Parliament Question: Need for adequate funding for urban water infrastructure

GOVERNMENT OF INDIA MINISTRY OF HOUSING AND URBAN AFFAIRS RAJYA SABHA UNSTARRED QUESTION NO. 234 ANSWERED ON 02/02/2026 NEED FOR ADEQUATE FUNDING FOR URBAN WATER INFRASTRUCTURE 234. SHRI MUKUL BALKRISHNA WASNIK: Will the Minister of HOUSING AND URBAN AFFAIRS be pleased to state: (a) whether it is a fact that due to limited financial resources Urban Local Bodies (ULB) usually find it difficult to operate and maintain water treatment plants, sewerage networks and other existing assets and those created under Atal Mission for Rejuvenation and Urban Transformation (AMRUT); (b) whether Government has any plan to establish a dedicated financial mechanism for O&M funding to supplement ULBs efforts, particularly in smaller municipalities with limited revenue generating capacity; and (c) if so, the details thereof and if not, the reasons therefor? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF HOUSING AND URBAN AFFAIRS (SHRI TOKHAN SAHU) (a) to (c): Water and sanitation is a state subject and it is the responsibility of State Government/ Urban Local Bodies (ULBs) to operate and maintain water treatment plants, sewerage networks and other existing assets. Government of India supplements the efforts of the States through schematic interventions/ advisories. It provides financial and technical support to the States through various schemes/ Missions such as Atal Mission for Rejuvenation and Urban Transformation (AMRUT) and AMRUT 2.0 for augmenting the basic amenities such as water supply and sewerage and septage management through approved projects. AMRUT guidelines advocates taking up projects with Operation and Maintenance (O & M) cost for at least five years to be funded by way of levy of user charges or other revenue streams. The Mission framework also emphasizes reforms such as levy and collection of user charges, reduction of non-revenue water, reuse and recycling of treated wastewater and improvement in financial management practices to enhance the capacity of ULBs to sustainably operate and maintain assets. Further under AMRUT 2.0 through various reform initiatives such as Jal Hi Amrit and AMRUT Mitra, the Mission is supporting the States/ ULBs in management of Water Treatment Plants and Sewage Treatment Plants. *****