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.