This paper has attempted to ascertain whether the sub-surface drainage (SSD) in waterlogged and saline lands of Indira Gandhi Nahar Priyojna Command area is a cost-effective technique. The study has shown that waterlogging adversely affects crop yields. The cost on SSD installation in the command area comes out to be Rs 23767 per hectare. The returns on crop yields before and after the drainage system have been compared. Land utilization has been intensified after the installation of drainage, as a sizeable area of formerly fallow land has been brought under cultivation. The B-C ratio and the NPV have been found as 2.44 and Rs 34275/ha, respectively. The IRR has been found to be 25.88 per cent. These indicators have well established the financial feasibility of the project in the IGNP area.