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Reading: Centre releases ₹1,561 crore to 5 states after probe into ‘inflated costs’ and 1,500+ penalties
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Viascore > Blog > Sports India > Centre releases ₹1,561 crore to 5 states after probe into ‘inflated costs’ and 1,500+ penalties
Sports India

Centre releases ₹1,561 crore to 5 states after probe into ‘inflated costs’ and 1,500+ penalties

ViaScore
Last updated: 2026/03/31 at 11:02 AM
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3 min readNew DelhiMar 31, 2026 04:32 PM IST

The flow of funds under the Jal Jeevan Mission (JJM), which had been halted in December 2024 after the scheme’s first phase ended and amid extensive scrutiny by the Centre over concerns of irregularities and inflated costs, has now resumed, with five states receiving a total of Rs 1,561.53 crore during the fiscal year 2025-26.

The release of central funds came days after the Union Cabinet on March 10 approved extension of the JJM (which is now called JJM 2.0) till 2028, with an additional central funding of Rs 1.51 crore—over and above Rs 2.08 lakh crore of the central share during the first phase (2019-2024).

“A total amount of Rs 1,561.53 crore has been released. Uttar Pradesh has been released Rs 792.93 crore, Chhattisgarh Rs 536.53 crore, Madhya Pradesh Rs 154.02 crore, Odisha Rs 65.31 crore and Maharashtra Rs 12.74 crore,” the Union Jal Shakti Ministry said in a statement on Tuesday.

The statement noted that after signing the reformed‑linked MoU, five states received funds under Jal Jeevan Mission 2.0.

It added, “JJM 2.0 aims to declare all Gram Panchayats as ‘Har Ghar Jal’ by ensuring tap water connections to all 19.36 crore rural households across the country by December 2028. This will be achieved through adherence to defined timelines, focus on sustainability of schemes and delivery of citizen-centric water services, supported by separate reform-linked MoUs with State/UTs.”

On May 21 last year, 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.

Following complaints of irregularities and concerns over the inflated cost of works, the Centre sent over 100 teams of officials across the country for ground inspections in this regard. Prime Minister Narendra Modi, too, directed Jal Shakti Ministry officials to take action against those who have committed irregularities in the scheme.

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On November 10, 2025, The Indian Express reported that action was taken against at least 596 officials, 822 contractors and 152 Third Party Inspection Agencies (TPIAs) across 15 states and Union Territories in this regard.

From Rs 3.60 lakh crore to Rs 8.69 lakh crore

Launched in August 2019, JJM aimed to deliver 55 litres per capita per day of drinking water to all rural households in the country by 2024.

“At the start of the Mission, only 3.23 crore (16.7 per cent) rural households were reported to have tap water connections. Since then, significant progress has been made. As per the latest data reported by states and UTs, over 12.59 crore additional rural households have been provided with tap water connections. As a result, out of around 19.36 crore rural households in the country, about 15.83 crore (around 81.8 per cent) households now have tap water supply in their homes,” according to the Jal Shakti Ministry.

Initially, the total outlay of the scheme was approved at Rs 3.60 lakh crore (Rs 2.08 lakh crore central share and Rs 1.52 lakh crore states’ share) in 2019, which has now increased to Rs 8.69 lakh crore, with total central assistance of Rs 3.59 lakh crore—increased by Rs 1.51 lakh crore over and above of Rs 2.08 lakh crore approved in 2019.

Harikishan Sharma


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Harikishan Sharma, Senior Assistant Editor at The Indian Express’ National Bureau, specializes in reporting on governance, policy, and data. He covers the Prime Minister’s Office and pivotal central ministries, such as the Ministry of Agriculture & Farmers’ Welfare, Ministry of Cooperation, Ministry of Consumer Affairs, Food and Public Distribution, Ministry of Rural Development, and Ministry of Jal Shakti. His work primarily revolves around reporting and policy analysis. In addition to this, he authors a weekly column titled “STATE-ISTICALLY SPEAKING,” which is prominently featured on The Indian Express website. In this column, he immerses readers in narratives deeply rooted in socio-economic, political, and electoral data, providing insightful perspectives on these critical aspects of governance and society. … Read More

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ViaScore March 31, 2026 March 31, 2026
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