2.1   Major/Medium and ERM irrigation projects

2.1.1  The cost at the time of inclusion of any new project in the scheme of AIBP will be frozen for the purpose of working out the quantum of central assistance, with the States being at liberty to fund the project from their own resources after the stipulated date of completion. The stipulated date of completion will be four years starting from the financial year of first release of Central Assistance and excluding year of inclusion. The projects which are not going as per schedule, time extension of maximum two years and escalation of cost by maximum 20% may be allowed   4 based on justifications provided by the State with the approval of Secretary, Ministry of Water Resources. 

 

2.1.2  The central assistance (CA) will be in the form of central grant which will be as follows:  

(a) 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 reforms1 as per the reform benchmarks to be laid down by the Ministry of Water Resources in due course. 

(b) For ongoing projects in Special areas2 of Non-special Category States, the Central Assistance under AIBP will be 75% of the cost of the project (work component) for eligible irrigation projects

(c) For new projects in Special areas of Non-special Category States, the Central Assistance under AIBP will be 75% of the cost of the project (work component) for eligible irrigation projects

(d) Ongoing projects and the surface Minor Irrigation schemes benefiting Special Category States (including MI schemes of KBK region of Orissa) may continue to be eligible for 90% Central Assistance. 

(e)  For new projects in Special category States, the Central Assistance under AIBP will be 90% of the cost of the project (work component) for eligible Irrigation projects.

(f)  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 @ 90% for projects in Special Category States, while it will be 75% for projects in Non-Special Category States. The DDP areas will be as identified by the Ministry of RuralDevelopment 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%

2.2        Surface Minor irrigation schemes

2.2.1  The cost at the time of inclusion of any new project in the scheme of AIBP will be frozen for the purpose of working out the quantum of central assistance, with the States being at liberty to fund the project from their own resources after the stipulated date of completion. The stipulated date of completion will be two years starting from the financial year of first release of Central Assistance and excluding year of inclusion. The projects which are not going as per schedule, time extension of maximum two years and escalation of cost by maximum 20% may be allowed based on justifications provided by the State with the approval of Secretary, Ministry of Water Resources. 

2.2.2  The central assistance (CA) will be in the form of central grant which will be as follows:  

(a)  Ongoing schemes of Drought Prone  Area Programme (DPAP)/Tribal Area (TA) of Non-Special Category States will continue to get Central Assistance at the rate of 90 %.

(b)  Ongoing schemes benefiting Special Category States (including MI schemes of KBK region of Orissa) may continue to be eligible for 90% Central Assistance. 

(c)  For new projects in Special areas3 of Non-special Category States, the Central Assistance under AIBP will be 75% of the cost of the project (work component) for eligible irrigation projects

(d)  For new projects in Special category States, the Central Assistance under AIBP will be 90% of the cost of the project (work component) for eligible Irrigation projects.