Contractors of Jel Jevan Projects, Kerala, heard your Budget Proposal to extent the time of completion of the JJM Projects, up to 2028,with much relief. Taking into account the anxiety of the contractors who fell in. debt trap, only because of the fact that they entered. Agreements with Kerala water Authority and tried their level best to complete JJM works by investing huge amounts even by the strength of heavy borrowings ,Kerala Govt. contractors’ Association and Kerala water Authority contractors Association submitted several memorandums, earlier.
Our first demand was for extending the time of completion, upto atleast three more years. We are very happy and thankful to your good self for granting, the same. However, the JJM Projects are quiet standstill in Kerala. The original project cost of the Kerala JJM Project was Rs 44714.79 Crores. But as on 31-1-2025, only Rs 10500.Crs was disbursed to contractors as both the Central and State Shares. Now, an unbearable amount of Rs 4000 +, crores is pending to Contractors. Hence, the JJM contractors have no other go, but to stop works in , as and where conditions. Until and unless, they get a considerable pending amount immediately, they cannot. revive the projects. Many projects are only. 40-50 % completed. Major components, such as intake structures, Water Treatment Plants, Tanks etc are not even started due to the poor level of payments.
Moreover, the pipe.lines laid already will be of no use unless the development of the sources are created. This will eventually result in the wastage of Government funds spent ,as these uncompleted works will not bring any benefit to the end consumers. In fact, several consumers , already took house connections started withdrawing from the scheme. In short, there is at present, no clear directions as to how these projects will be completed and how the funds will be made available to finish the ongoing and the yet to be started works. Contractors are in .debt trap. Financial institutions started legal steps against them. In order to resolve this issue, the Government of Kerala have to raise nearly Rs17000 Crores. as the matching share within three years. This seems to be very difficult in the present financial situation of GoK.. So , on behalf of the contractors, who are in debt trap , I ,humbly submit the following suggestions, before your esteemed office.
1) Government of India may take over the entire balance works in J J M , by spending the funds by its own. OR
2) Arrange refundable infrastructure loan , equivalant to the matching share requried from GoK. OR
3) Allow Special permission, to GoK, to mobilise the .matching Share portion of GoK, from outside the Budget promisions, without affecting the borrowing limit of the state.
Looking forward for your favourable response. Thanking you in anticipation.
Yours sincerely.
Varghese Kannampally.
State President,
Ph: 9447115696.
email: vkannampally @ gmail.com.
copy.to:
Hon: K.N.Balagopal
Minister for Finance.
Govt of Kerala,
Thiruvananthapuram.