The restructuring of the Punjab Rural Water Supply and Sanitation Project for India formalizes differences between the project activities identified at appraisal and the activities being implemented. This includes the cancelation of some project subcomponents (installation of defluoridation and reverse osmosis plants), the downscaling of other planned activities (adjusting the targets of upgradation of existing water supply schemes based on community response), and revision of scope of community sanitation subcomponent. The resultant cost savings are used to meet increased input costs and higher disbursement percentages of project expenditures. The latter was introduced to ease the requirement of counterpart financing. The changes will not trigger any new safeguard policy and also will not involve any change in the project development objectives.