MSME Contractors Intensify Protest Over Pending Jal Jeevan Mission Payments In Andhra

Amaravati, May 13 (KNN) Micro, small and medium enterprise (MSME) contractors engaged in rural drinking water pipeline projects under the Jal Jeevan Mission (JJM) have intensified protests against the Government of Andhra Pradesh, alleging discrimination in the release of long-pending payments worth crores of rupees.

Over 750 MSME contractors claimed they have been awaiting payments for nearly 20 months despite completing works assigned by the Panchayat Raj Department. 

MSME Contractors Allege Unequal Payment Distribution 

The contractors alleged that although the Centre and state government released more than Rs 1,331 crore towards pending JJM payments after November 2024, a significant portion of the funds was directed to large corporate firms. 

According to the protesting contractors, only Rs 280 crore was released to MSME contractors during the 2025-26 financial year, while project contractors and corporate companies reportedly received nearly Rs 932 crore.

The issue intensified after the state government released Rs 707 crore on March 21 to clear pending dues under Jal Jeevan Mission. 

Contractors alleged that Rs 562 crore from this amount was allocated to corporate firms, including mobilisation advances, while only Rs 103 crore was distributed among 442 MSME contractors, covering just around 10 percent of their pending payments.

Fresh Protests After Payment Delays Persist 

Following this, contractors held a week-long protest from March 25 to March 31 at the office of the Engineer-in-Chief of the Rural Water Supply and Sanitation department in Vijayawada. 

They said officials had assured them that payments would be cleared by April 10, but alleged that no major progress was made, prompting them to submit fresh representations to the government.

Contractors also raised concerns over the implementation of the new SNA SPARSH payment system under JJM 2.0 guidelines. 

They alleged that officials asked them to re-upload bills submitted over the past 18 months, even as procedural clarity on the new system remains pending.

Contractors Seek Immediate Clearance Of Rs 1,166 Crore Dues 

Many contractors said they had borrowed heavily to complete the projects and are now facing mounting debt due to delayed payments. Some protesters alleged that the prolonged uncertainty has pushed several contractors into severe financial distress.

The contractors have urged the Andhra Pradesh government to immediately release pending dues of nearly Rs 1,166 crore through a first-in-first-out payment mechanism without further delays.

(KNN Bureau)