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Tamil Nadu
By M. Soundariya Preetha
The Rs. 960-crore project, for which the Chief Minister, Jayalalithaa, laid the stone on Thursday, aims at improving the local infrastructure, especially water supply and sewerage in Tirupur municipality. The NTADCL sources claimed that next to the power sector, this was one of the major private sector participations in an infrastructure development project in the country. They pointed out that considering the risk factor involved--if at all there was a shortage of water below the requirement of the company at the sourcing point, an innovative scheme had been incorporated in the project. A "water shortage fund'' would be created and the NTADCL could draw money from this account to meet the operation and maintenance and for payment of interest. Though the NTADCL was the ``special vehicle'' to implement the project, the construction would be supervised and monitored by an external agency which would act as the "owners' representative''. Further, an independent engineer and independent auditor were appointed to see if the progress of the project was in conformity with the construction agreement and if the correct financial procedures were followed, respectively, the sources explained They said the project envisaged supply of 185 mld (million litres daily) of water to the industries and the local body. The industry alone was expected to consume about 115 mld. The Tirupur Municipality had about 38,000 household water connections now and was projected to have about 48,000 by 2004. The civic body would get about 13 mld and more than 790 habitations including wayside villages, village panchayats and town panchayats would get about 20 mld. It was proposed to construct nine additional tanks and a 50-km additional pipeline in Tirupur to augment the supply. Tirupur received about 30 mld now from the already existing two water schemes. The demand of the industries now was estimated to be 100 mld and they had been purchasing most of their requirements privately. On the finance side, out of the Rs. 960 crores, the equity part was Rs. 297 crores and the debt was around Rs. 570 crores. The scheme would be completed within 30 months from the date of commencement of work. Some works such as ground surveys were already done and if need be related works and increase in supply would be undertaken later.
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