NAGPUR: Strange but true. The Nagpur Municipal Corporation (NMC) is witnessing a reverse proportionate in revenue from water works department (WWD).
The financial losses are on rise despite implementation of projects
worth around Rs 1,670 crore, additional supply of 110 million liters per
day (MLD) water and handing over operation to the private operator.

According to the data available with the NMC, the revenue from WWD from
April 1 till date was recorded at around Rs 26 crore for an average of
Rs 5.77 crore per month. The expenditure from the WWD is estimated at Rs
11.30 crore per month which includes payment of Rs 6 crore per month to
private operator Orange City Water Limited
(OCWL) and Rs 5.30 crore for raw water and power supply. The difference
between the expenditure and revenue comes to almost 50%. The financial
loss from WWD till last fiscal was around 35-37%.

According to
the official report of JNNURM projects, NMC implemented 13 projects
worth Rs 1,670 crore of which five completed and remaining in final
stages excluding 24×7 water supply project. The projects completed
include water leak detection, water audit project, energy audit project,
expansion and upgradation of water supply distribution network, and
Kanhan water treatment plant. All projects excluding Kanhan plant were
to reduce the high expenses in the water works. Besides, the Kanhan
plant has added 110 MLD water thus increasing the total water supply to
around 640 MLD. The increased quantity of water come to around 20%. The
NMC should have earned additional revenue from increased water supply.
Still, the losses are on rise raising serious question.

Citing
the reason about motive to improve the performance, the NMC roped in
private operator since December 2011. The operator has been paid Rs 6
crore per month from March this year. Besides, the NMC had established a
special purpose vehicle- Nagpur Environmental Services Limited (NESL)
for making the water works no profit no loss affair a couple of years
ago. Even, the NMC had increased the water tariff by 5% in August 2011.
Still, the rise in financial loss is unjustified. Probably, it seems
that the WWD wants hike of water tariff every year to hide its
inefficiency. Already, the NMC had hiked the water tariff by 5% with
effect from April 1 this year inviting fresh controversy.

In
fact, the NMC was unaware of increase in loss from WWD if the budgetary
provisions are to be considered. According to the data given in the
budget of 2012-13 presented by chairman of standing committee
Dayashankar Tiwari, the NMC has proposed to grant Rs 80 crore to NESL
this year from its other sources of revenue. The NMC has proposed
increase in grant which proves officially the rise in financial loss.
The grant given in 2010-11 was Rs 40.89 crore and around Rs 70 crore in
2011-12.

Executive engineer Shashikant Hastak assured to provide details and then did not respond to repeated calls.

Blaming the officials of WWD for increase in loss, chairman of water
works committee Sudhakar Kohle told TOI that the top officials including
Hastak are not taking the water works seriously. “Water supply through
tankers should have been withdrawn after additional water available from
Kanhan plant. Hastak is not withdrawing the tankers. Even the officials
are least bothered to inform mayor Anil Sole and other office bearers
about any shutdown in water supply. Action seems only to correct the
problems,” he said.