valuation, reinforcing its importance in financial analysis.

Role of IPR in Banking and Credit Assessment

Registered intellectual property improves creditworthiness by demonstrating ownership, innovation capability, and market potential. Although IPR-backed lending is still evolving in India, banks increasingly consider intellectual assets while assessing startup and MSME proposals. Strong IPR protection also reduces default risk by safeguarding revenue streams from imitation.

IPR and Investment Decisions

Investors and venture capitalists rely on IPR portfolios to assess scalability and risk. Enterprises with protected innovations attract higher valuations, strategic partnerships, and long-term funding. IPR thus plays a decisive role in shaping investment outcomes in innovation-driven sectors.

Challenges in IPR Financing

Despite its potential, IPR-based financing faces obstacles such as lack of standardized valuation models, limited banking expertise, enforcement risks, and low awareness among enterprises. Addressing these challenges is critical for mainstreaming IPR within financial systems.

Findings

1. Intellectual Property Rights significantly enhance enterprise valuation and financial credibility.
2. Firms with strong IPR portfolios enjoy better access to finance and investment.
3. IPR reduces information asymmetry between enterprises and financial institutions.
4. Valuation and enforcement challenges limit the widespread adoption of IPR-backed financing.

Suggestions

1. Banks should develop structured frameworks for IPR valuation and risk assessment.
2. Regulatory authorities should issue guidelines on intellectual property-backed lending.
3. MSMEs should be encouraged to register and strategically manage intellectual property.
4. Capacity-building programs should be introduced for bankers and financial analysts.

Conclusion

Intellectual Property Rights have emerged as a vital bridge between innovation and finance in India’s evolving economic landscape. Recognizing intellectual property as a financial asset enhances enterprise valuation, improves access to credit, and strengthens investor confidence. Integrating IPR into banking and financial frameworks is essential for supporting innovation-led growth, MSME development, and global competitiveness. A robust and well-implemented intellectual property regime will play a decisive role in shaping India’s future economic progress.

References

1. Controller General of Patents, Designs and Trade Marks. (2024). Annual report 2023–24. Government of India.
2. Hall, B. H., Helmers, C., Rogers, M., & Sena, V. (2024). The importance of intellectual property for firm performance and finance. Research Policy, 53(2), 104889.
3. Kumar, S., & Sharma, R. (2023). Intellectual property rights and firm valuation: Evidence from emerging economies. Journal of Intellectual Capital, 24(3), 635–654.
4. Lerner, J., & Nanda, R. (2024). Venture capital, innovation, and intellectual property protection. Harvard Business Review, 102(1), 78–87.
5. OECD. (2023). Intellectual property financing: Challenges and policy responses. OECD Publishing.
6. Singh, A., & Mehta, P. (2023). Role of intellectual property in MSME financing and growth in India. International Journal of Business and Emerging Markets, 15(4), 412–428.
7. World Intellectual Property Organization. (2023). World intellectual property indicators 2023. WIPO.
8. World Intellectual Property Organization. (2024). Global innovation index 2024. WIPO.
9. World Trade Organization. (2023). TRIPS agreement: Trade, innovation and development. WTO.