>> 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)


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