Jusco eyes more urban projects

Jamshedpur Utility & Services Company ( Jusco), a subsidiary of Tata steel, is planning to expand its water supply management business by tying up with the municipal bodies of the different cities in the country that are open to private participation.

Moreover, the company had recently applied for license to supply power in the district of Adityapur, adjoining Jharkhand, to the the government of Jharkhand. The company is definitely looking at spreading its wings outside Jamshedpur where it is responsible for the maintenance of urban infrastructure.

Jusco along with Gammon India Ltd and Gammon Infrastructure Projects Ltd has won the bid to develop an automobile and auto components Special Economic Zone (SEZ) on build, operate & transfer (BOT) basis at Adityapur.

"With the license granted to us, we are in the process of developing our own power infrastructure there. This will be the first time in India that a private company will provide power in a region with the state electricity board. The services of the Jharkhand State Electricity Board (JSEB) and Jusco will run in parallel, and the consumers can choose from either of them.", informed Sanjiv Paul, managing director, Jusco.

They have recently won the bid for leak detection in the municipal network and its augmentation in Bhopal.

"We will jointly do the work with the Bhopal Municipal Corporation.", informed Sanjiv Paul.

Paul added that the company was looking at tapping the opportunities in the water and sewage business that are expected to be thrown open by the Jawaharlal Nehru Urban Renewal Mission (JNURM).

Some of the Madhya Pradesh cities like Bhopal, Indore, Jabalpur are looking at upgrading their municipal infrastructure with funds from the JNURM, and the Asian Development Bank (ADB). "We are hopeful of getting the contract in some of the other Madhya Pradesh cities as well.", Paul said.

Jusco has also bagged a water distribution and sewage project in the information technology hub of Kolkata, Sector V of Salt Lake, on a BOT basis. A special purpose vehicle (SPV) has been formed with two Tata group companies, Tata steel (74 per cent) and Voltas (26 per cent).

Tata Steel would be participating in the project through its wholly owned subsidiary, Jusco. Nabadiganta, the municipality that manages sector V, has signed a pact with the SPV.

The SPV would build a distribution network that will provide water to the the consumers, that are mainly IT companies. It would also set up a sewerage network and treatment plant.

The project was conceptualised by Kolkata Municipal Development Authority (KMDA) on behalf of Nabadiganta. KMDA and the SPV are now discussing user charges.

"A development agreement is to be signed with KMDA by the end of this month. We are discussing the final details.", informed Paul. The BOT contract will be effective for 30 years, after which it will be subject to renewal.

Jusco had signed an MoU with the Haldia Development Authority (HDA) two years back to build, maintain and upgrade the water management system of the industrial town.

"Things have not moved any further from there. But talks are likely to be resumed soon. Details of the project are to be decided yet. ", Paul informed.

According to industry sources, Infrastructure Leasing & Financial Services ( IL&FS) will also collaborate with the HDA on water distribution projects in Haldia.