Existing AIBP criteria for funding is as follows
Ministry of Finance vide letter dated 28.10.2015 has approved the following norms for providing Central Grant for projects under AIBP / NP:
(i) 90% central assistance (CA) of project cost (works Component) in case of NE States and three hilly States (Uttarakhand, H.P., J&K).
(ii) 60 % CA of project cost (work component) for projects benefiting drought prone area, desert prone area, tribal area and flood prone area in non special category states and
(iii) 25% CA of project cost for projects in regions other than category (i) & (ii) above.
The balance funds are to be arranged by the State Government from its own resources.
During a financial year, the sanctioned grant will be released in two instalments:
(i) For projects receiving 25% CA, 90% (as 1st Instalment) after release of at least of 50% of State Share. And balance 10% (2nd Instalment) after obtaining the UC of minimum of 50% of CA released earlier; and
(ii) For projects receiving higher than 50 % CA, 50% (1st Instalment) after the State Releases its full Share and 50% (2nd Instalment) same as above.
Further, the Cost escalation upto 20% on the approved cost (AIBP) component of the project as on 1.4.2012 has been allowed for providing central assistance under AIBP to prioritized 99 projects. Balance cost is to be borne by the State governments.