The Chhatrapati Sambhajinagar Municipal Corporation (CSMC) has received formal approval for a ₹822-crore loan that will finance its share of the city’s ₹2,740-crore water supply project. The financial clearance, granted under the Amrut-2 scheme, marks a critical step in advancing one of Maharashtra’s largest urban water infrastructure initiatives aimed at ensuring equitable and sustainable access to drinking water.
According to officials, the agreement was signed with the Maharashtra Urban Infrastructure Development Company (MUIDCL) in Mumbai this week. The project’s funding structure comprises a 25% contribution from the central government, 45% from the state government, and the remaining 30% from CSMC. However, given the corporation’s limited financial capacity, the state decided to extend its share as a loan repayable over 20 years, with a two-year moratorium on principal repayment. The ₹2,740-crore project is designed to modernise Chhatrapati Sambhajinagar’s water distribution network, upgrade treatment facilities, and reduce transmission losses. The Maharashtra Jeevan Pradhikaran has appointed a Hyderabad-based company as the contractor, and construction is reportedly in its final phase. Once operational, the project is expected to enhance supply reliability for a growing urban population while cutting dependence on outdated water systems that have long strained the city’s resources.
Officials described the loan approval as the final administrative hurdle before full-scale commissioning. “With financial closure achieved, the city can now move towards stabilising water availability and improving overall resilience,” said a senior municipal official. “The focus now shifts to timely completion and efficient repayment planning.” The loan comes with a 20-year repayment period, offering CSMC a manageable financial pathway. Experts suggest that repayment sustainability will depend on improving the corporation’s revenue base through better tax collection and rationalised water tariffs. The move, they said, reflects a growing trend among Indian urban bodies to adopt structured borrowing models to fund essential civic infrastructure without overreliance on grants.
Urban planners highlight that water supply investments such as this are vital for ensuring social equity and climate resilience. Reliable access to clean water remains one of the key indicators of sustainable urban development. “Projects like these should prioritise leak detection, efficient metering, and equitable distribution, especially for low-income neighbourhoods,” an infrastructure analyst commented. As Chhatrapati Sambhajinagar expands rapidly, balancing fiscal discipline with the need for essential public services will be central to its sustainable growth strategy. The new water supply project, once completed, could serve as a model for other mid-sized Indian cities striving to strengthen their water security under tight financial constraints.
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