Company Failed to Complete Drinking Water Scheme for Anta Town and 44 Villages Even After 7 Years
PHED Reviewing Firm’s Other Projects in Bharatpur Division Amid Complaints of Poor O&M Performance
Jaipur/Baran: The Rajasthan government has initiated strict action against contractors accused of negligence in critical public drinking water projects. In a major decision, the high-level Finance Committee (FC) of the Public Health Engineering Department (PHED) has approved severe action against Chennai-based M/s Shriram EPC Limited for allegedly failing to properly operate and maintain the “Nagda Anta Baldevpura Drinking Water Project” in Baran district.
The department has decided to rescind the company’s contract and issue a fresh tender under the “Risk and Cost” clause. This means any additional expenditure incurred in completing and operating the project through a new contractor may be recovered from the defaulting company itself.
The move is being seen as a strong message from the Bhajan Lal Sharma government against contractors accused of disrupting essential public services and delaying major infrastructure projects.
Drinking Water Supply to Anta and 44 Villages Severely Affected
According to official departmental records, after completion of the main construction work, Shriram EPC was entrusted with the operation and maintenance (O&M) of the project from December 15, 2018 onwards for a multi-year period.
However, PHED officials allege that the company repeatedly stopped work and failed to maintain uninterrupted operations over the past several years. The interruptions reportedly triggered a major drinking water crisis in Anta town and nearly 44 surrounding villages dependent on the scheme.
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Residents in the affected areas allegedly faced repeated disruptions in water supply, forcing PHED authorities to intervene multiple times to restore operations.
Multiple Notices Issued Between 2019 and 2026
Departmental sources reveal that PHED’s Project Division Baran and Project Circle Jhalawar issued several warning notices to the contractor between August 2019 and February 2026.
In January 2026 alone, the company reportedly received three separate notices regarding poor maintenance, operational failures, and non-compliance with contractual obligations. Despite repeated warnings, PHED officials claim the contractor showed little interest in improving services or restoring normal operations.
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The Finance Committee reportedly concluded during its review that the company no longer appeared interested in continuing the project responsibly.
₹57.10 Crore Project Faced Delays Since Beginning
The “Nagda Anta Baldevpura Drinking Water Project” was originally awarded on September 14, 2012 at a total project cost of ₹57.10 crore.
According to departmental details:
- Main construction cost: ₹52.77 crore
- O&M component: ₹4.33 crore
Officials stated that even the construction phase suffered substantial delays, and now the company’s performance during the operation and maintenance phase has also come under serious scrutiny.
Blacklisting Action May Extend to Other Projects
During the Finance Committee meeting, PHED officials reportedly disclosed that Shriram EPC’s alleged negligence was not limited to Baran district alone.
The committee was informed that the company is also handling two major projects in the Bharatpur division where similar complaints regarding operation and maintenance failures have surfaced.
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Following presentations by the Chief Engineer, PHED Jaipur, and detailed discussions among committee members, the department decided to conduct an immediate review of all ongoing contracts awarded to the company across Rajasthan.
The Chief Engineer (Special Projects) has been directed to submit a comprehensive report on the firm’s performance in other projects. The findings are expected to be placed before the next Finance Committee meeting, after which the department may initiate complete blacklisting proceedings against the company.
Finance Committee Orders Strict Action
The committee has approved several key actions against Shriram EPC Limited:
- Immediate rescinding of the current contract under Clause 3 of the General Conditions of Contract (GCC) and SOP Item No. 36.
- Fresh customized tender to be invited immediately for the balance work and remaining three-year operation period.
- Initiation of strict disciplinary and punitive action against the contractor under PHED enlistment and registration rules.
- Recovery of additional financial burden from the contractor under the “Risk and Cost” provisions.
Government Adopting Tougher Stand Against Defaulters
The latest action indicates a broader shift in Rajasthan’s approach towards contractors accused of negligence in public utility projects. PHED officials believe strict enforcement is necessary to ensure uninterrupted water supply in rural and urban regions already facing severe summer water stress.
The case has also reignited concerns about long delays, weak monitoring mechanisms, and poor accountability in major infrastructure and drinking water projects across the state.
With blacklisting proceedings now under consideration, the outcome of the review into Shriram EPC’s other projects may have wider implications for public procurement and contractor accountability in Rajasthan’s PHED system.