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Karnataka | Liquidity crisis, pricey pipes delay water supply schemes

Karnataka | Liquidity crisis, pricey pipes delay water supply schemes

Deccan Herald 2 hrs ago

Bengaluru: A "liquidity crisis" faced by contractors and a "massive spike" in prices of polyethylene pipes are among the reasons for the delay in single- and multi-village water supply schemes, which are supposed to benefit over four crore citizens.

Only 56% of the 137 multi-village water supply schemes have been completed.

Out of the 39,257 single-village water supply schemes, the completion rate is 76%, according to data placed before Chief Minister D K Shivakumar during a review meeting recently.

Some of these water supply schemes have been pending for at least six years.

"The state rapidly approved a massive volume of tenders. Overburdened contractors stretched their working capital too thin, leading to low physical progress," the government has said in an internal note during the CM's review meeting.

There were "severe" delays in receiving the union government's share of the budget under Jal Jeevan mission, which resulted in pending bills.

"This liquidity crisis has forced many contractors to demobilize their staff, slow down execution and lower procurements," the government said.

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Water supply schemes that were rolled out in 2020 "collided directly" with Covid-induced lockdowns when "field interventions and labour migration ground to a halt," the government said.

The schemes also suffered because of "severe shortages and a massive price spike" for high-density polyethylene (HDPE) resins, with the government adding that manufacturers "struggled" to supply pipes. The government's own internal process delays contributed further to delays.

For example, out of the 137 multi-village water supply schemes, 64 require forest clearance of about 206 hectares. Delays also occurred due to pending right-of-way clearances by the railways, NHAI and public works department. Land acquisition also took time.

The union government has set a December 2028 deadline for all multi-village water supply schemes to be completed.

The D K Shivakumar administration has promised that action will be taken to meet with the deadline.

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Disclaimer: This content has not been generated, created or edited by Dailyhunt. Publisher: Deccan Herald