I. DIRECTORS OF THE BOARD

Chairman

Thiru Ko.Si.Mani,
Hon’ble Minister for Rural Development
and Local Administration,
1.4.99 to 31.3.2000

Managing Director

Thiru C.P.Singh,IAS,
1.4.99 to 31.3.2000

Executive Director

Thiru Rama Mohana Rao,IAS
1.4.99 to 10.6.99
Thiru Jasbir Singh Bajaj,IAS
14.6.99 to 31.3.2000

Finance Director

Thiru S.Jayaraman, IA & AS,
1.4.99 to 31.3.2000

Engineering Director

Thiru R.M.Gandhi,
1.4.99 to 31.3.2000

Ex-Officio Directors

Secretary to Government, M.A.& WS Dept.,
Tmt.S.Malathi,IAS
1.4.99 to 31.3.2000
Secretary to Government Finance Department,
Thiru P.V.Rajaraman,IAS
1.4.99 to 31.3.2000
Commissioner,Corporation of Chennai,
Thiru P.Kolappan,IAS
1.4.99 to 31.10.99
Thiru Jothi Jagarajan,IAS,
1.11.99 to 31.1.2000
Dr. J.Radhakrishnan,IAS,
1.2.2000 to 31.3.2000
 Member Secretary, CMDA
Thiru Vibhu Nayar,IAS
1.4.99 to 30.9.99
Thiru Rajeev Ranjan,IAS
1.10.99 to 31.3.2000
Managing Director, TWAD Board,
Thiru K.Deenabandhu,IAS,
1.4.99 to 30.5.99
Thiru C.P.Singh, IAS
1.6.99 to 30.6.99
Thiru A.M.Kasiviswanathan,IAS
1.7.99 to 31.3.2000

 II. OBJECTIVES OF THE BOARD

1. To promote or secure the planned development, efficient operation, maintenance and effective regulation of water supply and sewerage systems in the Chennai Metropolitan Area;
2. to prepare long term plans to meet the future requirement of water supply and sewerage in the Chennai Metropolitan Area based on estimates of demand, surveys on availabilities, usage of water and other relevant matters and periodical evaluation, continuous monitoring of the execution and recasting the plans to meet up-to-date needs.
3. to undertake developmental activities with a view to meet the future requirements of water supply and sewerage in the Chennai Metropolitan Area;
4. to operate and maintain the water supply and sewerage as may be entrusted by Government by notification to the Board;
5. to discharge all such functions relating to water supply and Sewerage as may be entrusted by Government by notification to the Board;
6. to undertake any other matter which is supplemental, incidental or consequential to all or any of the above functions; and
7. to undertake such other functions as may be entrusted to the Board by or under any other law for the time being having due regard to public health, safety and convenience.

1. have due regard to public health, safety and convenience of the public;
2. consult and collaborate with the Chennai Metropolitan Development Authority in regard to planning and undertaking development activities connected with the water Supply and sewerage systems for the Chennai Metropolitan Area and extend full assistance to and co-operate with the local authority in relation to matters connected with water supply systems or water or sewerage works or other similar works;
3. facilitate training of personnel for and absorbing and utilising the technical know how in the Water Supply and waste water disposal sectors;
4. Provide consultancies and managerial services and execution of any project on turn key basis or otherwise, furnishing integral service such as basic survey on preparation of detailed designs and estimates, tender procedures, execution of projects, monitoring evaluation etc. to other Urban Local Bodies in the State;
5. control extraction, conservation and use of underground water in the Chennai metropolitan Area;
6. prevent pollution of any water including any water source, water course or channel utilised for the purpose of the Chennai Metropolitan Area;
7. prescribe the manner of treatment of trade effluents before discharge thereof and to regulate the discharge thereof into any sewer, canal, river or other water channels utilised for the purposes within chennai Metropolitan Area;
8. conduct research, experiment and survey and to do all things necessary for that purpose;
9. acquire, hold and dispose of property, necessary to carry out its operations;
10. prepare and adopt its annual accounts and budget;
11. determine, levy and collect taxes, rates, fees, charges, surcharges, rents and costs and expenses; and
12. do all things necessary for the purposes of carrying out the provisions and duties assigned to it under CMWSS Act 1978 (Act 28 of 1978).

Thiru Ko.Si.Mani, Chairman, CMWSS Board.

Chennai 'Metrowater' stands committed "to making a positive contribution to improve the Chennai city environment and to enhance the health and quality of life for the citizens of Chennai city by providing them with adequate supply of safe and good quality water, by collection, treatment and safe disposal of sewage at a reasonable price, and by providing customer service in a prompt and courteous manner". These are being achieved through several measures such as -

- By

1. providing reliable and equitable water supplies in compliance with Statutory standards;
2. collecting wastewater treating and returning it to the environment, or arranging its re-use having regard to impact and in compliance with statutory standards;
3. using assets more efficiently to deliver the best possible service;
4. providing timely information to stakeholders consulting and communicating with customers;
5. developing long term strategies and actions;
6. achieving sustainable financial self-sufficiency;
7. maximising employee potential; and staff productivity; and
8. monitoring performance;

1.1. WATER SUPPLY:

To translate these higher level objectives and goals into reality, the Master Plan prepared in the year 1978 (at the time of formation of the Board), enlarged and expanded in 1991 and further updated in 1997 remains the 'Guiding Document for Planned Development'. This aims at providing ‘reliable and equitable water supply’ meeting the needs of population expected in the year 2021. For the past 3-4 years, this Master Plan has been under implementation in stages with internal resources as also with the financial assistance from Government of Tamil Nadu, Government of India, World Bank, Housing and Urban Development Corporation, Tamil Nadu Urban Finance and Infrastructure Development Corporation, etc.

1. The Master Plan envisages optimum usage of existing infrastructure and also for carrying out the following:

1. to draw, treat and distribute additional water flows from Krishna river., and
2. to rectify the systemic deficiencies such as inequitable distribution, low pressure, leakage and other losses by refurbishing, rehabilitating and strengthening the distribution system.

1.1.3. Stage 1: Works for drawal of 300 mld of additional water from Redhills lake; conveyance and construction of a 300 million litres daily capacity treatment plant at Redhills; transmission mains to convey treated water from Redhills treatment plant to the water distribution stations; improvements to local water distribution systems; laying new mains in unserved areas; replacement of choked up C.I. mains, damaged AC and PVC mains, etc., were completed at a total cost of about Rs.132.00 crores between 1991-96. Consequently on receipt of Krishna Water from September 29, 1996 onwards, the city water supply could be increased from 240 MLD to 440 MLD.

1.1.4. Stage-II: Construction of 12 new water distribution stations in city and strengthening and expansion of local water distribution Net work in 11 zones viz. Choolaimedu, Kannappar Thidal, Kolathur, Vyasarpadi, Patel Nagar, Ekkattuthangal, Pallipattu, Nandanam, Mylapore, Valluvarkottam and Velachery have commenced from 1997 onwards and are programmed to be completed by 2001-2002. Works for drawal of 530 mld of raw water from Chembarambakkam tank treatment and clear water transmission mains from Chembarambakkam treatment plant to the city are programmed to be taken up from 2001 and completed by 2004.

1.1.5. Stage III: Improving existing Kilpauk water treatment plant, 4 existing water distribution stations and strengthening of local water distribution systems in the remaining 5 zones viz. Kilpauk, Anna Poonga, Southern Head Works, K.K. Nagar and Triplicane have been programmed to be taken up after 2004 and completed during 2005-2010.

1.2. SEWERAGE:

Any improvement and expansion to water supply systems can be said to be complete only when wastewater disposal system is also simultaneously improved and upgraded to handle the additional sewage flow consequent to the water augmentation. A Master Plan for upgrading the sewerage system was, accordingly, first formulated in 1978 and subsequently updated in 1991 for meeting the demand of 2021 projected population. This Master Plan is currently under implementation in stages synchronising with the improvements to water supply systems by assigning definite priority for removal of constraints in operations, extension of sewerage systems to unsewered areas where water has been provided, improvements to pumping stations and conveying mains, system-improvements to treatment plants and improvements to sewerage collection systems in that order. Strengthening of existing sewers for a length of about 143 kms; extension of sewerage system to unsewered areas involving laying of about 320 kms length of sewers and construction of 60 new pumping stations; improvements to 56 existing sewage pumping stations; and improvements and expansion of 6 sewage treatment plants are some of the important elements of the Master Plan.

