The Union government has earmarked ₹1,368.88 crore for improving Delhi’s water supply network during 2026-27, of which ₹988.88 crore has been provided under the externally aided projects such as the one in partnership with the Japan International Cooperation Agency (JICA), according to Union budget documents tabled by finance minister Nirmala Sitharaman on Sunday.
The allocation has been made under the externally aided projects central sector for 2026-27 for “Delhi water supply improvement”, marking a sharp rise from the ₹600 crore provided under the budget estimates (BE) for 2025-26. The revised estimates (RE) for 2025-26 stood at ₹264.31 crore.
The project is being implemented with Japanese assistance through a loan of 26,975 million Japanese yen. A separate ₹380 crore provided by the ministry of home affairs for the Chandrawal water treatment plant and improvement of its catchment area as additional central assistance for externally aided projects.
The enhanced funding comes amid heightened scrutiny of Delhi’s ageing water infrastructure following a series of deaths in Indore linked to contaminated drinking water. More than half of Delhi’s water pipelines are at least 20 years old and require complete replacement.
Officials said that of nearly 16,000 km of water pipelines in the national capital, a majority are over 30 years old and have exceeded their operational life, resulting in contamination, leakages and supply losses. Delhi government data shows over 5,200 km of pipelines are more than three decades old, while another 2,700 km fall in the 20- to 30-year category. These ageing pipelines account for up to 55% non-revenue water loss due to frequent bursts, seepage and contamination.
During the winter session of the Delhi Assembly, the Delhi government said it plans to replace around 7,000 km of pipelines across the city over the next two to three years.
A senior Delhi Jal Board (DJB) official said the JICA-assisted project to upgrade water treatment and supply infrastructure is being implemented in nine assembly constituencies. The project was conceived under the 2011 water supply master plan and covers a catchment area of 96 square km, benefiting around 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 said.
Under the project, 1,044 km of new water supply lines will be laid and 21 underground reservoirs rehabilitated across areas including Karol Bagh, Patel Nagar, Chandni Chowk, Matia Mahal, Sadar Bazaar, Model Town, RK Puram, Rajendra Nagar, Old Delhi, Kashmere Gate and Paharganj.
Separately, the ministry of home affairs has allocated ₹380 crore for the Chandrawal water treatment plant and improvement of its catchment area during 2026-27 as additional central assistance for externally aided projects. The allocation is unchanged from the 2025-26 BE, though Delhi utilised only ₹275 crore under the RBE for the current fiscal.
