The World Bank Board of Executive Directors has approved financing for two programs aimed at improving air quality in the Indian states of Uttar Pradesh and Haryana. The initiatives are expected to benefit 270 million people, with positive effects extending to neighboring states. These efforts also seek to make both states more attractive for business and job creation.
Paul Procee, Acting Country Director for World Bank India, stated: “Air pollution is causing severe health impacts, loss of productivity and reduced quality of life across South Asia. These operations in Haryana and Uttar Pradesh represent the first airshed-based, multi-sectoral programs undertaken by state governments 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.”
The Uttar Pradesh Clean Air Management Program (UPCAMP), with a budget of $299.66 million, will support the state's Clean Air Plan through investments in transport, agriculture, and industry sectors. Measures include providing clean cooking access to 3.9 million households and encouraging cleaner transportation by introducing 15,000 electric three-wheelers and 500 electric buses in Lucknow, Kanpur, Varanasi, and Gorakhpur. The program will also offer incentives to replace 13,500 heavy-duty vehicles with lower-emission alternatives.
Ana Luisa Lima and Farah Zahir, task team leaders for UPCAMP, explained: “By adopting an airshed approach – rather than city-level solutions – Uttar Pradesh aims to reduce air pollution faster and at lower cost by collaborating with other states to control transboundary emissions. Among its initiatives, the Program will incentivize farmers to adopt good practices to improve fertilizer use efficiency and manage livestock waste. It will also help MSMEs transition to cleaner technologies and promote e-mobility in urban centers.”
Haryana’s Clean Air Project for Sustainable Development Operation will receive $300 million to support the state's Action Plan targeting air pollution through multisectoral interventions. Investments will be made in air quality monitoring systems as well as clean transport options like electric bus services and three-wheelers in Gurugram, Sonipat, and Faridabad. The project aims to improve connectivity and job access—particularly for women—and promote cleaner technologies among micro-, small- and medium-sized enterprises (MSMEs). It will also encourage better agricultural waste management practices.
Sharlene Chichgar, Laghu Parashar, and Saumya Srivastava—the project's task team leaders—said: “Recognizing clean air as a top priority, Haryana has adopted a forward-looking approach by setting up ARJUN, a special purpose vehicle, to facilitate coordination, implementation and monitoring amongst relevant agencies. By targeting emissions in key sectors such as transport, agriculture, industry, and urban development, this program will also aim at mobilizing over $127 million from private capital mobilization.”
Both programs are part of the World Bank’s Regional Air Quality Management Program focused on the Indo-Gangetic Plains and Himalayan Foothills—a region known for significant air pollution challenges. Additional grants from the World Bank’s Resilient Asia Program (funded by the United Kingdom’s Foreign Commonwealth & Development Office as well as Switzerland's Agency for Development Cooperation) along with contributions from the Energy Sector Management Assessment Program will support these efforts.
The loan terms include a final maturity of ten years (with a two-year grace period) for Uttar Pradesh's program; Haryana's program has a final maturity of 23.5 years including a six-year grace period.