The key objective of Dutch development cooperation is to contribute to sustainable poverty reduction. Its assistance is targeted at the most vulnerable groups. In all programs supported by the Royal Netherlands Embassy (RNE) due attention is given to the position of women and gender equity, environmental sustainability, good governance and institutional development.

Prior to 1999, the five Dutch priority sectors in India were water transport, rural and urban water supply and sanitation, land and water development, environment and gender. In 1999 the Netherlands decided, in close consultation with the Government of India, to focus its assistance on the states of Andhra Pradesh, Gujarat and Kerala and on a limited number of sectors. In Gujarat the priority sectors are rural water supply and sanitation, education and (mental) health. In 2000 the Government of India formally endorsed and approved both the state and sector choice for the Netherlands’ development co-operation in India.

The RNE played a critical role in the establishment of WASMO and has been its major donor agency. First, the RNE provided financial and technical support to the Ghogha project which broke new ground in developing methodologies for creating demand-driven community based water supply and sanitation systems in Gujarat. Later the RNE supported the ERR project in earthquake affected regions of Gujarat. RNE also provided funds towards the establishment and initial functioning of WASMO, including an in-house cell of consultants who provide technical and institutional assistance. It hired the services of Royal Haskoning, a global consultancy firm, to provide this service for a period of five years starting from October 2002. On account of an agreement reached by the Governments of India and the Netherlands the financial assistance ended on March 31, 2004 and the technical assistance will end on December 31, 2005.

Through the Rajiv Gandhi National Drinking Water Mission (RGNDWM), the Department of Rural Development of the Government of India, supplements the efforts of the State Governments by providing assistance under the Accelerated Rural Water Supply Programme (ARWSP). The ARWSP was introduced in 1972-73 by the Government of India to assist the States and Union Territories (UTs) to accelerate the pace of coverage of drinking water supply. In 1986 the entire programme was given a Mission approach with the establishment of the Technology Mission for Drinking Water and Related Water Management, also called the National Drinking Water Mission (NDWM). In 1991 it was renamed as the Rajiv Gandhi National Drinking Water Mission (RGNDWM). The Mission targets Not Covered (NC), Partially Covered (PC) and quality affected rural habitations.

WASMO has been appointed the State Water and sanitation Mission (SWSM) which is the state coordinating agency for the Swajaldhara Programme of the Department of Rural Development. It has received funding to implement the programme in 13 districts of the state.