Published On : Thu, May 15th, 2014

Water Supply Contract Audit underway

Nagpur News : Comptroller and Auditor General of India (CAG) team has arrived for annual audit for financial year 2011-12, 12-13 and 13-14 and has started its work. The team has been provided the relevant papers it asked for. All the papers were given to it at once.

NECL Meeting News photo 15 May 2014

As per 24×7 Water Supply Work Agreement, Nagpur city’s water supply arrangement has been transferred to the operator on as is basis. It includes lifting of impure water, its purification, transportation and storage and distribution as tap water, measuring the water supplied and issuing bills as per tariff agreed by the government, collecting the money and depositing money into Nagpur Municipal Corporation’s Sewerage and Water Account. All these functions have to be performed by the operator at his own cost. In return, the operator is going to get its share as agreed upon in proportion to the money deposited into the account.

At the time of finalising the contract, the information like faulty meters, how much money Nagpur Municipal Corporation gets through average or minimum billing, such kind of information was not readily available.

Therefore, the operator has to renew/modernise the system in span of 5 years, a minimum payment for 50% of then capacity i.e. 250 MLD water, has to be given to Nagpur Municipal Corporation, this clause is also included in the contract.  If the operator recovers more money than for 250 MLD water, a proportionate payment has to be made to him.

The cost of electricity and impure water has not been included in the contract. For the year 2013-14 the quantum of water that OCW has recovered payment for is not made available by OCW.

It will not be proper to compare the water tariff charged from general public and that of operator. The rates vary from Rs 5 to Rs 540 per unit but for OCW the rate is uniform.