Loan to support state govt's contribution to Jal Jeevan Mission (JJM)

Significant portion of funds to be used for household tap connections

Of the 1.1 crore houses, 70 lakh households have already received connections

The World Bank has granted a $363 million loan to Karnataka, India, aimed at ensuring access to safe drinking water in rural regions.

This loan will support the state government’s contribution to the Jal Jeevan Mission (JJM), freeing up its own resources for other development projects.

The loan has been structured into eight disbursement-linked incentives, with a significant emphasis on establishing functional household tap connections. Additionally, the funds will be utilized for enhancing institutional capacity, monitoring water quality, and revitalizing reservoirs in seven districts.

This financial assistance from the World Bank to secure potable water supply in rural areas is a welcome relief for the state government, which is currently grappling with financial constraints due to the dual pressures of development initiatives and commitments to fulfill electoral promises.

The $363 million loan, initially announced by the World Bank in March, has been approved under a program-for-result (PforR) framework, where the government must demonstrate progress to access the funds.

The assistance, equivalent to approximately Rs 2,904 crore has been divided into eight disbursement-linked incentives (DLIs). A significant portion is allocated to functional household tap connections (FHTC), with an allocation of Rs 1,280 crore. This allocation aims to provide functional taps to 20 lakh households.

The JJM scheme operates on a 50:50 cost-sharing model between the Central and state governments. As of now, Karnataka still needs to connect an additional 31 lakh households to tap water under the JJM scheme. Out of the targeted 1.1 crore houses, 70 lakh households have already received connections.