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Jal Jeevan Mission 2.0 Reinstates 'Tender Premium' Ban, Plugging ₹16,839 Cr Loophole for Phase 2 (2024-28)

Target:UPSC GS-IIMPSCSSC GATeachingPrelims HighMains MediumStatic GK Link
17 May 2026
~2 min
Source: Indian Express
Key Data:₹16,839 crore14,586 schemes14.58% increase55 LPCD₹2.08 lakh crore (Phase 1)₹1.51 lakh crore (Phase 2)
Bodies:Jal Shakti MinistryState Level Scheme Sanctioning Committee (SLSSC)
Practice MCQs from today's news ▸
What This Article Covers

1.The Jal Shakti Ministry has reinstated 'Tender Premium' to the list of 'inadmissible expenses' under the new Jal Jeevan Mission 2.0 guidelines, reversing a 2022 amendment.

2.The 2022 rule change had allowed states to use Central funds to cover these inflated bids, resulting in an additional cost of ₹16,839 crore (14.58% increase) for 14,586 schemes, as per a 2025 investigation.

3.This is a classic case study for exams on financial governance, checks on public spending, and the operational details of a major centrally sponsored flagship scheme like JJM.

The Big Picture
Prelims · HighMains · Medium

The government has reinstated a crucial financial safeguard in the Jal Jeevan Mission (JJM), banning the use of central funds to pay 'tender premiums' (inflated bid amounts). This closes a loophole that, between 2022-2025, led to cost escalations of ₹16,839 crore across 14,586 projects. This is vital for exam aspirants as it highlights governance, financial accountability in flagship schemes, and the impact of rule changes on public expenditure.

Exam Lens

Quick Exam Facts From News

Additional Cost Incurred (2022-25)₹16,839 crore
Number of Schemes Affected14,586
Cost Increase Percentage14.58%
JJM 2.0 Phase DurationTill 2028
Central Share for Phase 1 (2019-24)₹2.08 lakh crore
Additional Central Funding for Phase 2₹1.51 lakh crore
JJM Norm for Water Supply (LPCD)55 Litres Per Capita Per Day

1-Minute Revision

  • ›Additional Cost Incurred (2022-25): ₹16,839 crore
  • ›Number of Schemes Affected: 14,586
  • ›Target this Data: ₹16,839 crore - the additional cost due to the loophole.
  • ›Target this Nodal Body: Union Jal Shakti Ministry - the ministry responsible for JJM guidelines.
  • ›Target this Legal Point: 'Inadmissible expenses' under JJM guidelines - now includes 'Tender Premiums' again.

Mastered this topic? Test your knowledge with a full MCQ quiz.

Practice exam-style questions, track your score, and strengthen your recall.

Q1Static LinkageEasy

The Jal Jeevan Mission, discussed in the news, is implemented under which Union Ministry?

Q2Statement-basedHard

Consider the following statements regarding the Jal Jeevan Mission (JJM):

1. The original 2019 JJM guidelines prohibited the use of Central funds to cover 'Tender Premiums'.

2. An amendment in 2022 allowed states to use Central funds for 'Tender Premiums', leading to significant cost escalations.

3. The newly finalized JJM 2.0 guidelines have permanently removed 'Tender Premiums' from the list of inadmissible expenses.

Which of the statements given above is/are correct?

Q3Data-centricMedium

According to the investigation cited in the article, what was the total additional cost incurred due to the payment of 'Tender Premiums' under Jal Jeevan Mission after the 2022 rule change?

Q4Application/ImpactMedium

What is the primary objective of reinstating the 'Tender Premium' to the list of inadmissible expenses in the new Jal Jeevan Mission guidelines?

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