Planning Commission approves Gujarat canal project

NEW DELHI: The Planning Commission of India has given investment clearance for the project of Mahi Right Bank Canal, Gujarat. The state government has been informed about the investment plan.

As per a press release by the Plan Panel, the project will be completed by 2014-15 and Plan accounts would be closed by March 31, 2015. The release also mentioned, “No further time and cost overrun would be allowed, else the project would be debarred from Central assistance.” The Finance Department of Gujarat State Government was given the authority to restrict the expenditure of the approved cost but additional expenditure beyond the approved cost was not allowed.

The State Government was asked to ensure that the pricing of irrigation water in this project command was such that it conveyed the scarcity value of water. An amount of Rs. 300 crore at 2009 Price Levels is estimated as the total expenditure for the project.