>>
The Government of India has signed a loan agreement with Japan International
Cooperation Agency (JICA) for pollution abatement of River Mula-Mutha in Pune.
>>
The Government of Japan has committed to provide a soft loan of 19.064 billion
Yen (about Rs. 1000 crore) to Government of India for the project at an
interest rate of 0.30% per annum. The loan assistance for the project has been
approved by the Union Finance Ministry at an estimated cost of Rs. 990.26
crore.
About the Mula-Mutha River
>>
The Mula Mutha river at Pune is one of the 302 polluted river stretches of the
country identified by Central Pollution Control Board.
>>
The major reasons for pollution of Mula Mutha are discharge of untreated
domestic waste water into the river due to inadequate sewerage system
(including pumping stations) & sewage treatment capacity in the town, as
well as open defecation on the river banks.
Project Cost:
>>
The project cost will be shared between Government of India and Pune Municipal
Corporation (PMC), the implementing agency for the project, in the ratio of
85:15 respectively.
>>
The share of Central Government in project will be Rs. 841.72 crore and share
of PMC would be Rs. 148.54 crore.
>>
The loan has to be repaid by Government of India in a period of 40 years,
including a 10-year grace period. The project is scheduled to be completed by
January, 2022.
Key facts of Agreement:
>>
Construction of 11 new Sewage Treatment Plants (STPs).
>>
The project will also improve the aesthetics and sanitation of Pune.
>>
Biogas (methane) from STPs will be used to generate electricity.
>>
The project will have a significant, direct beneficial impact in terms of
reduction of pollution load in the river and improvement of the quality of its
water.
>>
Some of the collateral benefits of the project include – use of tertiary
treated effluent for irrigation and employment opportunities, particularly in
the construction stage.
(PIB)