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JUSCO kicked out of water supply in Mysore

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So finally the exclusive rights of JUSCO for water supply have been removed. But it was the CM who had to make the call.

Can we find out more about why? Because this is exactly the way usurious profits are made.  and water is not a place where profits should be made. Water is a basic human need. Please refer:

  1. ‘Can’t believe Mysore has water problem’
  2. DVS intervenes to address water crisis in Mysore

It is a political issue and can only be tackled by elected representatives authorised to do so

The matter of water supply is too delicate an issue to be handed over to any profiteering agency  Veolia or JUSCO

JUSCO has messed up even a contract for pipelaying along with making so much profits because it does not have any proper experience

It was a compact for privatising water and SWM which has propelled it fwd. and now fallen flat on its place

The aware and enlightened  public of myosre have finally brough down the might of the TATAz

and more aware public all over the country will also do the same



murali772's picture

working to a target

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Excerpts from DNA report: “I have allowed JUSCO to continue laying pipe and creation of infrastructure for water distribution network” Gowda said.

Excerpts from ToI report: "I've directed the officials to handle water supply by a taskforce. This will be in place for two months," he said.The move comes ahead of MCC's assertion that the water crisis will ease by mid-April when the 12 overhead tanks will be charged.

From the above, it appears to be more of a crisis management arrangement, than a discontinuation of the contract with JUSCO, as is sought to be made out here, and as various vested interest groups have been furiously working towards from day one, which becomes clear from a reading of this post.

Now, it is not as if the KRS dam suddenly came into existence some 14 km from Mysore. It has been there for over a century now. And, the water supply problem didn't start after JUSCO came into the picture. JUSCO came into the picture precisely because the government-owned Vani Vilas Water Works (VVWW), which was handling the supply all these years, was found lacking in capacity (keeping aside the matter of corruption, for now). Now, with all the vested interests joining forces to throw out JUSCO, it will go back to VVWW, making the vested interests happy. But, will it solve Mysore's problems? Hardly.

Not just water supply, but even other key infrastructure areas like public bus transport services, power supply etc are even today in the 19th century mode in the country, even as most other services involving the private sector have moved towards becoming world-class; likewise with products, compared to those made in the PSU's and the so-called ordinance factories.

As such, whereas these areas should normally have provided the venues for rapid growth of the economy, but because of the monopolistic hold of the PSU's, perpetuated by the vested interests, the status quo remains, leaving the country and its citizens (particularly the aam aadmi) to pay a huge price.

Muralidhar Rao
abidpqa's picture

Different kinds

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Vested interest is also private players. Somehow some private players good and efficient, usually big companies, others smaller players are bad, how is that?

Private players can't function under some restrictive conditions.  These conditions are present in water supply and transportation etc. which can't just be wished away. They are necessary for equitable distribution. I suppose the capitalism was a success in West because they had so much resources to waste (at least condition).

Many services were provided by the PSUs, and privatization has not been tested, so can ve assume all problems will be solved by privatization?  There has to be a sense of duty in government officers, that is how the army works I suppose. That is enough to provide essential services.

Sanjeev's picture

How will this 24 x 7 supply can be maintained when water is shor

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I was their in Hubli recently and surprised to see 24 x 7 water supply in few wards where so called elite reside ( including my relative )

When their is so much draught  exists in North  Karnataka & even Mysore region,  water has become scare every where,  I was surpised to see 24 x 7 supply and residents have no concern on saving water in these few wards where Pvt fellow is supplying.

Their are hardly few sources of water for twin cities Hubli -Dharwad & most part of the  twin city is having water  poblem  as source of water is on dry.

If this type of 24 / 7 concept of water supply is rolled,  imagine, what will happen during failure of rain.  Now Complet Bangalore is suffering and  ground water level is going down as mis-use of water. 

With all leakage & corruption,  we can not sustain 24 x 7 supply  which will make all of us addicted to mis-use of water in the long run and in the  name of Privatisation as even though we can afford to pay for high  rate.

Public Agenda's picture

pre- conditions

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The city of Mysore has seen an outbreak of Cholera with 34 cases under the JUSCO 's watch. This is a screw up on the unblemished past of Msyore.  Pl remember when was the last time Mysore had cholera? not under VVWW's watch. It has not happened earlier because the VVWW cared for the peoples public health. BUT NOT the INEXPERIENCED JUSCO they have no idea

The Public cant let JUSCO go scot free after being forced to pay so much through the nose just because they have paid off the officials etc So let them do the pipe laying etc and pack their bags at the end

Downright Incompetence cannot be babied.

monopoly or not elected reps need to be in charge and not misinformed officials who tend to create a mess for the aspiring dreams of the elite.

To think of basic needs as key infrastructure is a mistake and being misled is the absolute prerogative of the elite.

Basic needs cannot be there for the econmic growth but for human development 

The huge price paid by aam aadmi is because of the above approach to making profits from every last human development resource.

silkboard's picture

solution for "inexperience"

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 ... is to outsource more and more so that private enterprises get "experience". When sarkaari companies run things, you would not even come to know of what's wrong. Its like saying no company has the experience running city bus services at BMTC/BEST scale. How will there be, when you have not done anything at all to build such capacity.

