‘Contract should be extended’

There are uncertainties over water supply management in the city consequent to the termination of the contract awarded to Jamshedpur Utilities and Services Company (JUSCO) on Tuesday.

The Mysore City Corporation may not be willing to revert the distribution management to Vani Vilas Water Works, as the cash-strapped MCC will have to spend Rs. 2 crore per month, as against the Rs. 58 lakh per month being spent by JUSCO.

Mayor R. Lingappa told

The Hindu that there was a general perception among councillors that the contract to JUSCO should be extended till it fulfils its contractual obligation of providing 24x7 water supply to all 65 wards in the MCC jurisdiction.

“A final decision on the issue will be taken by the MCC Council convened for the purpose on Tuesday,” said Mr. Lingappa. The councillors are clear that if the contract was to be extended, there would be no fresh financial implications for the MCC. “Instead of terminating the contract with JUSCO, we want to get the pending works completed from them as per the original contract,” said the Mayor.

The Karnataka Urban Water Supply and Drainage Board and JUSCO entered into an agreement in 2008 in what was described as the first public-private partnership model in the country for a 24x7 water supply project on this scale. As per the original contract, the Rs. 162 crore project envisaged overhauling of the distribution network, installation of meters to nearly 1.2 lakh households, plugging illegal connections and ensuring supply with adequate pressure to reach at least 7 metres.

1.75 lakh connections

But JUSCO claimed that their survey – subsequent to winning the contract – indicated that there were 1.75 lakh connections as against the 1.2 lakh connections mentioned in the contract document, and hence sought to submit a revised estimate. This was not allowed by the authorities.

“JUSCO is eager to pack up but we want the work to be completed,” said Mr. Lingappa, indicating that the contract may be extended. Whether JUSCO will bite the bullet remains to be seen.