World Bank approves ₹2,750 crore to promote clean air for Haryana
The approved assistance includes an IBRD loan of ₹2,705 crore and a ₹45 crore grant under the SA Regional Integration Multi-Donor Trust Fund. The approval was granted by executive directors of the World Bank Board in Washington DC.
The World Bank has approved a financial assistance package of ₹2,750 crore for Haryana Clean Air Project for Sustainable Development (HCAPSD), a flagship initiative aimed at transforming Haryana into a pollution-free state by 2030. The approved assistance includes an IBRD loan of ₹2,705 crore and a ₹45 crore grant under the SA Regional Integration Multi-Donor Trust Fund. The approval was granted by executive directors of the World Bank Board in Washington DC.
An official spokesperson said that the approval follows a high-level meeting held in Chandigarh in November last year between Haryana chief minister Nayab Singh Saini and World Bank representatives.
The spokesperson said that the World Bank had committed to extending a loan of ₹2,498 crore to support the rollout of the HCAPSD, which carries a total project cost of ₹3,646 crore. He added that the Haryana Government will contribute ₹1,065 crore, with an additional ₹83 crore allocated as a grant.
Paul Procee, acting country director, World Bank India, in a statement said that air pollution was causing severe health impacts, loss of productivity and reduced quality of life across South Asia. “This operation in Haryana represented the first among the two airshed-based, multi-sectoral programs undertaken by a state government in India to tackle the complex challenge of reducing air pollution. The programs will also demonstrate how air quality initiatives can increase productivity and create green jobs, especially for youth and women,” he said.
The HCAPSD is designed to bring measurable, statewide improvements in air quality through coordinated action across key sectors—including transport, industry, agriculture, urban management, and scientific monitoring. The project’s implementation will be led by the dedicated SPV, ARJUN (AI for Resilient Jobs, Urban Air Quality & Next-Gen Skills Council), ensuring seamless integration in planning, execution, and real-time monitoring. ARJUN is chaired by chief principal secretary to Haryana chief minister Rajesh Khullar, who has served as the Executive Director in the Board of Directors of the World Bank as a representative of India, Bhutan, Bangladesh and Sri Lanka from 2020 to 2023.
The project will support Haryana’s action plan aimed at reducing air pollution through a combination of multisectoral interventions. The project will invest in air quality and emission monitoring systems to strengthen the state’s ability to better gauge the impact of various sources of pollution.
Out of the total program cost of ₹3,646 crore, ₹1,688 crore has been earmarked for transport-sector interventions aimed at sharply reducing urban transport emissions and strengthening Haryana’s clean mobility ecosystem. Under this component, 500 electric buses will be deployed across Gurugram, Faridabad, Sonipat, and Jhajjar at an investment of ₹1,513 crore. Additional initiatives include the phase-out of high-polluting vehicles and support for the scrapping ecosystem ( ₹10 crore), installation of 200 Electric Vehicle (EV) charging stations ( ₹20 crore), incentives for electric three-wheelers ( ₹100 crore), and fleet replacement incentives to shift old three-wheelers to EVs ( ₹45 crore). These initiatives will be jointly implemented by Gurugram Metropolitan City Bus Limited, Haryana City Bus Service Limited, and the Departments of Transport and Industries, the spokesperson said.
The World Bank has approved ₹2,750 crore for the Haryana Clean Air Project for Sustainable Development, aiming to make Haryana pollution-free by 2030. The funding includes a ₹2,705 crore loan and a ₹45 crore grant. The project, led by the SPV ARJUN, focuses on reducing air pollution through multisectoral interventions, including deploying electric buses and enhancing monitoring systems.