The Department of Economic Affairs has given Jal Shakti Vibhag a go-ahead to seek funding from a French bank, AFD, for its sewerage and water supply project in five towns of the state. Following the approval, the Jal Shakti Vibhag will start negotiation with the bank in a couple of months.

According to sources, the project will cost around Rs 790 crore.

The official further said that five towns Manali, Karsog, Bilaspur, Nahan and Palampur had been selected for the project. Apart from setting up a sewerage, the existing water supply system will be improved under this project. The per capita water supply of 70 litre per day will be enhanced to 135 litre per day, he said. In Manali, the six adjoining panchayats will be brought under the ambit of the project, he said.

The project aims at providing a round-the-clock high pressure water supply to Shimla residents, a bulk water scheme from the Sutlej that will provide an additional 67 MLD and improving and enhancing the sewerage in and around Shimla. The project is expected to take care of the citys water and sewerage requirement until 2050.