Sunday, 1 September 2013

Water project likely to start soon: Civic chief - Source The Times Of India

Municipal commissioner Harshdeep Kamble on Saturday hinted at an early start of privatization of water distribution project in the city. Kamble said that most of the issues among the partners of the Aurangabad City Water Utility Company Limited (ACWUCL) have been resolved and the company had completed financial closure, which was a major obstacle on its part.

The Aurangabad Municipal Corporation (AMC) has already completed all its formalities and the bank has approved its loan proposal and disbursed Rs 94 crore for the project. The total cost of the project is Rs 792.2 crore.

Talking to media persons, Kamble said one of the partners recently gave its consent paving the way for the ambitious project. Besides, the special purpose vehicle (SVP) had also made considerable progress in availing loan, Kamble said.

According to highly placed sources, one of the partners of the company had reservations about the project.

"We are quite optimistic about the project as it the need of the hour. Hence, we were extending the time limit for it despite the SVP delaying it. But in the current scenario, things are looking quite positive," Kamble said.

Following delay in execution of the project, the civic administration had recently threatened to scrap it if the SVP failed to commence the project before August 31. "But according to the new developments, it seems that the company is now prepared for the project and hence, we may not scrap it. However, the clear picture will immerge within the next 7-8 days," Kamble said.

The AMC had roped in ACWUCL to draw water from Jayakwadi dam and supply it to the consumers in the city under the public private partnership (PPP) model. Under the project, the SVP will also lay down internal pipeline network, build overhead water tanks at different locations, install water meters at the doorsteps of the consumers and collect tax over a period of next 20 years.

However, after failing to complete the formalities, the SVP had put the project on hold since January 10 this year after kick starting it on January 1. Since then, the project has been facing problems.

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