If JUSCO has not been able to do the job, I am with you in throwing stones at them. But that in no way is a justification of going against outsourcing. Just replace JUSCO with whoever says will be able to do the job better. After 3-4 merry go rounds, things will settle down.

The so called "profits" are there for the taking. In one case, an indian company makes the money, and would distribute it to its employees or shareholders. In other case, it goes to you know which country's banks, and you know what exclusinve group of people. Its a shame that we know so much about what goes on and can't bloody write a word here for lack of so called "proof".


Public Agenda's picture

so you will

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concede that 
  1. These water supply projects are meant for profit!
  2. JUSCO has been removed from water supply for two months
  3. experience for the private sector should be created at the cost of the tax payer who pays taxes for water supplied and not for the experience.....
  4. private sector water supply or sewerage mess ups  resulting in typhoid, cholera etc can be  foisted on unsuspecting citizens and any kind of private sector can be acceptable as far as you can throw stones  post facto.

no need for any accountability, responsibility or constitutional governance at all because the elite have only (mentally) self-seceded 

lastly you concede that Oh whatever the govt does is so opaque. There are many balms for those sores namely accountability, responsibility and constitutional governance or in other words public sector reform

Tragedy is that most  of the elite who have mentally seceded are so ideologically bagagged to even concieve what taking up public sector reform will mean. 

They are too scared it means more political democracy and equity and a full stop to exclusion by policy for the majority.

Its better for all if a small group of Mckinseys/ PWC /E & Ys etc dont get to decide this policy on behalf of their Veolia, Saur and JUSCO friends with more loans using our money but discbursed by the Wrrld Bank, but rather the public does.

They will unerringly throw them out on their nose ! The futre is still ahead......

Sanjeev since your comment is from the field. We need to repair our pipes and cut leakage

But such a high cost Rs 1800 crores for the 3 cities for 24 X 7 in Hubli/ Dhrwd/ Gulbarga.

after spending 235 crores already

does not anybody see the loot in plain sight ?

idontspam's picture

Contract management

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Its easy for govt to victimize anybody if it wants to. If it wants to make the contract work its even easier to sit JUSCO down & haul them over the coals to get their act together, which seems to be the case here. 

But to be fair I dont respect the attitude of a lot of private players in India servicing Indian market. 'Dhandha' seems to matter more than taking care of the outcome from their products/services. Part of the balme has to be with the (lack of) contract management practices within the beraucracy. Some professional training there might help them manage operations better.

Naveen's picture

Dhandha is universal

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When public services are outsourced, payments, rewards & compensations must be based largely on customer satisfaction, maintaining schedules & other relevant service quality parameters - all these go directly against maximization of profits. Some balance has to be reached between business & obligation.

It cannot be denied that since regulatory /monitoring mechanisms are poor, private parties are taking full advantage, customers be dammed. Hence, we see elite neighbourhoods (with customers who are glad to pay) getting 24x7 water even in times of drought, etc.

As SB says, it will take some experimentation & time to evolve & eventually get the best for customers whilst generating private sector investments for infrastructure. Debates & opposition concerning these issues are part of this process & those that oppose cannot be termed 'vested interests' by those that seek 'speedy' privatization with claims that the aam-aadmi is paying a huge price & that privatization has already made things move towards services becoming world-class (whatever that means).

murali772's picture

24 X 7 has limitations

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@ Sanjeev  -  Good to read a first hand report about water supply in Hubli-Dharwar.

Now, 24 X 7 supply can continue only as long as water is available at the source (reservoir). And, the drawal from the source, I am sure, is still in the control of the government agencies, and that's how it should be. When the water falls below a certain level, in summer months, the supply will have to be regulated.

The major difference with the pressurised system is that you can avoid the individual sumps and overhead tanks, since, even when regulated, there will be a definite pattern. Of course, all that depends on how much accountability has been built into the contract arrangement.

Muralidhar Rao
murali772's picture

private mafia sector

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Basic needs cannot be there for the econmic growth but for human development.

If the track record of the government agencies in meeting the basic needs was anything but dismal (whereby the borewell, tanker-water suppliers - all in the 'private mafia' sector, land up making a killing), the question wouldn't have risen in the first place.

And, the need for economic growth is more for the poor than anybody else - check this.

public sector reform

That's the biggest joke of the century - one AIR-INDIA story is enough to say it all.

Muralidhar Rao
idontspam's picture

 customer satisfaction,

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 customer satisfaction, maintaining schedules & other relevant service quality parameters - all these go directly against maximization of profit

No it is not. There are countless examples of incentive/penalty schemes in this world, especially in O&M cotracts, as old as contract management itself. But all this depends on the ability & capability of the customer (in this case GoK) to monitor, track & manage all these for each vendor with data & transparency. If we want to hide behind ideologies & generalisms we wont find way to solve issues.

Has anybody done a report on the actual contract between JUSCO & the state & gathered performance parameters month on month? I think the task force should go into this & evaluate objectively. If it indeed points to the vendor not performing get another one & levy penalties. Let nobody take committments for granted, but we cant throw the baby out with the bath water.

silkboard's picture

yes, conceded PA sir

180 users have liked.