1.2.1. Stage I: Constraints in about 60 locations in sewage collection systems, sewage pumping stations and sewage treatment plants have been rectified; sewers and large brick sewers rehabilitated by desilting; new sewers laid for about 6.24 km length in unsewered areas and 40 Nos. of new sewage pumping stations have been constructed. All these works at a total cost of about Rs.131.14 crores were completed in 1995.

1.2.2. Stage II: Extension of sewerage systems to unsewered areas, by laying about 68 km length of sewers, construction of 14 No. of new pumping stations, laying of pumping mains and improvements to 16 Nos. of existing large pumping stations have been taken up and are proposed to be completed by 2001. Works pertaining to the improvements required in the six existing treatment plants at a cost of about Rs.51.00 crores have also commenced and would be completed by 2001.

1.2.3. Stage III: Works relating to the strengthening of existing sewers for a length of about 65 kms, improvements to 33 existing pumping stations, strengthening of associated pumping mains for about 50 kms; and expansion of the capacity to treat an additional quantity of 264 mld of sewage totally costing about Rs.615.40 crores are proposed to be taken up and completed during 2000-2004. These works once completed would take care of the requirement of the projected population for the year 2011.

1.2.4. State IV: Remaining works to meet the requirement of 2021 population such as strengthening of existing sewers for a length of about 30.90 km., improvements to 37 existing pumping stations, strengthening of associated pumping mains for about 43 km., and expansion of capacity to treat additional quantity of 264 mld of sewage at an estimated cost of Rs.640.00 crores are proposed to be taken up and completed during 2005-2010.

2. IDENTIFICATION OF ADDITIONAL WATER SOURCES AND

CONSERVATION OF WATER:

2.1. WATER CONSERVATION MEASURES

2.1.1 Water sources availability and its adequacy to meet the demand for water needs have been the uppermost thrust area for the Board. As per the Master Plan the demand for water supply in the year 2021 would be about 2000 mld as against the availability of about 1400 mld obtainable from all existing sources including Krishna River source.

2.1.2. Conserving a commodity for future use and maintaining the current commodity usage at optimum level would always lead to savings in the quantity available. Taking cognizance, of this, the Board has evolved a "well conceived water conservation policy" which systematically embarks upon several conservation measures. Some of these include:-

1. Leak Detection and Rectification Works
2. Rainwater Harvesting,
3. Control and Regulation of Indiscriminate Extraction of Ground Water
4. Recharging of Ground Water; and
5. Re-use of secondary treated sewage for industrial purposes.

2.2. LEAK DETECTION AND RECTIFICATION WORKS

2.2.1. Tackling systemic losses and reducing the 'unaccounted for water' have been high on the agenda of the Board. Under a well conceived 'Leak detection and rectification programme', CMWSSB has embarked upon an ambitious plan for reducing the leakage in the distribution system which, according to an estimate, was to the order of about 23%. In the initial phases of its implementation, it was found that bulk of the systemic losses were mainly on three points:-

1. Leaky and damaged distribution mains;
2. Ferrule Points; and
3. House service connections.

1. Replace all the leaky and damaged distribution mains;
2. Replace all the PVC and AC mains, since over 95% of these are found to be damaged;
3. Re-fix ferrule on all the connection points; and change all house service connections, which were historically made up of GI Pipes with MDPE corrosion resistant pipes.

2.3. RAIN WATER HARVESTING

2.3.1. Rainfalls are the major source of water in a place similar to Chennai City environment where no perennial rivers flow. Moreover, Chennai is prone to get maximum rainfall only during two months ie. October and November in a calendar year. During this period, therefore, a large amount of precious water flows into sea as floodwaters. We believe that converting this flow to potential use can successfully be done by Rainwater Harvesting techniques. Right from early nineties, therefore CMWSSB has been vigorously advocating the"Rainwater Harvesting" and also has developed several type-designs to suit the individual properties/flats. CMWSSB is, perhaps, the first water utility in the country to have made it mandatory to provide rainwater-harvesting facilities in the newly developed properties within the city. In coordination with the regulatory authorities such as Chennai Metropolitan Development Authority and Chennai Municipal Corporation, CMWSSB has made it compulsory during 1994 itself for the property developers of multi storied and special buildings to install suitable Rainwater Harvesting facilities, without which planning permissions will not be accorded. From the current year this has been extended to even individual households (single storied) for which planning permissions are sought. CMWSSB before providing House service water/sewer connections ensure that these mechanisms have been put in place.

2.3.2. During the year under report, the Board, in collaboration and consultation with leading NGO's, Voluntary Groups and Consumers' Associations, and other Government Departments and institutions has embarked upon a renewed and an intensified campaign to propagate the "Rainwater Harvesting Methods". Free training programmes on "Rainwater Harvesting" are being conducted on all the working days at Metrowater Training Centre. These training programmes, widely publicized through the local newspapers, have evoked tremendous response and an entire spectrum of the public - individual households, property developers, engineers, consultants, residents associations, housewives, students and other professionals have been attending. Some of the participants are also from out side the Chennai City. A shortlist of Contractors who will be able to take up thc construction of Rainwater Harvesting structures at fixed rates has been prepared and published to enable the public to use their services. With a view to ensure a clearly focused effort, a special purpose vehicle - "Rainwater Harvesting Cell'' has been constituted in CMWSSB and services of a team of technical personnel have been made available for providing guidance and assistance to the public on Rainwater Harvesting measures. A study was also carried out in one of the areas where rainwater harvesting has been implemented by the residents.

2.4. CONTROL AND REGULATION OF EXTRACTION OF GROUND WATER

Tamil Nadu Government is next only to Gujarat to enact a Ground Water Regulation Act as early as 1987. Faced with rapid depletion of ground water storage and fall in the water table in and around Chennai City and intrusion of sea water in some locations affecting the water quality, the Ground Water Regulation Act was enacted in the year 1987. The location of surface storage lakes and main groundwater aquifers along with the area of operation of the Ground Water Regulation Act are shown in the source map at inside cover page. (page ) This Act aims at controlling and regulating the extraction of ground water so as to conserve the otherwise delicate and fragile aquifer and save it from sea water intrusion. Under the Act CMWSSB has been vested with the authority to regulate the extraction of ground water in the notified area by a licensing mechanism, which in the city it handles directly. In the areas outside city limits, however, the revenue authorities of the respective area have been permitted to issue licenses to extract and transport ground water based on the recommendations of CMWSSB. No new permits for extraction of ground water or its transportation have been issued since 1997 nor the licenses already granted have been renewed inspite of the substantial revenue receivable on the license fee. Due to strict enforcement of the act during the last l2 to13 years or so the water table with in the city and adjoining Southern Coastal Aquifers has increased greatly as shown below. As the penal provisions for the violations in the Act are minimal, now proposals have been formulated for amending such provisions to invoke heavier punishments.

P.S : The fall during 1998-99 is attributable to extremely low rainfall

2.5. RECHARGING OF GROUND WATER

Ground water sources to a large extent next to surface water (obtained from the three reservoirs feeding the City) are crucial to CMWSSB. While surface water depends upon the monsoon rain and river sources, ground water availability as discussed earlier in this report also depends upon the level of extraction. It so happens that the Board has to heavily depend on this source consequent upon inadequate rainfall once in three-four years. Therefore for our situation, conservation of ground water source has become a must. In order to enable fast recharging of the aquifers during monsoon, three check dams were constructed during 1991 across river Korataliyar. The effect of these checkdams has been quickly visible as seen from the gradual rise in the water table .

2.6. RE-USE OF SECONDARY TREATED SEWAGE FOR INDUSTRIAL PURPOSES.

Another concept by which conservation of fresh water has been attempted is re-use of secondary treated sewage for industrial purposes. To achieve this, two major water-intensive industries, (an oil refinery and a fertilizer plant) were advised to use the secondary sewage effluent after appropriate further treatment. They have set up tertiary treatment units and about 50 MLD of secondary sewage effluent is, supplied by CMWSSB for industrial use. This practice of reuse of water has been taken up further by a power plant which came into existence about a year ago and on our advice, has started using about 10 MLD of raw sewage after further treatment at their premises. However, to make any significant impact the concept has to be pursued further.

3. MAJOR PLANS FOR THE FUTURE:

1. UPGRADING AND PROTECTING THE ENVIRONMENT BY

IMPROVING THE QUALITY OF CITY WATER WAYS:
1. Cooum and Adyar rivers flow through the city, with a man-made Buckhingam canal linking these two rivers. Essentially these waterways were functioning as flood carriers and have flows only for about two months in a year during monsoon. Flow in these watercourses in the rest of the year is mainly due to discharge of treated, partially treated and untreated sewage through about 311 No. of outfalls meant for storm water discharge resulting in accumulation of large volumes of sludge and silt, formation of sand bar in the mouth of rivers and prevention of free discharge into sea resulting in stagnation of waste water in water courses. This has also created significant problems as to the flood protection system, storm water drainage network and associated public health resulting in overall degradation of city environment. Our long term objective in the handling of wastewater therefore, nonetheless is both to prevent noxious substances from reaching the wastewater and to utilise the useful substances available and return them to the environment.

