AIBP was launched to give loan assistance to the States to help them complete some of the incomplete major/medium irrigation projects which were at an advanced stage of completion and to create additional irrigation potential in the country.

The ratio of CLA to State’s share is 2:1 for General Category States while for Special Category States, it is 3:1.

Later, Central Loan Assistance under AIBP could also be extended to minor surface irrigation projects of special category states.

The assistance provided was entirely in the form on loan in the beginning but later a grant component was also added

The central assistance is in form of central grant which is 90% of the project cost in case of special category States, project benefiting drought prone areas, tribal areas and flood prone areas and 25% in case of Non-Special category States.

It includes Special Category States and Koraput, Bolangir and Kalahandi Districts of Odisha