The World Bank Board of Executive Directors has approved financing for two landmark programs in Haryana and Uttar Pradesh aimed at improving air quality for nearly 270 million people, while boosting both states’ attractiveness as business destinations and engines of job creation.
Paul Procee, Acting Country Director, World Bank India, said: “Air pollution is causing severe health impacts, loss of productivity and reduced quality of life across South Asia. These operations represent the first airshed-based, multi-sectoral programs undertaken by state governments in India to tackle the complex challenge of reducing air pollution.”
The Uttar Pradesh Clean Air Management Program (UPCAMP), with financing of $299.66 million, will build on the state’s Clean Air Plan by investing in transport, agriculture, and industry. Key initiatives include:
-
Access to clean cooking for 3.9 million households
-
Introduction of 15,000 electric three-wheelers and 500 electric buses in Lucknow, Kanpur, Varanasi, and Gorakhpur
-
Incentives to replace 13,500 polluting heavy-duty vehicles
-
Support for farmers to adopt efficient fertilizer use and livestock waste management
-
Helping MSMEs transition to cleaner technologies and promoting e-mobility
The Haryana Clean Air Project for Sustainable Development Operation, with financing of $300 million, will support the state’s Action Plan through:
-
Investments in air quality and emission monitoring systems
-
Electric bus services and three-wheelers in Gurugram, Sonipat, and Faridabad
-
Adoption of cleaner technologies by MSMEs
-
Promotion of agricultural waste management and reuse of paddy stubble
-
Mobilization of over $127 million in private capital
Haryana has also set up ARJUN, a special purpose vehicle to coordinate and monitor implementation across agencies.
Both programs form part of the World Bank’s Regional Air Quality Management Program in the Indo-Gangetic Plains and Himalayan Foothills (IGP-HF), one of the world’s most critical air pollution hotspots. They will also receive grants from the Resilient Asia Program (funded by the UK and Switzerland) and the Energy Sector Management Assessment Program.
The Uttar Pradesh program has a maturity of 10 years with a two-year grace period, while the Haryana program has a maturity of 23.5 years with a six-year grace period.
