Despite protests, NMC clears Rs123 crore OTS for OCW

Nagpur: Ignoring stiff opposition by several corporators, BJP-led general body of the NMC on Tuesday cleared over Rs123 crore one-time settlement (OTS) scheme for Orange City Water Private Limited (OCW). The general body also okayed Rs50 crore payment to the OCW by diverting a part of the Rs200 crore loan the civic body plans to avail.
All Congress corporators and independent corporator Abha Pande objected to the proposals, while BSP and Shiv Sena corporators did not participate in the meeting. The general body also approved an extension of 18 months for completion of the 24x7 water supply project.

Under the OTS, NMC will waive off penalty of Rs41 crore levied on OCW for breach of agreement in last seven years. The civic body will also pay an escalation cost of Rs52 crore for 24x7 project. The operator also stands to benefit by over Rs40 crore following a decision to extend performance parameters by three more years, up to March 2022. Thus, the OTS will be of over Rs 123 crore.

Apart from Rs50 crore payment, pending bills of Rs24 crore will be released to the OCW soon.

Ruling party leader Sandip Joshi said OTS was required to complete the 24x7 water project. “OCW is at fault. NMC also committed some mistakes. Therefore, we came up with the OTS. We have denied OCW’s demand to give exemption from spending Rs111.37 crore under renewal and replacement (R&R). We have also not approved interest of Rs28 crore on cost escalation,” he said.

Congress corporators Praful Gudadhe, Manoj Sangole, Sandip Sahare, Harish Gwalbanshi, Kamlesh Chaudhary and others objected to the proposals stating that OCW should be ousted for its failure to complete 24x7 project in time. “OCW’s failure is resulting in supply of contaminated water, unequal distribution, cost escalation, water crisis, inflated bills,” they alleged.

Mayor Nanda Jichkar and deputy mayor Deepraj Pardikar directed the NMC officials to solve the issues raised by corporators.

Gudadhe said waiving off penalty was an irregularity. “NMC officials had levied penalty as OCW failed to fulfil its obligations as per the agreement. None of the corporators are aware about conditions the OCW has met in last seven years,” he said.

Joshi directed the NMC officials to prepare action taken report (ATR) of agreement and table before general body in next meeting.

Gudadhe said the ruling party should not hurry in approving the OTS and wait till submission of the action taken report. “Citizens know the reason behind BJP favouring the OCW,” he said.

Joshi and former mayor Pravin Datke objected to Gudadhe’s statement and asked to give proof of relations between the OCW and BJP leaders.

Pande said, “NMC had not furnished data of tankers being operated by the OCW. Are tankers belonging to some office-bearers being operated by the OCW,” she questioned. Pande’s statement resulted in heated arguments as BJP corporators raised objection and asked Pande to give proof.

Sahare alleged that the NMC decided to avail Rs200 crore loan from a particular bank without holding discussions with other institutions despite knowing that this would cause loss to the NMC.

Gwalbanshi said instead of taking loan, the NMC should seek grants from CM Devendra Fadnavis and Union minister Nitin Gadkari.