Setting the ball rolling for privatisation of water distribution system, Delhi Jal Board (DJB) on Friday approved a long-pending proposal to involve private entities in management, maintenance and supply of water in several areas of the city. At a meeting, it was decided that around Rs 750 crore would be given to companies in south Delhi on a pilot basis for improvement in service of water supply in Mehrauli, Vasant Vihar and Malviya Nagar areas through the PPP mode.
Two companies Masers SPML and Gehan have been given a ten-year responsibility to lay water pipelines, two underground reservoirs and water treatment plants for better distribution of water in the areas. The decision was taken at a board meeting of DJB presided over by Chief Minister Sheila Dikshit. Officials said the reform has been initiated in consultation with the planning commission which had identified water sector reform as a priority area for the city.
The city government is likely to brief the planning commission about the decision next week. Officials said the private sector would be involved in water distribution, management and maintenance of DJB’s infrastructure in Malviya Nagar, Vasant Vihar and Nangloi areas and they will be paid a ‘fee’ for their services.
Sources said that the DJB would provide four times more water to these companies. DJB officials are also hopeful that the loss of water would be reduced, increase in bill collection will increase in revenue generation and that the move will also help reduce energy consumption.
The DJB is also confident that the move will help reduce the quantity of non-revenue water.
Two companies Masers SPML and Gehan have been given a ten-year responsibility to lay water pipelines, two underground reservoirs and water treatment plants for better distribution of water in the areas. The decision was taken at a board meeting of DJB presided over by Chief Minister Sheila Dikshit. Officials said the reform has been initiated in consultation with the planning commission which had identified water sector reform as a priority area for the city.
The city government is likely to brief the planning commission about the decision next week. Officials said the private sector would be involved in water distribution, management and maintenance of DJB’s infrastructure in Malviya Nagar, Vasant Vihar and Nangloi areas and they will be paid a ‘fee’ for their services.
Sources said that the DJB would provide four times more water to these companies. DJB officials are also hopeful that the loss of water would be reduced, increase in bill collection will increase in revenue generation and that the move will also help reduce energy consumption.
The DJB is also confident that the move will help reduce the quantity of non-revenue water.