Parliamentary Panel Flags Fund Underuse in River Linking Project, Urges Faster Execution

NEW DELHI, Mar 21: A Parliamentary Standing Committee has raised concerns over the underutilisation of funds in the Interlinking of Rivers (ILR) scheme during the 2025-26 financial year, calling for faster execution to ensure timely completion of projects.

In its report, the panel noted that the National Water Development Agency (NWDA), tasked with implementing the National Perspective Plan (NPP), has identified 30 river link projects  16 under the Peninsular component and 14 under the Himalayan component aimed at transferring water from surplus to deficit regions and addressing drought and flood challenges.

However, the committee expressed disappointment over the low utilisation of allocated funds. Against a revised estimate of Rs 1,808.29 crore, only Rs 453.16 crore had been spent by December 31, 2025, accounting for roughly 25 per cent utilisation in the final quarter of the fiscal year.

Officials from the Department of Water Resources, River Development and Ganga Rejuvenation attributed the slow spending to multiple challenges, including delays in the Daudhan Dam project, sluggish progress in state-level works, canal renovation issues in Uttar Pradesh, and slower implementation in Madhya Pradesh.

The panel stressed that such underperformance reflects poor financial management and hampers the progress of a crucial national initiative designed to improve water availability and mitigate droughts. It recommended a more proactive approach, urging better coordination between the Centre and states to expedite pending works.

The committee also highlighted the importance of the Modified Parbati-Kalisindh-Chambal (MPKC) link project, which aims to channel surplus monsoon water to water-scarce regions of eastern Rajasthan. It called for close collaboration between Rajasthan and Madhya Pradesh to ensure the project’s timely completion.