While passing orders on disputes over restructuring the stake-holding companies recently, Justice V Ramasubramanian narrated the dangers of privatising essential constitutional duties such as providing drinking water to people and wondered how a company, which dragged Bolivia into international arbitration over privatisation of drinking water, was involved in new Tirupur area development scheme.
The state government's ambitious Tirupur development plan envisaged several schemes including treatment and supply of potable water and treatment and disposal of sewage in the city, and it engaged consortium of international companies for the purpose.
"I do not know if anyone is aware of this fact and anyone is aware of what happened in Bolivia."
In October 1999, Aguas Del Tunari was awarded 40-year concession rights to provide water and sanitation services to residents of Cochabamba in Bolivia. It was to generate electrical energy and irrigation water for the region's agricultural sector.
Nearly four years later in January 2006, Aguas Del Tunari agreed to drop their case in ICSID for a token payment from Bolivia, which had by then spent more than one million dollars on legal fees alone.