In a first, the Vijayawada Municipal Corporation has mooted public private partnership (PPP) to execute a water supply project under the Atal Mission and Urban Transformation(AMRUT) scheme.
In a meeting held to mark the first anniversary of the nation wide Amrut scheme, city Mayor Koneru Sridhar and Corporation Commissioner G. Veerapandian proposed to hand over the project of laying 226 km of water distribution lines and 38,456 drinking water connections to a private party under the PPP model. This step is to ensure that the Corporation does not lose the opportunity of having Rs. 24.50 crore from the Centre under the Amrut scheme, they said.
Addressing the council members, Mr. Sridhar said, “The Centre has granted Rs. 24.50 crore for the Corporation to improve water supply in the city as part of the scheme.
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The State government has to contribute Rs. 14.70 crore and the Corporation Rs. 34.30 crore as its share of 46 per cent.”
But the budget-deficit State government showed no interest in sanctioning its share of funds and the Corporation too is unable to make up all of the required money, he said. “Not using the fund granted will prompt the State government to divert it to other towns in the State and the Centre will not grant anymore funds next year.
With no other option we are going for PPP model. The private party will lay pipelines and set water connections to houses and later reap taxes for a certain period of time,” Mr. Sridhar said.
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Mr. Veerapandian said that the PPP model had proved viable for many high-level projects across the country and it would be helpful for the water supply project in the city.
Floor leader and YSRC party corporator B. Punyaseela and CPI corporator G. Aadi Lakshmi agreed to the decision taken by the Commissioner and Mayor and sought more details about the PPP model.
The same would be proposed during the VMC standing committee meeting to be held on June 30. Once the proposal is passed, tenders would be called. A sum of Rs. 1 crore would be used for development of parks.
A total of Rs. 73.50 crore, including Rs. 50 crore for pipelines and Rs. 22.50 crore for new connections, will be required.
If the Corporation succeeds in utilising the funds properly, the Centre would release funds for development of under ground drainages next year.
Corporators led by Deputy Mayor G. Venkata Ramana shared their observations made during the recent north Indian knowledge trip.