The Government of India has signed a loan agreement with Japan International Cooperation Agency (JICA) for pollution abatement of River Mula-Mutha in Pune. The Government of Japan has committed to provide a soft loan of 19.064 billion Yen (about Rs. 1000 crore) to Government of India for the project at an interest rate of 0.30% per annum. The loan assistance for the project has been approved by the Union Finance Ministry at an estimated cost of Rs. 990.26 crore.

 Project Cost 

The project cost will be shared between Government of India and Pune Municipal Corporation (PMC), the implementing agency for the project, in the ratio of 85:15 respectively. The share of Central Government in project will be Rs. 841.72 crore and share of PMC would be Rs. 148.54 crore. The loan has to be repaid by Government of India in a period of 40 years, including a 10-year grace period. The project is scheduled to be completed by January, 2022.

 Major Components 

• Construction of 11 new Sewage Treatment Plants (STPs)
• The project will have a significant, direct beneficial impact in terms of reduction of pollution load in the river and improvement of the quality of its water.
• Some of the collateral benefits of the project include – use of tertiary treated effluent for irrigation and employment opportunities, particularly in the construction stage.
• The project will also improve the aesthetics and sanitation of Pune.
• Biogas (methane) from STPs will be used to generate electricity.

• The Mula Mutha river at Pune is one of the 302 polluted river stretches of the country identified by Central Pollution Control Board.
• The major reasons for pollution of Mula Mutha are discharge of untreated domestic waste water into the river due to inadequate sewerage system (including pumping stations) & sewage treatment capacity in the town, as well as open defecation on the river banks.