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Haryana Government Announces Rs 100 Crore Urban Drainage Fund in Budget 2025-26

Haryana Chief Minister Nayab Singh Saini has proposed the establishment of an Urban Drainage Fund with a corpus of Rs 100 crore to enhance drainage infrastructure across the state. The announcement was made during the presentation of the Budget for the fiscal year 2025-26, underscoring the government’s commitment to sustainable urban development and disaster prevention.


The fund aims to support projects focused on flood management and urban resilience. Additionally, the chief minister proposed the establishment of Common Effluent Treatment Plants (CETPs) in key industrial cities, including Panipat, Faridabad, Gurugram, and Yamunanagar, to address environmental concerns and promote cleaner urban spaces.

In his budget speech, Saini announced a substantial increase in financial support for Urban Local Bodies, with an allocation of Rs 5,666.28 crore. This represents a 38.5% rise from the previous year’s allocation of Rs 4,091.95 crore. The increased funding is aimed at improving essential civic services such as sanitation, sewage management, and road infrastructure.


To strengthen municipal governance, the government has granted municipal corporations, councils, and committees the authority to determine taxes and fees. These bodies will have the flexibility to levy property tax, development tax, garbage collection charges, advertisement fees, and water and sewer charges within the state-prescribed limits. This initiative seeks to enhance financial autonomy and improve service delivery at the grassroots level.


Under the revised Urban Local Bodies policy, priority will be given to sanitation tenders submitted by cooperatives led by women and Scheduled Caste members. Furthermore, Saini proposed that one-third of the canteen tenders in government institutions, educational establishments, and urban local bodies be allocated to women’s self-help groups to promote entrepreneurship and economic empowerment.

Recognizing the need for urban redevelopment, Saini emphasized upgrading road infrastructure to international standards, with a special focus on pedestrian-friendly designs. In the first phase, a 1,000-km Right of Way will be developed to enhance mobility and urban planning. Additionally, the state plans to construct multi-level parking facilities in major cities, similar to those in Rohtak and Gurugram, to alleviate traffic congestion and improve transportation efficiency.


The chief minister also highlighted Haryana’s achievements in waste management, revealing that approximately 69 lakh metric tonnes of garbage have been scientifically processed from 75 old waste sites, leading to the reclamation of 109 acres of land. This reclaimed land is being transformed into green areas, parks, and community infrastructure, with a target of achieving 100% waste clearance by the end of the 2025-26 fiscal year.

Furthermore, the state government is collaborating with the World Bank on a Rs 3,647 crore initiative over six years to combat air pollution. A new e-waste management policy is also in the pipeline to promote sustainable industrial practices.

Saini also announced the formation of an Industry Labour Friendly Council, which he will chair, to promote industrial growth while ensuring labour welfare. Under Haryana’s Enterprise and Employment Policy, industrial units adopting zero-waste disposal methods will be recognized and incentivized to support a circular economy.

Also Read | Haryana Unveils Rs 2.05 Lakh Crore Budget for 2025-26, Aims to Strengthen Future Capabilities

With a focus on sustainable urban development, environmental conservation, and economic empowerment, the Haryana government’s 2025-26 budget outlines a vision for a more resilient and inclusive future. By integrating modern infrastructure projects, sustainable waste management practices, and localized governance reforms, the state is taking proactive steps toward holistic urban transformation.

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