Chandigarh, October 11, 2025 — A delegation from the French development agency, Agence Française de Développement (AFD), met with Chandigarh municipal corporation (MC) officials on Friday to discuss the city’s 24×7 water supply project. The meeting comes nearly 10 days after councillors rejected the civic body’s last-minute proposal to scrap the ambitious pan-city project during the general House meeting on September 30.
MC officials raised several queries regarding the project’s funding structure and overall implementation feasibility. “Various aspects like finances, project viability and implementation process were discussed in detail. MC officials, after consulting with the high-power committee, will raise queries in a letter to the AFD so that the concerns can be resolved,” a senior MC official familiar with the discussions said.
The project traces back to a memorandum of understanding (MoU) signed with the AFD in 2016. A pilot project in Manimajra, executed by Chandigarh Smart City Limited at a cost of ₹165 crore and inaugurated last year, reportedly failed to meet expectations, according to a civic body report.
Despite setbacks, the MC plans to roll out the pan-city initiative with a financial outlay of ₹510 crore, of which ₹412 crore was proposed as a loan from AFD, repayable over 15 years through increased water bills for residents. A senior official noted that the ₹412-crore loan was calculated in 2022, and project expenses are expected to nearly double by the time work begins.
Officials said further clarification from AFD will be sought to address these concerns before the project proceeds.
