Perils of CAG ‘Inaction’ and Jal Jeevan Mission’s ₹16,839 Cr Surge
Jal Jeevan Mission Scheme (Images Govt Campaign)
Jal Jeevan Mission’s Tender Guidelines Tweak Under Scanner for Cost Escalation
By P. SESH KUMAR
NEW DELHI, June 2, 2025 – In the vast and diverse landscape of India, where access to clean drinking water remains a pressing concern, the Jal Jeevan Mission (JJM) emerged in 2019 as a beacon of hope. Launched by the Ministry of Jal Shakti, its ambitious goal was to provide 55 litres of potable water per person per day to every rural household by 2024.
With a substantial budget of ₹3.6 lakh crore, including ₹2.08 lakh crore from the central government, the mission aimed to transform lives across the nation.
However, a significant policy shift in 2022 cast a shadow over this noble initiative. The Ministry of Jal Shakti amended the tender guidelines, removing the ‘tender premium’ cap—a safeguard that previously prevented states from awarding contracts exceeding estimated costs. This change was justified as a response to the rising material costs during the COVID-19 pandemic, with states like Madhya Pradesh and Rajasthan advocating for the amendment.
The consequences of this decision have been staggering. An investigation by The Indian Express revealed that between June 21, 2022, and August 3, 2024, 14,586 schemes experienced cost escalations totalling ₹16,839 crore—a 14.58% increase over initial estimates.
Notably, Madhya Pradesh, despite accounting for less than 4% of these schemes, was responsible for nearly 64% of the total cost overrun.
The data indicates that larger projects bore the brunt of these escalations. Approximately 80% of the additional costs were associated with schemes exceeding ₹100 crore. In some instances, the discovered costs surpassed estimates by over ₹1,000 crore, raising concerns about the transparency and efficiency of the tendering process.
What is even more troubling is the institutional silence that has surrounded this glaring financial red flag. Despite the Jal Jeevan Mission being one of the Government of India’s most ambitious and heavily funded flagship schemes, the Comptroller and Auditor General of India (CAG) has not yet undertaken a comprehensive performance audit of the Mission.
This glaring omission is a telling indictment of the national audit authority’s ineffectiveness in recent years. At a time when robust oversight was needed to verify cost efficiency, assess outcomes against stated objectives, and evaluate tendering processes, the CAG remained conspicuously absent.
The systemic lapses in the flagship scheme should have been uncovered by a constitutionally empowered audit institution. This inaction not only raises questions about the CAG’s institutional priorities and capacity but also about the government’s willingness to allow truly independent scrutiny of its flagship initiatives.
In response to these revelations, the central government has initiated a comprehensive review. One hundred inspection teams, comprising Joint Secretaries and Directors, have been dispatched to 135 districts across 29 states and Union Territories. Their mandate includes verifying project costs, assessing work quality, and investigating potential irregularities in the award of contracts.
This development has also influenced funding decisions. The Expenditure Finance Committee, wary of the escalating costs, recommended a 46% reduction in the Ministry of Jal Shakti’s request for additional central funding, approving only ₹1.51 lakh crore out of the proposed ₹2.79 lakh crore.
To restore the integrity and effectiveness of the Jal Jeevan Mission, several measures are imperative. First, financial safeguards such as the tender premium cap must be reinstated or replaced with similarly rigorous cost-control mechanisms. Second, transparency in bidding and project execution must be enhanced by mandating public disclosure of all contracts, revisions, and cost justifications.
Third, the CAG must immediately initiate an independent performance audit of the Mission, covering not only financial compliance but also efficacy, sustainability, and equity in service delivery.
Fourth, accountability mechanisms at both state and central levels must be strengthened to deter collusion and corruption. Finally, the community-level monitoring system needs urgent reinforcement, empowering Panchayats and local stakeholders to demand and enforce accountability in service delivery.
Only through such systemic corrections can the government reclaim the vision of Jal Jeevan Mission—not merely as a showpiece of rural development, but as a genuine, transparent, and accountable engine of transformative change.
(This is an opinion piece; views expressed solely belong to the author)
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