"The Rs 515-crore project to cater to needs of projected 7.5 lakh population of the town envisaged lifting of water from Sutlej.
"The project report has been cent to the Union Urban Development ministry for approval and funding," IPH minister Ravinder Singh Ravi said.
He said the IPH department was supplying sufficient water to the Shimla Municipal Corporation but the leakage during distribution was as high as 30 per cent.
The supply situation would improve significantly if the leakage was plugged, the minister told reporters here.
The IPH department was supplying water in 52 out of 56 towns in the state and there was no problem as such in any of the town, he said.