core sector communique

Resource Mobilization for NGBRA Under World Bank Assistance
Backgrounder

The Cabinet Committee on Economic Affairs (CCEA) has approved the Ministry of Environment and Forests’s proposal for ‘World Bank assistance to NGRBA for abatement of pollution of river Ganga’ at an estimated cost of Rs.7000 crore. The World Bank Board has also accorded approval to this project on 31.05.2001. The Loan agreement with World Bank has been signed on 14.06.2011 and the Bank will support the Government of India by providing technical assistance and financing of US $ 1 billion (approx. Rs.4600 crore). The share of Government of India will be Rs.5100 crore and that of the State Governments of Uttarakhand, Uttar Pradesh, Bihar, Jharkhand and West Bengal will be Rs.1900 crore. To facilitate project implementation project and monitoring, National Mission Clean Ganga, a registered society is being formed at the Central level. Similar Project Management Groups are being set up in the States. Implementation of the Project will be spread over a period of 8 years. The principal objective of the project is to set up institutional structure at Centre and States and fund priority infrastructure investments for conservation and structure at Centre and States and fund priority infrastructure investments for conservation and restoration of the water quality of the river Ganga. The project will render benefits of significant order to the local populations. It would contribute to lessening the pollution loads due to untreated sewage from cities and towns located along Ganga. Tackling of industrial effluents and municipal solid wastes impacting the river water quality would also help move towards the objective of Mission Clean Ganga.

The capital and O&M costs for the first five years are to be borne by the Central and State Government in 70:30 ratio. Any cost escalation, over and above the sanctioned costs, shall be borne by the State Government (s) concerned. The terms and conditions of the World Bank loan assistance would be as mutually decided between the World Bank and the Govt. of India.