Plan panel, ministry want Centre to fund select irrigation projects

NEW DELHI: The Planning Commission and water resources ministry want the Centre to fully fund select major irrigation projects to ensure speedier completion. A recommendation to this effect is to be made in the mid-term appraisal, now under preparation at the Planning Commission.

There are about 160 major irrigation projects, which include construction of dams and reservoirs under implementation and these include a few projects that were started prior to the 5th Plan period.

The Plan panel and the water resources ministry is of the view that about 15 large projects which would benefit about 1 lakh hectare each or more than one state should be fully funded by the Centre. The view is that these select projects could be categorised as national projects.

The 160 major projects were estimated to involve an expenditure of Rs 1,00,000 crore at the beginning of the 10th Plan.

At present, most of the irrigation projects are implemented and largely funded by the states. Central assistance is largely routed through the accelerated irrigation benefit programme.

The Plan panel sources point out that AIBP is not particularly useful for implementation of very large projects. Moreover, the assistance provided under AIBP is given in the proportion of 70% loan and 30% grant to most states.

Only the special category states get the assistance as 90% grant and 10% loan. Major projects include Sardar Sarovar, Sarayu Nehar, Narmada Sagar, Upper Krishna-phase II, Indira Gandhi Canal.