Indian state of Punjab approves water supply project for Amritsar and Ludhiana

The Government of Punjab in India has approved a World Bank-aided canal-based water supply projects worth over $285.71 for Amritsar and Ludhiana cities.

The International Bank for Reconstruction and Development (IBRD) would provide financing of $200m (70%), while the Punjab government will provide the remaining $85.71m (30%).

According to the Press Trust of India (PTI), the financing will be provided as per the proposal raised by the Local Government department for the adoption of the Resettlement Policy Framework (RPF) under the Punjab Municipal Services Improvement Project.

Backed by technical support from the World Bank, the pre-feasibility study reports were prepared in 2015 for both the cities. The reports were again updated last year.

Approximately 90 acres of land is required to construct the Water Treatment Plants (WTPs) and collection tanks for treated water and pumping stations that are close to the canals located in Amritsar and Ludhiana.

From the total land, Amritsar requires nearly 40 acres, while Ludhiana needs 50 acres.

The project will comprise four components.

These include strengthening urban and water supply service management which would cost a total of $11.61m, improving water supply infrastructure at a cost of $240.38m, Land Acquisition and Rehabilitation & Resettlement involving $15.62m, project management at $7.6m.

Also included is the Covid-19 crisis response to the cost of $10m in addition to Front End Fee of some $0.5m.

In June 2018, the Government of Punjab requested the World Bank to support the state for implementing 24X7 canal-based water supply projects in Amritsar as well as Ludhiana.

The request was made through the Government of India’s Department of Economic Affairs (DEA).