Parliamentary Panel Flags Poor Fund Use for Water Projects, Seeks Better Utilisation

Voicing concern over poor utilisation of funds, a parliamentary panel has said the Department of Water Resource, River Development and Ganga Rejuvenation, utilised only around 58 per cent of the revised allocation of Rs 21,640.88 crore for 2024-25 by the end of December 2024.

The panel urged the Jal Shakti Ministry to strengthen monitoring and implementation mechanisms.

In its report tabled in Parliament, the Standing Committee on Water Resources said nearly 40 per cent of the allocated funds remained unspent and highlighted delays in fund disbursal and project execution.

The ministry has attributed the low spending to the fact that expenditure typically picks up after the monsoon season and assured the panel that pending proposals worth Rs 3,000 crore were under active consideration.

The report highlighted significant increases in budgetary allocations for key schemes under the Jal Shakti ministry.

The total budget for the department has been raised to Rs 25,276.83 crore for 2025-26, an 18.54 per cent increase from the Rs 21,323.10 crore allocated in the previous year. The rise is driven largely by higher allocations for groundwater management, river basin development, and the Polavaram Irrigation Project.

The allocation for groundwater management and regulation has increased by 56.61 per cent to Rs 509 crore in 2025-26, reflecting the government’s push to strengthen groundwater mapping and management under the National Aquifer Mapping and Management Programme (NAQUIM).

The River Basin Management programme has also received a 56.98 per cent increase, with Rs 243 crore allocated for 2025-26. The Brahmaputra Board, which manages flood control and erosion in the northeast, is expected to take up new initiatives, including preparing master plans for 15 sub-basins.

However, some schemes have faced budget cuts. The National Hydrology Project (NHP) saw a 98 per cent reduction, from Rs 661.20 crore in 2024-25 to Rs 13 crore in 2025-26, as it is set to conclude in September 2025.

Similarly, the allocation for the Command Area Development and Water Management (CADWM) scheme has been reduced by 39.28 per cent to Rs 850 crore, following lower-than-expected expenditure in the previous year due to delayed approval of a sub-scheme.

The Atal Bhujal Yojana (Atal Jal), focused on groundwater management, has been allocated Rs 1,780.40 crore for 2025-26, which marks a slight increase from Rs 1,778 crore in 2024-25. However, the scheme did face operational challenges last year due to the transition to a new fund flow model, which delayed fund disbursement.

The ministry has assured the panel that the transition would be completed soon to ensure smoother implementation.

The report also examined the status of the Polavaram Irrigation Project in Andhra Pradesh, which received an allocation of Rs 5,936 crore for 2025-26, up from Rs 5,512.50 crore in the previous year.

The project, declared a national project under the Andhra Pradesh Reorganisation Act, 2014, is expected to be completed by March 2026, with provisions for a one-year extension.

The panel noted that Rs 30,436.95 crore had been approved for the project’s first phase, which aims to store water at over 41.15 metres elevation.

Concerns were also raised by the panel over the Brahmaputra Board's capacity to implement flood control and drainage projects.

Out of 415 sanctioned positions, 209 remain vacant, including key technical posts. The panel stressed the need for immediate recruitment to fill these gaps and ensure effective project execution.

The committee also called for greater focus on rainwater harvesting, noting that while the Jal Shakti Abhiyan: Catch the Rain campaign has made progress, no direct financial support has been provided to states for rainwater harvesting.

The panel recommended increased funding and direct incentives to states and local bodies to accelerate the construction and repair of rainwater harvesting structures.

The report flagged ongoing issues with river interlinking projects, including the stalled implementation of the Ken-Betwa Link Project and other major inter-state water transfer schemes.

The panel urged the ministry to resolve inter-state disputes and fast-track approvals for these critical projects.

The committee called for improved oversight of state-level execution and urged the ministry to address delays in fund release and project completion.It also recommended a reassessment of resource allocation to ensure efficient utilisation and timely project implementation.