10th July, 2003
Ministry of Rural Development  


RS. 1343 RURAL DRINKING WATER AND SANITATION PROJECT FOR MAHARASHTRA NEGOTIATED WITH WORLD BANK


A High Level Indian Team negotiated US$ 268.65 million (Rs.1343 crore) Rural Drinking Water Supply Project from Maharashtra with the World Bank from 3rd to 8th July, 2003. The Project is based on Swajaldhara reform principles, viz, empowering the village panchayats and the communities to plan, implement and manage drinking water and sanitation schemes of their choice.

The project aims to cover 2800 village panchayats in 26 districts, 75 lakh population including 5 lakh tribals (in 1700 tribal padas) will receive the benefits. The project will be implemented over 6 years period and will have 5 major components – (I) community development and infrastructure (US$ 167.13 million); (ii) institutional development (US$ 67.08 million); (iii) rural water supply sector development for water quality monitoring and knowledge management (US$ 5.58 million); (iv) pilots on panchayat incentive, acquifer management, and operations and maintenance (US$ 15.19 million) and (v) contingencies including US$ 13.67 million.

The project implementation will provide two major benefits, viz. (I) increasing rural household’ access to improved and sustainable drinking water facilities and sanitation services; and (ii) institutionalization of the decentralized water supply and sanitation service delivery.

The project has 18.81% of economic rate of return. The World Bank will provide IDA credit of US$ 181 million (Rs.905 crore); the Government of Maharashtra share will be US$ 73.65 million (Rs.368 crores) and the Community contribution will be US$ 14 million (Rs.70 crores). The project promotes the convergence of Government of India programmes like Swajaldhara, Sector Reforms Projects and Total Sanitation Campaign.

The project will promote water conservation, rainwater harvesting measure, integration of drinking water, sanitation and hygienic at all levels in the state.