The performance audit report of the Accelerated Rural Water Supply Programme (ARWSP) for the period April 2002 to March 2007, conducted by the Comptroller and Auditor General (CAG), reveals numerous deficiencies in execution and implementation of works such as cases of time and cost-overrun, non-completion & delayed completion of works, non-functional & defunct works, delayed completion & non-completion of water quality mission projects, incorrect prioritization of works, wasteful and unfruitful expenditure, and expenditure on unapproved items.

Thus the performance audit findings reflect that there is low assurance regarding (a) realistic identification of all problem habitations, (b) proper matching of execution of works with problem habitations, (c) quality of water and (d) sustainability of the resources. These areas need to be addressed with ground level approach as the efficacy of simply pouring money into schemes and achievement of some numbers (coverage of problem habitation & works executed) disregarding ground situation will remain questionable for addressing the drinking water needs of the problem habitations.

The audit was conducted through test check of records of the Department of Drinking Water and Sanitation (DDWS) of the Ministry of Rural Development (MoRD), State Public Health Engineering Departments and other implementing agencies in 26 States.

The audit revealed the following:

• Of the total Central Assistance of Rs. 16,104 crore received during 2002-03 to 2006-07, State Governments could utilize around 70 per cent. Despite the investment of more than Rs. 66,000 crore in the rural water supply sector since the first five-year plan, there remains considerable need for improvement in rural drinking water supply.
• There were significant deficiencies in the conduct of the 2003 National Habitation Survey at the States, adversely affecting assurance regarding the quality and reliability of the survey data, and thus its utility for assessing ground-level coverage of access to safe drinking water and planning purposes.
• In the absence of Annual Action Plans based on a detailed and comprehensive habitation-wise analysis in many States, targets were being fixed on a numerical basis, and works taken up in an ad-hoc manner. This adversely impacts the coverage of habitations, especially the prioritization for incomplete works and Not Covered (NC) and Partially Covered (PC) habitations.
• There were several instances of deficient financial control, besides instances of inadmissible expenditure and diversion of ARWSP funds.
• Contrary to the scheme’s objectives, slip back of fully-covered habitations and re-emergence of problem habitations continued to be a major problem, thus raising the issue of indefinite continuity of the programme.
• States did not pay adequate attention to water quality. The infrastructure for testing and monitoring water quality, especially at the District level, was inadequate and periodic testing requirements were not complied with. Distribution and utilization of field testing kits at the GP and Village Water Supply Committee (VWSC) level was also poor.
• Some States had initiated innovative practices for water sustainability, including implementation of a State-wide water transmission grid, use of IEC campaigns for promoting water conservation, and use of remote sensing technology for assessment of impact of recharge structures. However, many States did not take adequate measures for ensuring sustainability of water resources especially ground water.
• There were significant deficiencies in the implementation of the demand-driven, participatory approach of Swajaldhara. In many cases, the beneficiary contribution, which is at the core of Swajaldhara, had not been fully received.

 The report recommends:

• DDWS should insist on preparation and submission of habitation-wise Annual Action Plans (AAP) by the State Governments with specific indications on schemes for SC/ST populations and ensure that these are implemented as per the plans.
• GoI may take action for recovery in respect of cases of inadmissible expenditure and diversion of funds.
• DDWS may direct all State Governments to ensure adequate infrastructure for water testing like laboratories equipped with adequate qualified manpower and required equipment. This may be structured as part of a comprehensive State-wide water quality monitoring programme.
• Requisite number of field testing kits should be procured and distributed to Gram Panchayat level functionaries who should be imparted adequate training, so that the objective of institutionalizing water quality testing at the grass-root level is achieved.
• DDWS should ensure that States accord due importance to the sustainability component as suited to their local environment. Further, State Governments should be encouraged to adopt measures for rainwater harvesting, controlling utilization of groundwater, studying groundwater levels and impact of recharge structures and use of remote sensing and related technologies for such studies, and promoting groundwater recharge in WSSs.
• State Governments may also consider launching localized Information, Education and Communication (IEC) campaigns to promote the urgency of, and need for adopting water conservation and sustainability measures amongst the local population.
• State Governments may be encouraged to carry out independent third-party evaluations of a representative sample of water supply schemes to assess their effectiveness and the level of satisfaction of the local community.
• DDWS may direct States to ensure that Vigilance and Monitoring Committees are constituted and are functional. Further, States should also set up Special Monitoring and Inspection Units with adequate technically qualified staff.

Download the report here: