To resolve the drinking water crisis in drought-hit regions, the state government has constituted separatespecial purpose vehicle(SPVs) take upwater gridprojects.

The government has designed the SPVs in such a way that they could pool required from financial institutions and government agencies such as National Bank for Agriculture-notes-for-state-psc-exams”>Agriculture and Rural Development (NABARD) from different schemes. The State Government estimated that it would require at least Rs 9,000 crore to complete the new drinking water schemes.
The government directed the rural water supply and Resources“>Water Resources department to coordinate with other departments to expedite the water grid projects. The state government has granted administrative approvals for different water grid projects helping them to approach the financial institutions.

With abundantfundsavailable with the Union Jal Shakti ministry under drinking water schemes, the state government has tied up a majority of the water grid schemes with central funds to lessen the burden.

Sources said that the Centre had already agreed to extend financial assistance to the tune of Rs 3,200 crore to the state government to take up the drinking water schemes underJal Jeevan Mission.

The state government has also succeeded in roping in Nabard for grant of funds for water grid projects. While the state government is likely to spend close to Rs 1,500 to Rs 2,000 crore as its share, tie-ups with different agencies to grant loans to the tune of Rs 3,500 crore have also been finalised.