NMC ignores ₹100cr R&R works not done by OCW

Nagpur: In yet another major loss of public money, which will also impact drinking water supply, the cash-strapped Nagpur Municipal Corporation (NMC) is not asking private water operator Orange City Water Private Limited (OCW) to execute renewal and replacement (R&R) works worth ₹100-110 crore. MLC Pravin Datke has also demanded an inquiry into at least ₹90 crore worth R&R works that the civic body claims the operator has executed as required.
TOI had reported complaints of former corporators and citizens about increase in contaminated drinking water supply. One of the major reasons behind contamination of drinking water supply is lack of R&R works by OCW.

“OCW was supposed to complete R&R works of around Rs90 crore by end of 2021-22 financial year. Excluding minor works, OCW has almost completed the works,” a NMC engineer claimed.
As per the contract, OCW was supposed to execute R&R works worth Rs15 crore in its first financial year, 2012-13. The amount to be spent on R&R works was supposed to increase with revision in payment to OCW. NMC has hiked payment of OCW from ₹7.90 per unit to ₹17.33 per unit. Thus, total amount of R&R works was supposed to be around Rs190 crore by end of 2021-22 fiscal.
Unfortunately, the civic body is satisfied with R&R works worth ₹90 crore only, giving away its right to demand pending works worth another ₹100-110 crore.
Datke said, “Civic chief and directors of NESL should conduct an inquiry whether OCW actually executed R&R works worth Rs90 crore. It can be a lie or submission of wrong data. Actually, OCW was supposed to complete works worth ₹250 crore by end of 2021-22. NMC and NESL did not ensure work worth a single rupee in first five years. Retired chief engineer like Prakash Urade should be appointed to inquire into R&R works, as city did not get rid of contaminated drinking water supply.”
As per NMC’s deadline, problems of contaminated drinking water supply should have ended on or before March 31, 2017. Despite completion of deadline six years ago, many residential areas are getting contaminated drinking water.
NMC had formed Nagpur Environmental Services Limited (NESL) as special purpose vehicle for ensuring improvement in drinking water supply and monitoring OCW’s functioning. Unfortunately, NESL has allegedly turned into bill approving agency for OCW, say some NMC officials.
The civic body used to earn profit from drinking water supply before appointment of OCW in 2012. Now, NMC is facing loss of over Rs70 crore per annum.
NMC had agreed to pay ₹7.90 per unit to OCW despite it recovered only Rs5 per unit from consumers. Also, NMC had approved one-time-settlement (OTS) to OCW four years ago in which the civic body incurred loss of over Rs400 crore. Still, NMC is not holding OCW accountable for R&R works worth over ₹100 crore.