National Mission for Clean Ganga (NMCG)

External Funding and Funding Mechanism

External funding
The Central Government has approved the projects for ‘World Bank’ assistance to National Ganga River Basin Authority(NGRBA) for abatement of pollution of river Ganga’ at an estimated cost of Rs.7000 crore. The Bank will support the Government of India by providing technical assistance and financing of US $ 1 billion (approx. 4600 crore).The World Bank Board has approved this project on 31st May 2011.The Loan agreement with World Bank has been signed on 14th June 2011.Japan International Cooperation Agency (JICA)is supporting one project on Ganga in Varanasi worth Rs. 496.9 Crore on 85:15 basis.
Funding Mechanism
The investments required to create the necessary treatment and sewerage infrastructure would be shared between Centre and State Governments on 70:30 basis.The State Governments would be required to motivate ULBs for resource recovery and revenue generation. Also, the cost of Operations and Maintenence(O&M)for the initial five years in NGRBA projects would be shared between Centre and States in the ratio of 70:30 with a periodical review.

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