In a significant development, the Nagpur Municipal Corporation (NMC) has issued a show cause notice to Orange City Water (OCW), demanding an explanation as to why their contract should not be terminated. The notice, signed by Municipal Commissioner Radhakrishnan B on his last day in office, highlights the unsatisfactory performance of OCW.
Alongside the notice, the NMC has also deducted the bill payable to OCW, citing non-compliance with the contractual conditions. The payment, which was originally Rs 180 crore, has been reduced to Rs 117 crore. The NMC pays OCW Rs 17 per unit, but this has been reduced to Rs 10.80 per unit due to daily billing of 300 million units.
OCW was initially brought in by the NMC to manage the city’s drinking water distribution system, with the expectation of a 24×7 service. However, after eight years, the NMC is reconsidering the partnership as the goals outlined in the agreement have not been met.
Vijay Zalke, the former chairman of the Water Works Committee at NMC, stated that OCW’s performance is below par, and the NMC has every right to terminate the contract.
This action was prompted following a review meeting held at Ravi Bhavan, where Deputy Chief Minister Devendra Fadnavis and Union Minister Nitin Gadkari assessed the situation.