Lok Sabha Question No. 3169 (UNSTARRED), answered on 2015-12-17
Subject: Assistance under AIBP
Ministry: WATER RESOURCES, RIVER DEVELOPMENT AND GANAGA REJUVENATION
Asked by: RAOSAHEB PATIL DANVE, ANANDRAO  ADSUL, ASHOK MAHADEORAO NETE, RAJESHBHAI NARANBHAI CHUDASAMA, KALIKESH NARAYAN SINGH DEO, VINOD CHAVDA, DEVUSINH JESINGBHAI CHAUHAN, SHIVAJI ADHALRAO PATIL, RAJU ALIAS DEVAPPA ANNA SHETTI, J. JAYASINGH THIYAGARAJ NATTERJEE

## GOVERNMENT OF INDIA MINISTRY OF WATER RESOURCES, RIVER DEVELOPMENT AND GANGA REJUVENATION

## LOK SABHA UNSTARRED QUESTION NO. †3169

ANSWERED ON 17.12.2015

## ASSISTANCE UNDER AIBP

| †3169. SHRI RAOSAHEB DANVE PATIL SHRI ASHOK MAHADEORAO NETE SHRI KALIKESH N. SINGH DEO SHRI DEVUSINH CHAUHAN SHRI RAJU SHETTY   | SHRIANANDRAO ADSUL SHRI RAJESHBHAICHUDASAMA SHRI VINOD LAKHAMASHICHAVDA SHRI ADHALRAO PATIL SHIVAJIRAO SHRI J.J.T. NATTERJEE   |
|---------------------------------------------------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------------------------------------------------|

Will the Minister of WATER RESOURCES, RIVER DEVELOPMENT AND GANGA REJUVENATION be pleased to state:

- (a) the criteria laid down for grant of financial assistance including terms of funding and the mode of disbursement for projects under the Accelerated Irrigation Benefits Programme (AIBP);
- (b)  the  current  status  of  ongoing  irrigation  projects  as  well  as  projects  taken  up  under  AIBP  along  with  the  funds allocated/released/utilised during the last three years, State/UT-wise;
- (c)  whether  the  Government  is  satisfied  with  the  pace  of  progress  of  projects/works  under  AIBP,  if  so,  the  details thereof, if not, the reasons therefor and the steps taken to expedite them;
- (d) the mechanism put in place for physical and financial monitoring of the projects under AIBP; and
- (e)  whether  the  Government  has  received  requests  from  States  including  Maharashtra  for  financial  assistance  under AIBP during the said period and to review AIBP norms for grant of assistance to various categorised areas thereunder, if so, the details thereof and the follow-up action taken by the Government thereon?

## ANSWER

## THE  HON'BLE  MINISTER OF  STATE FOR WATER  RESOURCES, RIVER DEVELOPMENT AND GANGA REJUVENATION (PROF. SANWAR LAL JAT)

- (a)  &  (b)      The  criteria  laid  down  for  grant  of  financial  assistance  including  terms  of  funding  and  the  mode  of disbursement for projects under the Accelerated Irrigation Benefits Programme (AIBP) is at Annexure-I. The status of release in last three years for ongoing projects under AIBP is at Annexure-II.
- (c) & (d)  The pace of the progress of projects was affected by the reduction in the funds availability as well as issues related to land acquisition. The MoWR,RD&GR has identified 23 priority projects and funds have been made available to complete these projects by 2017.  Central Water Commission has been assigned the responsibility to comprehensively monitoring the projects receiving Central Assistance. Selected minor surface water irrigation projects receiving Central Assistance are also monitored by CWC. As a part of AIBP monitoring, the projects are inspected and the status reports are  prepared and issued to all concerned. The recommendations of CWC form the basis for release of funds by this Ministry.
- (e)  Yes Madam, after processing the proposals from various State Governments Central Assistance (CA) has been  released  to  various  States  including  Maharashtra  as  indicated  in Annexure-I. Various  suggestions  from  State Governments were received on modification of XII Plan guidelines of AIBP.  Based on these suggestions, the guidelines have been refined, to Freeze the cost of ongoing projects at the time of inclusion of the Project in the AIBP; permit cost escalation by a maximum of 20%;  and ensure Parri-Passu implementation of AIBP & CADWM in a timely manner.

