The Hindu Business Line : Privatisation of Vizag water diversion scheme opposed

THE district unit of the CPM has opposed the decision of the State Government to privatise the Godavari waters diversion scheme and hand it over to L&T, as it would ``enrich the company at the expense of the steel plant and other industries and the common people of Vizag who have to pay higher water rates.''

In a statement issued here, the General Secretary, Mr M.V.S. Sarma, said the expense for pumping Godavari waters into Yeleru canal would be borne mainly by the public sector, Rashtriya Ispat Nigam Ltd, (Vizag steel plant) and the municipal corporation and L&T's contribution to the Rs 300-crore project would only be Rs 20 crore. Therefore, there was no justification in handing over the maintenance of the canal to the company. With a small stake in the project, the company would reap huge profits.

Currently, he said, the steel plant was only paying Rs 1.20 per kilo litre and after the completion of the scheme, the rate would be hiked to Rs 7 a kilo litre, of which the steel plant would bear Rs 2.25 and the rest (Rs. 4.75) would be subsidised by the State Government and paid to the company.

Consequently, he alleged, the Government would have to shell down Rs. 41 crore per annum and the steel plant Rs 9 crore.

He said the decision of the Cabinet sub-committee was not acceptable and it should be reviewed immediately. The irrigation department, or some other Government agency, should be entrusted with the responsibility of the Yeleru canal maintenance.

The company would be in a position to charge not only for the Godavari water pumped into the canal, but for water released from the Yeleru reservoir as well, he said and urged the Government to give up the move.

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