Writeup AP 2011-12 - Punjab State Planning Board

crore. Irrigation and power components are worked out on the basis of balance cost of Rs.
2086.39 crore of project after deducting expenditure of Rs. 199.42 crore (upto 6/2009).
Power Finance Corporation, New Delhi has already given the approval for 80% of the cost of
power component as loan and remaining 20% of the cost of power component shall be
arranged by Punjab State Power Corporation Limited. Target date is Oct., 2014. After
completion of the project the potential of 5000 Ha in Punjab State and 32713 Ha. in J&K
State shall be created. With the completion of Shahpur Kandi Dam Project, the full
generation capacity of the R.S.D. Project (600 MW) will be utilized when all the turbines at
the project will be made functional. Expenditure incurred during 2009-10 was Rs. 445.06
lac. An expenditure of Rs. 4107.60 lac was incurred against the approved outlay of Rs.
2000.00 lac during 2010-11. Rs. 8583.00 lac are provided for the irrigation component of this
project in the Annual Plan 2011-12.
IR-3 Providing Irrigation Facilities to Himachal area below Talwara (AIBP)
(25:75)
5.1.7 Shah Nehar Project was an inter-state project and its cost was being shared
with Government of Punjab and Himachal Pradesh in the ratio of 61.74% and 38.26%
respectively. Both the states got their share approved for funding under AIBP. For the
purposes of AIBP, Himachal Pradesh is a special category state entitled to 90% grant
whereas Punjab is a non -special category State entitled to 25% grant. Since entire work is
being executed by Himachal Pradesh in their territory, matter was taken up with Government
of India to treat the project as a single project under special category w.e.f. 1/4/2005.
Government of India has started treating the project as single project under special category
w.e.f. 1/4/2008. However, Government of Punjab is to pay its share of cost incurred on the
project between 1/4/2005 to 31/3/2008. MoWR has observed that since retrospective
funding is not possible as per AIBP guidelines, both Government of Punjab and Government
of Himachal Pradesh may approach Planning Commission for a special one time grant for
payment of Government of Punjab share of expenditure incurred on the project during 2005-
06 to 2007-08. Government of Himachal Pradesh has already referred the matter to Planning
Commission, Government of India for special one time grant of Rs. 62.42 crore on account
of balance central assistance admissible for the period 1/4/2005 to 31/3/2008 on the basis of
consideration of single scheme w.e.f. 1/4/2005. Government of Punjab has also requested
GoI to give special one time grant of Rs. 62.42 crore be paid to Himachal Pradesh.
5.1.8 During 2007-08 and 2008-09 the expenditure incurred was Rs. 440.01 lac and
Rs. 232.50 lac respectively. Rs. 100.00 lac were provided for this scheme in the Annual Plan
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