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Chandigarh MC House rejects loan route for pan-city 24x7 water supply project

Resolves to replace old water pipelines across city using MC’s own resources

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Councillors engage in a discussion during the MC General House meet on Tuesday. Tribune photo: Vicky
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The Municipal Corporation (MC) General House rejected the agenda for a pan-city 24x7 water supply project after taking out a loan amid uproar, putting the future of a memorandum of understanding (MoU) with French agency Agence Francaise de Developpement in uncertainty

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The House, however, resolved that rusted or worn-out water pipelines must be replaced or repaired using the civic body’s own resources without pushing the city into long-term debt.

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Councillors from both the Opposition and the ruling party opposed the 24x7 water supply agenda. Bharatiya Janata Party (BJP) councilor Saurabh Joshi said there was no need for a 24x7 water supply project. He came down heavily on the proposal based on loan funding, calling it a financial trap that will ultimately burden every household. “Water is a basic necessity, not a profit-making project. Chandigarh will not accept loans being passed on to citizens through inflated water bills,” he said.

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Congress’ Senior Deputy Mayor Jasbir Singh Bunty, Deputy Mayor Taruna Mehta and Aam Aadmi Party (AAP) councillor Yogesh Dhingra also opposed the proposal.

Notably, officials have brought an agenda for cost-effective options for the project across the city, presenting eight options.

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A credit facility agreement (CFA) had been signed with the AFD in New Delhi on September 15, 2022. As per the agreement, the agency was to provide Rs 413 crore for the project in the form of a loan to be repaid in 15 years. In addition to it, the European Union promised to give a grant of Rs 98 crore. The project had a financial outlay of Rs 591 crore and was expected to be completed by 2027.

At the time of the signing of the agreement, it was claimed that once the 24x7 water supply project is completed, the consumers will get round-the-clock water supply without any interruption. However, after signing the project no significant progress was made. The controversy over the Manimajra pilot project, meanwhile, raised the question over the viability of the project.

Nod to door-to-door garbage collection in city markets

The Municipal Corporation General House approved the draft memorandum of understanding with door-to-door waste collectors for collection of solid waste from commercial units. Nod was also given to comprehensive operation and maintenance contract for the City’s door-to-door garbage collection fleet.

Other approved agendas include work of providing water Supply pipeline in lieu of old rusted/ damaged Water Supply pipeline at Deen Dayal Upadhyay Colony, Industrial Area Phase-I, construction of additional sheds as part of the future expansion of Gaushala Raipur Kalan and modernisation of the existing Multispecies Abattoir Complex at the existing slaughterhouse Industrial Area Phase-I.

The agenda for exemption of standby duty charges to provide free of cost to all government functionsand to provide fire safety cover to all government buildings was also approved.

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