Contractors accuse government of delaying payments for nearly 33 months; Jal Jeevan Mission and major water projects reportedly affected
Jaipur:
Rajasthan may face a major drinking water crisis during the peak summer season as contractors associated with the Public Health Engineering Department (PHED) intensified their protest over long-pending payments allegedly exceeding ₹4,500 crore.
The ongoing dispute between PHED contractors and the state government has triggered concerns over disruption of water supply operations and the slowdown of key infrastructure projects, including the Jal Jeevan Mission (JJM) and the Eastern Rajasthan Canal Project (ERCP).
Contractors and industrial associations have warned that if pending dues are not cleared soon, they may launch a statewide “No Payment, No Work” and “Water Stop Movement,” potentially impacting urban and rural water supply systems across Rajasthan.
Contractors Allege Payments Pending for 33 Months
During a press conference held in Jaipur, representatives of the Contractors Association Sangharsh Samiti alleged that PHED contractors have not received payments for nearly 33 months despite completing work under various government schemes.
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According to the contractors, delayed payments have pushed many firms into severe financial distress, making it difficult to pay labourers, suppliers and operational expenses.
Association representatives claimed that nearly five lakh people connected directly and indirectly to the sector are being affected due to the financial crisis.
Contractors further alleged that several firms are now burdened with debt while many ongoing projects are operating at minimal capacity because vendors and suppliers have stopped extending credit.
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Threat to Water Supply During Summer
The protest has raised serious concerns within administrative and industrial circles because Rajasthan is already dealing with intense summer conditions and increasing demand for drinking water.
Contractors warned that if the issue remains unresolved, work related to water distribution, pipeline maintenance and infrastructure development may come to a standstill.
Industry representatives supporting the agitation stated that disruption in PHED operations could create a severe water shortage situation in both cities and rural areas during the coming weeks.
Political observers say the timing of the dispute has added pressure on the state government, as any interruption in water supply during peak summer months could lead to widespread public resentment.
Jal Jeevan Mission and ERCP Projects Hit
Contractors alleged that several flagship projects, including works under the Jal Jeevan Mission and the Eastern Rajasthan Canal Project, have already slowed down significantly due to the payment crisis.
The agitation has also reportedly affected the pipe manufacturing and supply industry. Industrial associations claimed that nearly ₹1,000 crore linked to the pipe sector remains stuck, impacting production and supply chains across the state.
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Manufacturers warned that continued delays could affect thousands of jobs and disrupt the supply of essential materials required for water infrastructure projects.
Protest Intensifies at Jal Bhawan
PHED contractors have been staging protests outside Jal Bhawan in Jaipur, demanding immediate release of pending dues and policy-level assurances from the government.
Contractors accused the government of repeatedly offering assurances without implementing concrete financial relief measures.
Some protest groups even warned of intensifying the agitation if no immediate resolution is reached.
Government Holds Talks With Contractors
Amid growing pressure, senior PHED officials and representatives of the contractors’ association held discussions to resolve the standoff.
According to reports, PHED Minister Kanhaiyalal Chaudhary assured contractors that pending payments worth ₹2,500 crore would be released by May 2026, while another ₹2,500 crore would be cleared by the end of June 2026.
Following the discussions, contractors temporarily suspended their proposed indefinite strike until May 5, 2026.
Government officials also reportedly assured contractors that partially completed projects nearing completion would be prioritised and that proposals related to GST differential payments and other pending financial issues would be processed expeditiously.
Temporary Relief but Concerns Continue
Although the immediate threat of disruption has temporarily eased after negotiations, uncertainty still persists over whether the government will adhere to the promised payment schedule.
Experts believe that if the financial deadlock continues, Rajasthan could face serious challenges in maintaining uninterrupted drinking water supply during the summer season.
The issue has now emerged as both an administrative and political challenge for the state government, particularly at a time when public dependence on water infrastructure projects remains extremely high.