Image Credit : The Hans India
The Punjab government is looking forward to avail a $210 million loan from the World Bank or the Asian Infrastructure Investment Bank (AIIB) for the canal based water supply project for Amritsar and Ludhiana under the Punjab Municipal Services Improvement Project (PMSIP).
On Friday, the decision to avail the loan was considered by the state cabinet during a virtual meeting chaired by the Chief Minister of the state Amarinder Singh. The cabinet authorized the Chief Minister to take any decision required to fulfil the aim of the project and to make sure successful and timely implementation of several activities proposed by both the lenders.
The desired project investment is estimated to cost around $300 million. According to reports, the International Bank for Reconstruction and Development (IBRD) will finance 70 per cent of the project while the remaining 30 per cent will be financed by the Punjab Government.
Earlier, the cabinet was reported that the present water supply system to the residents of Ludhiana and Amritsar towns is through deep bore tube wells that are places at different sites. At present, the groundwater level is depleting as a result the tube wells requires frequent replacements. It is also informed that the discharge in the tube wells gets lowered resulting in inadequate drinking water. The phenomenon have often been raised as a matter of concern by the residents.
In order to fix this problem, the Punjab Government has taken a step forward to shift to a canal-based water supply in these towns by availing for a loan. The implementation period of this project may take around three years following the award of the work. The water supply work for Amritsar have already been awarded.