R. Vimal Kumar

Tirupur: New Tirupur Area Development Corporation Limited (NTADCL) is set to explore more avenues beyond Tirupur to market its treated water produced as the penetration rate in the industrial segment here is yet to touch the desired levels.

With off-take of water being very low in the industrial sector, the institution has been registering huge losses (loss last fiscal was Rs. 70 crore) and is now fighting for its existence.

At present, even though the domestic off-take has touched the optimal level of 48 mld (million litres per day), the industrial off-take is only about 45 mld in the Tirupur Local Planning Area (TLPA) comprising Tirupur Corporation, two municipalities, 15 village panchayats and one Town panchayat against the optimal project capacity (both deomstic and industrial together) of 185 mld.


“This is a matter of concern as the institution has been set up mainly to cater to the industrial needs and moreover, the revenue from the domestic consumers is only miniscule since the rates offered to them are heavily subsidised,” Managing Director of NTADCL K. Dhanavel told The Hindu. The domestic consumers within Tirupur Corporation limits are supplied the treated water at Rs. 5 for every 1,000 litres and to those living in wayside villages in the city’s peripherals at Rs. 3.5 for 1,000 litres, against the production-cum-distribution cost of Rs. 41.70 for 1,000 litres.

In this scenario, the NTADCL now plans to supply an additional of 20 mld to industrial units near Perundurai and in the outskirts of Tirupur before the end of 2010-11 fiscal.


Another option looked upon by the NTADCL is the government intervention in the form of allocating additional subsidies to offset the losses.

“Besides, we have requested the government to ensure stopping of illegal groundwater tapping so that demand for NTADCL water will go up,” Mr. Dhanavel said.