Under the initiative, the EU will initially launch a project in three cities in January to help authorities come out with effective measures to reduce pollution. Many top European companies offering clean air solutions will be involved in the project.
EU officials have already held talks with the Centre on roll out of the project. Delhi, which last month recorded worst pollution in nearly 20 years, is likely to be included in the first phase of the project.
"The first step will be to understand the air quality management system in India. We are trying to get a full picture about how air quality is managed including stakeholder analysis and regulations and accordingly we will take the next step," said a top EU official involved in the project.
Without divulging much detail, he said broad contours of the project has been finalised, adding raising awareness about pollution will be a major aspect of the initiative.
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The WHO had listed four Indian cities among the world's 10 most polluted cities. The government had described the report as misleading.
Many European countries are known for their environment conservation efforts through advanced technologies.
The EU officials said gradually the project will be expanded to many other Indian cities as the grouping was committed to helping India in tackling pollution.