E-Paper
Centre to audit feasibility of Chandigarh’s 24x7 water supply project
The office of the Director General of Audit, New Delhi, will be conducting a comprehensive audit, spanning four days, on the feasibility study of the water supply project, executed under the Smart City Mission of Chandigarh
Launched with much fanfare by Union home minister Amit Shah in August 2024, the 24x7 water supply project in Manimajra has failed to achieve the desired results, with the Chandigarh administration already mulling scrapping the project considering its poor performance.
In the latest development, the office of the Director General of Audit, New Delhi, will be conducting a comprehensive audit, spanning four days, on the feasibility study of the water supply project, executed under the Smart City Mission of Chandigarh.
On October 26, city member Parliament (MP) Manish Tewari had written to the Comptroller and Auditor General of India (CAG), K Sanjay Murthy, demanding a comprehensive performance audit of the project, particularly its failed Manimajra pilot, which he said had “completely collapsed” despite heavy public expenditure.
Earlier on September 30, the MC House had rejected the proposal to scrap the project.
The UT administration had first signed a memorandum of understanding with Agence Française de Developpement (AFD) in 2016, under which the French agency agreed to support projects in water supply, sanitation and waste management. The detailed project report (DPR) for the citywide 24×7 water supply scheme was approved by the MC House in December 2019.
As per the plan, the Chandigarh Smart City Limited was to execute a pilot in Manimajra, shifting from intermittent supply to continuous round-the-clock supply at a cost of ₹165 crore. Of this, ₹74 crore was earmarked for capital works and ₹91 crore for maintenance over 15 years. However, even after its inauguration by Union home minister Amit Shah in August 2024, the pilot failed to deliver the results.
Despite the setbacks, MC was expected to roll out the pan-city project with a financial outlay of ₹510 crore, of which ₹412 crore was to come as a loan from AFD, repayable over 15 years. An additional ₹98 crore grant was committed by the European Union. The agreement was signed in December 2022, with a plan for phased replacement of nearly 270 km of water pipelines and coverage of 55 district metering areas by 2029. Once completed, Chandigarh was expected to become the first city in India with a 24×7 fresh water supply system.
In his letter to CAG 10 days ago, Tewari had highlighted serious concerns about financial prudence, implementation efficiency, and transparency in the ₹591.57-crore project under the Smart City Mission, calling it a “classic case of poor planning and mismanagement of public funds”.
He pointed out that despite central claims of success, residents in Manimajra continued to receive dirty, foul-smelling water for barely 2-4 hours a day, contrary to official assertions of round-the-clock, high-pressure water supply.
Tewari noted that the Manimajra pilot, built at a cost of ₹166.06 crore, was meant to serve as a model before expanding citywide. However, it had failed so completely that MC was now considering scrapping the entire project.
The MP said the project’s financial structure lacked proper oversight and transparency. He expressed concern that loan repayments and rising costs could double water tariffs, burdening residents.
