The Cabinet Committee on Infrastructure approved the inclusion of Extension, Renovation & Modernization (ERM) projects envisaging restoration of lost potential of 2 lakh ha. or more under the category of National Projects. Under the scheme of National Projects, such projects would become eligible for 90% funding of the cost of works of the irrigation and drinking water components of the project from the Central Government.
At present, the eligible ERM projects are provided central assistance @25% of the cost ,of works for non special category States and @90% for DPAP/Tribal/Flood prone areas and special category States under AIBP.
The cost of restoration of irrigation potential through ERM projects is much less than that of creation of the same potential through new projects. During the XII Plan, considerable emphasis is being laid on improving the water use efficiency of irrigation projects. This is also one of the five goals of the National Water Mission. It is therefore proposed that for improvement in water use efficiency of the on going approved irrigation projects, ERM projects which can restore lost irrigation potential of 2 lakh ha. or more be included in the category of National Projects.
The scheme will be funded out of the allocations for AIBP during the Xllth Plan.