Jusco looks at Assam water supply

The central government has chalked out guidelines for promoting private sector participation in water supply and sanitation services and in response, the Assam Urban Water Supply and Sewerage Board has asked Jamshedpur Utility and Services Company (JUSCO), a wholly-owned subsidiary of Tata Steel and Veolia Water of France, to manage water and sewage system in Assam.

The first round of talks between Jusco-Veolia and the Assam board has been held in Guwahati. Jusco would conduct a feasibility study of the potable water services in Guwahati, Jorhat and one more Assamese town.

"There is a huge gap in supply and demand for potable water - customers want water. The board invited us to give them a proposal for augmenting capacity and managing the water system," said Jusco managing director Sanjiv Paul. Veolia Water's Jamshedpur project director David Turton said it would help as well.

Guwahati, at present, receives 20 million gallons of water per day at the rate of Rs 10 to Rs 12 per kilolitre of water. About 85 per cent of the customers are metered and collection is about 98 per cent.

In contrast, 70 per cent of Jusco's customers in Jamshedpur are not metered and pay a fixed sum of Rs 75 per month irrespective of the water consumption.

If the feasibility study leads to a deal, Jusco may open an office at Guwahati. Initially, it would provide consultancy and later it may take on projects, said Paul.

Assam Water Board could privatise management of water services for the entire state. The Union ministry of urban development and poverty alleviation encourages joint ventures with qualified national and international private to help add capacity in water supply and sanitation services. The size of the Indian water market may be $2 billion, say some estimates.