A delegation from the French development agency, Agence Française de Développement (AFD), met officials of the Chandigarh Municipal Corporation (MC) on Friday to discuss the city’s 24x7 water supply project. The meeting comes almost ten days after the civic body’s proposal to scrap the project was rejected by councillors during the general House meeting held on September 30, 2025.
The project aims to provide round-the-clock water supply across Chandigarh, a plan that was first initiated under a memorandum of understanding (MoU) signed with AFD in 2016. The discussions focused on the funding structure, project viability, and overall implementation, as MC officials raised several questions to ensure that the project can be executed successfully.
A senior official familiar with the meeting said that various aspects like finances, project viability, and the implementation process were discussed in detail. The MC will now consult the high power committee and raise any remaining concerns in a formal letter to the AFD. The goal is to resolve doubts regarding project funding and operational feasibility before proceeding further.
The Chandigarh Smart City Limited had been tasked with executing a pilot phase in Manimajra, costing ₹165 crore. Although the pilot project was inaugurated last year, it failed to meet expectations, according to a report by the civic body. Officials noted that this setback highlighted the challenges of implementing the pan-city water supply project effectively.
Despite these challenges, the MC has the option to proceed with the full city-wide project, which is estimated to cost ₹510 crore. Of this, ₹412 crore was expected to come as a loan from AFD, repayable over 15 years through increased water bills charged to residents. Senior officials mentioned that the loan estimate was made in 2022, and expenses are now likely to nearly double by the time work begins, further raising concerns about financial planning and repayment feasibility.
MC officials emphasized the importance of careful planning and financial assessment to ensure that the project benefits residents without placing an excessive burden on them. They also said that discussions with the AFD would help clarify the technical and financial aspects, ensuring the project can proceed smoothly.
The Chandigarh administration plans to review all technical, financial, and operational concerns before moving ahead with the full pan-city rollout. The AFD delegation is expected to provide clarifications and guidance on the funding structure and loan terms. The municipal corporation will also study the lessons from the Manimajra pilot to avoid mistakes in the city-wide implementation.
Officials noted that the proposal to cancel the project in late September had created some confusion. However, after the councillors rejected the move, the MC has confirmed that the round-the-clock water supply project remains on track, subject to resolving the pending queries.
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The project, once completed, is expected to improve water availability across Chandigarh, benefiting residents and reducing shortages during peak demand periods. It also aligns with the government’s vision of upgrading urban infrastructure and providing sustainable, modern amenities to citizens.
Officials said that the high-power committee will review all concerns and submit a detailed response to the AFD. This will cover funding adjustments, potential delays, and any technical modifications needed to make the project viable. The goal is to ensure that the financial outlay of ₹510 crore is effectively used, with proper loan repayment mechanisms and minimal disruption to residents.
The Chandigarh MC and AFD have stressed the importance of collaborative planning, with each party taking responsibility for specific aspects of the project. While the pilot phase faced challenges, the lessons learned are expected to guide the full implementation, ensuring that the pan-city water supply system functions efficiently.
Officials also highlighted that public communication and transparency will be key during the project rollout. Residents will be informed about billing changes, timelines, and service improvements, helping build trust and cooperation from the community.
In conclusion, the meeting between Chandigarh MC and the French development agency marks an important step in resolving financial and operational concerns before the full-scale implementation of the 24x7 water supply project. With careful planning, clear communication, and guidance from AFD, Chandigarh is expected to gradually achieve uninterrupted water supply across the city, improving quality of life for its residents and modernizing urban infrastructure.
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