Union minister denies taking loan for Chandigarh’s 24×7 water project, MP Tewari calls it a ‘wrong’ answer

In the last five years, MC Chandigarh’s total expenditure was more than its revenue

3 min readChandigarhUpdated: Feb 12, 2025 08:21 AM IST

Manish Tewari (left) and Nityanand Rai (File Photos)

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.

Jagpreet Singh Sandhu

Jagpreet Singh Sandhu is a Senior Correspondent at The Indian Express, based in Chandigarh. He is a veteran reporter with over a decade of experience, specializing in legal, crime, and environmental reporting across the tri-city area (Chandigarh, Mohali, and Panchkula). Professional Background Core Beat: He primarily covers the Punjab and Haryana High Court, District Courts, CBI Courts, and Consumer Commissions. His legal reporting is known for breaking down complex judgments and tracking long-standing criminal cases. Environmental Reporting: Jagpreet has become a key voice in reporting on the deteriorating air quality and weather patterns in the Punjab-Haryana region. Crime & Technology: He frequently reports on cybercrime, digital arrest scams, and the intersection of technology and law enforcement, such as the development of citizen-centric policing apps. Recent Notable Articles (Late 2025) His late 2025 coverage has focused on significant judicial verdicts, major financial scams, and public health concerns: 1. Legal & CBI Court Verdicts "12 years on, CBI court acquits Haryana judge, parents in wife’s death case" (Dec 17, 2025): Detailed coverage of the acquittal of a judicial officer in a high-profile dowry death case from 2013. "‘Wicked & evil mind’: Court gives man 30-year term for kidnapping, sexually assaulting 8-year-old" (Dec 16, 2025): A report on a stern judgment from a Chandigarh district court in a POCSO case. "Man acquitted in rape case after victim found ‘very happy’ in wedding reception" (Dec 9, 2025): Covering a unique legal observation regarding consensual relationships and age verification. 2. Investigative & Scams "CBI registers FIR in Rs 1.14-cr Patient Welfare Grant scam at PGIMER" (Dec 19, 2025): An exposé on how funds meant for poor patients were siphoned off through forged documents and a photocopy shop inside the PGIMER campus. "Month-long torture, Rs 85 lakh transfers: How ‘Innocence Certificate’ led to a ‘digital arrest’ of an elderly couple" (Dec 12, 2025): Detailing a sophisticated cyber fraud targeting senior citizens in Chandigarh. 3. Environment & Public Safety "Panchkula air turns ‘very poor’, fourth worst in country" (Dec 22, 2025): Reporting on the sudden spike in pollution levels in Panchkula compared to neighbouring cities. "Soon, you can snap that overspeeding car, and report to Chandigarh Police" (Dec 16, 2025): Breaking news on a new mobile application being developed to allow citizens to report traffic violations via geo-tagged photos. 4. Gangster Culture & Crime "City Beautiful in the crosshairs of gangsters" (Dec 14, 2025): A feature analysis of how Chandigarh has increasingly become a staging ground for extortion and rivalries between gangster modules. "Shooters wanted for Parry murder held by Delhi Police Special Cell" (Dec 18, 2025): Following the developments in a high-profile murder case in Chandigarh’s Sector 26. Signature Style Jagpreet is recognized for his tenacious follow-up on cold cases and his ability to report on courtroom drama with a focus on victim rights. His work often highlights administrative lapses, whether in the handling of patient welfare funds or the enforcement of environmental standards. ... Read More

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