Ahmedabad

Centre, State to Fund ₹1,359 Cr as Ahmedabad Gets ₹2,719-Cr Sewage & Water Infrastructure Push

By GS Team

17 Jul 20262 mins read

Ahmedabad secures ₹2,719.80 crore for six urban infrastructure projects, enhancing sewerage, water management, and public transit. Funded by central and state governments, plus municipal loans, these initiatives will reduce overflows, generate green energy, and introduce a common mobility card. Part of Gujarat's ₹6,475 crore allocation, these projects promise significant urban development.

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Centre, State to Fund ₹1,359 Cr as Ahmedabad Gets ₹2,719-Cr Sewage & Water Infrastructure Push

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Ahmedabad has received approval for six urban infrastructure projects worth ₹2,719.80 crore under the Centre’s Urban Challenge Fund of the Ministry of Housing and Urban Affairs.

Projects Approved

Rehabilitation of the main sewerage network in West Ahmedabad – ₹852.93 crore

Rehabilitation of the main sewerage network in East Ahmedabad – ₹551.35 crore

Rehabilitation of old sewerage networks across Ahmedabad – ₹290.24 crore

Intelligent Water Management System – ₹215 crore

125 TPD Integrated Sludge Management Facility – ₹479.25 crore

Integrated Transit Management System (ITMS) and Automated Fare Collection System (AFCS) – ₹331.03 crore

Expected Benefits

According to the government, the projects are expected to:

Reduce sewer overflows and leakages through rehabilitation of the city's sewerage network.

Enable real-time digital monitoring and smart management of sewerage and stormwater infrastructure.

Generate biogas and green energy from sewage sludge through the Integrated Sludge Management Facility.

Introduce a Common Mobility Card and Common Journey Application for AMTS, BRTS, and Metro services under the ITMS and AFCS project.

Provide real-time public transport information, AI-assisted route planning, and improved incident management with in-bus surveillance systems.

Funding Pattern

The Urban Challenge Fund supports projects under three categories:

Creative Redevelopment of Cities
Cities as Growth Hubs
Water and Sanitation

Under the scheme, 25% of project funding is provided by the Central Government, 25% by the State Government, and the remaining 50% is to be raised through municipal bonds, loans, or public-private partnerships (PPP).

For the Ahmedabad projects, the funding will include:

Central Government assistance: ₹679.95 crore

State Government assistance: ₹679.95 crore

Remaining amount: To be financed through loans by the Ahmedabad Municipal Corporation.

Gujarat Allocation

Gujarat has been allocated ₹6,475 crore in central assistance under the Urban Challenge Fund. The allocation is expected to support urban infrastructure projects worth approximately ₹25,900 crore across the state.