To improve drinking water and sanitation services in five towns of the State, the Himachal government has signed a memorandum of understanding (MoU) of ₹817.12 crore project with the French Development Agency, Agence Francaise de Développement (AFD), to develop better sewerage facilities in five towns of the state --Manali, Bilaspur, Palampur, Nahan and Karsog and to improve drinking water supply in Manali and Palampur towns.
Under the project, ₹612 crore will be provided by AFD, whereas the state will provide ₹204.85 crore. The beneficiaries of the project will receive house service connections in these five cities and the sewerage treatment plant will be designed with cutting-edge technologies so that the effluent could be reused for agricultural and industrial purposes.
The project aims to improve the environmental condition of water sources, reduce water-borne diseases, manage quality sanitation facilities in accordance with local regulations and international best practices and bring financial sustainability to the drinking water and sanitation sector.
Out of ₹425.85 crore in the first phase, ₹340 crore will be financed by AFD and in the second phase AFD will provide ₹272 crore out of a total project cost of ₹371 crore. The project will be implemented in three years and phase-II will begin after 18 months from the commencement of Phase 1.