3 min readNew DelhiMar 21, 2026 01:21 PM IST
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 cost rationalisation exercise by scrutinising projects costing over Rs 100 crore, before release of funds to states, The Indian Express has learnt.
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 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 scrutinized 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 rationalization or apportionment to the State-level Apex Committees for concurrence prior to release of funds,” the Jal Shakti ministry conveyed to 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.
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.
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On Tuesday (March 10), the Union Cabinet had approved an additional allocation of Rs 1.51 lakh crore for the JJM till 2028.
The scheme will now have an overall outlay of Rs 8.70 lakh crore till 2028. Of this amount, the Centre’s outlay will now be Rs 3.59 lakh crore, including Rs 2.08 lakh crore allocated in 2019.
The Centre has laid down four conditions that states must meet to receive funds, putting 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 include: signing the Memorandum of Understanding (MoU); creation of Sujal Gaon IDs to ensure complete digital mapping of all rural water supply schemes; timely financial reconciliation, and notification of State operation & maintenance (O&M) policies,” said an official.
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Till Friday, eight states, including Uttar Pradesh, Madhya Pradesh, Rajasthan, Maharashtra, and Gujarat, have signed the MoU.
Launched in August 2019, JJM aimed to deliver 55 litres per capita per day (lpcd) drinking water to all rural households in the country by 2024. 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 – an increase of 14.58 per cent from their estimated cost.