3.1.3. In 1989-1996, Metrowater availed of the assistance provided by Government of Tamil Nadu through a British consultant carried out several works and removed many of the above constraints in the sewerage system. Sewers are now being desilted using machineries and operation of sewage pumping stations has also considerably improved. Because of these operational improvements individual complaints have generally reduced to almost 50% level. Further ongoing improvement works in the existing sewage treatment plants at Kodungaiyur, Koyambedu, Nesapakkam and Villivakkam at a cost of Rs.51.00 crores with loan assistance from HUDCO and TUFIDCO are likely to sustain the gains further. However, consequent on receipt of Krishna Water and upon almost doubling the quantity of water supplied, the capacity of existing sewerage systems has become grossly inadequate and needed major improvements if the discharge of untreated or partially treated sewage into city water ways had to be prevented.

4. It is estimated that totally about Rs.1300.00 crores may be required to complete all the works necessary to upgrade and maintain the overall city environment. As this cost is phenomenal and beyond the reach of Metrowater, it has been proposed to implement the works in two stages synchronising with the progressive water supply augmentation plans. Hence in the first stage it is proposed to improve the capacity of those components in the sewerage system which are currently inadequate to handle the sewage flows expected consequent upon supply of 627 mld of water to materialise within next few years. In the second stage further improvements as to the remaining works are proposed to be taken up after 2005.

3.2.1. As stated in preceding paragraphs CMWSSB has conceived a comprehensive project for 'Interception, Diversion and Treatment of sewage' under the umbrella " Chennai City Rivers Conservation project" costing about Rs.615.40 crores for carrying out the following works and has posed for financial Assistance to the Government of India, Ministry of Environment and Forest under the National River Conservation Directorate.
 
 
 
 
 

	Component	Quantity		Cost Rupees in Crore
1	Laying interceptors and capacity expansion.	65.22 km.		159.30
2	Capacity enhancement of Pumping Stations & Pumping mains to ensure diversion of sewage to treatment plants, and	a) 33 no.of Sew.PSs		133.20
		b) 50.02 km. Pumping mains.		156.90
3	Expansion of capacity of treatment in four sewage treatment plants and installing treatment for bacterial reduction in all six sewage treatment plants	Expansion of capacity Bacterial Reduction	264 mld 627 mld	166.00
	Total			615.40

As explained earlier, this Project has been posed to the National River Conservation Directorate, Ministry of Environment and Forest, Government of India for funding, approval for which is expected during the year 2000-2001. Chennai Metrowater is in readiness to take up the works for implementation and completion during next 3 to 4 years. These works once, completed would greatly improve the quality of the watercourses in Chennai City.

 SIGNIFICANT ACHIEVEMENTS DURING 1999-2000

REPORT BY MANAGING DIRECTOR

Chennai Metropolitan water Supply and sewerage Board, at present serves a population of about 60 lakhs mostly within the Chennai Municipal Corporation area.

1. ORGANISATIONAL GROWTH AND DELIVERY OF SERVICES:

It has been the continued objective of Chennai Metropolitan Water Supply and Sewerage Board to make significant strides in the quantity and quality of water supplied, population covered, to adopt more efficient means of sewerage collection, interception, transmission, treatment and disposal and to serve its consumers in the best possible manner. Chennai Metropolitan Water Supply and Sewerage Board, in the last 22 years of its existence, has attained considerable progress in this regard. Some of the significant achievements made in the year 1999-2000 are presented below:

1. WATER SUPPLY TO CHENNAI CITY


2.1. WATER SUPPLY SOURCE AUGMENRATION AND MANAGEMENT:

2.1.1. The main sources of water supply to Chennai City are twofold:- (1) Surface water (rain and river water) stored in Poondi, Cholavaram and Redhills lakes, with the total capacity being 7412 mcft; and (2) The ground water sources that include Poondi, Tamaraipakkam, Flood Plains, Kannigaiper, Panjetty and Minjur aquifers consisting of deep bore wells. Besides this, small quantity of water drawn from Southern Coastal Aquifer and Infiltration Wells from Porur Lake is also utilized.

2.1.2. With the water sources mentioned above, the rate of water supply in the city was maintained at 70 litres per capita per day (lpcd) totaling about 290 Million Litres per day upto the period prior to September 1996. After receipt of Krishna water as an additional source from October 1996 onwards, however, the water supply was enhanced to an average level of 100 lpcd thus increasing the total water supply to 480 ML daily.

2.1.3 The water storage position in the lakes and the status of water supply to the city were reviewed regularly, the quantity of water supply decided and the situation managed. Especially every year, at the end of North East monsoon (i.e.) as on 1^st December, the storage position in the lakes would be taken into account and accordingly the quantity of water to be supplied during the next year regulated.

2. RAIN FALL AND THE STORAGE POSITION IN THE LAKES:
The annual average rainfall in the catchment areas of the lakes – Poondi, Cholavaram and Redhills is about 1300 mm. During 1999, however, the rainfall was only 607 mm which was the lowest during the last two decades .
3. SITUATION MANAGEMENT:

1. Identification of additional sources of water and efficient monitoring and management thereof; and
2. Properly regulating the distribution.

1. IDENTIFICATION OF ADDITIONAL SOURCES OF WATER:


5.1. In view of the above scarcity situation though the Government of Tamil Nadu were persuaded to permit the Board to use the available water from a nearby irrigation tank Chembarambakkam for drinking water purposes, the problem was the non-availability of a proper ‘water transfer system’. Therefore, in order to convey the available water i.e. about 1100 mcft from Chembarambakkam Lake for the City supply an open surplus channel called Thanthi Canal was identified and water transported to Porur lake situated at about 11 Kms distance, and from this point onwards about 75 to 100 MLD of water was pumped by installing three 250 HP Pumpsets at Porur lake bund, through an existing 1200 mm dia PSC clear water transmission pipe line backward and in the reverse direction to the conduit at Redhills for onward transmission to Kilpauk Water Works for treatment and supply to the city. This was the first time that such a large quantity of water has been utilized for drinking purposes from Chembarambakkam Lake and also it was for the first time that the Board experimented and succeeded in transferring such huge quantities of water through reverse pumping method.

5.2. From December 1999 to June 2000, about 18 Million Litres per day of water was also drawn and supplied from another local source known Rettai Eri near Kolathur.

5.3. So also from Panjetty, Minjur, Tamaraipakkam and Poondi Well Field Sources from where during previous years only about 40 to 45 MLD of water was extracted from 33 bore wells and supplied to the commercial consumers in and around Manali area, from December 1999 onwards, about 95-100 Mld of water was extracted thus enhancing the city supply by about 50 MLD. This could be achieved by rejuvenating 13 old and defunct wells and also by erecting 28 new deep borewells in a record time.

5.4. Further, from several local wells within Chennai City about one MLD of water was drawn and put to the City supply system.

2. CLOSE AND CAREFUL MONITORING OF WATER SOURCES AND EFFICIENT MANAGEMENT:

6.1. The brightest spot in this scarcity situation, however remained the maintenance of daily water supply at reasonably good level. Unlike in the previous similar situations, the Board in the year under report did not resort to alternative day supply. Obviously, this not only indicated better 'benchmark' of Metrowater’s performance when compared to previous drought situations; but also gave us enough confidence to manage such situations in future in much better manner.

1. In the year 1983 - a drought year, from March 1983 to October 1983, we could maintain only an alternate day supply at the rate of 220 ML which is equal to the daily supply of 110 MLD.
2. During June 1987 to November 1990 - another long spell of drought - alternate day supply was resorted to and that too at the rate of 180 ML which is equal to the supply of mere 90 MLD.
3. So also from January 1993 to March 1994 again only alternate day supply could be maintained and that too the quantity supplied varied between 227 ML to 65 ML, working out to an average supply level of 113.5 MLD at the beginning of drought period which ultimately went down to the level of mere 32.5 MLD at the end of drought.
4. Status of water supply during various drought periods is graphically presented below.

