JUSCO debate : Change of management of Mysore's water supply

This post is a consolidation of JUSCO debate taking place at various places, submitted by CS Sharada Prasad.
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History of Water Privatisation in India

National Water Policy 2002

Where the debate actually gets polarized is whether bringing in efficiency also means bringing in the private sector? Supporters of privatisation argue private companies are better placed to increase efficiency. Critics say private companies will raise tariffs making water unaffordable.

History of Jusco

Problems with existing Vani Vilas Water Works in Mysore:

Mysore city water supply is suffering from many serious problems. A significant portion of customers do not have meters. Most of the meters are not working properly. There is plenty of leakage all over the city. As a result of these factors, only a small fraction of the water pumped into the city gets billed. Many customers do not pay their water bills. So MCC is collecting only a fraction of the amount due to it. Due to lack of revenue, maintenance of the system is not possible. In many localities, water is supplied once in few days. When it is supplied, the pressure is low. Quality of water supplied is also poor. So poor that one can not help wondering why we are not having epidemics every day! No one knows where all the underground pipes and valves are. As a result, in many cases, one can not even localize the problem. These problems are getting worse with time. After spending Rs. 130 crores of ADB loan to provide 24x7 water supply, we are pumping twice the water into Mysore, but the water problem is increasing. Neither MCC nor the Water Board seem to have the technical expertise required to run the water supply system efficiently. MCC does not have the determination to collect its dues in the face of political pressure. Without outside intervention, the situation will soon become irreparable. It is in need of emergency treatment. The only way out seems to seek the help of competent and experienced professionals. But such help does not come cheap.

JUSCO Mysore Proposal

Will the water tax rise steeply after the contract?

Will public taps be closed after the contract?

Is Privatisation the only solution?

References and Further reading

Note:

India Water Portal
www.indiawaterportal.org