New Delhi – The Union government has earmarked a substantial ₹1,368.88 crore for improving Delhi water supply network during the 2026-27 fiscal year, marking a dramatic increase from previous allocations. Finance Minister Nirmala Sitharaman presented this allocation in the Union budget documents on Sunday, signaling the government’s commitment to addressing the national capital’s deteriorating water infrastructure crisis.
Sharp Increase From Previous Year’s Allocation
The Delhi water supply allocation represents a sharp rise from the ₹600 crore provided under budget estimates for 2025-26. The revised estimates for 2025-26 stood at only ₹264.31 crore, making the new allocation more than five times the previous year’s revised figure. This substantial increase reflects growing recognition of the urgent need to modernize the capital’s aging water distribution system.
Of the total allocation for Delhi water supply improvement, ₹988.88 crore has been provided under externally aided projects, particularly the partnership with the Japan International Cooperation Agency. The project is being implemented with Japanese assistance through a loan of 26,975 million Japanese yen, demonstrating international cooperation in addressing India’s urban infrastructure challenges.
Critical State of Delhi’s Water Pipeline Network
Officials revealed alarming statistics about the Delhi water supply infrastructure’s deterioration. Of nearly 16,000 kilometers of water pipelines in the national capital, a majority are over 30 years old and have exceeded their operational life. This aging infrastructure results in contamination, leakages, and significant supply losses that impact millions of residents daily.
Government data shows over 5,200 kilometers of Delhi water supply pipelines are more than three decades old, while another 2,700 kilometers fall in the 20- to 30-year category. These aging pipelines account for up to 55% non-revenue water loss due to frequent bursts, seepage, and contamination—a staggering inefficiency that wastes precious water resources and generates substantial financial losses.
Delhi Government’s Ambitious Replacement Plan
During the winter session of the Delhi Assembly, the government announced plans to replace approximately 7,000 kilometers of pipelines across the city over the next two to three years. This massive undertaking will significantly improve the Delhi water supply system’s reliability and efficiency, reducing water wastage and contamination risks.
More than half of Delhi water supply pipelines are at least 20 years old and require complete replacement. The enhanced funding comes amid heightened scrutiny of the capital’s aging water infrastructure, particularly following a series of deaths in Indore linked to contaminated drinking water that raised nationwide concerns about water quality and distribution systems.
JICA-Assisted Project Implementation Details
A senior Delhi Jal Board official confirmed that the JICA-assisted project to upgrade water treatment and Delhi water supply infrastructure is being implemented across nine assembly constituencies. The project was conceived under the 2011 water supply master plan and covers a catchment area of 96 square kilometers, benefiting approximately 2.2 million residents.
“The project had earlier faced multiple setbacks. Tenders were cancelled in 2020, and there were repeated DPR changes and violations of JICA guidelines, due to which only one package could be awarded in February 2023, but the project is now back on track and the budgetary allocation indicates it,” the official explained.
Comprehensive Infrastructure Development Scope
Under the project, 1,044 kilometers of new Delhi water supply lines will be laid, representing a significant expansion and modernization of the distribution network. Additionally, 21 underground reservoirs will be rehabilitated across multiple areas including Karol Bagh, Patel Nagar, Chandni Chowk, Matia Mahal, Sadar Bazaar, Model Town, RK Puram, Rajendra Nagar, Old Delhi, Kashmere Gate, and Paharganj.
This comprehensive approach ensures that both the primary distribution infrastructure and storage facilities receive necessary upgrades, creating an integrated improvement in the Delhi water supply system that will serve residents for decades to come.
Chandrawal Water Treatment Plant Enhancement
Separately from the JICA project, the Ministry of Home Affairs has allocated ₹380 crore specifically for the Chandrawal water treatment plant and improvement of its catchment area during 2026-27. This allocation is provided as additional central assistance for externally aided projects, complementing the larger Delhi water supply improvement initiative.
The allocation for Chandrawal remains unchanged from the 2025-26 budget estimates, though Delhi utilized only ₹275 crore under the revised budget estimates for the current fiscal year. This suggests room for improved utilization of allocated funds in the coming year.
Long-Term Impact on Water Security
The substantial investment in Delhi water supply infrastructure represents a critical step toward ensuring water security for the national capital’s growing population. By replacing aging pipelines, upgrading treatment facilities, and modernizing distribution systems, the project will reduce water losses, improve water quality, and enhance reliability for millions of residents.
The allocation demonstrates the government’s commitment to addressing urban infrastructure challenges through strategic investments and international partnerships, setting a precedent for comprehensive water system modernization in other Indian cities facing similar infrastructure deterioration challenges.