1. MOBILE WATER SUPPLY:

8. WORLD BANK’S PAT FOR METROWATER:

8.1. The efforts taken by the Metrowater in mitigating the water needs of Chennai City with the available source and its ability to maintain satisfactory supply were also commended by the World Bank whose Mission visited Chennai Metrowater during June 2000 for a review of the progress of

on-going Second Chennai Water and Sanitation Project funded by the Bank. The observations of the Bank are reproduced below

9. PROGRESS OF PROJECT WORKS:

As stated above, the execution of project and capital works did not lag behind. In fact, not only the Tempo was maintained but also the physical and financial achievements on capital works during the year under report were significantly higher as could be seen from the chart below:

Some of the significant achievements during the year are listed below.

9.1. WATER SUPPLY:

New Water Distribution Stations: Two New Water Distribution stations namely, Valluvarkottam and Triplicane were commissioned during 1998-99. Works on two other water distribution stations namely Kannappar Thidal and Ekkauttuthangal were completed in 1999-2000 and commissioned. Five more water distribution stations at Choolaimedu, Patel Nagar, Kolathur, Mylapore, and Nandanam have been physically completed but could not be commissioned due to the prevailing water scarcity situation. Details of progress/ achievement in this regard are as given below:

Name of the zone	Estimated population to be benefited  (2021) In lakhs	Beneficiary Areas	Estimated cost of the work (Rs. in Crores)	Stage of Progress
Choolai-medu	9.68	Aminjikarai (South) Vadapalani Saligramam Kamaraj Nagar, Virugambakkam and MGR Nagar	22.50	Work completed. To be commissioned in January 2001 after current water scarcity is over
Patel Nagar	2.16	Radhakrishnan Nagar Cherian Nagar Tondiarpet  and Korukkupet	11.35	Work completed. To be commissioned in January 2001. after current water scarcity is over
Kolathur	3.89	Kolathur Villivakkam (North) Agaram and Sembium	12.64	98% Work completed. Proposed to be commissioned in January 2001 after current water scarcity is over
Mylapore- Nandanam	4.34 + 2.32	Mylapore Santhome Azad Nagar Beemannapet Alwarpet and Raja Annamalaipuram	23.55	98% of work completed. To be commissioned in  January 2001 after current water scarcity is over
Pallipattu	3.46	Adyar Thiruvanmiyur Indira Nagar and Sastri Nagar	10.47	80% of work completed. Target completion Dec.2000 proposed to be commissioned in Dec’2000
Vyasarpadi	4.47	Kodungaiyur Vyasarpadi and Perambur	15.76	65% work completed. Scheduled to be completed in April 2001. But actually proposed to be commissioned by Feb. ’2001
Velachery	1.34	Velachery and Guindy East	7.45	70% of work completed and scheduled to be completed in March 2001. Actually proposed to be commissioned in Jan.2001.

9.1.1. Clear Water Transmission Mains:

9.1.1.1. Out of seven works, one work viz Madhavaram take off to Vysarpadi Water Distribution Station was completed and commissioned. Water supply to M.K.B. Nagar is presently made through this pipeline. Of the remaining six works, four works namely Porur to Kathipara junction, Pallipattu take off to Mylapore-Nandanam Water Distribution Station, K.K.Nagar to Ekkattuthangal Water Distribution Station and Velachery five furlong road junction to Velachery Water Distribution Station though were completed during this year these could not be commissioned due to current water scarcity. These are proposed to be commissioned by Jan.2001 once the present scarcity is over. The progress of the two ongoing works is as follows:-

Sl. No.	Description of work	Estimate cost (Rupees in crores)	Total length of pipe line	Length laid so far.	Stage of Progress
1.	1300mm dia main from Kathipara to Pallipattu take off point	12.60	5980m	5100m	90 % Work completed. Expected to be commissioned in January  2001.
2	Branch transmission main from Gangadeeswarar Koil street to Triplicane and Kamarajar Thidal WDS	7.57	5280m		Work commenced on 15.3.2000.

 

9.1.2. STRENGTHENING THE LOCAL WATER DISTRIBUTION NETWORK:

The contract for strengthening of local distribution network in 8 Zones namely; Patel Nagar, Vyasarpadi, Kolathur, Choolaimedu, Ekkattuthangal, Kannappar Thidal, Nandanam and Pallipattu were awarded in four packages during May and June 1999 and the works are in progress. Due to totally transparent tendering procedures as also partly due to rupee devaluation since the Board recorded a saving of about Rs.70.00 Crores, (out of the Project Cost for Rs.540.00 crores) World Bank was persuaded to sanction certain additional works. As a result of this, the contracts for 3 more zones viz. Valluvarkottam, Mylapore and Velachery were awarded in Feb’2000. These works are also progressing well as may be seen from the statement below.
 
 

Sl.No.	Name of Zone / Package	Estimate Value Rs.in lakhs	Contract Value	work awarded	Completion date	Total length (laying KM)	Progress as on 3/2000 (laying Km)
1&2	Choolaimedu & Kannappar Thidal	5914.84	4550.00	21.5.99	20.5.2002	122.73	4.37
3&4	Ekkattuthangal & Patel Nagar	2212.36	1885.00	21.06.99	20.06.2002	70.73	12.75
5&6	Pallipattu & Nandanam	3453.74	2782.00	21.05.99	20.05.2000	94.02	7.70
7&8	Vysarpadi& Kolathur	5530.00	4317.00	21.06.99	20.6.2002	181.98	1.93
9	Valluvar-kottam	1465.70	1071.80	21.2.2000	19.3.2002	Supply of pipes to commence by June 2000.
10	Mylapore	2250.00	1477.80	23.2.2000	08.3.2002	Supply of pipes to commence by June 2000.
11	Velachery	2180.80	1447.80	23.2.2000	26.3.2002	Supply of pipes to commence by August 2000.

9.1.3. EXTENDING THE WATER SUPPLY COVERAGE TO ADJACENT URBANISED AREAS:

9.1.3.1 As already reported during the previous annual report, though, hitherto Chennai Metropolitan Water Supply and Sewerage Board catered to the water supply and sewage disposal needs of Chennai City limits, last year the Board decided to extend the water supply services to certain identified Adjacent Urbanized Areas (AUAs). The Master Plan 1978 has evaluated the demand and allocation of water in the Adjacent Urbanized Areas and Distant Urbanized Areas, for the years 2011 and 2021 as below:-
 

  Water Demand and allocation in Adjacent Urbanized Areas :
 

9.1.3.2.. Meanwhile, in order to meet the immediate requirements of a few Municipalities/Town Panchayats in the adjacent urbanised areas separate schemes utilizing the existing infrastructure as also by providing additional infrastructure to the required level were formulated and implemented as below.

1. For Korattur, which is a part of Ambattur Municipality, works at a cost of Rs.96.01 lakhs were taken up and completed. Presently about 1.5 MLD of water is being supplied.
2. A Project costing Rs.26.54 crores for upgrading and strengthening the available infrastructure facilities for extending water supply to the following local bodies was taken up and works completed during the year as below:-

9.1.3.3. For augmenting water supply from 14 lakh litres to 41 lakh litres to Ambattur Municipality, an improvement scheme comprising UGTs, pump houses and feeder mains at locations Athipet, MTH Road opposite to T.I.Cycles, Venkatapuram, Mannurpet, Korattur and Thathankuppam at a cost of Rs.3.37 Crores has been taken up and works are under progress.

9.1.3.4. In a similar manner for Avadi Municipality to augment supply from 8 lakh litres to 24 lakh litres pipe laying and pump set erection works at a cost of Rs.4.23 crores to benefit Avadi Main Town, Thirumullaivoyal, and Pattabiram parts of Avadi Municipality have been taken up and are under progress.

9.1.3.5. A scheme for providing water to Pukhraj Nagar portion of Madhavaram Municipality costing Rs.0.94 crores was completed and put to use. Further, another scheme for water supply to Thanikachalam Nagar part of Madhavaram Municipality at an estimated cost of Rs.2.4 Crores has been formulated and is at design stage.

9.1.3.6. Above stated works are for catering to the immediate requirements. Towards long term solution to provide water supply to all the 20 AUAs for (i) preparation of master plan, (ii) detailed engineering; and (iii) bid documents; it is proposed to hire a consultant and complete the work by obtaining financial assistance from the World Bank through Tamil Nadu Urban Development Fund. The work is proposed to be completed in about two years period.

9.2. SEWERAGE

9.2.1. Expansion of sewage facilities to unsewered areas: In furtherence to the declared policy of providing sewerage to unsewered areas, works for providing sewerage systems in Kanagam-Taramani, Kodungaiyur (North & South) Vyasarpadi Lake area, Velachery, Sarathy Nagar and Dr. Radhakrishnan Nagar (North & South) were completed. These include construction of 14 pumping stations and laying of 138.18 km of pumping main and force mains besides providing Collection System to a length of 117.09 km and house service connections.

