$300 mn loan for potable water in Amritsar, Ludhiana

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The and Asian Infrastructure Investment Bank (AIIB) have approved $300 million loan for canal-based drinking water schemes under Punjab Municipal Services Improvement Project.

The move aims at ensuring quality drinking water 24×7 and minimise water losses for Amritsar and Ludhiana. The two cities are currently being supplied water from tubewells. Two other canal-based water supply projects are already under execution in Jalandhar and Patiala.

As per the Central Ground Water Board (CGWB) report, the groundwater has been over exploited and the quality of water has

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deteriorated, causing Health hazards. Therefore, it has been proposed to change water supply from ground to canal water to ensure uninterrupted potable drinking water supply in urban areas.

The project would be co-financed by IBRD (World Bank) loan of $105 million and an AIIB loan of $105 million along with $90 million government funds. For Amritsar, the source of surface water supply would be Upper Bari Doab Canal and for Ludhiana Sirhind Canal. Treatment plant in Amritsar would be of 440 MLD and in Ludhiana 580 MLD.