THEBUSINESSBYTES
BUREAU
NEW
DELHI, MARCH 13, 2026
In a major step
towards tackling air pollution in northern India, the World Bank, the
Government of India, and the Government of Haryana have signed a landmark
agreement to support Haryana’s multi-sectoral action plan aimed at improving
air quality across the state while simultaneously creating new employment
opportunities for youth and women.
The Haryana Clean Air
Project for Sustainable Development Operation, valued at $300 million, will
assist the Government of Haryana in implementing comprehensive measures to
reduce air pollution. The initiative is expected not only to improve
environmental conditions within the state but also generate significant clean
air benefits for neighbouring states and the broader National Capital Region.
The program will strengthen Haryana’s institutional capacity to monitor, manage,
and respond to pollution by expanding air quality monitoring networks and
integrating a state-of-the-art decision support system designed to enable
data-driven policy making and more effective environmental governance.
The agreement was
signed by Juhi Mukherjee, Joint Secretary in the Department of Economic Affairs
under the Ministry of Finance, on behalf of the Government of India; Dr J
Ganesan, CEO of the ARJUN Council, on behalf of the Government of Haryana; and
Paul Procee, Acting Country Director for India, on behalf of the World Bank.
“I warmly welcome the World Bank’s support for
Haryana’s multi-sectoral action plan aimed at achieving cleaner air across the
state. This partnership represents an important step in strengthening our
ongoing commitment to improving air quality and safeguarding public health.
With the World Bank’s collaboration, we are confident of accelerating the
implementation of comprehensive measures that will enhance the quality of life
for people across the region,” said Nayab Singh, Chief Minister of Haryana. “At
the same time, the initiative will help advance clean and sustainable urban
mobility systems while creating new and meaningful employment opportunities,
particularly for women and youth in both urban and rural areas. This
collaboration reflects our shared vision of building a cleaner, healthier, and
more inclusive future for Haryana.”
“Through private capital mobilization, the
program will leverage $127 million for targeted investments in key sectors like
transport, energy and industry to improve liveability for people in the state
and the capital city,” said Paul Procee, Acting Country Director, World Bank
India. “The program will support job creation by helping 10,000 people,
especially women, to be hired as drivers, conductors, and other staff for
operating e-buses in Gurugram and Faridabad.”
As part of the
initiative, around 2,000 micro, small and medium enterprises (MSMEs) will
receive incentives to adopt cleaner and more energy-efficient technologies,
helping industries transition toward environmentally responsible operations.
The program will also extend incentives to farmers to adopt modern machinery
and sustainable alternatives aimed at reducing crop residue burning and
managing livestock waste more effectively — two major contributors to seasonal
air pollution in the region.
The Haryana program forms a key component 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 severe air pollution hotspots. By addressing multiple pollution sources across sectors such as agriculture, transport, and industry, the initiative seeks to generate lasting benefits for public health, climate mitigation, and sustainable economic growth.
The financing arrangement will have a maturity period of 23.5 years, including a grace period of six years, providing the state with a long-term framework to implement reforms and investments necessary to build a cleaner and healthier future for the region.