9.2.2. Rerouting and replacing of sewers : Rerouting of 600mm dia CI force main from Law College pumping station to Royapuram pumping station costing Rs.18.76 Lakhs has been taken up and the work is expected to be completed shortly.

9.2.3. Providing intercepting sewers along Mambalam canal: To improve the quality of city water ways, works for providing interceptors along the waterways to intercept untreated sewage flowing along the Mambalam canal and put the collected sewage back into the system at a cost of Rs.9.00 crores have been taken up on experimental basis. This is programmed to be completed by Nov 2000. Once this experiment has been found to be successful, it would be extended to other areas also.

9.2.4. Improvement to 16 sewage pumping stations : Comprehensive improvement works in 16 major pumping stations have been taken up and completed in 11 pumping stations. Remaining works on 5 pumping stations are also expected to be completed shortly.

9.2.5 JBIC assisted sewage renovation and functional improvement project

Under this project, two contracts, - one for the Effluent conveyance system costing Rs.33.65 crores for conveying raw sewage from Koyambedu - Villivakkam to Kodungaiyur and the other for conveyance of treated water from Kodungaiyur to Manali industrial consumers costing Rs.36.34 crores were finalised and works awarded. These are expected to be completed by March 2001.

9.2.6 Providing sewerage to economically weaker sections:

In addition to the above, top priority, has been given to provide sewers in Adhi Andhra habitations and Colonies in low lying areas primarily inhabited by economically weaker sections. 24 km. of sewers and force mains were laid and 4 no. of pumping stations constructed and the systems commissioned benefitting a total population of about 25,000.

9.2.7. Improvement to existing Sewage Treatment Plants: With a view to sustain the quality oftreated sewage, certain immediate improvement works in five sewage treatment plants at Kodungaiyur Zone-I & II, Koyambedu, Nesapakkam and Villivakkam costing about Rs.51.00 crores have been initiated. These works are likely to be completed by end of 2001.

10. OPERATION AND MAINTENANCE - A PARADIGM SHIFT

10.1. The gains secured consequent upon conceptual switch over from the 'breakdown maintenance' to that of 'preventive maintenance'. were further strengthened during the year under report. This vital decision of the Board recognising and institutionalising the concept of "preventive maintenance" as also putting in place necessary supporting systems has transformed the entire arena of operation and maintenance activities. Some of the significant initiatives are detailed below:-

2. Systems of annual rate contracts for the procurement of materials and standard works-contracts initiated a few years ago were further strengthened. Standardization of these procedures has resulted in substantial cost savings as also increased efficiency and productivity.

10.4. Board also envisages private Sector participation as a part of its ‘market oriented financial systems-package’ and also as ‘ alternative systems of management’ towards securing increased efficiently and cost –effectiveness. The initiatives taken by the Board in this direction during the previous years were therefore, pursued further. Besides continuing with the private sector partnership in the management of some of the smaller and isolated engineering operations, during the current year, the CMWSS Board also opened up many core and service sectors, like accounting and financial management functions to the private sector. The experience of working together with the private partner has benefited CMWSS Board in not only obtaining increased efficiency but also substantial cost savings. Cases of cost savings are indicated below:

10.5. MANUFACTURING BOTTLED ULTRA PURE DRINKING WATER:

10.5.1. Driven by quality and cost consideration as also to cater to the needs of the upper income groups and that of large travelling population, Metrowater had been contemplating production and supply of bottled -Ultra pure water at most affordable cost. Finding it a feasible proposition, Metrowater thought of inviting private entrepreneurs, who could install the required machinery, produce and market bottled drinking water.

10.5.2. Duly applying the laid down procedures therefor, M/s. Emperor Aqua Limited – a private company has been authorised to produce and market packaged ultra pure drinking water (mineral water) under a joint venture licensing agreement. For this purpose, 15,017.65 sq.ft, of Metrowater’s vacant land has been allotted to the firm at Metrowater Resource Centre in Kilpauk Water Works Complex. The firm constructed the plant and installed required equipment as their own share in the venture and commenced production on 09-12-1999 Under the agreed working arrangement, whereas the production, supply and marketing etc. are the responsibility of the private sector partner, the responsibility to ensuring quality and maintaining affordability lies on the Metrowater.

10.6. Private Sector Participation – Lessons Learned and some Legal

Issues

10.6.1. Some of the important lessons learnt by the Board in this area are

summarised below:

• Water sector has only recently opened up for major private sector participation;
• Local availability of capability for large-scale operations is also limited.
• Writing of contract documents is an important area where more expertise is needed;
• Quantification of risks and risk allocation play a major role in response/economics;
• On construction and operation contracts as the contractor gains basic operational experience during mandatory operation and maintenance period is in a better position to properly assess the risks; and
• Areas requiring large manpower input with less complex operations offer greater scope for privatisation and hence economical.

2. However, some of the legal issues engulfing the private sector participation as we have seen are:-

1. Private Sector’s responsibility for legal suits/penalties levied by the Government or any regulatory agency in case of harm that may be caused to environment or living beings is very much lacking and needed to be settled.
2. Adequate legal provision for compensation for losses due to lesser output are lacking.
3. Adequate legal frame work for compensation for losses due to improper quality and if the obligations not met by private operator in respect of labour related issues such as concerning accidents, child labour, Mimimum Wages Act etc.

Enriched with the experiences gained and having got a fair knowledge of the issues arising with the private sector participation in water and sanitation sector, the Board has drawn up its future agenda as below:

• Exploring areas of involvement where it promotes economy and managerial efficiency;
• Seeking long term involvement of private sector in construction and operation of new water and sewerage facilities by DBOT BOOT or BOT basis;
• Developing a suitable contractual framework for involving the private sector; and
• Making operation and maintenance an integral part of the contract package for all the new facilities with longer time frame.

11.1. FINANCIAL RESULTS

The Structural and financial reforms implemented during the year under report and the analysis, review and control of operating expenditures and debt service charges helped the Board to end the current year with a definitive - positive note. The Board continued to record net operating income this year also, which is the eighth successive year showing operating surplus. The total income during the year has been to the order of Rs. 207.01 crores and the total expenditure Rs.181.51 crores, thus recording a net surplus of Rs. 25.50 crores. Achieving of this net surplus during the year under report has been further more significant due to the fact that during the fag end of the fiscal year, the Board had to substantially reduce the quantum of water supplied due to failure of monsoon on one hand and on the other side it had to incur additional expenses in maintaining the supply line and managing the drought. Of the revenue income whereas the greater share is attributable to water charges as in the previous year, the employee cost remained one of the larger components of revenue expenditure. Although this is one area of greater concern to the financial managers, the Board continues to accord high priority to employee's welfare.

11.2. FINANCIAL REFORMS.

11.2.1. INTRODUCTION OF MANAGEMENT AUDIT:

Reforms initiatives in the Financial Sector continued to be pursued during this year also. In order to further strengthen the financial systems of the Board and to improve the quality of reporting covering physical aspects of operation and maintenance the Board introduce the concept of ‘Management Audit’. While creating suitable structures for the "management audit functions", the Board made this as integral part of overall financial systems with well-defined responsibility of the audit wing. Various concepts such as transaction audit, compliance audit of Government rules and procedures, system's audit, management audit, energy audit, store's audit etc, have been clearly defined and used as tools to enhance productivity. To carry out these audit functions, the Board approved the appointment of a Controller of Finance (Internal Audit II) in Grade III with the qualification of Chartered Accountancy or Cost Accountancy. To assist him in his functions, a Deputy Controller of Finance (IA-II) with Chartered Accountancy qualification was also appointed. One of the objectives of the management audit wing is also to implement the Cost Oriented Savings Oriented (COSO) techniques in its audit functions.

11.2.2. WIDENING FUND MANAGEMENT CONCEPT

Taking care of future obligations is another vital function of any financial management. Towards this end, the ‘Fund Management concept’ introduced in the previous year was widened and persued further. The year saw in creation of a contingency or ‘Drought Management Fund’ besides making contributions to Depreciation, Repairs and Renewals, Pension Fund, etc., which were created during the previous year, thereby recognising the fact that contributions from the years of net income will have to be made for taking care of future obligations.

11.2.3. TARIFFS

As a ‘sound tariff policy’ remains the backbone of any viable financial management system and also for improving the relationship of ‘consumers as the user’ and the Board as ‘service provider’, in line with the tariff policy adopted by the Board in December 1997, the tariff systems were further simplified and attempts made to remove the distortions that remained in "consumer classification". Certain modifications were also made to the revised tariff system given effect to in October 1998. As per the policy stipulations as to the annual ‘tariff revision’, the Board was successful in revising the Annual value of the properties as also the taxes leviable thereon despite the unprecedented drought. It is this revision that helped the Board meet operating expenses.

