A decision to this effect was taken at the meeting of the State Cabinet presided over by Chief Minister Naveen Patnaik here today. This will be implemented in the capital city on a pilot basis and will be extended to Puri and Cuttack later.

Briefing mediapersons after the meeting, Chief Secretary TK Mishra said that as per the 74th amendment, responsibility of urban water supply should have been transferred to the urban local bodies (ULBs). But because of various reasons including lack of expertise, the task is performed by Public Health Engineering Organisation (PHEO).

Transfer of responsibility for water supply to the ULBs is also necessary under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM). The corporation will be accountable to both the municipality and the State Government. Its performance will be assessed through performance-based management contract.

The Chief Secretary said that the Cabinet approved the proposal in principle and institutional structure and further amendment in the municipal acts will be brought in the next Cabinet meeting.

The Cabinet approved amendment of the Housing Board Act, 1968, to increase the limit of the board to take up projects worth Rs 3 crore without referring the matter to the State Government. The limit was earlier fixed at Rs 10 lakh.

Besides, the chairman of the board can sign contract up to Rs 1 lakh without prior approval of the board. Earlier, the limit was Rs 3,000 only. The Chief Secretary said that the formula for resolving the dispute between Orissa State Housing Board (OSHB) and the KZK Developers over the Banaja apartment was approved.

The KZK has offered 19,776 square feet space in the apartment to the board against the 12,240 square feet in the original agreement. The OSHB would have got Rs 5.6 crore including Rs 2.6 crore as per original agreement and Rs 3 crore penal interest at the rate of 24 per cent. But the board will now get Rs 6.37 crore even if the offered space is sold at Rs 2,500 per square foot.

The Cabinet, however, wanted the OSHB to renegotiate the offer from B Engineers for the Chandrama apartment. The issue was deferred.

Among other things, the Cabinet approved the proposal for reservation of one third posts for women in the recruitment for Orissa Civil Services (OCS). The proposal for direct recruitment for Orissa Police Service (OPS) was approved. The Chief Secretary said that direct recruits at the DSP level will have more physical fitness. Besides, more promotional avenues will open up for them.

However, the direct recruitment for DSPs will not be more than 15 in a year. The State Government has increased DSP posts from 197 to 404. The requirement for five CCRs including three from the previous five years has been relaxed for promotion of OCS officials.