Rs 1,37,500 per household tap in Jal Jeevan Mission? Finance ministry wonders

​In February 2025, the Jal Shakti ministry proposed a revised outlay of Rs 9.10 lakh crore for the Jal Jeevan Mission (JJM), seeking additional funds to extend the mission's timeline by four years, aiming to provide tap water connections to the remaining 4 crore rural households by December 2028.

This proposal raised concerns within the finance ministry, though, particularly regarding the sharp increase in the cost per tap connection from Rs 30,000 during 2019–24 to Rs 1,37,500, the Indian Express reported.

But how does a tap and a few feet of piping cost over Rs 1 lakh, exactly?

The finance ministry's department of economic affairs questioned the justification for this significant cost escalation, especially since only about 75 per cent of the original target had been achieved by December 2024 and thus there should have been funds leftover.

The Jal Shakti ministry attributed the increased costs to factors such as inflation, price volatility and delays caused by the Covid-19 pandemic and the Ukraine conflict.

In response to the funding request, the Expenditure Finance Committee (EFC) recommended a 46 per cent reduction in the proposed additional central assistance, approving ‘only’ Rs 1.51 lakh crore instead of the Rs 2.79 lakh crore sought.

Consequently, the overall mission outlay was reduced by Rs 41,000 crore to Rs 8.69 lakh crore. However, this decision implies that the financial burden of the remaining Rs 1.28 lakh crore may fall on state governments, potentially impacting the mission's implementation across various regions.

Meanwhile, the Jal Shakti ministry, in its response to the finance ministry's queries, denied the existence of any time or cost overruns in the JJM — even as it sought a revised outlay of Rs 9.10 lakh crore, the Indian Express reported.

The department of expenditure within the finance ministry also formally raised concerns and sought detailed explanations for the upward revision of the outlay for JJM.

Despite these challenges, the final decision on funding allocations rests with the Union cabinet, which may choose to revisit the EFC's recommendations.

The outcome will significantly influence the mission's trajectory and its goal of ensuring tap water access to every rural household in India.