Nagpur: Municipal Commissioner and Administrator Dr Abhijeet Chaudhari has imposed Rs 30 crore penalty on M/s Orange City Water (OCW), which is operating 24×7 drinking water supply project of NMC, for its failure to comply with Performance Efficiency Target (PET) as well as Commercial Efficiency (CE).
As per the agreement of OCW with Nagpur Environment Services Limited (NESL), a subsidiary of NMC, the former was to achieve technical efficiency of 60 percent and commercial efficiency of 75 percent by 60th month from commencement of services. OCW entered into the scene of drinking water supply from March 1, 2012. However even while NMC is seen as acting tough against OCW, the Administrator’s benevolence was obvious as the Rs. 30 crore is to be recovered in 12 equal instalments. During the one year, means till September 2025, NMC or NESL will deduct the amount from the monthly bill during settlement with OCW.
Gold Rate
Saturday 22 Feb. 2025
Similarly, OCW is charged at Net Operator Rate (NOR) after application of PET. However in 2017, NESL opted for One Time Settlement (OTS) and PET was extended by a further five-years. The rate of the Operator was rebased after 10-years and now Net Operators rate became applicable now. Net Operator rate is arrived at after deducting direct payment, it implies the payment by NMC or NESL for excess quantum of raw water and energy consumed by the Operator in comparison with contractual technical efficiency.
As per the revised agreement, the operator was expected to reduce NRW to 40% at the end of 10th year and 25% at the end of 15th year. Ideally the NRW for the year 2022-23 should have been 37%. Unfortunately, NMC had to incur expenditure towards excess raw water lift and electricity charges for 72.59 MCM as the same was not met by the Operator. The financial implication of these comes to Rs 30.02 crore.
