3.      Funding Pattern

3.1   The following components under CAD&WM Programme may beundertaken by the States:

Sl. No


Cost sharing1 between Centre and States


Survey Planning and Design

50 : 50


On-Farm-Development (OFD) works 

50 : 50


Construction of Field, Intermediate and Link Drains

50 : 50


Correction of system deficiencies 

50 : 50


Reclamation of Waterlogged Areas 

50 : 50


(i) Functional grant to registered WUAs 

 (ii) Infrastructure grant to registered WUAs

45 : 45

75 : 25


Software components  such as demonstrations including on micro-irrigation, training, monitoring &evaluation, adaptive trials 

75 : 25



One time Grant to WALMIs/ IMTIs for strengtheningof infrastructure (13 Nos.)

75 : 25



CAD&WM Establishment (limited to 10% of b,c,d & e) 

50 : 50


3.2  The financing pattern and cost norms for various components

3.3    Procedure for Release of Central Assistance  The central assistance for various components under CAD&WM Programme will be according to the pattern prescribed in  Para 3.1 of these Guidelines. The procedure for release of central assistance:

  1. The State Governments will be required to do phasing of expenditure and physical work year wise till completion along with AIBP Project, and as projected in the Memorandum of Understanding (MoU). 
  2. ii.  Based on this phasing during a financial year and budget provision covering both the Central and States shares, the admissible grant will be released in two instalments. 
  3. Release of funds will be considered with respect to physical and financial achievements.  The major consideration will be release of State share to project. 
  4. Release procedures will be as under:

a.  90% of the total central assistance (CA) admissible will be released as 1st instalment after release of at least 50% of State share;

b.  Balance/Second instalment of 10% of CA is to be released after obtaining utilisation certificate (UC) of minimum of 50% of total CA released earlier and corresponding State share;

c.  Next year’s instalment is to be released after obtaining 100% utilization of CA released including corresponding State share in the previous year(s) indicated as per  utilisation certificate as given in

  1. The CA along with the corresponding balance State share must be released to the project authorities by the state governments within 15 days of its release by the Government of India. 
  2. The States would be required to submit audited statements of expenditure incurred on the components of the project within 18 months of the completion of the financial year in which the Central assistance is released.  4
  3. In case of shortfall in targets  is more than 10% and delay(s) in completion of various activities against annual targets, a revised MoU is to be entered with updated targets for rest of the years. 
  4. In case of completion of all the works followed by submission of utilization and audit certificate, central share due to the States may be considered for reimbursement as per MoU.

 3.4   The following information in the prescribed Proforma should be enclosed with the release proposal for the first installment of every financial year for every project:


Check List for Holistic Implementation of CAD&WM Programme matching with AIBP programme


Financial progress report for the last financial  year (LFY) and current financial year


Physical progress


Utilization Certificate in  respect of the Central assistance released in a project in the last financial year(s)


Audited Statement of Accounts for a Project


Annual Review of status of progress of each project and list of agency identified for concurrent evaluation.