Nagpur: In an unusual funding arrangement, Nagpur Municipal Corporation (NMC) will have to deposit a token amount of just Rs1,000 to facilitate a Rs250-crore budgetary provision for the ambitious Kanhan-Kolar barrage project in the state budget for 2027-28.According to officials, the token payment will enable the urban development department to create a separate budget head for the nearly Rs950-crore project, aimed at meeting Nagpur’s growing drinking water demand over the next three decades.The development follows a meeting convened by revenue minister Chandrashekhar Bawankule in Mumbai on Wednesday, where he reviewed the project with officials from the urban development department, NMC and water resources department. Bawankule, also Nagpur’s guardian minister, directed officials to initiate the process for the separate budget head.The state govt is likely to make an initial provision of Rs250 crore in March 2027. This will be a budgetary allocation and not an immediate release of funds to NMC. Disbursement will follow the prescribed administrative and financial procedures.The project assumes significance amid concerns over declining reservoir storage and below-normal rainfall. NMC currently supplies around 786 MLD of water to the city, but population growth and urban expansion are expected to push up demand, prompting the civic body to augment its existing sources.Nagpur’s annual drinking water requirement is estimated at 246.01 million cubic metres (MCM). It is projected to rise to 313.89 MCM by 2038 and 446.78 MCM by 2053.The project envisages lifting raw water from the proposed barrage and setting up pumping stations and water treatment facilities, estimated to cost around Rs400 crore.Meanwhile, NMC’s standing committee has approved the appointment of a technical consultant to prepare a detailed project report (DPR) for the pumping and treatment infrastructure. The consultant will assess technical requirements and draw up an implementation blueprint.The water resources department has already submitted the barrage proposal, with the separate budget head and initial allocation expected to facilitate its next stage.KANHAN-KOLAR BARRAGE: KEY PROJECT DETAILSRs950 cr — Estimated barrage project costRs250 cr — Proposed initial budget allocation for 2027-28Rs1,000 — Token amount to be deposited by NMCRs400 cr — Estimated cost of associated infrastructureSeparate budget head to be created by the urban development department. Budgetary allocation does not mean immediate fund release.PROJECTED ANNUAL WATER REQUIREMENTYear– RequirementCurrent– 246.01 MCM2038– 313.89 MCM2053– 446.78 MCMPROPOSED INFRASTRUCTUREBarrage on the Kanhan-Kolar systemRaw water lifting arrangementsNew pumping stationsWater treatment facilitiesTechnical consultant to prepare DPR for associated infrastructure