11.2.4. Reduction in cross subsidisation:

11.2.4.1. Looking deeper into the revenue income of the Board, one could see that water charges occupy the largest component of the revenue income. Water charges are derived from (i) Domestic, (ii) Commercial, including industries (iii) Institutional and (iv) Municipal Bulk consumers. The tariff for these consumers have been fixed depending upon the purpose for which water supplied by the Board is used. Due to historical reasons. However, In the past years, it has so happened that the water charges from commercial consumers contributed the highest share of revenue income from the sale of water. In terms of quantity of water consumed, the commercial consumers’ share though was only about 16% of the total water supplied, they contributed about 46% of the Board’s revenue. On the other hand, the domestic consumers though contributed only 40% of Board’s income continued to consume about 69% of total quantity of water supplied. Gradual reduction in cross subsidisation and cost recovery therefor are some of the important objectives of the Board’s Tariff Policy. Towards reducing the cross subsidisation and gradually reaching the stage of full cost recovery from all the sections of consumers, Board has been very systematically working since 1997. The chart given below would show as to how the objectives are being achieved:-

11.2.5. Tariff Indexation

11.2.5.1. The citizen’s Charter and CMWSSB’s own commitments to Chennai and its citizens would mean that large increase in the coverage, and vast improvements in service quality would have to take place. As such, CMWSSB has drawn up many major capital investment programmes to create fresh capacity and to improve the efficiency of its existing assets. Simultaneously, it has been pursuing a programme of selective ‘privatisation’ or contracting out certain services that have significant cost advantage.

11.2.5.2. Government funding of the CMWSSB, especially the grant component, is likely to decline quite sharply in the near future and the Board has also been aiming for gradual reduction in the dependence on ‘borrowed funds’ for its developmental works. Naturally, the need for appropriate measures with the potential to self-finance the expansion activities without recourse to budgetary funds would be important. In fact these are our future concentration areas.

11.2.5.3. The revenue streams from water supply and sewerage services would have to improve from their present levels, both through increased efficiency and better collection as also from possible tariff revisions. It is important that ultimately an appropriately indexed tariff system that has viability, clearness and transparency, thereby distancing it to the extent feasible, from discretionary influences has to take place. Board also believes that tariff rules and the tariff structures can, when appropriately structured, create vast incentives for water conservation, generation of alternative supplies, besides bringing about equity. The scope for incentive regulation is high when the surpluses are a true measure of managerial performance. At the same time they need to be consistent with long-run marginal costs. In our context, this is virtually necessary given the need to augment capacity.

11.2.5.4. Hence, developing an indexation mechanism, which could automatically be linked to tariff revision has already commenced. The Infrastructure Development and Finance Corporation, has been entrusted with the job of making a diagnostic study on this. The future tariff strategy would consider this mechanism which is based on the price-cap rule (RPI-X type), where in RPI is retail price index and the X factor are the productivity gains. If the retail price index is treated as outside the control of the utility, the productivity gains would be within the control of the utility. But the productivity gains would arise on account of any one or more of the following:

1. increased productivity
2. efficiency gains
3. technological changes
4. quality-standards
5. enhancements to the security of supply
6. changes in economies of scale
7. enhanced service levels.

Though the Board could make the cost recovery of its operations, it was possible only by critically analysing the operating expenditure and debt service commitments. Some of the measures undertaken were, redemption of higher interest bearing loans, reassessment of power requirement and application of appropriate power tariffs as also choosing the ideal type of power consumption that will result in total reduction of power cost. Larger value of asset conversion was also given effect to and consequently, depreciation charged to revenue account was up by Rs.10.00 crores when compared to the previous year.

11.4. CASH MANAGEMENT.

Cash management remained a quite heartening feature this year as well. Considering the unprecedented drought and lower service levels, the Collection of receivables was quite satisfactory. These achievements could be possible because of the steps taken by the Board to streamline the billing and collection systems further.

11.5. FINANCIAL ASPECT OF DROUGHT MANAGEMENT

In an year of scarcity like the one we had while all technical measures were taken to mitigate the situation, finding finances for meeting the expenditure, which was an additional charge to the Board’s exchequer was another major challenge to the financial managers of the Board. However, with the efficient procurement and prudent financial management systems Board could manage the situation at extremely low costs. Following table would illustrate this point.

The expenditure incurred during drought periods is illustrated below:
 

Year	Population (in lakhs)	Expenditure  (Rs .in crores)	Present value  (Rs. in crores)	Per capita /per month, expenditure as on today’s value  (in Rupees)
1983-84 (8 Months) 1987-88 (9 Months) 1989-90 (12 Months) 1993-94 (15 Months) 1999-2000 (5 Months)	35     39     40     45     60	9.25     0.31     18.39     48.91     5.00	27.99     21.79     37.52     70.36     5.00	10.00 6.22     7.66     10.40     1.67

11.6. FUTURE PROJECT FINANCING.

Satisfying the growing needs of its consumers in respect of water supply and waste water disposal services is the statutory objective of this Board. In order to expand servicing capacity of the systems, as reported in earlier paras the Board has already taken up several developmental works on a massive scale.. Financing all future projects with least cost burden is however, the upper most challenge before the Board. This is especially so, because the Board has to heavily depend upon borrowed capital and servicing of borrowed capital in an urban infrastructure sector in our country situation still remains is a difficult proposition. With a view to identify the funding sources that best suited to the Board’s project financing needs, cost of borrowings are analysed on a regular basis and decisions taken. As a result of this, we were able to take some of the least cost funding sources. Many of the financial institutions have evinced keen interest in providing assistance to the Board. The World Bank, HUDCO and TUFIDCO continued to support as in the past years. The Board was also able to generate required level of internal contribution to support its capital programmes.

11.7. MOVING TOWARDS MARKET ORIENTED FINANCING SYSTEMS.

Last few years' financial results of the Board clearly establish that from a Government-dependent-budgetary-supported organisation, it has been moving fast towards establishing itself as a market oriented entity. Following a debt position review, Board took action to prematurely repay some of the higher interest bearing loans. Because of its sustainable financials, Board has also acquired a position of bargain with various funding agencies such as ICICI, IDFC, HUDCO, Nationalised Banks etc. for securing the most advantageous funding. An overwhelming response that the Board has received from several financial institutions in the last 1- 2 years would go to prove its sound financials and sustainable financing systems that it practices.
 
 

12.1. Metrowater believes and considers employees as its most important asset and accords high priority to their welfare, even though employee-cost occupies one of the major components of its overall expenditure and as such has become a matter of great concern. Board also realises the hazardous environment in which many of its employees particularly labourers work. In as much as, the organisation is moving to transform itself into a "market oriented-demand-driven-organisation', the delivery of service, the quality of it all would depend on high employee morale and motivation. Therefore, in addition to continuing with all employee welfare schemes introduced earlier, Board has introduced following new initiatives during the year under report:-

12.1.1. Regularisation of the Services of the temporary sewer workers

With the regularisation of 6 temporary workers during the year all employees and workers of the Board have attained the status of 'Permanent" regular employees.

12.1.2. Health Camps

The scheme of conducting Regular Health Camp at various locations introduced during the year l998-1999 has been continued during this year as well. 29 such camps were conducted during the year under report benefitting 595 employees. In addition to these camps, the Allopathic and the Siddha dispensaries at Head Office continue to function on regular basis thus providing basic medical support to all the employees and their families.

12.1.3. Constitution of a Guidance Cell

A GUIDANCE CELL with the legal experts in various family law matters has been constituted to assist the legal heirs of the deceased employees in order to quickly sort out and settle their terminal benefits in respect of disputed cases. During the year under report 3 cases were settled amicably.

12.1.4. Constitution of a Joint Consultative Committee

A "J0INT CONSULTATIVE COMMITTEE under the Chairmanship of Executive Director was constituted with a view to provide a forum for discussion, grievance hearing, and to foster greater informal working relationship among various levels of employees which inter-alia also has the representatives of Union/Associations and Officers as members. During the year under report the Committee met 4 times and held proposeful discussions

12.1.5 Formation of a co-operative society to run_the staff canteen

With a view to give new thrust to mutual co-operation and ensure better quality service, employees were encouraged to form a society and run the staff canteen on co-operative basis. As this experiment has been successful, efforts are on to also run a general-purpose stores on these lines.

