The Centre has tightened spending norms under the Jal Jeevan Mission in a move aimed at curbing inflated project costs and alleged irregularities in the implementation of rural water supply schemes. The revised measures expand the list of inadmissible expenses under the flagship programme and introduce stricter scrutiny of project proposals and tender-related costs.

According to government sources, the list of non-reimbursable expenses under the scheme has been expanded from seven items to ten. The Centre has also directed authorities to halt “oversized” Detailed Project Reports (DPRs), with projects worth nearly Rs 67,000 crore reportedly put on hold for review. Officials said the objective is to reduce unnecessary expenditure and improve transparency in project execution.

Under the revised framework, four additional categories of expenditure will no longer qualify for reimbursement. These include tender premiums, operation and maintenance costs of schemes, provisions exceeding the approved service norm of 55 litres per person per day, and water supply projects designed solely around urban or demand-based distribution models.

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Tender premiums had originally been classified as inadmissible under the mission guidelines introduced in 2019. However, the rules were relaxed in 2022 to allow the Centre to absorb the additional costs arising from higher bids submitted during the tendering process. Government sources said the change led to an additional financial burden of Rs 16,389 crore across 14,586 projects under the scheme.

The issue of inflated tender premiums and alleged irregularities in contract allocation has emerged as one of the major concerns surrounding the Jal Jeevan Mission in recent years. Officials indicated that the latest restrictions are intended to strengthen financial discipline and prevent excessive escalation in project costs.

The Jal Jeevan Mission, launched in 2019, aims to provide functional household tap water connections to all rural households across India. The programme has been one of the Centre’s flagship infrastructure and welfare initiatives, but concerns over implementation quality, procurement practices and cost overruns have periodically drawn scrutiny from policymakers and oversight agencies.

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