## Annexure referred to in reply to part (a) of the unstarred question No.3169 due for answer on 17.12.2015 in Lok Sabha regarding Assistance under  AIBP

The Union Government launched Accelerated Irrigation Benefits Programme (AIBP) in 1996-97 for providing financial  assistance  to  States,  with  an  objective  of  expediting  completion  of  ongoing  Major/Medium  including Extension,  Renovation  and  Modernization  (ERM)  irrigation  projects  and  Surface  Minor  Irrigation  schemes.  The guidelines for such scheme are being revised from  time to time in order to widen the scope of funding as well as to allow special consideration for the regions lagging behind in development, which presently include north-eastern states, hilly  states,  drought  prone  and  tribal  areas,  KBK  districts  of  Orissa,  states  with  lower  irrigation  development  as compared to national average and districts identified under PM package for agrarian distressed districts in the states of Andhra Pradesh, Maharashtra, Karnataka and Kerala.

At present, As per the latest modifications in AIBP guidelines made in October, 2013, the projects which are in an advanced stage of construction and can be completed within a period of 4 years after their inclusion in AIBP and are fulfilling other eligibility criteria are provided Central Assistance (CA). The eligibility criteria for inclusion of project for assistance under the programme are as follows:

## For Major/Medium projects;

- 1) The project must have investment clearance of Planning commission,
- 2) Project is in 'advance stage of construction' and could be completed in next 4 financial years and
- 3) Project or component of the project proposed for AIBP is not receiving any other form of financial assistance
- 4) An ongoing major/ medium project can be included in AIBP on completion of an ongoing project under AIBP on one to one basis
- 5) The following category of projects could be included in AIBP in relaxation of one to one criteria stated above :
- a. Projects benefiting Drought Prone Area(DPA)/Desert Prone Area(DDP)/ Tribal areas
- b. Projects in states having irrigation development below National Average
- c. Projects  in  the  districts  identified  under  PM  package  for  agrarian  distressed  districts  in  the  states  of Andhra Pradesh, Maharashtra, Karnataka and Kerala.

Advance stage of construction  imply  that  the  projects  which  are  have  more  than  50%  physical  progress  of major components and 50% financial progress as per latest approved estimated cost.

## For ERM projects;

- 1) Projects having investment clearance of Planning commission.
- 2) Projects  already  completed  and  commissioned  atleast  10  years  earlier  from  the  proposed  year  of  inclusion under AIBP and Inclusion may be permitted in the states/projects
3. (i) Which  have  agreed  to  reform  in  water  sector  i.e.  to  implement  Micro  Irrigation  in  at  least  10%  of command area.

OR

- (ii) Which  have  enacted  Participatory  Irrigation  Management  legislation  and  active  working  of  Water User Association to maintain the system and collecting water cess.

OR

- (iii) Where new potential is also envisaged along with restoration of lost potential.

OR

- (iv)   CAD works have been completed or taken up and likely to be completed.

## Surface minor irrigation (MI) schemes

Surface minor irrigation (MI) schemes (both new as well as ongoing) of  Special category states -North-Eastern states,  Hilly  states (Himachal Pradesh, Jammu and Kashmir and Uttarakhand) and drought prone undivided Koraput, Bolangir  and  Kalahandi  (KBK)  districts  of  Odisha  which  are  approved  by  State  TAC  will  be  eligible  for  assistance under the programme provided that (i) individual schemes  have Culturable Command Area (CCA) of 10 hectare and cluster of MI schemes within radius of 5 Km having CCA of 20 hectare  (ii) proposed MI schemes have benefit cost ratio of more than 1 and (iii) the development cost  per hectare of CCA of individual  scheme is less than Rs.2.5 lakh.

For Non-special category states, the individual surface minor irrigation schemes having CCA of  20 hectare and cluster of MI schemes within radius of 5 km. having total CCA of 50 hectare  benefitting tribal areas, drought prone areas, desert prone areas and Left Wing Extremists Affected area are eligible for assistance under AIBP.

## Terms of Funding

It may be noted that the funding pattern are subject to revision with reference to new order of Ministry of Finance regarding changes in funding pattern of various centrally sponsored schemes (Annexure-I (A)).

## Mode of Disbursement;

As per operational guidelines of PMKSY funds are to be released as follows:-

60% of the PMKSY annual allocation will be released as first installment to the State, upon the receipt of the minutes of SLSC approving  implementation  of  new  projects  and/or  continuation  of  ongoing    projects  during  the  financial  year alongwith  lists  of  projects  approved.  Release  of  funds  will  be  made  by  the  respective  Ministry/department  for  the specific  component.    The  concerned  implementation  ministries/department  will  be  responsible  to  ensure  receipt  of utilisation  certificate  and  corresponding  physical  and  financial  progress  while  releasing  the  funds  for  the  specific component.  The utilisation certificate is to be submitted by the respective implementing department /agency in the state.

