Municipal Act Needs Amendment

The government should amend the Municipal Act to empower private parties to distribute water and collect revenues, Assocham said here in a statement yesterday.

In a note to the government, Assocham president Shekhar Bajaj said the current water crisis in large parts of the country has been heightened by the lack of resourcefulness of the municipal bodies and water supply boards.

The chamber said the amendment in the Municipal Act would also permit mortgage or assignment and step-in rights to lenders if the municipal body failed in discharging obligations and allow cutting of supplies in the case of defaulters.

Bajaj said the present revenue collection efficiency is as low as 50 per cent.