Business Standard

Mysore water supply privatisation ruled out

Image

BS Reporter Chennai/ Mysore

One of the three phases of the modernisation of water supply system of Mysore has been entrusted to the Jamshedpur Utilities and Services Company Ltd. (JUSCO), in the recent tender offered to it.

The water supply system is being modernised at an estimated cost of Rs 194 crore. Split into three phases, two phases of the project are already in progress. JUSCO has won the tender for the third phase costing Rs. 102 crore, according to Mysore Mayor Ayub Khan.

He denied the recent criticism leveled at some quarters that the water supply system is being privatised by handing it over to JUSCO and the water rates will go up. He made it clear that the Mysore City Corporation (MCC) and the elected council will continue to have the say as the powers are with it.

 

“The contract with JUSCO is only to remodel, manage and maintain the drinking water supply system in the city and the criticism of it being privatised is totally baseless,” he asserted.

JUSCO has been entrusted with the task of modernising the supply system only following a MoU signed between it, the Karnataka Urban Water Supply & Drianage Board (KUWS&DB) and the MCC, he made it clear at a press meet.

Under the agreement, JUSCO will manage and maintain the supply system for six years for which it will be paid Rs 16.2 crore annually.

The agreement will benefit the MCC as well the citizens as it will regularise the present water supply with day-long supply, increase the MCC revenue, regularise unauthorised and non-metered connections which number around 1.3 lakh and improve mobilisation of water charges with JUSCO issuing computerised bills every month. It will install 1.3 lakh meters to monitor all the non-metered connections in the city, he said.

Ayub Khan also made it clear that there would be no increase in the water rates and the present staff would continue. The MCC itself would make payment of salaries to the water supply staff. JUSCO will only supervise the personnel.

MCC Commissioner K.S.Raiker said the MCC was spending Rs. 30 crore for maintenance of water supply in the city. However, the revenue was only Rs 18 crore, with the monthly collection of water charges standing at Rs 1.5 crore. Of this amount, 10 per cent was paid to the KUWS&DB. As JUSCO will be paid Rs. 16.2 crore annually for maintenance, it will result in considerable savings for the MCC.

A team of 20 corporators will be going to Jameshdpur on December 18 to study JUSCO’s water supply system there.

KUWS&DB Mysore Division President H.M. Gowdegowda had earlier criticised the agreement saying that the contract was silent on the fate of over 600 staff members of the Vanivilasa Water Works and it would increase the water rates. The Association of Concerned and Informed Citizens of Mysore had also opposed the tender on similar grounds.

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Dec 11 2008 | 12:00 AM IST

Explore News