Bhubaneswar: Deputy Chief Minister Pravati Parida has submitted a formal memorandum to the Union Finance Minister Nirmala Sitharaman seeking the immediate release of pending Central funds under the Jal Jeevan Mission (JJM) to prevent a financial bottleneck in its rural water supply projects.
Despite being one of the frontrunners in implementing the mission, the State has warned that the exhaustion of its matching 50 percent share in several projects has led to a temporary stall in contractor payments and physical progress.
Odisha has already completed more than 8,200 rural water schemes and is currently executing 133 mega-projects. To sustain this pace, the State has committed nearly 40 percent of its total 54,335 crore rural water outlay through its own resources, including the BASUDHA and OMBADC funds. The State government highlighted that it has frequently released hundreds of crores in advance to bridge gaps caused by delayed Central disbursements, but this proactive financial management has now reached a limit.
The memorandum emphasizes the need for the immediate release of Central shares for the financial years 2024-25 and 2025-26. State officials argue that any further delay could lead to significant cost overruns and jeopardize the goal of completing these capital-intensive projects by the March 2027 deadline.
Beyond the immediate fiscal requirements, Odisha is advocating for a shift in the JJM guidelines to better reflect local service standards and long-term sustainability. While the current national guideline provides for 55 litres per capita per day (LPCD), Odisha has designed its infrastructure for 70 LPCD to account for rapid urbanization and a 30-year population growth horizon. The State is requesting that the Central government recognize this higher standard for full funding eligibility without cost apportionment.
Additionally, the State has raised concerns regarding “inadmissible” works under the current JJM framework. Odisha is seeking Central assistance for critical maintenance and sustainability measures, such as the shifting of intake structures to ensure reliable water sources and the restoration of pipelines damaged during road construction. The memorandum concludes that addressing these funding and policy gaps is vital for the long-term functionality of the water systems and the overall financial health of the State’s water sector.