Times of India: Ajay Anarpathi: Saturday, November 28, 2020.
Information obtained under the Right to Information (RTI) Act has revealed the cash-strapped Nagpur Municipal Corporation (NMC) incurred financial loss of Rs562.3 crore in city’s drinking water supply in eight years. NCP state vice-president Vedprakash Arya blamed private water operator Orange City Water Private Limited (OCW) appointed by NMC for the loss. TOI on July 8 had reported that NMC was losing around Rs70 crore per annum but OCW is in profit. OCW’s profit after taxation was Rs8.23 crore in 2018-19.
Arya obtained the information about revenue and expenditure of NMC for drinking water supply between 2012-13 and 2019-20. As per the RTI reply, the civic body spent Rs1,518 crore while revenue was Rs955.6 crore during this period. The NMC paid Rs795.6 crore to OCW. The RTI information also revealed NMC was in profit till 2010-11. Profit was around Rs3 crore in 2010-11
It is for the first time official figures about loss being incurred by NMC from drinking water supply have come to fore. Arya in a press release said, “NMC spent over Rs1,000 crore obtained from the central and state governments under JNNURM scheme for strengthening water infrastructure. A current office-bearer used to work in one of the two private companies that formed OCW between 1992 and 2007. The office-bearer roped in OCW from April 1, 2012, to benefit the two companies.”
“NMC would have earned profit of Rs447 crore in these eight years had it not engaged OCW,” said Arya.
He further said OCW failed to complete 24X7 Water Supply Project costing Rs388 crore and yet no action was taken by the NMC. “As per JNNURM scheme, NMC was supposed to complete the project on March 31, 2012. As per the work order issued by NMC, OCW was supposed to complete the project on March 1, 2017,” he said. Instead of ensuring round the clock water supply, Arya said, OCW further deteriorated water supply. “Still, NMC approved One Time Settlement Scheme causing another loss of around Rs400 crore,” he said. The NCP neta submitted a memorandum to municipal commissioner Radhakrishnan B on Friday demanding immediate ouster of OCW and recovery of losses. He also warned of agitation if the demand is not fulfilled.
OCW did not respond to TOI’s messages. NMC standing committee chairman Vijay Zalke said Arya is playing politics during election period. “Arya’s allegations regarding the office bearer are baseless. I will come up with a detailed reply,” he said.
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