Rs 2130 Crores Worth of Water Supply Projects Sanctioned in Punjab

The Punjab Government has sanctioned two water supply projects in the state for $285 million or approximately Rs 2130 crores. The project, being aided by World Bank, is aimed for the supply of water in Amritsar and Ludhiana in the state. The meeting of the cabinet approving the decision was chaired by the Chief Minister of the state.

Details of the Projects

Both the projects are being implemented with help from the International Bank for Reconstruction and Development (IBRD). The organization has sanctioned $200 million for the projects whereas the rest is being contributed by the government of Punjab. The proposal for the project was mooted by the Local Government department for the adoption of the Resettlement Policy Framework under the Punjab Municipal Services Investment Project.

This project will mainly have four components including the strengthening of the urban water supply in the state and water supply service management for $11.61 million and improving the water supply infrastructure for $240.38 million.

Overall, this project is going to invest in bulk water infrastructure, establish new institutional models for water supply and sanitation service delivery and also strengthen the financial sustainability and customer orientation. The aim is to migrate from the rapidly depleting and contaminated decentralized groundwater resources to a centrally-treated surface water source in the selected areas of the state.


The state government collaborated with the World Bank during the pre-feasibility study itself. With the technical assistance of the World Bank, the reports were prepared for both the cities in 2015 and then updated in 2019.


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