World Bank approves USD 305 million for Haryana’s clean air project

In a major boost to Haryana’s environmental ambitions, the World Bank has approved a financial assistance package of USD 305 million for Haryana Clean Air Project for Sustainable Development (HCAPSD), a flagship initiative aimed at transforming Haryana into a pollution-free state by 2030. The approved assistance includes an IBRD Loan of USD 300 million and a USD 5 million grant under the SA Regional Integration Multi-Donor Trust Fund.

Sharing the information, an official spokesperson said that the approval follows a high-level meeting held in Chandigarh in November last year between Haryana Chief Minister Nayab Singh Saini and World Bank representatives. During this meeting, the World Bank committed to extending a loan of Rs 2,498 crore to support the rollout of HCAPSD, which carries a total project cost of Rs 3,646 crore. He added that the Haryana Government will contribute Rs 1,065 crore, with an additional Rs 83 crore allocated as a grant.

HCAPSD is designed to bring measurable, statewide improvements in air quality through coordinated action across key sectors — including transport, industry, agriculture, urban management, and scientific monitoring. The project’s implementation will be led by the dedicated SPV, ARJUN (AI for Resilient Jobs, Urban Air Quality & Next-Gen Skills Council), ensuring seamless integration in planning, execution, and real-time monitoring. ARJUN is chaired by Rajesh Khullar, CPS to CM Haryana, who has served as the Executive Director on the Board of Directors of the World Bank as a representative of India, Bhutan, Bangladesh, and Sri Lanka from 2020 to 2023.

The project will support Haryana’s Action Plan aimed at reducing air pollution through a combination of multi-sectoral interventions. The project will invest in air quality and emission monitoring systems to strengthen the state’s ability to better gauge the impact of various sources of pollution.