Nagpur Municipal Corporation (NMC) has issued a show cause notice to Orange City Water (OCW) seeking an explanation from the agency as to why its contract should not be terminated. The notice was signed by Municipal Commissioner Radhakrishnan B on his last days at office, on Monday. He has proceeded on 11-month study leave for USA, as the performance of the company is found to be unsatisfactory. Besides the notice, NMC has also deducted the bill payable to OCW on grounds of not fulfilling the conditions listed in the contract. NMC pays Rs 17/unit to OCW and the same was reduced to Rs 10.80/unit as daily 300 million unit billing is done. The OCW bill was Rs 180 crore and the same is now reduced to Rs 117 crore.

 

OCW was brought in by NMC to handle the drinking water distribution system in city. It was entrusted 24x7 project but eight year down the lane, NMC is now giving a second thought as the goals enlisted in agreement have not been achieved, so far. Vijay Zalke, he was Chairman, Water Works Committee, NMC, said that OCW working is not upto mark, and NMC is well within right to terminate the contract. The ball was set rolling after the review meeting held at Ravi Bhavan. Deputy Chief Minister Devendra Fadnavis and Union Minister Nitin Gadkari had taken a review of several development works and also the OCW working came under lenses.

 

The issuance of show cause notice for termination of contract is seen in this light in the administrative circles. Apart from failure on 24x7 front, OCW also could not achieve the desired reduction in losses. As per officials of NMC, the OCW was tasked with bringing down NRW, RNC, HSC, MBC and the performance on each count was below par. All this means it was Breach of Contract on part of OCW that led to issuance of notice. When contacted Shweta Banerjee, Executive Engineer, Public Health Engineering, about the issuance of show cause, she excused herself saying she was busy with meeting and would talk later.