Jusco seeks rate revision for water supply in Mysuru

The continuation of the expired contract with the Jamshedpur Utility Services Company (Jusco) on operation and maintenance of the 24/7 water supply to Mysuru still hangs in balance as Jusco has sought a revision of the rates and the Mysuru City Corporation (MCC) yet to take the call.

The six-year tripartite Rs 161 crore agreement between the MCC, the Karnataka Urban Water Supply & Drainage Board (KUWS&DB) and Jusco, entered on November 28, 2008, ended on January 27 last, and the MCC at its meeting that followed it had decided to extend it till May 2015. The Jamshedpur-based company was assigned the job of supplying 24x7 water supply to consumers in the city.

However, Jusco, a Tata Company, has sought a revision of rates for the operation and maintenance (O&M) as the rates of the expired contract were based on the rates quoted during 2008-09 up to January 27, 2015. “It is requesting current rates for O&M during the extended period, which needs to be determined as per the terms and conditions of the contract and considering the 2014-15 schedule of rates/market rates,” said K P Jayaramu, Executive Engineer, KUWS&DB, City Division, JnNURM, Mysuru.

A committee formed by the state government last August to examine the issues pertaining to the contract and suggest measures to rectify problems related to the implementation of the 24x7 water supply project, had recommended that the O&M of the system be carried out by Jusco till completion of the rehabilitation works. The modalities of payment could be discussed and resolved between the three parties for the extended period considering it as a project of prestige having nationwide importance.

The present contract had a duration period of 72 months from January 27, 2009 and included rehabilitation of 117,000 connections in 47 district metering areas over the duration of 36 months and O&M of 130,000 connections, by including new connections.

In the background of the committee’s recommendation, KUDWS&DB had requested MCC to take up O&M of Mysuru City after the expiry of the contract or to transfer operations to the Board. However, this issue has not been resolved yet. As MCC is not equipped to take up O&M of water supply system of Mysuru city immediately, Jusco had been asked by KUDW&DB to continue O&M as per terms and conditions of the contract, the Executive Engineer said denying that the Board had brought pressure on MCC to retain Jusco.