12.1.6. Stream-lining the procedure for granting long-term and

short-term advances

In the matter of sanction of various advances to the employees the complicated procedures were simplified thereby ensuring that the employees could draw the advance in the locations where they are working. Following advances were sanctioned during the year:-
 

Type of Advances	No.of employees benefitted	Amount disbursed (Rs. in lakhs)
House Building Advance	293	714.00
Education Advance	10	0.19
Conveyance Advance	363	75.00

12.1.7. Performance of the Thrift Society

The Chennai Metropolitan Water Supply and Sewerage Board Employees Cooperative and Thrift Society has been growing year after year in terms of membership strength and the annual turnover. For the year under report there are 3510 members with a share capital of Rs. 296.00 lakhs. On an average the Society sanctions Rs.250.00 lakhs per month as loan to the members and the average recovery is in the order of about Rs.200.00 lakhs per month. The annual turn-over of the society was Rs. 5900.00 lakhs for the year 1999-2000. The society has been functioning in a rented building. During this year, the Society placed a request to the Metrowater’s Management for allotment of land and building for its functioning. Keenly interested in the better performance of the Society, Metrowater has proposed to allot the land and building situated in Langs Garden Sewerage Pumping Station Campus. This building would be renovated to suit their requirement and would be handed over to the Society on a nominal rent.

13.1. Metrowater believes that the quality of people’s lives would often depend on the basic services rendered to them, especially by public utilities. During the year 1999-2000, Metrowater brought out a well documented ‘Public Communication Policy’; basic tenets of which included (a) involving the "customer" in the decision – making process; and (b) integrating its operations with the functioning of the elected civic body and other civic associations. Some of the steps initiated in that directions are as below:

2. Involving Stakeholders in Decision Making Process:
1. Open House Meetings in all the ten Area Offices on all second Saturdays between 10.00 AM and 1.00PM are conducted by inviting representatives of Voluntary Organisations, Consumer Action Groups, Residents Associations and other concerned interested Groups. In order to encourage public participation and ellicit their opinions and suggestions in these Open House Meetings, Senior level Officers of the Board are posted as Presiding Officers. This system introduced in November’99 has been working well.
2. These Open House Meetings helped the Board establish more informal contacts with its consumers enabling them meeting higher level officers and also sharing and contributing in the decision making by offering opinion / advice, and suggestions for systems improvement wherever necessary and also redressing their complaints. This also enabled Board to identify several gaps between the promises and the actual delivery that existed earlier.

During 1999-2000 the Board brought out 'Customer Guide’ and issued to 4,40,000 customers free of cost along with the new water and sewerage tax and water supply charges demand card. The Customer Guide contained the following. User Interface i.e. often used terms such as the Board, Head Office, Area office, Depot Office, Water Tax and Water Charges, Sewerage Charges, Surcharges, Tariff, Classifications, etc.

1. Answers to frequently asked questions - ‘On fresh connections, tax and charges, water meters, etc.’
2. IVRS with Pictorial Instructions.
3. Details of Website.
4. Issues pertaining to payment of taxes and charges - Depot Nos., Area offices, selected Canara Bank branches.
5. Grievances handling and redressal system and important

13.5 Analysis of repeated complaints and ensuring avoidance of such repetitions has greatly reduced the receipt of complaints itself. 1999 was not a good year for Metrowater and its customers; for due to near total monsoon failure in 1999 and very low rainfall the piped water supply had to be reduced from 440 MLD to 250 MLD. However, inspite of such reductions in supply of water through pipelines, the number of complaints did not increase, rather these decreased drastically. During 1998-99, totally 1,88,620 complaints were received and redressed, whereas during the 1999-2000, total number of complaints received and attended was 1,66,610. This could be possible, as mentioned earlier by systematising the deliveries and strengthening the public grievances handling procedures that 

helped the Board tackle the customers problems more efficiently.

13.6. In-house Journal:

'Seithi Madal' the in-house monthly Journal gives location-wise, classification wise receipt and disposal of public complaints for the previous month, details of tender notices, awarding of contracts, etc and all other information that our employees, customers and other stakeholder may require. Besides serving as an effective tool of internal communication this has also ensured in bringing out greater transparency and openness in administration and the activities of the Board.

13.7. Consumer Survey :

With a view to obtaining feedback at regular intervals from the consumers as to the level of services rendered, Board has brought in a mechanism of a regular "consumer survey" by outsourcing a firm M/s. Economic Perspectives. This agency has been consultants have been entrusted with the job of conducting surveys for a period of 3 years continuously on various service levels and submit a quarterly report to the Board covering not less than 4,500 consumers every quarter. The survey, it is hoped, will further the cause of the Board in its endeavour to enhance the quality of service rendered to its consumers.

13.8. Simplification of some of the procedures:- Further to the simplified House service connections procedures, Board has introduced single self explanatory application for use of consumers for new assessment, name changes, Annual Value changes, classification, reconciliation, cancellation of wrong demand etc. which would help them to tick and submit applications with enclosure and obtain required remedies more easiliy.

13.9. Information and Facilitation Counter:-

The Board has opened an information and Facilitation Cell at the Head Office and proposed extension of this facility to all the ten Area Offices to assist and guide the consumers for various services. Application forms for new water/sewer connections, name changes, annual value changes, change of classification, reduction of demand, forms for registration of contractor as well as various pamphlets, on Citizen's Charter, complaints registration, redressal and monitoring systems, Rain Water Harvesting, etc. are made available at Information & Facilitation Counter for consumers’ easy access visibility. With a view to enlarge the contractors and suppliers base and encourage free-participation in tenders, Board has also started supplying schedules and tender documents through Information and Facilitation Counters. This is an additional facility created to enable the prospective bidders obtain free counselling and participate in the process.

13.10. Citizen’s Charter – 2 ^nd Edition 2000 :

The Consumer Service Committee headed by and comprising of leading Consumer Activists as members has been regularly reviewing the performance of the Board, and its commitments to the service standards as laid down in the Citizen’s Charter. The Committee concluded that 98.5% of the services of Metrowater were in conformity with the declared standards. The committee advised that in view of higher capabilities of the Board, certain standards could be further improved. Accordingly, Board brought out its Citizen’s Charter 2^nd Edition – 2000 assuring that it would perform and render its services to the set standards and well within the prescribed time limits.

14. INSTITUTIONAL STRENETHENING AND HUMAN RESOURCES

14.1. REFORMS INITIATIVES

The reform initiatives touching upon several functions of the Board initiated in the last few years continued in this year as well. Besides the financial and other sectoral reforms stated earlier, with a view to revisit the organisation holistically three consultancy studies Namely ‘Organisation Re-engineering Study’, "Twinning Arrangement" with a well run public utility and A Study on "Strategic review of Institutional Reforms" thought of in earlier years have commenced/completed in this year under report. Based on the recommendations of the ‘Organisational re-engineering study’, 'Metrowater Resource Centre’ has been created and also the Finance Administration and Engineering Departments have been reorganised. These initiatives are expected to deliver better performance and efficiency in coming years.

14.2. METROWATER RESOURCE CENTRE

14.2.1. As a part of ‘Human Resource Development’ activities, the Board had established a full-fledged staff-training centre as early as 1979, to cater to the growing needs of all categories of employees, which however, confined it activities to the technical, managerial and financial disciplines. Subsequently an ‘Engineering Consultancy Wing’ was established in 1996 with a view to enable the urban local bodies to utilise the technical capabilities of the Board in project formulation and implementation of the projects in the water and sanitation sectors.

14.2.2. However realising the need to consolidate and institutionalise the gains achieved in the areas of operational practices, consumer orientation, technical competence, financial management, managerial efficiency etc. and also to effectively utilising them for the future, the year under report saw the establishment of a centre for extension and excellence called ‘Resource Centre’, thus integrating the information, training, consultancy, research etc functions together under one umbrella.

14.2.3. Some of the objectives of the Resource Centre are to assist in providing necessary in put and information needed for efficiently operating a water utility to the best satisfaction of its consumers. "The Resource Centre" has thus been planned to provide: -

1. Cost effective solutions backed by appropriate technology,
2. timely and reliable data for use in the formulation of plans, projections and operational strategy;
3. Carry out research in the fields of water supply and sanitation; and
4. Develop human resources, systems, and strategies to enable increased productivity and enhanced efficiency.

The Resource Centre offers the following services:

14.3. TRAINING AND DATA:

• Designing and providing training for all categories of personnel in the water and sanitation sector covering supervisory, technical, financial and managerial functions as also providing on the job training for skill upgradation to unskilled workers.
• Designing and developing database and management information system.

• Project formulation, investigation, detailed engineering, estimation, financial analysis, bid documents, bid invitation and evaluation.
• Project Management: and,
• Organisation and systems management.

