World Bank Approves $426M to Boost Water Security in Bengaluru, India

Located in the southern state of Karnataka, Bengaluru is often referred to as India’s tech capital, housing major information technology hubs and a thriving innovation ecosystem.

In a landmark step toward addressing the growing urban water crisis, the World Bank’s Board of Executive Directors has approved a $426 million program to improve water security and climate resilience in Bengaluru, one of India’s most dynamic and rapidly expanding cities. The initiative, named the Karnataka Water Security and Resilience Program, is set to benefit over 4 million residents in the state capital and surrounding areas by rejuvenating water infrastructure and enhancing the city’s ability to cope with extreme weather events.

Located in the southern state of Karnataka, Bengaluru is often referred to as India’s tech capital, housing major information technology hubs and a thriving innovation ecosystem. However, the city is also facing mounting environmental pressures, including urban flooding, water scarcity, and deteriorating water quality, threatening the health of its people and the sustainability of its economy.

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Urgent Need Amid Climate and Urbanization Pressures

Karnataka has faced increasing frequency of climate-induced disasters, with floods and droughts causing average economic losses of over $1.2 billion annually since 2009. These events have had severe consequences in urban areas like Bengaluru, where aging infrastructure, encroached water bodies, and rapid population growth compound the risks.

Bengaluru’s network of 183 lakes, historically designed to manage monsoon runoff, has been heavily degraded due to pollution, illegal construction, and neglect. Without timely intervention, the consequences of future extreme weather events could severely disrupt life in the city and its peripheries.

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Program Highlights: Lakes, Sewage, Smart Meters, and Resilience Planning

The World Bank-financed program introduces a multi-pronged approach to address these issues:

1. Restoration of Lakes as Natural Buffers

• The program will revive 183 lakes across Bengaluru.

• These lakes function as natural sponges, absorbing excess rainfall and reducing urban flood risk.

• Restoration will enhance urban biodiversity and provide public recreational spaces.

2. Sewage Treatment and Groundwater Recharge

• Nine new sewage treatment plants (STPs) will be constructed to prevent untreated sewage from entering lakes and stormwater drains.

• Treated water will be reused for industrial processes and groundwater recharge, addressing the city's growing water demand sustainably.

3. First-Time Sewerage Access for 100,000 Households

• The project will provide sanitation access to over 100,000 families currently without any sewerage connections.

• This marks a major improvement in public health, hygiene, and environmental protection.

4. Strengthening the Bangalore Water Supply and Sewerage Board (BWSSB)

• The program aims to boost BWSSB’s revenue streams and operational efficiency.

• $5 million in private capital will be mobilized to support innovation.

• Smart water meters and digital tools will help reduce non-revenue water and detect leaks in the distribution network.

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Enhancing Climate Resilience Through Technology

Another core feature of the program is its focus on predictive modeling and disaster preparedness:

• The initiative will deploy advanced flood modeling systems using real-time computer simulations to forecast where, when, and how floods might strike.

• These insights will guide future investments in urban infrastructure to ensure they are resilient to changing climate patterns.

Additionally, the program will strengthen the Karnataka State Natural Disaster Monitoring Centre, enabling better early warning systems and more effective emergency response mechanisms. These efforts aim to protect lives and assets, especially in low-lying and economically vulnerable areas.

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Financing Structure and Long-Term Commitment

The $426 million funding comes in the form of a loan from the International Bank for Reconstruction and Development (IBRD), a member of the World Bank Group. The loan carries a 20-year maturity period, including a 5-year grace period, reflecting the Bank’s long-term commitment to support Karnataka’s environmental and urban governance reforms.

“This Program will be critical in helping Bengaluru manage its water resources more sustainably, reduce its vulnerability to extreme weather, and enhance its capacity for smart city planning,” said Auguste Tano Kouame, World Bank Country Director for India.

Task Team Leaders Kristoffer Welsien and Anup Karanth added that the initiative would empower communities through improved disaster preparedness and local resilience planning.

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Building a Blueprint for Urban Water Management in India

With Indian cities increasingly facing climate and water stress, the Karnataka Water Security and Resilience Program could serve as a model for urban water management across the country. By combining infrastructure renewal, policy reform, digital innovation, and community engagement, the initiative reflects a holistic strategy to build a water-secure and climate-resilient future.

The World Bank’s investment reinforces India’s broader development goals, including the Jal Jeevan Mission, Smart Cities Mission, and the National Action Plan on Climate Change, while also contributing to global objectives like Sustainable Development Goal 6: Clean Water and Sanitation.