India to Expand Water Bodies and Build Drains

In August 2024, Indian government has allocated nearly $300 million (Rs 2,517 crore) over the next two years to enhance water bodies and develop drainage systems in seven cities, including Mumbai, Chennai, and Bengaluru, to combat flooding and improve water conservation.

Key Points

Investment Details: The federal government has approved significant spending to tackle flood risks by expanding lakes and constructing drains in Mumbai, Chennai, Kolkata, Ahmedabad, Hyderabad, Bengaluru, and Pune. Mumbai, Chennai, and Kolkata will each receive Rs 500 crore, while the other four cities will get Rs 250 crore each.
Flood Risk Context: Frequent flooding in Indian cities during monsoon seasons is exacerbated by rapid urbanization, which depletes water bodies and clogs drainage systems.
Economic Impact Warning: Moody's has cautioned that growing water stress could impact India's economic growth, which is currently projected at 7.2% for the fiscal year April-March, the highest among major economies.
Focus on Water Bodies: The new initiative marks the first federal flood control measure specifically targeting the expansion of water bodies.
City-Specific Allocations: Funds have been allocated based on the frequency of flooding and associated losses. Delhi was excluded from this allocation due to differing flood risk assessments in comparison to the chosen cities.