Jal Jeevan Mission: Contractors in Kerala await dues; Rs 4,461 crore sanctioned but unclaimed

Kerala has failed to claim Rs 4,461 crore allocated by the Centre for the Jal Jeevan Mission, a scheme aimed at providing drinking water connections to every household. Although the Centre sanctioned the amount in July, neither the Kerala Water Authority nor the State Government has taken adequate steps to submit the required documents and secure the funds.

The delay has added to the financial difficulties of the project, with contractors awaiting payments of more than Rs 2,000 crore. The pending amount could rise to Rs 5,000 crore by March as more bills are submitted.

Several small-scale contractors have stopped work because of delayed payments. The Water Authority has also been unable to carry out road repairs on time after rural roads were dug up to lay pipelines.

Clearing the contractors' dues is essential to speeding up the remaining work and repairing the damaged roads. However, the project continues to face a funding shortage, with Kerala not receiving the Centre's share for the past two years.

The Centre has extended the scheme's deadline, which ended in 2024, until December 2028. However, the State Government has yet to make effective use of the extension by securing the funds already allocated.

During the previous government's tenure, the state borrowed Rs 7,000 crore from the National Bank for Agriculture and Rural Development (NABARD) to clear contractors' pending bills.

The decision to borrow money came after contractors threatened to launch protests and some projects faced the possibility of being abandoned midway because of unpaid bills.

Under the Jal Jeevan Mission's funding arrangement, the Centre is required to contribute an amount matching the expenditure incurred by the State Government through the Water Authority. However, the Centre's share had not reached Kerala for two years.

Complaints of large-scale irregularities in the implementation of the Jal Jeevan Mission in several states reportedly prompted the Centre to freeze the release of funds for two years while examining the allegations.

Kerala managed to overcome the immediate financial crisis by borrowing money and settling outstanding payments. However, there has been no strong intervention since then to secure the pending central assistance, according to the report.

The Jal Jeevan Mission is being implemented in Kerala at an estimated cost of Rs 44,000 crore. Of this, the Centre is expected to contribute around Rs 22,000 crore.

The state government has spent approximately Rs 15,000 crore on the project. However, the central assistance received so far has not been proportionate to the state's expenditure.

The delay in implementation and the continuing financial crisis have also affected public confidence in the scheme. In several rural areas, roads have been dug up to provide household water connections, but residents complain that they are not receiving water despite having connections.

Around six lakh applications seeking cancellation of water connections are reportedly pending before the authorities, as consumers have not been receiving an adequate supply.

Contractors' association seeks Chief Minister's intervention

The Kerala Government Contractors' Association has called for urgent intervention by Chief Minister and the Water Resources Minister to address the crisis.

Association state president Varghese Kannampally said the government should take immediate steps to secure the Rs 4,461 crore allocated by the Centre. He said contractors were being forced to suspend work because of the lack of funds.

“ The Chief Minister and the Water Resources Minister must intervene urgently to make the Jal Jeevan Mission efficient. The allocated funds must be secured. The State should also demand more money, pointing out the shortfall in the Centre’s share of the project. Contractors are being forced to stop work because of the lack of funds,” he added.