Assocham seeks immediate clearance of infra firms' dues under JJM

New Delhi, Oct 14 (PTI) Industry body Assocham has urged the government to expedite the clearance of outstanding dues owed to infrastructure firms under the flagship Jal Jeevan Mission (JJM).

Jal Jeevan Mission is envisioned to provide safe and adequate drinking water through individual household tap connections to all households in rural India.

In a letter to the Ministry of Jal Shakti last month, the industry body said, "Assocham wishes to bring to your kind attention an urgent matter of nonpayment of certified contractor bills, pending for over 10–12 months, which is severely impacting ongoing works under this flagship programme".

The industry body pleaded that despite sufficient central allocations, payments remain unsettled in several states, including Uttar Pradesh, Madhya Pradesh, Jharkhand, Odisha, West Bengal, Maharashtra, Assam, and Jammu & Kashmir, where dues amounting to tens of thousands of crores have remained unpaid for months.

For instance, it stated that in FY25, over Rs 11,000 crore in dues are pending in Uttar Pradesh alone, Rs 3,800 crore in Jharkhand, Rs 2,500 crore in Odisha, Rs 5,000 crore in West Bengal and around Rs 12,500 crore in Maharashtra.

It has been pointed out that nationally, the annual pace of new connections has fallen from 2.99 crore in 2023-24 to only 0.94 crore in 2024-25, a drop of nearly 70 per cent.

"Such prolonged delays have resulted in work stoppages, slowed execution in multiple districts, and a sharp decline in annual connection pace, from 2.99 crore households in FY2023-24 to only 0.94 crore in FY2024–25 (a drop of nearly 70 per cent)," the body said.

This situation has created unprecedented financial and operational stress on companies, including working capital freeze and heavy interest burdens, it added.

This has also created supply chain disruptions, with vendors insisting on cash terms. Labour attrition and site-level disruptions are impacting quality and timelines, it stated.

It has also created an escalation of indirect costs (idle manpower, machinery, administrative and compliance expenses).

This situation also led to the risk of bank guarantee invocation and tightening of credit facilities.

The body suggested that immediate clearance of certified dues in a time-bound manner.

The body pitched for the provision of price variation mechanisms to address escalation in input costs during delays.

It also called for the creation of a transparent public dashboard showing state-wise pending certified amounts to enable effective planning and accountability.

"JJM is a national priority of the highest order. Contractors and suppliers remain fully committed to its success. However, without immediate resolution of payment delays, both the mission's outcomes and the livelihoods linked to it face serious jeopardy," it stated.

Assocham sought the immediate government's intervention to address this matter with the concerned authorities and facilitate early resolution.

It noted that as of February 1, 2025, the mission has successfully provided tap water connections to 12.20 crore additional rural households, bringing the total coverage to 15.44 crore households, which accounts for 79.74 per cent of all rural households in India.

This is a significant milestone compared to August 15, 2019, when only 3.23 crore (17 per cent) rural households had tap water connections at the time of the mission's launch by Prime Minister Narendra Modi. PTI ABI KKS ABI BAL BAL