The Central government has approved Rs 800 crore for Delhi under the AMRUT 2.0 scheme to enhance sewage infrastructure, particularly in unauthorised colonies.

This funding will support the Delhi government's plan to install 2.5 lakh sewer connections and strengthen sewage networks in over 410 unauthorised colonies and 100 urban villages across seven assembly constituencies, benefiting nearly 35 lakh residents. Funds will also go towards increasing sewage treatment capacity and initiatives to recycle and reuse 50 million litres of water daily.

The Delhi Jal Board (DJB) will contribute the remaining project cost and implement the Interceptor Sewer Project to divert wastewater to sewage treatment plants (STPs). Additionally, the Union Finance Ministry's expenditure finance committee has approved a Rs 3,105 crore proposal for constructing 40 decentralised STPs and expanding sewer lines in Outer Delhi. The Centre has urged the Delhi government to audit existing STPs, improve sludge processing strategies, and focus on Yamuna rejuvenation. In the 2025–26 budget, Rs 9,000 crore has been earmarked for water and sewerage, with Rs 500 crore allocated for STP repairs.