Nagpur’s Nag River rejuvenation project has received an approved funding tranche of ₹61.96 crore, giving fresh momentum to a long-delayed effort to address pollution and restore the river through coordinated action by the Centre, Maharashtra government and Nagpur Municipal Corporation (NMC).
According to NMC sources cited in the report, the first major tranche will be released through the Centre’s SNA-SPARSH system, a fund-management mechanism intended to improve transparency and streamline government payments. The state environment department has said that transactions will be routed through the Reserve Bank of India to ensure that the money is transferred through the prescribed system for project-related expenditure.
The ₹61.96-crore allocation forms part of the larger ₹1,927-crore Nag River rejuvenation project. The initiative is intended to tackle contamination in the river and improve its ecological condition. The Nag River runs through Nagpur and is closely associated with the city’s history, but has faced sustained pollution over the years.
The approved tranche will be shared by the three participating agencies according to their contribution shares. The Centre will provide ₹37.18 crore, representing 60% of the amount. The Maharashtra government’s share is ₹15.49 crore, or 25%, while the NMC will contribute ₹9.29 crore, accounting for the remaining 15%.
The funding approval follows a prolonged wait for progress on the larger rejuvenation initiative. The release through SNA-SPARSH is expected to enable expenditure on project-related works under the approved funding structure. The system is designed to route government payments through a prescribed mechanism rather than relying on less integrated payment processes.
More than ₹78 crore in consultancy-related expenditure for the wider project will be borne directly by the Centre, according to NMC sources. The remaining works are to be taken up as separate components, indicating that the ₹61.96-crore tranche is an initial funding release rather than the full project cost.
The project’s funding arrangement places responsibility on all three levels of participating agencies. The Centre is the largest contributor to the approved tranche, while the state government and municipal corporation are required to provide their defined shares. This structure makes the transfer and use of funds dependent on coordination between central, state and city authorities.
The Nag River rejuvenation effort is focused on restoring the condition of an urban waterway that has been affected by pollution. The newly approved allocation is intended to move the project forward, with project-related expenditure to be processed through the SNA-SPARSH system and the remaining works handled through separate components.
