In a significant move to bolster its rural water supply infrastructure, the Kerala government has formally granted in-principle approval to the Kerala Water Authority (KWA) to secure a substantial ₹9,000 crore loan from the National Bank for Agriculture and Rural Development (NABARD). This critical funding is earmarked for accelerating and completing the ambitious water supply projects under the central government’s flagship Jal Jeevan Mission (JJM).
The initial phase of this financial undertaking will see the KWA drawing ₹5,000 crore. This decision, rooted in an approval from the Kerala Cabinet, was officially formalized by the State Water Resources department on September 15.
While granting its nod, the government has directed the KWA Managing Director to prioritize works essential for operationalizing existing, partially completed schemes. This strategic focus aims to prevent any “infructuous expenditure” that might arise from delays. Water Resources Minister Roshy Augustine confirmed in the State Assembly last week that the state government has provided its guarantee for this initial ₹5,000 crore loan.
The Jal Jeevan Mission (JJM) is a nationwide initiative designed to ensure 100% tap water connectivity in all rural households, with funding shared equally between the Central and State governments. The KWA had been actively seeking external financing options from institutions like NABARD, Life Insurance Corporation, HUDCO, and the World Bank due to difficulties in securing its matching share of the project costs.
Addressing the Funding Gap
Estimates show that Kerala still needs approximately ₹12,532.02 crore to cover its remaining share for ongoing and planned water projects. This significant financial requirement underscored the necessity of the KWA’s proposal, which the Cabinet subsequently approved, to obtain the loan from NABARD.
According to data presented in the State Assembly, Kerala has already expended ₹11,643.59 crore under the JJM. While administrative sanctions have been granted for projects totaling ₹44,714.78 crore, and works for ₹35,826.87 crore have been organized, the actual implementation has faced hurdles.
Despite these efforts, Kerala’s implementation progress for the Jal Jeevan Mission currently lags at 55.31%, placing it among the lowest nationally. However, the Union government’s decision to extend the mission’s completion deadline to 2028 offers a much-needed reprieve and additional time for the state to catch up and achieve its targets.