Dirty water despite ₹5,000 cr investment in MP:AMRUT 2.0 faces ₹1,800-crore cost overrun; 8 projects in 4 major cities delayed

In Madhya Pradesh’s four major cities, Indore, Bhopal, Jabalpur, and Gwalior, eight key water and sewerage projects under the Centre’s AMRUT 2.0 scheme have been delayed by administrative negligence and remain incomplete even after four-and-a-half years. The delays have added an estimated ₹1,800 crore burden on the exchequer and, according to the report, have also led to loss of life. The government now faces the challenge of completing all projects by December 2026 and delivering clean water to every household. Biggest tragedy of negligence The most painful face of administrative sluggishness was seen in Indore. Here, in January-February 2026, 33 people died, and hundreds fell ill after drinking contaminated water in Bhagirathpura. Local corporators and residents had been demanding the replacement of the 30-year-old dilapidated Narmada pipeline for a long time. Its proposal was made in November 2024 itself, but the file remained stuck between officials for a year. It took 8 months to issue tenders for the 550 km-long pipeline. By the time the final work order was issued at the end of December 2025, the series of deaths had already begun. Why are projects stuck? Understand with two examples 1. Ujjain: Game of fake bank guarantees and blacklisting
The water supply project in Ujjain has been stalled for 8 months. Tenders for water supply (₹30 crore) and sewerage (₹470 crore) were awarded to different companies. The water supply work was awarded to M/s Teerth Gopi Con Limited of Ahmedabad. The company’s bank guarantee, submitted at the end of 2024, was found to be fake during investigation. Subsequently, in August 2025, the corporation blacklisted the company, and the work stopped. Now, the pending work of about 42,000 household connections under Amrit 1.0 and laying sewerage lines in wards has been awarded to new companies. 2. Flaws in design and DPR
According to sources, there was a significant delay in preparing the DPRs for the projects. Designs and drawings were not ready in many places. Commissioner Sanket Bhondwe has stated that consultants who prepared faulty DPRs will be reviewed and blacklisted. Currently, 35 projects are slow. Consequently, 13 contractors have been blacklisted, and 6 have been suspended. Rising costs and financial crisis: Burden of ₹1800 crore Due to delays, the budget of 8 major projects in Bhopal, Indore, Gwalior, and Jabalpur has gone awry. Indore: Search for institutional loan
Here, the cost has increased from ₹800 crore to ₹1073 crore. Indore needs to arrange an additional ₹1,013.64 crore, for which the corporation is seeking institutional loans. Bhopal: Only ₹44 crore spent
Despite ₹735 crore being sanctioned, only 6% of the amount has been utilised so far, posing a risk of cost escalation. Gwalior: Attempt to bridge savings gap
There is a difference of ₹53.73 crore in the ₹932.44 crore project, which will be covered by savings from Morar Cantt. Jabalpur: Municipal Corporation will bear the burden itself
The Municipal Corporation will have to bear the increased cost burden in the ₹312.10 crore project. Way to compensate: Green bonds to be issued The Municipal Corporation is preparing to issue ‘Green Bonds’ and ‘Municipal Bonds’ to cover the financial deficit. The funds from Green Bonds will be spent on environment, water management, and recycling projects. The estimated interest rate on these could be between 7.5% and 9%. Negligent officers to face action Recently, the Chief Secretary had expressed deep displeasure over the drinking water crisis. Now, strict action is being prepared against officers and consultants who delay files. In this regard, a review meeting has been called on June 13 at the Sundarlal Patwa National Urban Management Institute (SPM-NIUM) in Bhopal. Around 850 officers, technical experts, and contractors from across the state will participate in this one-day meeting. In this meeting, the physical and financial progress of the water supply projects under AMRUT 1.0 and AMRUT 2.0 will be reviewed.