The Karnataka government has ordered the blacklisting of infrastructure major Larsen & Toubro (L&T) over alleged delays in executing a drinking water project covering 388 rural habitations in Belagavi and Dharwad districts under the Jal Jeevan Mission.
Rural Development and Panchayat Raj Minister Eshwar Khandre issued the direction on Wednesday (November 11) during a Jal Jeevan Mission review meeting at Vikas Soudha, after officials reported that the company had made little progress despite being served a final notice.
Officials informed the minister that L&T had not initiated procurement of the required water pipelines, failed to deploy adequate manpower and was executing the work at a very slow pace. The company had also reportedly failed to submit regular progress reports.
Khandre expressed displeasure over the lack of progress, pointing out that he had already held a review meeting with contractors and officials on September 11 and instructed them to accelerate pending works and submit weekly progress reports. Despite these directions, there had been little improvement, prompting him to order blacklisting action against L&T.
The minister also directed officials to issue final notices to other contractors who had failed to meet deadlines for multi-village drinking water projects. He clarified that delays, except those caused by pending forest clearances, would not be accepted.
The development brings renewed attention to L&T’s execution of the Belagavi city 24×7 Pressurised Water Supply Project, which has also faced considerable delays.
L&T was awarded the Belagavi city project by the Karnataka Urban Infrastructure Development and Finance Corporation (KUIDFC), with a work order issued on June 15, 2020. The contract, valued at ₹804.13 crore, was structured under a Design, Build, Operate and Transfer (DBOT) model, with five years for implementation and seven years for operation and maintenance.
The original completion deadline was June 2025. However, the project remained incomplete, with a revised completion target of March 2027. In September 2023, the Belagavi City Corporation had imposed a penalty of ₹21.48 crore after reporting only 35% physical progress against the expected 60% at that stage. By March 2026, the reported cumulative penalty had risen to approximately ₹50 crore.
The two projects are separate contracts, implemented under different government departments. However, both have faced questions over execution delays and the timely delivery of essential drinking water infrastructure.
Key dates and timeline
L&T – Belagavi 24×7 Water Supply Project: Key Dates
- 2003 – Belagavi selected for the 24×7 water supply pilot under KUWASIP.
- 2008 – 24×7 water supply pilot implemented in selected wards.
- November 2013 – Citywide water supply modernisation project approved.
- 22 October 2018 – Karnataka Government approves DBOT implementation structure.
- 13 April 2020 – L&T announces securing the water supply contract.
- 15 June 2020 – Work order issued to L&T for ₹804.13 crore.
- March 2021 – L&T takes over water supply operations (handover planned from March 15).
- June 2021 – L&T officially takes over operation and maintenance.
- September 2023 – BCC imposes a penalty of ₹21.48 crore; physical progress reported at 35% against the expected 60%.
- June 2025 – Original five-year completion deadline missed.
- August 2025 – Four additional wards brought under 24×7 supply.
- March 2026 – Reported penalty reaches approximately ₹50 crore; ₹30 crore paid and ₹20 crore outstanding.
- June 2026 – Revised completion deadline reported as March 2027.
- March 2027 – Revised target for completion of the city project.
L&T – Renukasagar Multi-Village Rural Water Supply Project
- 7 April 2022 – L&T announces securing the contract to provide drinking water to 396 rural habitations in Belagavi and Dharwad districts.
- 20 April 2022 – Project work awarded to L&T.
- 19 October 2024 – Original project completion deadline.
- 11 September 2026 – Minister Eshwar Khandre reviews progress and directs contractors to accelerate work and submit weekly progress reports.
- 12 November 2026 – Minister Eshwar Khandre orders blacklisting of L&T at a Jal Jeevan Mission review meeting at Vikas Soudha over delays in the project covering 388 rural habitations.