Jal Jeevan Mission: Kerala needs to raise Rs 17,250 crore in 3 years

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Kottayam: Even though the Union Budget has extended the Jal Jeevan Mission’s deadline to 2028, the project in Kerala faces a serious risk of being left incomplete unless the state mobilises Rs 17,250 crore.
The already sluggish project could come to a complete standstill if the state fails to clear outstanding dues of Rs 4,500 crore to the project contractors by March 31. This will also bring to a halt the reconstruction of roads dug up for pipeline installation.
Kerala received administrative approval for Rs 44,500 crore under the project, with both the state and the Centre expected to contribute Rs 22,250 crore each. However, the combined expenditure from both parties has barely crossed Rs 1,000 crore so far. Now, the state is required to generate half of the remaining amount – Rs 17,250 crore --before 2028 to ensure the project's completion.
At a time when Kerala is already struggling to clear payments to contractors, raising such a massive sum within the next three years appears to be an uphill battle. The only viable options seem to be either securing the amount as a loan from the Centre or obtaining special permission from the Centre to exceed the state’s existing borrowing limits.
The state government, on its part, is considering a proposal for the Kerala Water Authority (KWA) to take out a loan. However, without financial support from the state, KWA risks falling into a severe debt trap. Given the precarious financial situation of the state government, expecting such assistance may also prove unrealistic.