The Answer is option 'C' Gujarat.

Explanation:
The Composite Water Management Index (CWMI) is a tool developed by the NITI Aayog (National Institution for Transforming India) to assess and rank the states and union territories of India in terms of their water management practices. The report was issued by the NITI Aayog in June 2018.

Key Points:
1. The Composite Water Management Index assesses the performance of states in three key dimensions of water management: (a) Source augmentation, (b) Source sustainability, and (c) Demand management.
2. The states are ranked based on their performance in each dimension and an overall score is calculated to determine the final ranking.
3. The report focuses on the non-Himalayan and non-Northeastern states of India.
4. The top-ranked state in the Composite Water Management Index as per the report issued in June 2018 is Gujarat.
5. Gujarat has consistently performed well in terms of water management practices and has implemented various initiatives to improve water availability and sustainability.
6. The state has implemented policies and programs for rainwater harvesting, groundwater recharge, and efficient irrigation practices.
7. Gujarat has also invested in water infrastructure projects such as canal networks, check dams, and desalination plants to address the water scarcity challenges.
8. The state has also made significant progress in water governance by implementing water laws, regulations, and institutions to manage and allocate water resources effectively.
9. The efforts of Gujarat in water management have resulted in improved water availability, sustainable use of water resources, and efficient water use practices.
10. The recognition of Gujarat as the top-ranked state in the Composite Water Management Index highlights the success of its water management strategies and serves as a model for other states to emulate.

Therefore, Gujarat ranked first in the Composite Water Management Index as per the report issued by the NITI Aayog in June 2018.