The Accelerated Irrigation Benefit Program (AIBP)

The Accelerated Irrigation Benefit Program (AIBP)

Ministry of Water Resources, Government of India


The Accelerated Irrigation Benefit Program (AIBP) was started as Central Loan Assistance (CLA). Initially 50% of the project outlay was provided as CLA and the balance 50% was to be met by State i.e. on 1:1 basis.  Subsequently Special Category States were provided CLA on 3:1 basis whereas non-Special Category States on 2:1 basis.  Later, it was decided that 30% of the CLA to non-Special Category States and 90% for Special Category States be converted into grant.  In March, 2005 in order to accelerate the provision of irrigation to drought prone areas and tribal area, the project providing irrigation benefits to such area (in consultation with Planning Commission) were extended the same facility as allowable to the Special Category States.  From April, 2005 the Centre is providing only grant assistance to the projects under AIBP and rest of the finances are to be raised by States themselves either through Plan allocations or State resources or loans.


As per the existing AIBP guidelines, projects benefiting drought prone/tribal area, project included in the Prime Minister's Relief Package for Agrarian Distress Districts of Maharashtra, Karnataka, Andhra Pradesh and Kerala and projects in the States having irrigation development below national average could be included in AIBP of the 65 major/medium projects initially included in the Prime Minister's Relief Package for Agrarian Distressed Districts of Andhra Pradesh, Karnataka, Kerala and Maharashtra, so far 38 projects have been funded under AIBP.


Initial budget allocation for AIBP for the year 2008-09 was of Rs.4,300 crores. Under PM's stimulus package, an additional allocation of Rs.2300 crores was provided for AIBP. Thus, total allocation was of Rs.6,600 crores. Against this allocation, the actual expenditure during the year was about Rs.7,598 crores. For the year 2009-10, budget allocation is Rs.8,000 crores.


Existing AIBP criteria for funding is as follows


The new AIBP criterion was approved by the Cabinet in Nov. 2006 and new guidelines were circulated in Dec 2006, the extracts of the inclusion and funding criteria as per the current guidelines are given below:-


(i)        All the approved projects in (a) drought-prone areas, (b) tribal areas, (c) States with lower irrigation development as compared to National average and (d) districts identified under PM's package for agrarian distress should be provided support under AIBP in relaxation to 1:1 criteria.  For other projects, 1:1 criteria i.e., taking up of another project in the State after completion of one ongoing project will remain applicable.


(ii)      The sanctioned grants to be released in two installments, the first based on projected outlay and the second after confirmation of expenditure. The grant component amounting to 90% of the total grant sanctioned will be released immediately and the balance 10% of the grant when 70% of the agreed expenditure is incurred.


(iii)     Removing distinction of Fast Track Projects, Reforming and Non-Reforming States and Release of grant of 25% of project cost for all irrigation projects in Non-Special Category States and 90% for Special Category States.


(iv)     Major/medium projects benefiting drought prone/tribal areas and flood prone areas will be eligible for 90% grant assistance. The Surface Water Minor irrigation schemes benefiting drought prone/tribal areas will also be eligible for 90% grant assistance.


           (v)                Stipulation of 100 hectare in respect of surface water minor irrigation schemes predominantly benefiting backward regions be brought down to 50 hectare.  The stipulation of 10% beneficiary contributing in cost for post construction maintenance for Surface Water Minor Irrigation Schemes benefiting backward regions in non-Special Category States is also done away with.


Monitoring of AIBP Projects


A comprehensive physical and financial periodical monitoring of major / medium projects is being carried out by Central Water Commission / Ministry of Water Resources with emphasis on quality control. The monitoring mechanism is being further strengthened to achieve better results The release of subsequent instalments of grant is based on physical and financial progress of the work. Monitoring of the minor irrigation (MI) schemes is being done by the State Government. These schemes would also be monitored periodically on sample basis by Central Water Commission. The latest technique such as Remote Sensing is also being used by the Government of India to confirm irrigation potential reported to have been created by the State Governments under AIBP.

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