Accelerated Irrigation Benefits Programme overrunning a cost of Rs 1.22 lakh crore: CAG report

NEW DELHI: The Centre’s ambitious Accelerated Irrigation Benefits Programme, started 22 years ago in 1996 to execute 201 major and medium irrigation projects across India, have experienced a time overrun of up to 18 years. As a result, the cost overrun has been estimated to be more than Rs 1.22 lakh crore.
According to a comptroller and Auditor General (CAG) report, tabled in Parliament on Tuesday, 105 of the 201 major and medium irrigation projects undertaken with the Centre’s contribution have experienced time overrun.The CAG has reviewed performance of these projects between 2008 and 2017.
During the review period, only 62 projects have been completed while work is still in progress in 139 others, excluding the national projects with bigger allocations and multi-state participation. The total sanctioned cost of these 201 projects is to the tune of Rs 2.23 lakh crore, where the Centre has already released its contribution of Rs 28,300 crore.
In just 84 projects, out of 118 taken up for sample checks, the total cost overrun has been estimated at Rs 1,20,772 crore, which is 295% of their original cost, the CAG noted. Of the 84 projects assessed having cost overrun, only 16 projects have been completed while 68 are still in different stages of implementation.
“The delays were attributed to shortfall in land acquisition, inability to obtain statutory clearances in advance, changes in design and scope of work, etc. The delays in implementation of projects together with inefficient works management led to cost overrun in the projects,” the CAG observed.
The auditor has pointed towards irregular release of funds, deviation from laid down guidelines and faulty design as some of the other reasons for such inordinate delay. “Projects and schemes were included under AIBP (Accelerated Irrigation Benefits Programme) in violation of the programme guidelines, resulting in irregular release of Rs 3,719 crore,” CAG said.
“Deficiencies in preparation and processing of detailed project reports such as inadequate surveys, inaccurate assessment of water availability, irrigation potential (IP) and command area, lack of activity wise construction plans, etc. and incorrect calculation of benefit cost ratio of the projects led to modifications in design and scope of work and revision in cost estimates after commencement of work, also adversely affecting the schedule of implementation of the projects,” the auditor has said.
Ministry of Water Resources was primarily responsible for framing policy guidelines for implementation while the state governments were associated with implementation of the projects.
The sample scrutiny revealed cases of “non/short release of funds, delays in release of funds at various levels, releases at the fag end of the financial year and non-adjustment of unspent balances of funds in the subsequent releases” as some of the other reasons for delay.