The corporation plans to launch 'Jalam' brand
The packaged drinking water industry, with the likes of Bisleri, Kinley, Aquafina and Oxyrich, is set to get an unlikely competitor - Rajkot Municipal Corporation (RMC).
In a bid to generate funds to renew its water resources operations in the tier-II city of Gujarat, RMC is planning to set up a packaged drinking water plant as well as sell the product itself under the brand name 'Jalam'.
To be set up by an independent contractor on a BOT basis, the plant will be set up at an investment of Rs 2 crore and would carry a capacity of 40,000 one litre bottles per day.
What's more, RMC will set up distribution channels and dealers networks to market the 'Jalam' brand of packaged drinking water on its own.
Offering a rationale behind such a plant, Vijay Anadkat, city engineer, RMC said, "We were looking at ways to increase our financial strength as well as lessen the tax burden on people of Rajkot. It is then that a proposal to set up a packaged drinking water plant was made. An amount of Rs 2 crore has been passed as investment in the previous budget meeting of RMC."
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The municipal corporation is now evaluating the technical aspects of the plant and would be inviting bids through tender for developing the same.
"RMC will not have to spend any money on this project. The project will be done through BOT basis in which corporation will open a tender and invite bids to build the packaged drinking water plant. The corporation will use profits generated from the plants to regenerate water resources for the city. Hence, money from water will be spent on water again," said Dinesh Brahmbhatt, municipal commissioner, RMC.
According to Anadkat, the project, to be completed by March 2012, will be executed on a trial basis and hence will not face any water shortage. "At present RMC is catering filter water to the people of Rajkot which is almost equivalent to mineral water," he added.
Currently, Rajkot, which depends mainly on Narmada, witnesses drinking water distribution of around 180 million litres per day through underground pipeline by RMC.