14.5.1. During 1999-2000, training courses covering 126 batches were organised, out of which 30 courses related to Finance, Commerce and Administration and the remaining to Engineering and Operational areas. During the year, a total of 1447 employees have undergone various training which also included 225 administrative and finance staff and 264 field workers.

14.5.2. Five Government of India (CPHEEO) sponsored refresher training courses were also conducted by the Training Centre during 1999-2000 in which 109 trainees sponsored by CPHEEO from all over the country participated. Besides, Centre also conducted two course supported by the World Bank/TNUDP for the senior Municipal Officials.

14.5.3. Improvements to certain infrastructure at a cost of Rs. 31.50 lakhs were also undertaken. These include air-conditioning of classrooms, providing LCD projectors, addition to the Library etc.

14.6. Consultancies taken up during 1999-2000 by the Resource Centre:.

Name of Project	Project Cost	Consultancy Cost
A. External Consultancy (Rupees in Lakhs)
Madhavaram Water Supply Scheme  Head Works Extension of water supply to Thanikachalam Nagar	82.00 35.00	1.23 4.10
Ambattur Water Supply	276.40	4.14
Avadi Water Supply -	3000.00	9.73
Improvements to water supply for Alandur and 13 local bodies	2465.00	172.00 **
B. Departmental Consultancy (Rupees in lakhs)
Water Supply / Sewerage Schemes	1706.06	25.59
TOTAL	7787.96	216.55

** Including construction supervision

14.8. TWINNING ARRANGEMENT

14.8.1. The Board has been constantly endeavouring to take in its stride and to accept the best practices, modern techniques and updated systems under implementation in well run Water Utilities elsewhere in the World. To reach at a more purposeful understanding of the developed systems that were available in well managed public utilities for absorption in this Board, a Twinning Arrangement with M/s. Compagnie Generale des Eaux (GdE) has been worked at. This arrangement will run for a year and is expected to cover the objective to -----.

Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB) believes and foresee that one of its key objectives is to meet the challenges that lie ahead in the next decade. In order to achieve this it is looking to streamline its operations further and plan for future growth. Consequently, CMWSSB now aims to raise its service possibly by improving all operational activities. These include improvements in service levels and operating efficiencies, basic administration, financial control, human resources management and customer relations.

14.8.3. In order to begin the necessary process of change, a programme of mutual assistance has been proposed. The first few steps will be through this Twinning Arrangement with M/s. Compagnie Générale des Eaux (GdE).

14.8.4. GdE will also concentrate on transfer of knowledge in order to strengthen CMWSSB’s operating efficiency, improve financial management and provide support to educate its staff to more efficiently manage and operate its facilities to provide water supply and sanitation services. This will be achieved through the secondment of experts in management, commerce, financial administration, engineering and operation and maintenance of water supply and sewerage systems who would assist CMWSSB in the development and implementation of organisational structure, systems, procedures and practices that are necessary for successful future operations of CMWSSB.

5. STUDY ON STRATEGIC REVIEW OF INSTITUTIONAL OPTIONS

The objectives of the study are: -

• In Chennai - to develop understanding and facilitate a debate amongst key stakeholders that:
• involves poor communities in deciding the level of services they want and can afford
• improves the quality, reliability and access to water supply and sanitation services in the city;
• reduces the degradation of the natural environment
• assists a specially formed Steering Committee to take a decision on the best way forward on the water sector in Chennai and to recommend this to the Board of CMWSSB and the Government of Tamilnadu, And
• At the national level - to use the work in Chennai to inform the national discussion on:
• ways of ensuring that the interests of the poor are embodied in alternative ownership and management options for the water sector;

14.9.3. M/s. KPMG India Limited, who have been entrusted with the above study on "Strategic Review of Institutional Options" and have commenced their work would complete in about year’s time.

15. GENERAL

Metrowater Board’s collective and concerted efforts have been towards the raising the quality and quantity of service delivery to its consumers. In as much as a reciprocative response from the public at large would add to the effective maintenance of the water supply and sewerage systems thereby resulting in much better service delivery, the Board has been working on several consumer education programs. Board has also been regularly participating in the annual All India Tourist and Trade Fair being held every year in Chennai as also in the international trade fair held every year at ITPO grounds New Delhi wherein besides installing models depicting the functions and services of the Board greater focus would be given to the consumer education and their participation. The year 1999-2000 saw the role of Rain Water Harvesting as a better tool of water conservation.

Board celebrated the World Water Day in March, 2000 propagating the concept of water conservation.
 
 

On behalf of the Metrowater and on behalf of the Board of Directors, I would like to acknowledge with deep sense of gratitude to the GOVERNMENT OF TAMIL NADU, GOVERNMENT OF INDIA, the World Bank, JBIC, DFID (UK), HUDCO, TUFIDCO, TNUDF, Canara Bank, Corporation of Chennai, Tamil Nadu Pollution Control Board, CMDA, Local Bodies in Adjacent Urban Areas and Tiruvalluvar District Administration for their valuable support, help and assistance and also to all Metrowater family members for their wholehearted involvement and support in our endeavours of achieving the mission of better service to the consumers of Chennai City.

                                                                                                                                                C.P.Singh, IAS,
                                                                                                                                                Managing Director
 
 

IX. TAMIL NADU GOVERNMENT'S REVIEW ON THE WORKING OF CMWSS BOARD FOR THE YEAR ENDED 31^ST MARCH 2000

1. Chennai Metropolitan Water Supply and Sewerage Board was constituted under a legislative enactment titled CMWSS Act 1978 (TN Act 28 of 1978) for exclusively attending to the growing needs of the citizens in Chennai City and for planned development and appropriate regulation of Water Supply and Sewerage services in Chennai Metropolitan Area with particular reference to adequate supply of safe and good quality in drinking water and treatment and safe disposal of sewage and there by the protection of Public Health and for all matter connected therewith or incidental thereto.

2. The Board is currently implementing three major schemes viz (a) The Second Chennai Water Supply and Sanitation Project Funded by World Bank (SCP) (2) Japan Bank for International Co-operation Assisted Project (JBIC) (3) Zonal Reservoirs and other rehabilitation works funded by HUDCO / TUFIDCO and other extra budgetary resources.
3. Total assets of the Board stood at Rs.159426.53 lakhs as on 31^st March 2000 onsisting of fixed Assets of Rs.128247.01 lakhs and current assets, loans advances and deposits of Rs.31179.52 lakhs.

                                                                                (Rs. in lakhs)
 

SALE OF WATER	1999-2000	1998-99
METERED Domestic  Commercial Institution Municipalities UN-METERED Domestic Commercial Institution Sale of Treated Sewer Water  Mobile Water Supply to Private Customers  Sewerage Charges	867.80 7708.24 876.20 180.72     1548.04 887.34 9.19 377.10      358.51 806.70	442.68 7683.48 634.07  71.70      1312.04  786.19  4.91  345.45  323.61  688.07
Total	13619.84	12292.20
WATER AND SEWERAGE TAX Water Tax Sewerage Tax	1113.66 3912.65	572.24 2098.29
Total	5026.31	2670.53

4. It can be easily seen from the above that the increase in revenue from sale of water during the current year is Rs.1327.64 lakhs when compared to the last year.

5. In regard to water and Sewerage tax, the Board continue to adopt the annual rental value as fixed by the Chennai Municipal Corporation and raises the demand periodically by getting data generated through computer inputs (Computer Floppies) from Corporation of Chennai. Tax revenue has increased by Rs.2355.78 lakhs during this year due to revision of Annual Rental Value by CMC.

6. The total income during the year 1999-2000 has been to the order of Rs. 20701.46 lakhs and the expenditure amounting to Rs.18151.61 lakhs resulting in an overall income of Rs.2549.85 lakhs against Rs.2220.94 lakhs during the previous year with a net income growth of 12.90 %. The Board is operating its services effectively and managing its resources efficiently thriving for achieving its multipronged strategic goals and objectives. The Board has created additional fixed assets (net Block) to the tune of Rs.28215.55 lakhs. Apart from this the Board has created additional facilities and increased their assets. Thus the Board has improved considerably in its performance and functioning during 1999-2000 and earned surplus fund of Rs.2549.85 lakhs in this year.

The performances review along with the Annual Report of Chennai Metropolitan Water Supply and Sewerage Board for the year ended 31.3.2000 placed in the Legislative Assembly.
 

                                                                                                                       SECRETARY TO GOVERNMENT
                                                                                                                       MA & WS DEPARTMENT
                                                                                                                       CHENNAI 600 009