Date:16/01/2005 URL: http://www.thehindubusinessline.com/2005/01/16/stories/2005011601210500.htm

Back Govt to launch pilot project for water bodies soon

Our Bureau

New Delhi , Jan. 15

THE pilot trials for the Government's ambitious project for repair, renovation and restoration of all water bodies are likely to start soon following Cabinet approval next week. If the pilot project is successful, the Government will seek funding from various multilateral agencies, including the World Bank.

"The Cabinet should be able to clear the project next week and a pilot project will be launched either this month or early next month," the Finance Minister, Mr P. Chidambaram, said at a conference on water management here. Once the pilot project is run, he said, "We will be able to get multilateral funds."

The Government would be spending about Rs 100 crore initially to run the pilot project in 15 districts over the next two months, according to the Water Resources Secretary, Mr V. K. Duggal. Based on the performance of the pilot project, "we would approach the World Bank for additional funding."

Meanwhile, the World Bank Country Director, Mr Michael Carter, said the bank had assured to provide about $1 billion annually to India for water projects over the next four years. "We will be very happy to look at that (the proposed water project). Even if we give a large amount, it is still short of requirement," he said, adding the bank is willing to fund hydro-electric, irrigation and other "last-mile" water projects where returns are high.

The Water Resources Minister, Mr Priya Ranjan Dasmunsi, said after the tsunami, the demand for building sea walls had come up in vulnerable coastal areas.

"According to initial estimates, about Rs 50-60 crore would be required to restore drinking water infrastructure in Tsunami-hit areas," Mr Duggal later told reporters.

The Government aims to complete 83 Accelerated Irrigation Benefit projects in the Tenth Plan period — 37 this year, 29 next year and 17 in 2007, said Mr Chidambaram. The progress till 2002-03 had been very slow and only 32 projects were completed in the last five years, he added.