CAG audit reveals diversion of funds, irregularities in Centre's flagship irrigation scheme

The Centre's flagship irrigation scheme - Accelerated Irrigation Benefit Programme (AIBP) - has been found to be saddled with delays, deficiencies in planning and even serious lapses such as diversion of funds and financial irregularities were found, a performance audit of the Comptroller and Auditor General (CAG) has revealed. The AIBP has now been subsumed under the Pradhan Mantri Krishi sinchayee Yojana and focus of the government is on 99 incomplete major and medium projects.

The audit was for the period of 2008 to 2017 and covered 118 major and medium irrigation projects from 25 states. These projects were selected on random basis and a total sanctioned cost of Rs.1.80 lakh crore.

The audit report also stated that extra financial implications seen in audit were to the extent of Rs.1,337 crore, owing to irregular, wasteful and avoidable expenditure while Rs.303.36 crore implications were due to undue favour to the contractor. Projects and schemes were included under the AIBP in violation of the programme guidelines, resulting in irregular release of Rs.3,718.71 crore, the CAG's report stated.

The report added that monitoring by central and state agencies was lax. "There were shortfalls in number of monitoring visits by Central Water Commission and reports were not not prepared in all projects evaluated," the report said.

"Financial irregularities such as diversion of funds amounting to Rs.1,578 crore, parking of funds amounting to Rs.1122.56 crore and fictitious and fraudulent expenditure amounting to Rs.7.58 crore were also observed," the report added.

Notable among the lapses found by the auditor were lack of financial discipline and diversion of funds in the Sardar Sarovar Dam implementation in Gujarat.

"Scrutiny of statement of expenditure for the years of 2014-15 and 2015-16 revealed that an expenditure of Rs.213.17 crore on power projects and canal top solar power plant was booked under AIBP even though CWC had excluded power projects from components eligible for funding under AIBP if installed on main or branch canals," the report said.

In terms of deficiencies in planning and detailed project report, the audit stated an instance of Chandrabhaga barrage where canal construction could not completed even as barrage completion ended in June 2015. "The canal could not be constructed due to location of command area at a higher level than the submergence area, indicating improper survey and planning, resulting in blocking of huge expenditure of Rs.188.96 crore," the report said.