Tatas set sail into uncharted waters

Group firm, Jusco, eyes water management projects.

Close on the heels of getting into the enhanced water business, the Tata group is all set to enter water management which is being opened up for private players.

The group is expected to make a splash in the business in Bangalore where two bids are expected to be announced shortly, if not next week.

The vehicle for the proposed entry into water management will be Jamshedpur Utility & Services Company (Jusco), a wholly-owned subsidiary of the group's steel entity Tata Steel.

Confirming this, sources in the group said Jusco had put in two bids for participating in two projects in Bangalore. Bangalore Water & Sewage Board, a state government undertaking, had invited bids for two projects and would announce the successful bidders next week.

Jusco, the country's first and only privately managed utility services company, is keen on participating in water management projects in Mumbai. However, Brihanmumbai Municipal Corporation, the civic body of the state government, has not yet decided to launch tender for any project.

"In fact, we are open to participate in water management in any city where the sector is opening up, " they said.

Industry sources said the scope for water management in Bangalore where availability of water was less than national average was huge.

Bangalore gets water for 2.5 hours a day against the national average of 5.6 hours a day. Chennai is at the bottom of the list with water availability of 1.5 hours a day, then comes Ahmedabad (2 hours a day).

Delhi has availability of four hours a day, less than Mumbai's five hours a day.

Tata Steel had formed its town division into separate entity called Jusco in August 2003. Tata Steel has been into providing municipal services through its town division since it was set up in 1907.

In Jamshedpur, Jusco's services include water and waste water management, power supply, public health, horticulture services, planning, engineering and construction. However, it will restrict its activities in water management only in other cities.