Thursday, 29 December 2016

Centre Accords Top Priority to 99 Irrigation Projects

                          Roadmap for Early Completion of PMKSY & AIBP                   

Roadmap for Early Completion of PMKSY & AIBP

Centre has charted out a roadmap for early completion of 99 identified projects under PMKSY-AIBP. Out of these 23 projects (Priority-I) have been identified to be completed by 2016-17 and another 31 projects (Priority-II) have been identified to be completed by 2017-18.  The balance 45 projects (Priority-III) have been identified to be completed by December, 2019. 
Rs. 3274 crore has been issued by NABARD for Irrigation projects under Centre’s PMKSY and AIBP Projects. NABARD has issued Rs. 1981 crore to Andhra Pradesh for Polavaram irrigation project, Rs. 830 crore to Maharashtra and Rs. 463 crore to Gujarat as financial assistance for various irrigation projects.
Of the 99 AIBP projects maximum number of 26 projects are in Maharashtra, eight in Andhra Pradesh and one in Gujarat.  Seven projects of Maharashtra viz. Waghur, Bawanthadi (IS), Lower Dudhna, Tillari, Lower Wardha, Lower Panzara and Nandur Madhmeshwar  are in priority-I category. The rest of the 19 projects (Gosikhurd (NP), Upper Pen Ganga, Bemla, Tarali, Dhom Balaakwadi, Arjuna, Upper Kundalika, Aruna, Krishna Koyana Lift, Gadnadi, Gongargaon, Sangola Branch Canal, Khadakpurna, Warna, Morna (Gureghar) Lower Pedhi, Wang project, Naradave (Mahammadwadi) and (Kudali) are in priority-III category. 
Application of Maharashtra for sanction of loan for State share amounting to  Rs. 10711 crore and release of State share of Rs. 2099.47 crore during FY2016-17 for their 23 projects has been approved by the Ministry Mission and sent to NABARAD on 15.12.2016.
In Andhra Pradesh all the eight projects are in priority –II category. The projects are Gundlakamma, Tadipudi LIS, Thotapally, Tarakaram Teerta Sagaram, Musurumilli, Pushkara LIS, Yerracalva and Maddigedda.
The lone project in Gujarat is Sardar Sarovar which is in priority-III category. The projects is likely to be completed by 2018 and its target irrigation potential is 1792 Th.Ha.
First tranche of central assistance amounting to Rs. 1500 crore was released by NABARD on 21.10.2016, while second tranche of central assistance amounting to Rs. 500 crore was released on 26.12.2016.
The issues related to implementation of projects under PMKSY-AIBP including prioritization of projects were deliberated in the Committee headed by Shri Brijmohan Agrawal, Minister (Water Resources) of Chhattisgarh.  As per the information supplied by concerned States to the Committee, 99 projects have been identified for completion upto 2019-20. 

One of the major reasons for the projects to remain incomplete was inadequate provision of funds by the concerned State Governments. As a result, large amount of funds spent on these projects were locked up and the benefits envisaged at the time of formulation of the projects could not be achieved.  This was a cause for concern and initiative was required at the national level to remedy the situation. 

Total funds required for completion of all the 99 identified projects have been estimated at Rs.77595 crore (Rs.48546 crore for project works and Rs.29049 crore for CAD works) with estimated CA of Rs.31342 crore. Likely potential utilisation through these projects is estimated to be 76.03 lakh hectare (Lakh ha).

An outlay of about Rs.11060 crore is indicated to be available from 2015-16 to 2019-20 (as per approved outlay) out of which an amount of Rs. 2327.82 crore has been released to MMI projects. Balance of Rs. 8732.18 crore may be available through budgetary support. However, the requirement of funds to complete the 99 projects is much more than the provision.

The Finance Minister in his budget speech during 2016 had announced creation of dedicated Long Term Irrigation Fund (LTIF) in NABARD with an initial corpus of about Rs. 20,000 Crore and an amount of Rs.12517 crore has been provided as budgetary resources and market borrowings during 2016-17. 

Keeping in view of the budgetary constraints, it has been decided to borrow Central share/Assistance (CA) from NABARD as per year-wise requirements which could be paid back in 15 years’ time keeping a grace period of 3 years.  Further, the proposal envisages that the State Governments, if required, may borrow funds from NABARD for the State Share.

The scheme at the Central level has been approved with projects to be completed in a mission mode and a Mission has been established with Additional Secretary/Special Secretary in the Ministry of Water Resources, River Development & Ganga Rejuvenation (MoWR, RD & GR) as the Mission Director. 

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