Isaac puts Kerala Water Authority on notice

Agency incurs a liability ofRs.300 crore a year

Finance Minister T.M. Thomas Isaac has asked the Kerala Water Authority (KWA) to buckle down and break even in less than five years.

The 2016-17 Budget earmarked Rs.2,064 crore, the highest sum ever allocated to KWA, to the currently loss-making enterprise. Such an opportunity may never come by again, and hence this is the last chance for KWA to become an efficient enterprise, Dr. Isaac has said. He was inaugurating a seminar on ‘people-friendly budget and the drinking water sector,’ organised by the Kerala Water Authority Employees Union and the Association of Kerala Water Authority Officers. Presently, KWA incurs a liability of Rs.300 crore a year, according to official estimates.

Capacity utilisation

While the cost of purification and distribution of 1,000 litres of water is Rs.25.47, the revenue received for the same is only Rs.10.075. Further, the existing capacity of 3,000 million litres per day (MLD) is being underutilised mainly due to shortcomings at the distribution end. According to Dr. Isaac, a heavy capital infusion is necessary to improve this condition, by changing the ‘ancient’ pipes and pumps, and increasing overall labour productivity. There should be an increase in efficiency of water distribution, as well as its outreach. The heavy allocation, sourced through the Kerala Infrastructure Investment Fund Board, will ensure that the availability of funds will not be an issue for the time being.

Work culture

However, it is the lackadaisical attitude towards their job which the KWA employees have internalised over the years that has to be transformed first. It is up to the staff to take up the challenge and come up with strategies to break even, he said.