On June 21, the Cabinet Committee on Economic Affairs had deferred a decision on the Water Resources Ministry proposal amid divergent views.
The Ministry has sought Rs 5,500 crore for AIBP in the 12th Plan period.
The AIBP was conceived in 1996 by the Centre in order to provide financial assistance to states to complete various ongoing projects in the country so that envisaged irrigation potential of the project could be created and thereby extend irrigation to more areas.
Projects which have the investment clearance of the Planning Commission are considered under the programme.
Various states have failed to utilise nearly 15 million hectares of irrigation potential created by the end of the 10th Five Year Plan (2002-07).
Recent studies by four IIMs found that out of 102 million hectares of irrigation potential created by the end of the 10th Five Year Plan, 87.2 million hectares were utilised - leaving a gap of 14.8 million hectares.
Studies carried out by IIMs at Lucknow, Ahmedabad, Kolkata and Bangalore have observed that the gap between the irrigation potential created and utilised has widened considerably through various plans.
The CCEA had then decided that the proposal needed further consultations among the Water Resources Ministry, the Finance Ministry and the Planning Commission.
The Finance Ministry and the Planning Commission were of the opinion that despite large sums being granted for the programme, little has been achieved.
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