Government, World Bank ink $ 500 million loan pact

NEW DELHI: The government today signed a $ 500 million loan agreement with the World Bank to improve piped water supply and sanitation services through decentralised delivery systems in the states of Assam, Bihar, Jharkhand and Uttar Pradesh.

The project will be implemented over a six-year period and will support the design and implementation of a dedicated the Rural Water Supply and Sanitation (RWSS) programme for low income states under the ongoing National Rural Drinking Water Program in the Ministry of Drinking Water and Sanitation (MoDWS), the Finance Ministry said in a statement.

This project is expected to directly benefit about 7.8 million rural people in these states, it added.

The credit agreement for RWSS project for low income states was signed by Nilaya Mitash, Joint Secretary, Department of Economic Affairs in the Finance Ministry and Onno Ruhl, Country Director, World Bank (India).

Improving access to water and sanitation services through decentralised delivery systems is a development priority for the Government of India. Activities under this project will directly support the government's efforts to meet these objectives, Mitash said.

According 2011 Census report, only 31 per cent of the 167 million rural households in India have access to tap water and domestic toilets.

The World Bank has been supporting the Government of India in piloting and scaling up RWSS Programme since 1991, contributing more than $ 1.4 billion and benefiting about 24 million rural households in over 15,000 villages.