PAC chief describes AIBP as ‘complex web of irregularities'

• The Parliamentary Public Accounts Committee (PAC) has found "glaring deficiencies and irregularities" in the manner in which investment approvals had been granted to States and funds released.
• Noting that creation of irrigation potential in the country was on the decline, the PAC, in its report on the Accelerated Irrigation Benefit Programme (AIBP), has recommended that the Union government set up an institutional monitoring mechanism, in consultation with the Comptroller and Auditor-General (CAG) and the Finance Ministry, to avoid time and cost overruns.
• Taking umbrage at the Centre's granting of approvals for irrigation projects without proper scrutiny and monitoring, the PAC strongly recommended a basic restructuring of the programme in its report tabled in Parliament on Friday. "Investment approvals lacking adequate groundwork, and often based on simple desk study, were granted to States for AIBP water projects," the report said.
• The report points out that of the 253 major, medium and Extension Renovation Maintenance (ERM) projects that were sanctioned under the AIBP between October and March 2008, only 100 were reported to have been completed. Twelve of these "reportedly completed projects" were found to be incomplete or non-commissioned.
• The PAC report categorically stated that that the Union government must insist on scrutinising the Detailed Project Report and the Benefit Cost Ratio, which formed the basis for the techno-economic scrutiny of a project, to assess the economic viability before granting the requisite investment clearances to State governments.