Parliamentary Panel Flags Poor Fund Utilization for Water Projects

17 Mar 2025

Parliamentary Panel Flags Poor Fund Utilization for Water Projects

A parliamentary panel raised concerns over the underutilization of funds for water resource projects under the Jal Shakti Ministry, highlighting delays in fund disbursal and project execution.

Parliamentary Panel Findings on Fund Utilization

  • Low Fund Utilization
    • Only 58% of the revised allocation of ₹21,640.88 crore for 2024-25 was spent by December 2024.
    • Nearly 40% of allocated funds remained unspent.
  • Reasons for Underutilization
    • Delays in fund disbursal and approvals.
    • Expenditure typically increases post-monsoon, leading to delays.
    • ₹3,000 crore worth of pending proposals under consideration.

Government Initiatives for Water Projects

  • Increased Budget Allocation: The budget for 2025-26 raised to ₹25,276.83 crore (18.54% increase).
  • Focused Projects: Higher allocations for groundwater management, river basin development, and Polavaram Irrigation Project.
    • Groundwater Management: ₹509 crore (56.61% increase) under NAQUIM.
    • River Basin Management: ₹243 crore (56.98% increase) to improve flood control.
    • Polavaram Irrigation Project: ₹5,936 crore allocated for 2025-26, expected completion by March 2026.
    • Atal Bhujal Yojana: ₹1,780.40 crore, with challenges due to the transition to a new fund flow model.
  • Schemes Facing Budget Cuts
    • National Hydrology Project: 98% budget reduction as it concludes in September 2025.
    • Command Area Development and Water Management (CADWM): 39.28% reduction to ₹850 crore due to lower spending.

Challenges in Implementation

  • Administrative and Execution Delays: State-level execution and fund disbursal are delayed, affecting projects like the Ken-Betwa Link Project and other inter-state water initiatives.
  • Resource and  Manpower Shortages: The Brahmaputra Board faces operational challenges due to 209 vacant positions out of 415, including key technical roles essential for flood control and drainage projects.
  • Limited Focus on Rainwater Harvesting: The Jal Shakti Abhiyan: Catch the Rain initiative lacks direct financial support to states, limiting large-scale rainwater conservation efforts.

Recommendations by the Panel

  • Better Fund Utilization and Oversight: Enhance monitoring and implementation to ensure timely fund utilization, with faster disbursal and approvals for water projects.
  • Improved Resource Allocation and Recruitment: Fill vacant technical positions in key water bodies and reassess funding allocation to match project needs and execution capacity.
  • Enhancing Rainwater Harvesting: Provide direct financial support and incentives to states to promote large-scale rainwater conservation efforts.
  • Resolving Inter-State Water Disputes: Fast-track the Ken-Betwa Link Project and other river interlinking schemes, while strengthening inter-state cooperation for smooth implementation.

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