Chandigarh MP Manish Tewari has accused the government of providing incorrect information to Parliament regarding the funding of the 24×7 Water Supply Project in Manimajra. While the Minister of State for Home Affairs, Nityanand Rai, claimed that no loan had been taken for the project and that it was funded under the Smart Cities Mission, media reports suggest otherwise. Tewari pointed out that a ₹412 crore loan was secured from Agence Française de Développement (AFD), with repayment obligations that could burden residents through higher water tariffs.
Tewari said he would write to the Union home minister over what he described as a misleading statement in Parliament. The project, inaugurated by Union home minister Amit Shah on August 5, 2024, aims to provide continuous pressurised water supply. The Manimajra pilot phase alone cost ₹162.06 crore, while the citywide rollout is expected to cost ₹591.57 crore. Official records indicate that Chandigarh has received ₹512 crore for the initiative—₹412 crore as a loan from AFD and ₹100 crore as a grant from the European Union. The loan repayment schedule requires about one million euros to be paid every quarter for the next 15 years.
Responding to Tewari’s queries in Parliament, Rai stated that the trial run of the Manimajra project had been completed and that a consumer grievance cell and helpline had been set up to address complaints. However, he insisted that no loan had been taken for the project.
Tewari, in another question to the Minister of Home Affairs, also sought year-wise details of the revenue and expenditure of the Municipal Corporation of Chandigarh over the past five years. In response, Minister of State for Home Affairs, Nityanand Rai, stated that MC Chandigarh’s total revenue during this period was ₹4,038.39 crore, while its expenditure stood at ₹4,106.82 crore.
The issue comes amid growing concerns over the viability of the 24×7 water supply scheme. A study by the Chandigarh Municipal Corporation’s public health wing suggests that rather than a round-the-clock supply, the city needs better water rationing. It found that northern sectors consume significantly more water than those in the south, with some areas exceeding 1,000 litres per person daily—far above the national norm of 135 litres.
Earlier, when a representation was sent to the Prime Minister’s Office questioning the need for a 24×7 supply in Chandigarh, Chandigarh Smart City Limited had justified the project by stating that it aimed to reduce wastage by eliminating the need for water storage by residents. However, the growing financial and supply concerns have now placed the project under scrutiny.