Government of Orissa was seeking financial aid for construction of new Minor Irrigation projects in Orissa. The Govt. of India arranged funds after consultation with European Commission for financial aid to Govt. of Orissa. The Appraisal Mission of European Commission visited Orissa Minor Irrigation projects during 1990-92. The Mission suggested that huge number of Minor Irrigation Projects constructed during the years (1965-1992) are either derelict or partially derelict and huge amount of money is required for rehabilitation and maintenance of those schemes, which the govt. is not able to provide due to resources crunch. So Appraisals Mission suggested that Govt. of Orissa to rehabilitate the defunct schemes and establish Water User Association for handing over the rehabilitated schemes to WUAs to manage it independently.