Date:20/01/2008 URL: http://www.thehindu.com/2008/01/20/stories/2008012051830400.htm

Karnataka - Bangalore

State seeks Rs. 450-cr loan for completing irrigation projects

Nagesh Prabhu

This is to speed up work on UKP, Malaprabha and Ghataprabha projects

Work on the UKP III Phase nearing completion
Loan is given under AIBP at a low interest rate

BANGALORE: The State Government has sought a loan of Rs. 450 crore from the Union Government to complete three major irrigation projects that have been pending completion for many years.

To expedite work on Upper Krishna Project (UKP), Malaprabha and Ghataprabha irrigation projects, the State Water Resources Department has sought the loan under the Centre’s Accelerated Irrigation Benefits Programme (AIBP). The proposal was recently submitted to the Central Water Commission (CWC).

The officials of the Water Resources Department told The Hindu that funds would be utilised for completion of Stage II – Phase III work of the UKP in Gulbarga, Raichur and Bijapur districts. Funds would be utilised for completion of pending canal works of Malaprabha and Ghataprabha projects in Belgaum district.

The Planning Commission approved the Stage II of the UKP in 2000. The expenditure incurred on UKP in 2006-07 was over Rs. 1,500 crore.

The Central Loan Assistance (CLA) under the AIBP was provided under normal and fast-track clearances. The AIBP was launched in 1996-97 for expeditious completion of ongoing projects, which were beyond the resource capability of the States. Funds under the programme were given in the form of loan at the rate of interest prescribed by the Ministry of Finance from time to time.

The Stage I, first and second phases of the UKP were completed and work on third phase was nearing completion. The UKP provided irrigation facilities to 5.53 lakh hectares of land by March 2007 against the potential 6.22 lakh hectares, the officials said.

There was delay in the completion of several projects in the Krishna Basin due to several factors, including paucity of funds and rehabilitation. The State had not been able to utilise share of 734 tmcft water of the Krishna under Scheme ‘A’ of the Bachawat Award. The year 2000 was the deadline for utilisation of the State’s share. At present, it utilises about 600 tmcft of water.

Varahi project

The department has sought funds for completion of the Varahi project in Udupi district. But the CWC has rejected the proposal on the grounds that more than 50 per cent of the project had not been completed till now. The Varahi project was launched in the late 1990s.

The officials said the proposal had been submitted to the CWC, which handed it over to the Planning Commission and the Union Finance Department to fix the loan amount for the State. The State had received Rs. 254.5 crore loan in 2005-06 and Rs. 448 crore in 2006-07 under the irrigation benefits programme.

The scheme covered only approved major and medium irrigation projects, which could be completed in one year (two working seasons). The establishment expenditure on the projects had to be borne by the State.

The projects covered under AIBP are monitored by the CWC.