The audit was conducted as a follow up audit of the earlier report on AIBP (No 15 of 2004) to assess whether the performance of AIBP had improved, and also whether the key issues highlighted in the earlier report had been appropriately addressed.
The audit for the period 2003-04 to 2007-08, covered 70 major and medium irrigation projects and 346 MI projects in 26 states, and involved field audit of the records of Ministry of Water Resources (MoWR), Central Water Commission (CWC), State Water Resources or Irrigation Departments and implementing agencies of the State Governments, and field inspections of the sampled projects. It noted that there was substantial diversion of funds and other financial irregularities in the AIBP components of the Sardar Sarovar Project (SSP), Gujarat. The performance audit had the following recommendations to make -
- There has been significant dilution in the focus and objectives of AIBP due to repeated modifications (six sets of modifications since its inception in 1996-97) in the scope and funding pattern of the scheme. Consequently, GoI must have a long-term perspective of AIBP in the programme guidelines, and avoid repeated and piecemeal modifications in an ad hoc manner.
- The Ministry must institute a system to collect authentic and validated data of not only creation, but also utilization of irrigation potential for AIBP projects in the major/medium and minor irrigation sector at least for a period of five years after the completion of the projects.
- The role of AIBP in funding a large number of individual minor irrigation projects with miniscule irrigation potential needs to be reexamined, particularly in view of the lack of monitoring and data collection by both the Ministry and Central Water Commission.
- MoWR must investigate all cases of incomplete/non-commissioned projects reported as complete to ensure that there is no discussion or misuse of funds released for these projects. Appropriate action must also be taken against the authorities issuing such false completion certificates.
- Since AIBP is an Additional Central Assistance (ACA) programme, GoI may ensure equitable distribution of AIBP funds to states based on predefined criteria e.g. population dependent on agriculture, un-utilised irrigation potential yet to be fulfilled, past performance in completion or commissioning of projects and utilization of targeted irrigation potential under AIBP.
- In order to encourage the defaulting State Governments to ensure timely completion of projects, GoI must apply the provision for conversion of grant to loan all cases of serious slippages in completion schedule, as provided for in the MoU.