Jaipur: Rajasthan may be heading towards a major drinking water crisis as contractors engaged in key public water supply projects have threatened to halt all work across the state if their long-pending payments and other demands are not addressed by May 30.
The warning comes from a contractors’ “Sangharsh Samiti” (Struggle Committee), which represents firms working under the Public Health Engineering Department (PHED), including flagship schemes such as the Jal Jeevan Mission (JJM) and AMRUT 2.0. The committee has issued an ultimatum to the state government, stating that failure to release pending payments and resolve their eight-point charter of demands by the deadline will force them to suspend both construction and maintenance activities related to drinking water projects.
Contractors Meet Finance Department, Seek Immediate Budget Allocation
On Thursday, a delegation of contractors met senior officials at the Rajasthan Secretariat, including the Principal Secretary (Finance), and demanded immediate release of funds to clear outstanding dues. According to the contractors, prolonged delays in payments have pushed many firms into severe financial distress, leaving them with little choice but to stop operations.
The meeting followed an extensive discussion held a day earlier between representatives of the Sangharsh Samiti and senior PHED officials. The meeting was attended by the Principal Secretary (PHED/Finance), the Managing Director of Jal Jeevan Mission, and Chief Engineers from across the department.
During the discussions, contractors reportedly made it clear that assurances alone would no longer suffice and demanded concrete action from the government.
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Threat of Statewide Shutdown of Water Supply Projects
The committee has warned that if its demands remain unresolved after May 30, the following actions will be taken:
- Immediate suspension of all ongoing PHED and Jal Jeevan Mission construction projects across Rajasthan.
- Complete stoppage of Operation and Maintenance (O&M) activities for existing drinking water supply schemes.
- Disruption of water supply management systems, potentially affecting millions of residents dependent on government-run water distribution networks.
Contractors argue that the impact will not be limited to infrastructure development but could directly affect day-to-day water supply services across the state.
Thousands of Crores in Outstanding Payments
According to the contractors, the crisis has been building for several years due to mounting unpaid bills.
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Under the Jal Jeevan Mission, contractors claim they have not received payments for nearly 34 months, with pending dues estimated at around ₹3,500 crore.
Similarly, under the AMRUT 2.0 scheme, payments have allegedly been delayed for approximately 12 months, resulting in outstanding liabilities of nearly ₹1,000 crore.
The committee maintains that despite completing projects and ensuring operational water supply systems, payments have remained stalled.
Previous Protest and Alleged Breach of Government Assurances
The contractors had previously staged a major protest and sit-in demonstration at Jal Bhawan between April 13 and April 21. Following negotiations, PHED Minister Kanhaiyalal Choudhary reportedly assured the contractors that pending dues would be released in phases.
According to the committee, the payment schedule promised during the negotiations included:
- ₹300 crore by April 25.
- ₹1,500 crore by May 5.
- Full settlement of pending payments by May 15.
Based on these assurances, the protest was called off. However, contractors now allege that none of the promised payments have been released, leading to renewed anger within the industry.
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Contractors Claim Financial Collapse
The prolonged payment delays have had severe consequences for contractors and associated businesses, the committee claims.
Many contractors have reportedly defaulted on bank loans due to their inability to service EMIs. Suppliers of pipes, cement, steel, gravel, and construction materials are also awaiting payments, resulting in mounting liabilities throughout the supply chain.
Contractors further state that daily wage labourers are demanding unpaid wages, creating additional pressure on project operators. Some contractors allege that the financial strain has become so severe that they are being forced to avoid creditors and are struggling to maintain their businesses.
“Government Must Hear Our Pain”
Members of the Sangharsh Samiti have appealed to the government to recognise the difficulties faced by contractors who financed projects through loans, mortgaged properties, and personal investments to ensure drinking water reached households across Rajasthan.
They argue that while governments often receive public credit for announcing large infrastructure projects, the contractors and workers responsible for implementing them are being left without compensation for completed work.
Potential Political and Public Fallout
With summer temperatures soaring and water demand increasing across Rajasthan, any disruption to drinking water schemes could have significant consequences for residents. The contractors have warned that if water supply operations are suspended after May 30, public anger is likely to be directed at the government.
As the deadline approaches, attention is now focused on whether the state government will release funds and avert a crisis that could affect both ongoing infrastructure projects and essential drinking water services across Rajasthan.