The Hindu Business Line : West Bengal to tie up with Jusco for supplying drinking water

The West Bengal Government is encouraging private participation in water and waste water management services in commercial and industrial areas in the State, according to Mr Asok Bhattacharyya, Minister for Municipal Affairs and Urban Development.

Jamshedpur Utilities and Services Company (JUSCO), a wholly owned subsidiary of Tata Steel for development and management of civic infrastructure and allied services, plans to supply drinking water to the commercial establishments and manage sewerage system in Sector-V in Salt Lake. The company will sign an agreement with the State in this regard by this month-end.

Voltas Ltd, a water management company and part of Tata Enterprise, is likely to be a minority partner in the project.

Drinking water supply

However, according to Mr Bikash Ranjan Bhattacharya, Mayor of Kolkata, supply of drinking water to domestic households in the State will continue to remain with the municipal authorities.

“The Government is constitutionally duty bound to supply drinking water to the citizens. This cannot be shifted to private parties. But technical expertise from private entrepreneurs to improve the current supply situation is always welcome,” Mr Bhattacharya said, in a seminar on ‘Delivering Sustainable & Innovative Water and Waste Water Services’ here.

Project cost

According to Mr Sanjiv Paul, Managing Director, JUSCO, the project cost has been estimated at Rs 57 crore. “There is a demand for three million gallons of water per day in Sector-V area. Consumers will be charged at Rs 25 per kilolitre of water, including the sewerage charge. There was a need to subsidise the project to maintain profitability. Hence, nearly 35 per cent of the investment will be funded by Jawaharlal Nehru National Urban Renewal Mission (JNNURM),” Mr Paul told Business Line on the sidelines of the seminar.

The rest of the investment will be funded by a special purpose vehicle, in which JUSCO and Voltas will have 74 per cent and 26 per cent stake, respectively. The project is expected to be operational in 18 months from the date of commission. The BOT (build-operate-transfer) period for the project is 30 years.