The Maharashtra Cabinet has approved a Rs 822.2 crore financing to fund Chhatrapati Sambhajinagar’s new water supply project. The loan represents the Chhatrapati Sambhajinagar Municipal Corporation’s (CSMC) share in the Rs 2,740 crore water supply project under the second phase of the AMRIT scheme initiated by the Central government.

With the state contributing 45 percent of the project cost, the Centre and the Municipal corporation are responsible for 25 percent and 30 percent, respectively. Due to financial limitations, CSMC was unable to provide its share, prompting the state government to arrange the funds through a loan from the Housing and Urban Development Corporation (HUDCO). Cabinet Minister and local BJP MLA Atul Save noted that the loan would carry a minimal interest rate and the longest repayment tenure.

In May, CM Fadnavis had assured full state support for the project. Despite missing the original March 2024 deadline, efforts are underway to commission the project by October 2025.