The Punjab cabinet, here on Wednesday, approved the $285.71 million project for canal-based water supply for Amritsar and Ludhiana.
The International Bank for Reconstruction and Development (IBRD) will provide $200 million (70 percent) and the state government $85.71 million (30 percent) as per the proposal of the Local Government Department for the adoption of resettlement policy framework under the Punjab Municipal Services Improvement Project.
The cabinet meeting, held through video link, was chaired by Chief Minister Amarinder Singh.
The project would have four components. They are: strengthening urban and water supply service management at a cost of $11.61 million, improving water supply infrastructure at $240.38 million, besides land acquisition and rehabilitation and resettlement at a cost of $15.62 million, Covid crisis response to the tune of $10 million and project management at $7.6 million, in addition to $0.5 million front-end fee.
In June 2018, the state through the Union Department of Economic Affairs had sought the World Bank's support for implementing 24X7 canal-based water supply projects in Amritsar and Ludhiana.
With the World Bank's technical assistance, the pre-feasibility reports were prepared in 2015 and updated in 2019. It proposed the need to migrate from rapidly depleting and contaminated decentralized groundwater sources to a centralized treated surface water source.
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A spokesperson for the Chief Minister's Office said the resettlement policy framework laid procedures and measures to ensure adequate accountability and transparency in the process of assessing land-related impacts.
A fair process will be put in place for acquiring land and for compensating those adversely impacted due to replacement cost.