CCEA clears Rs 817 cr water supply project for Hyderabad

NEW DELHI: The government has approved the Rs 817.62 crore Krishna Drinking Water Supply project phase II, which is expected to be completed by this month.

Briefing reporters here today, Finance Minister P Chidambaram said the Cabinet Committee on Economic Affairs (CCEA) at its meeting yesterday gave its approval to the project under the Jawarharlal Nehru National Urban Renewal Mission (JNNURM).

"The expenditure incurred up to March 2006 on the project is Rs 211.12 crore. Therefore, the cost for reimbursement under JNNURM will be Rs 606.50 crore," he added.

The Finance Minister said the CCEA approved release of an additional central assistance to the extent of Rs 212.27 crore as the Centre's share.

The project would augment an additional 90 mgd of treated water to Hyderabad and its surrounding municipalities to bridge the gap between demand and supply, Chidambaram added.

"It would facilitate increase in present 80 litres per capita daily (lpcd) to 150 lpcd as per the norms in surrounding municipalities," he said.

The project would also help in taking care of water requirements of projects like Hyderabad International Airport, FAB City, hardware sector, textiles and IT sectors along with other industrial sector, the finance minister added.