Jaipur's historic Mansagar Lake and Jal Mahal, the 18th century water palace at its centre, had come to resemble a toxic wasteland in recent times, with the monument in severe disrepair and the lake filled with sewage. Taking cognizance of the worsening situation the Government of Rajasthan asked IL&FS, through its joint venture company PDCOR Ltd, to structure a financially sustainable project that not only rejuvenates the lake and restores the monument, but also opens up the area as a tourist destination.

Photo 6.jpg

Innovations and Impact

  1. The project included creation of sewage treatment plants, diversion of city drains, de-silting and bioremediation of lake, and afforestation of surrounding hills, creating a holistic solution for the environmental degradation of the entire lake ecosystem. A significant positive impact on the ecology and environment of the surrounding area and is observed.
  2. The project creates a financially sustainable format for lake restoration and conservation through a dedicated fund for lake conservation that is replenished by an annual amount paid by the private sector partner in lieu of development rights for the site. This ensures that the interests of the private sector partner are tied with the successful restoration and conservation of the lake for the entire concession period.
  3. The project showcases the inter-ministerial, inter-departmental, and government-private sector coordination to develop technically, environmentally and financially sustainable solutions that can be replicated at other places. India's Ministry of Environment and Forests appreciated that “the project document and structure has served as a benchmark for developing sustainable lake restoration projects on PPP model”. It also remarked that MoEF is “recommending a similar approach to other States for lake conservation projects”.
  4. The site has now become a centre of attraction for tourists and local people of the city. The project has contributed significantly to a decadal growth of 144% in domestic tourists and 22% growth in foreign tourists arrivals visiting Jaipur circle. Through the multiplier impact of tourism on economy, the project has also contributed in terms of increased revenues to government, promoting local businesses and products including handicrafts, providing livelihood to the local people, etc.


November 2005 Project Development Consultancy completed with signing of Project Agreement with the successful bidder



Jal Mahal Resorts Pvt. Ltd.
Private Sector Developer

Project Development Consultant

Previous project Gujarat International Finance Tec-City (GIFT) Next project Infrastructure Debt Fund (IDF)