The Cabinet will shortly take up restructuring the Jal Jeevan Mission under JJM 2.0, aiming to correct these distortions while building a locally accountable governance structure for the scheme that has already made big headway.
The revamp will shift responsibility for single-village schemes to Gram Panchayats, link funds to actual water delivery and route operationsand maintenance (O&M) money directly to villages. State governments will handle large regional projects.
Launched in 2019 to provide functional household tap connections to all rural homes, the Jal Jeevan Mission has expanded coverage from about 17% of rural households to more than 80%. However, officials say the next phase must address weaknesses in implementation, including corruption, inflated contracting practices and a system that rewarded pipeline construction rather than assured water supply.
The total estimated outlay of the centrally sponsored scheme was Rs 3.6 lakh crore, of which the Centre’s share was Rs 2.08 lakh crore and has largely been utilised up to FY25. The budgetallocation of Rs 67,000 crore for FY26 was reduced to Rs 17,000 crore in the revised estimates amid concerns over corruption and poor service delivery.
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Fund flows to states under the existing mechanism have slowed sharply, with only Rs 31 crore released until February 12, 2026. JJM 2.0 is expected to drive spending under the Rs 67,670 crore allocation proposed for FY27.
Shifting from Infrastructure Creation
Under the current system, many rural water supply projects are implemented by state Public Health Engineering Departments (PHEDs) through contractors. Payments are typically linked to infrastructure creation—such as laying pipelines or installing connections—rather than verifying whether water actually reaches households. This has created incentives to complete projects on paper without ensuring sustained supply. Officials say the revised framework will dismantle this model by linking fund releases to verified water delivery and by transferring operational responsibility to local governments.
In the proposed structure, single-village water supply schemes will become the responsibility of Gram Panchayats. Once infrastructure is created, assets will be handed over to the Panchayat, which will operate the system as a village-level “micro utility”. Operations and maintenance funds will flow directly to Panchayats instead of through contractors. Villages will also be encouraged to supplement these resources through user charges and Finance Commission grants.
At the same time, states will continue to manage large regional or multi-village water supply systems. These projects—often drawing water from distant rivers or reservoirs—will be implemented by PHED departments and function as “macro utilities” supervised by state governments. This division between village-level micro utilities and state-level macro utilities is expected to form the institutional architecture of JJM 2.0.
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Decentralized Governance
Funding mechanisms will also undergo significant change. Currently, funds are often released in lump sums based on the number of households targeted for tap connections. Under the revised system, financial releases will depend on proof that water is flowing regularly from the source to households. Gram Sabhas will certify service delivery, and reports will be uploaded on a digital monitoring platform. Officials emphasise that spending must be linked to reliable water supply rather than merely building pipelines.
Strengthening local accountability is another key objective. Under the principles of the 73rd Constitutional Amendment Act, drinking water supply is a local government function. By placing Gram Panchayats at the centre of operations, the government hopes service failures will be addressed locally instead of escalating to higher levels of administration.
The revamped mission will also introduce stronger water quality surveillance. Gram Panchayats will receive field testing kits, and at least five women in each village will be trained to test drinking water. Test results will be uploaded digitally, while district technical teams will intervene when contamination is detected. Suppliers will also be required to publicly disclose water quality parameters.
The reform framework will also involve convergence with employment and rural development programmes such as Mahatma Gandhi National Rural Employment Guarantee Act, now being reshaped under the proposed G-RAM-G initiative. The convergence is expected to support water conservation, source strengthening and creation of durable assets while improving transparency and local monitoring. |
