Another MileStone!!!

Tuesday, January 29, 2008 (Tirupur, TN)
Tirupur, popularly known as the knitwear capital of India had the country's first ever privately financed drinking water project.The area had an acute water shortage that was affecting the hundreds of dyeing and bleaching units. Villages in the area too were facing great water stress.So in 2003 the Tamil Nadu government roped in Mahindra and Mahindra and the local industry to pitch in funds and bring water to Tirupur.A Rs 1,000 crore public-private partnership came up by 2006, and was supplying 110 million litres to the local communities and industrial units per day.Before that the villagers used to pay tanker operators up to Rs two for a pot of water that too for an irregular supply. And now for just Rs 4 they get two-and-a-half hours of water everyday. And if they pay fee in the beginning of the year it comes to just Rs 1.92 per day.''They charge Rs 700 for the whole year. It's better than spending two or three rupees for a pot of water. They supply water for two and a half hours everyday. So there's nothing wrong,'' said a villager.But for the Rs 11,000 crore knitwear industry, ironically their dream is coming at a higher price. They have to pay Rs 45 per 1,000 litres of water, six times the domestic price.''When it is under private-profit, criteria are more important than social utility and social cause. It's a double edged sword,'' said Anil Kumar, Owner, Dyeing and Bleaching Unit. But a better part of the industry backs the project.''Price is of course a concern, but we are trying to promote ancillary companies. Once we pay up the loans, we can even lower the prices. It's a very successful project, it could be done in Tirupur only because the industrialists are ready to buy the water,'' said A Sakthhivel, president, Tirupur Exporters' Association.''In other places, it may not be viable because people may not pay such high prices. They tried it in two three places, they couldn't do it. In Tirupur industries came forward to finance this project,'' he added.This is perhaps the only privatisation model in the whole of Asia about which the people concerned have good things to say. But it is too early to assess its success especially at the level of cost.Technology is being brought in to recycle the costly water. All parties involved are also trying to pay off the loans before due date. Once that happens water costs will come down.Will then the New Tirupur Area Development Corporation finally be able to create a model project for all to follow?