Yes! You win!

  1. These water supply projects are meant for profit!
  2. JUSCO has been removed from water supply for two months
  3. experience for the private sector should be created at the cost of the tax payer who pays taxes for water supplied and not for the experience.....
  4. private sector water supply or sewerage mess ups  resulting in typhoid, cholera etc can be  foisted on unsuspecting citizens and any kind of private sector can be acceptable as far as you can throw stones  post facto.

1) Profit is an acceptable side objective for most operations, as long as it is not made under the table, or by abuse of public power or monopoly (ex: BMTC).

2) Good! I don't know for sure because I haven't been following up. But there you go, the first benefit of outsourcing, hold the private party accountable for any mess they may have made! What would you do if your sarkaari water supplier did the same? Wait five more years for next election? Or hold rallies with banners. Sorry, I dodn't have that much time.

3) Yes! You either pay service tax, or let your income tax and various cesses leak through the system or head to foreign banks. Outgo from our pockets is going to be more or less the same :)

4) A mess is a mess, private party or public party. Like no public water supply company has ever been irresponsible in this country. Outsourcing, contract structuring, pinning liabilities - we will learn all this with time.

The point is - nothing to be gained by discussing JUSCO, if they screwed up, they are out. But everything to be gained by discussing how to make the outsourcing arrangement better and make it work for all parties involved.

Public Agenda's picture

sorry you got

163 users have liked.

carried away by the heading 

But going by arguments about profits and mess ups like cholera and typhoid , will people really stand around and clap ( i can really hear the applause!!) when profits preside over the death and destruction of the public. I dont think so

I am saddened by this thought process

Pl follow the facts and then write.

This is about JUSCO messing up for the last 3 years. that is the heading and there are facts like they were fined 48 lakhs from their 20 crores (giveaway) last year and 2.5 crs this year.

and people protested all along. pooh poohing the public sector water supplier which  I beleve has possibly ensured that many millions of citizens are not seriously ill or in hospital is very easy 

but even in the US while there are many contract towns over 85 % of the water supply is still public and many people fight for that

murali772's picture

utilities' track records vis-a-vis water-borne diseases

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The city’s civic body was in deep waters after two deaths were reported recently, when a two-year old in Chalavadipalaya and a five-year-old in Padarayanpura succumbed to illnesses after allegedly consuming contaminated water. However, to their relief, the BBMP health department’s report has stated that the water supplied by BWSSB in ward number 136 J J Nagar and 139 K R Market is unfit for consumption.

For the full report in the New Indian Express, click here

In his post of 9th April (above), Mr PA had stated as below:

The city of Mysore has seen an outbreak of Cholera with 34 cases under the JUSCO 's watch. This is a screw up on the unblemished past of Msyore.  Pl remember when was the last time Mysore had cholera? not under VVWW's watch. It has not happened earlier because the VVWW cared for the peoples public health.

Well, BWSSB is also supposed to be caring for its people. For all that, these kinds of mishaps have been happening, and fairly regularly, particularly during the summer months. I have not kept track of VVWW's performance on this score. But, I guess it cannot be much better. So, Mr PA's claim can only be seen as one-sided.

This is no too different from the pointing out to the poor safety track records of private sector bus operators, even as you turn a blind eye to the track records of the government monopoly service providers, as brought out here.

Muralidhar Rao
Public Agenda's picture

efficiency and proficiency argument junked

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Claiming from a survey by a firm hired by itself JUSCO says it is IInd best in quality of life among the surveyed cities

but in the same artticle also indicates it supplies 235 lpcd a 100 lpcd more than govt norm and follows it by the statment that 20,000 houses could be supplied by the water wasted in Jamshedpur

So after so many years of supplying 235 lpcd the public is blamed for causing leakage

talk about competence and efficiency of private sector esp a TATA co

WoW this takes the cake

supply water for wastage and then blame the public quite amazing but totally in line with their worldview

TATAs on the other hand in Jamshedpur have opposed an elected body taking over and instead get JNNURM support against norms for elected councils in cities



murali772's picture

some desperation!

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The report does not talk of leakage at all. And wastage by consumers can by no means a measure of efficiency of supply.

But, for those who are desperate to portray TATA's and other corporates in poor light, whether deserved or not, I suppose, such details are of no consequence. Well, it only exposes them more and more for what they actually are.

Muralidhar Rao
Public Agenda's picture

supply is 235 lpcd

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If that is not calculated wastage by a private utility. Otherwise how to pat your won back and blame the public for wastage?

135 lpcd is optimum according to CPHEEO guidelines in places where there is sewerage but to the elite it is better to supply 100 lpcd more 

and of course the elite are also part of the system causing the wastage living in Jamshedpur. This would never have been allowed if the elected reps were in place

so whose norms do they follow and call it wastage, it can also be called organised leakage.

The TATA steel is far too powerful since even the MoUD has been unable to shake this professional Township  to have elections and 3 other municipalities in the surrounding areas.

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