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Govt to scrutinise all Jal Jeevan projects costing Rs 100 crore plus to prevent cost escalation seen in Phase 1
On May 21, 2025, The Indian Express published the findings of its investigation of data uploaded by states and Union Territories on the JJM dashboard, showing how changes to the Mission’s guidelines led to additional costs totalling Rs 16,839 crore.
Launched in August 2019, JJM aimed to deliver 55 litres per capita per day drinking water to all rural households in the country by 2024. (Representative Image)
Amid concerns over the inflated cost of works undertaken in the first phase of Jal Jeevan Mission (JJM), the Centre is set to undertake a rationalisation exercise by scrutinising projects costing over Rs 100 crore before funds are released to states, The Indian Express has learnt.
The Jal Jeevan Mission aims to provide potable water of at least 55 litres every day to every person through functional tap connection to every rural household. Originally scheduled to be completed by 2024, the mission deadline has now been extended to 2028.
According to sources, the Union Ministry of Jal Shakti, the nodal ministry for implementation of the JMM, informed states about the proposed cost rationalisation and apportionment on March 14 – four days after the Union Cabinet approved extension of the JJM from 2024 till 2028, with an additional outlay of Rs 1.51 lakh crore.
The ministry informed the states that projects costing Rs 100 crore and above and schemes addressing urban/sectoral water demand or higher service levels shall be scrutinised by the Central Public Health & Environmental Engineering Organisation (CPHEEO).
The CPHEEO is an organization under the Union Ministry of Housing and Urban Affairs.
“Based on its recommendations, NJJM will propose cost rationalisation or apportionment to the State-level Apex Committees for concurrence prior to release of funds,” the Jal Shakti ministry told the states.
The ministry’s move is significant as there were 750 JJM projects costing Rs 100 crore and above. Of these, 67 projects cost over Rs 1,000 crore each.
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The Centre has also informed the states that no Central assistance shall be provided for retrofitting schemes. Any pending liabilities under such schemes are to be met from the state government’s financial resources, the ministry told the states.
After the Union Cabinet approved an additional Rs 1.51 lakh crore allocation, the scheme will now have an overall outlay of Rs 8.70 lakh crore till 2028. Of this, the Centre’s outlay will be Rs 3.59 lakh crore, including Rs 2.08 lakh crore allocated in 2019.
The Centre has laid down four conditions for states to receive funds, in an attempt to put safeguards amid concerns over irregularities in the implementation of the JJM.
“The release of Central funds under JJM 2.0 will be strictly conditional upon States/UTs meeting four mandatory compliance requirements. These are: signing an MoU (Memorandum of Understanding); creation of Sujal Gaon IDs to ensure complete digital mapping of all rural water supply schemes; timely financial reconciliation, and notification of state operation and maintenance (O&M) policies,” said an official.
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Till Friday, eight states, including Uttar Pradesh, Madhya Pradesh, Rajasthan, Maharashtra, and Gujarat, signed the MoU.
On April 21, 2025, The Indian Express had first reported that the finance ministry had rejected the Jal Shakti Ministry’s demand for allocation of Rs 2.79 lakh crore for the mission till 2028 amid concerns over irregularities, corruption and poor quality of work. In a separate investigation a month later on May 21, 2025, it reported how changes to the Mission’s guidelines led to additional costs totalling Rs 16,839 crore – an increase of 14.58 per cent from their estimated cost.
Following these reports, the Centre sent a team of 100 officials for ground inspection. In November last year, The Indian Express reported that the government had taken action against at least 596 officials, 822 contractors and 152 third party inspection agencies, for committing irregularities in the scheme.
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