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World Bank approves USD 305 million to strengthen Haryana’s clean air initiative

#Taxation & Finance News#India#Haryana
Last Updated : 16th Dec, 2025
Synopsis

The World Bank has approved USD 305 million to support the Haryana Clean Air Project for Sustainable Development (HCAPSD), aimed at reducing air pollution and improving air quality across the state by 2030. The funding comprises a USD 300 million loan and a USD 5 million grant. With a total project cost of INR 3,646 crore, Haryana will contribute INR 1,065 crore and an additional INR 83 crore as a grant. The initiative covers transport, industry, agriculture, and urban sectors, including electric buses, emission monitoring systems, cleaner technologies, and incentives to reduce crop residue burning and vehicle emissions.

The World Bank has extended financial support of USD 305 million to Haryana to implement the Haryana Clean Air Project for Sustainable Development (HCAPSD), a comprehensive programme designed to tackle air pollution and enhance air quality across urban and rural areas. The approval follows discussions between Haryana Chief Minister Nayab Singh Saini and World Bank officials, reflecting a joint commitment to environmental sustainability and public health improvement.


The funding includes a USD 300 million International Bank for Reconstruction and Development (IBRD) loan and a USD 5 million grant from a regional trust fund. The project’s total cost stands at INR 3,646 crore, with the Haryana government contributing INR 1,065 crore along with an additional INR 83 crore grant. The programme is set to run until 2030, aligning with national and global air quality standards.

HCAPSD is structured around key sectors that contribute to air pollution. The transport sector receives the largest share of funding at INR 1,688 crore, supporting deployment of 500 electric buses across major cities including Gurugram, Faridabad, Sonipat, and Jhajjar. The programme also plans incentives for electric three wheelers and fleet replacements, alongside 200 electric vehicle charging stations. Measures to phase out older high pollution vehicles are also included.

Industrial emissions are addressed through INR 100 crore allocated for shifting industries to piped natural gas and INR 330 crore for replacing diesel generators with cleaner alternatives. The programme will also install Continuous Emission Monitoring Systems in major industrial units to track pollution levels in real time.

Agriculture and rural interventions are critical components, with INR 746 crore earmarked to improve soil management, reduce crop residue burning, and adopt cleaner agricultural practices. The Special Purpose Vehicle, ARJUN, will oversee implementation, coordinating with multiple government departments to ensure timely execution and monitoring. Rajesh Khullar, Chief Principal Secretary to the Haryana Chief Minister, chairs ARJUN.

The initiative also enhances urban management by deploying advanced air quality monitoring systems, strengthening municipal capacity, and supporting policies to reduce emissions from construction and urban transport. HCAPSD builds on earlier state cabinet approvals and aligns with India’s national air quality management framework, aiming to create a sustainable and measurable impact on public health and the environment.

The project emphasizes adoption of cleaner technologies and behavioral changes across sectors. It plans to engage with citizens, industry stakeholders, and local authorities to ensure a collaborative approach, making the state a model for effective air quality management in northern India.

Source PTI

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