Continue on TOI App
Open App
OPEN APP

Instead of OCW, NESL spent over Rs50 cr to repair pipelines, tanks

Nagpur: To save private operator Orange City Water Private Limited’s (OCW) money, Nagpur Environmental Services Limited (NESL), the special purpose vehicle of Nagpur Municipal Corporation (NMC) for water supply, has spent over Rs50 crore from funds approved for 24X7 Water Supply Project. The private operator was supposed to spend Rs112.80 crore from its pockets, but did not spend a single penny in last six years.

Tired of too many ads?go ad free now
As per the contract executed between NMC and OCW in 2011, it was mandatory for OCW to spend Rs15 crore per annum from its pocket on repairing and renovation of water network and related infrastructure. The amount was linked to NMC payments to OCW, and was to increase with rise in OCW’s payment.

Thus, the amount to be spent by OCW increased from Rs15 crore per annum to Rs16.50 crore in 2012-13, Rs17.55 crore in 2013-14, Rs18.15 crore in 2014-15, Rs19.80 crore in 2015-16, Rs20.40 crore in 2016-17, and Rs20.40 crore in 2017-18. Thus, OCW should have spent Rs112.80 crore over the last six years.

As per data available from NESL, OCW has not spent a single penny in last six years. As OCW was not spending, the works of repairing water pipelines, valves, tanks, tapping leakages were executed from funds approved for 24X7 Water Supply project, which is against the rules, by calling them priority works.

NESL sources told TOI over Rs50 crore was spent from the 24X7 Water Supply project on repairs. “Target was to replace 574.31km water pipeline under the project. Now, the target has increased to 676.11km. This happened as NESL got 101.8km pipeline replaced from the project funds, which was supposed to be done from OCW’s money,” sources said.

Now, NESL has directed OCW to start spending money on repairs. Unfortunately, NESL is not directing OCW to spend dues of Rs112.80 crore.
Tired of too many ads?go ad free now

TOI had on November 15 highlighted NESL board of directors passed resolution to relax this mandatory condition of OCW till 2018-19. Standing committee and general body will take final decision.

About the Author

Anjaya Anparthi

Anjaya Rajam Anparthi, 33, is a principal correspondent with The ... Read More

Start a Conversation

Post comment
Continue Reading
Follow Us On Social Media
end of article
More Trending Stories
Visual Stories
More Visual Stories
UP NEXT
Do Not Sell Or Share My Personal Information