Privatising Water in all states
Rajesh Unnikrishnan & Anto T Joseph MUMBAI
WATER distribution in the country is going through a quiet revolution.
Despite opposition from non-governmental organisations (NGOs), many
municipal corporations across several states seem to be going ahead with the
privatisation of water sourcing, evacuation, storage, distribution,
operation and maintenance and construction of various water schemes.
While the Jawaharlal Nehru Urban Renewal Mission (JNURM) has given
public-private partnerships (PPPs) a fillip, the International Finance
Corporation (IFC), part of the World Bank, is supporting many such ventures
initiated by municipal corporations. Work is currently in progress in
Maharashtra, Karnataka, Tamil Nadu, West Bengal, New Delhi, Rajasthan and
Andhra Pradesh.
Industry officials say corporates like Larsen & Toubro, Pratibha
Industries, Unity Infraprojects and IVRCL are executing water projects on
cash contract or build-operatetransf
Brihanmumbai Municipal Corporation, Thane Municipal Corporation, Rajasthan
Urban Infrastructure Development Board, Chennai Municipal Corporation and
Navi Mumbai Municipal Corporation. Pratibha is also the lowest responsive
bidder in joint venture with Unity Infraprojects for a Rs 400-crore water
supply scheme project in Ulhasnagar near Mumbai. This project, once awarded,
has to be executed on a BOT basis and has a concession period of 30 years.
Industry officials said PPPs in water infrastructure in India are
focused on design, detailed engineering, procurement, construction,
commissioning, operation and maintenance of a given scheme. “They can be
executed on a cash contract basis or on BOT or annuity or deferred payment
model basis,” said an official.
Like the power sector, water distribution by government bodies faces a
number of hurdles. “Poor sourcing and insufficient storage and evacuation
facilities have bogged down water distribution. There is not a single civic
body in India that manages to provide water supply round the clock,” said
another official. He quoted a recent World Bank study which said that people
are paying Rs 6-7 per kilolitre of water. This is primarily because close to
50% of water is lost in cities through leakages and theft.
Rohit Katyal, executive director of Pratibha Industries, says: “There is
a change in the mindset of state governments.
Mumbai and other municipal corporations in Maharashtra, Pratibha is building
recycling plants for the Delhi Jal Board, Gujarat Water Supply and Sewerage
Board and four projects under the mega water supply project for BMC. It is
also involved with ADB-funded water supply projects in Karnataka and Jammu &
Kashmir. Around 65-70% of the company’s revenues accrue from the water
infrastructure segment.
Recently, L&T secured a Rs 48.2-crore turnkey project for setting up a
water supply system for the Bisalpur Water Supply Project from the Rajasthan
Urban Infrastructure Development Project. This project will cater for the
increasing water demand of Jaipur city and reduce dependence on ground water
resources. The project will ensure supply of 360 million litres per day
(MLD) of treated water to Jaipur city and 40 MLD for the adjoining rural
areas, L&T officials said.
The Delhi water reforms, initiated a year ago, failed because of
unprecedented NGO protests. However, other states are looking at water
privatisation seriously. In Delhi, the proposed management contract for
water distribution was to transfer key operational and investment decisions
to a multinational in order to reduce losses.