In case, total cost of approved project is less than annual outlay, funds to the tune of 60% of approved project cost will be released.

Release of the second and final installment would be considered on receipt of the following:

- (a) More than 90% Utilization Certificates (UCs) for the funds released upto previous financial year;
- (b) Utilisation Certificates (UCs) of at least 50% of funds released in first installment during current year; and
- (c) Performance  report  in  terms  of  physical  and  financial  achievements  as  well  as  outcomes,  within  the stipulated time frame in specified format.

## Change in funding pattern of Centrally Sponsored Schemes

In  pursuance  of  the  Ministry  of  Finance  Orders  of  the  28 th October,  2015  the  following  changes  have  been introduced in the funding pattern of Centrally Sponsored Schemes with respect to PMKSY:

1. The funding of the PMKSY will be shared 60:40 between the Centre and the States (90:10 for the 8 NE States and 3 Himalayan States). As some components of PMKSY have a central funding pattern less than the level mentioned above, the existing funding pattern will continue. Accordingly, the funding pattern for AIBP will be changed as follows:-

Central Assistance (CA)  is in the form of central grant and  Major/Medium Irrigation projects are eligible for;

- i. On-going  and  new  projects  benefiting  the  non-Special  Category  States  may  continue  to  be  provided Central  Assistance  at  25%  of  the  cost  apportionable  to  irrigation  and  drinking  water  components. However,  the  quantum  of  Central  Assistance  could  be  enhanced  upto  50%  as  an  incentive  for  new projects subject to the condition that the States actually carry out water sector reforms' as per the reform benchmarks to be laid down by the Ministry of Water Resources in due course.
- ii. For  ongoing  projects  in  Special  areas  of  Non-special  Category  States,  the  Central  Assistance  under AIBP will be 60% of the cost of the project (work component) for eligible irrigation projects
- iii. For new projects in Special areas( benefitting Drought prone areas, Tribal areas, Flood Prone Area ) of Non-special Category States, the Central Assistance under AIBP will be 60% of the cost of the project (work component) for eligible irrigation projects
- iv. Ongoing projects benefiting 8 NE States and 3 Himalayan States may continue to be eligible for 90% Central Assistance.
- v. For new projects in 8 NE States and 3 Himalayan States, the Central Assistance under AIBP will be 90% of the cost of the project (work component) for eligible Irrigation projects.
- vi. For  the  purpose  of  determining  the  quantum  of  assistance,  a  project  benefiting  Desert  Development Programme (DDP) area/Desert Prone Area will be treated on a par with those benefiting DPAP areas and  the  new  projects  will  be  eligible  for  Central  Assistance  @  60%  for  projects  in  Non-Special Category States.

The DDP areas is as identified by the Ministry of Rural Development in their published documents. The ongoing projects  already  under  AIBP  and  benefiting  Desert  Development  Programme  (DDP)  /Desert Prone Area will continue to get Central Assistance @ 25%

Till  finalization  of  reform  benchmarks by MOWR, following measures will be considered as water reforms 1) Measurement  on  volumetric  basis,  2)  participatory  Irrigation  Management,  3)  Active  working  of  Water  User Association, 4) Micro Irrigation, 5) Collection at water cess by Water User Association, and 6) Maintenance by Water  User  Association.  With  implementation  of  any  three  of  the  above,  the  State  Government  will  become eligible for enhanced funding.

The Special Areas for major/medium irrigation projects will denote DPAP areas, Tribal areas, Flood prone areas.

## Surface minor irrigation (MI) schemes

- i. Ongoing schemes of Drought Prone Area Programme (DPAP)/Tribal Area (TA) of Non-Special Category States will get Central Assistance at the rate of 60 %.
- ii. Ongoing  schemes  benefiting  8  NE  States  and  3  Himalayan  States  may  continue  to  be  eligible  for  90% Central Assistance.
- iii. For new projects in Special areas of Non-special Category States, the Central Assistance under AIBP will be 60% of the cost of the project (work component) for eligible irrigation projects
- iv. For new projects in 8 NE States and 3 Himalayan States, the Central Assistance under AIBP will be 90% of the cost of the project (work component) for eligible Irrigation projects.

The balance funds are to be arranged by the State Government from its own resources.

*****