DRAFT POLICY NOTE 2005-2006

CHENNAI METROPOLITAN WATER SUPPLY AND SEWERAGE BOARD

  I.            WATER MANAGEMENT

  1.       The Chennai Metropolitan Water Supply and Sewerage Board (CMWSSB or Metrowater) was constituted in August 1978 for exclusively attending to the growing needs and for planned development and appropriate regulation of water supply and sewerage services in the Chennai Metropolitan Area with particular reference to the protection of public health and for all matters connected therewith or incidental thereto.  The present operational area of the CMWSS Board is 170 sq.km. in the City and about 10 sq.km. in the Adjacent Urbanised Area.

  2. DRINKING WATER SUPPLY POSITION IN 2004

During the severe drought in 2004 i.e. upto October 2004, since all the sources supplying water to the Chennai City were dry and there was no water received from Kandaleru under the Telugu Ganga Project, about 100 MLD of water was transported from the distant sources like Gummidipoondi, Minjur, Tamaraipakkam, Periyapalayam, Poonamallee, Mamandur-Palur, Thiruporur, Karunguzhi etc. covering a distance of about 120 to 150 km. and the total quantity transported was 23,439.79 ML during the period from 27.6.2003 to 9.11.2004.  The water supply to Chennai City was maintained through the mobile tankers by way of filling 14,602 No. of stationary tanks and about 8,000 street supplies daily by making about 13,000 No. of trips daily for internal distribution throughout the city covering 15,089 streets. The Government undertook this massive and onerous task of distribution through the Chennai Metropolitan Water Supply and Sewerage Board at a cost of   Rs.196.69 crore during the year 2004 - 2005.

  3.       3,000 new HDPE Tanks were erected during 2004-2005 in the City.  1,757 India Mark-II pumps were erected during 2004-2005 throughout the city to meet the water requirements of the consumers for other than drinking and cooking purposes and the total number of India Mark-II pumps available in the city including the newly erected is 6,385  which  provide water for secondary usages.

  4.       The New Veeranam Project works at an estimated cost of Rs. 720.00 crores were launched in February 2003, and the  project was executed and completed on a Fast Track Basis and in 2004 end  it  was this Project, which saved Chennai. Initially water from the 45 bore wells drilled under the Drought Contingency Plan were used to extract 20 MLD which was gradually stepped  upto 90 MLD. After the Veeranam lake received freshes and filled up quickly, the full supply of 180 MLD of water to Chennai City through the New Veeranam Project commenced on 13.10.2004. 

  5.  PRESENT WATER SUPPLY POSITION

In the catchment area of the main city water supply sources viz. Poondi, Cholavaram and Redhills  the rainfall during the year 2004 was 1171 mm against the normal rainfall of 1400mm. The storage of water available in the main surface sources of Chennai City viz. Poondi, Cholavaram and Redhills as on 1.01.2005 was 1,859 Mcft against the total capacity of 7,412 Mcft.  On the same day last year, i.e. in 2004, the storage was only 272 Mcft.  In Chembarambakkam Tank which is a supplementary source to Chennai City water supply, the storage as on 1.1.2005 was 405 Mcft against the capacity of 3,645 Mcft. 

    Consequent  of improvements in the water level, after  the rainfall during Oct. - Dec. 2004  the ground water from  the Well Fields was extracted  upto 95 ML per day. 

  6.      Anticipating that Chennai city may face  another water scarcity  since the storage in the reservoirs supplying water to the city had not improved after the South-West monsoon in 2004, the Hon'ble Chief Minister of Tamil Nadu met the Hon'ble Chief Minister of Andhra Pradesh at Hyderabad on 1.10.2004 and requested him to ensure Krishna water supply to Chennai City as per the agreement already entered into.  With this effort, Krishna water was released from the Kandaleru reservoir on 23.11.2004 and received at the entry point to Tamil Nadu border on 28.11.2004.  Till 28.2.2005, only about 2.702 TMC feet of water has been received as against the 12 TMC feet of water to be released.

 7.      With the water available in the surface sources and receipt of water from Kandaleru Reservoir under the Telugu Ganga Project and also water received from the New Veeranam  Project, the city water supply is maintained at an average of 600 ML on alternate  days, besides 60 ML being supplied to the Manali Industries and Bulk consumers  daily.  Water is received by consumers through the pipeline covering aboyt 89% of the city area.  Further, for the streets where water is not reaching through  the pipeline due to the alternate day water supply, mobile water supply is also  being organised through 2,650 lorry trips (each of 9 KL) by filling 5,000 No. of  stationary tanks apart from 1,100 trips for  street supply .The storage in the lakes  supplying water to the city and the receipt from the Kandaleru Reseroir under the  Telugu Ganga Project will be closely monitored and suitable action will be taken   to maintain the current level of supply of  water to the Chennai citizens ,until the next monsoon (Oct.2005).

  II.   CONSTRUCTION OF 530 MLD CAPACITY WATER TREATMENT PLANT AT CHEMBARAMBAKKAM:

          In order to treat additional water to be drawn under the Telugu Ganga Project,

additional treatment capacity of 530 MLD is being constructed at Chembarambakkam with assistance from the French Government.  Works are under progress.  So far, 45% of physical work has been completed.  The balance works will be completed by May 2005.  The expenditure incurred so far is Rs.5977.00 lakhs.  The Revised estimate for 2004-2005 is Rs.4101.00 lakhs and Budget estimate for 2005 - 2006 is Rs.5164.00 lakhs.

III. SECOND CHENNAI PROJECT:

            The Second Chennai Water Supply Project was taken up during February, 1996, with the World Bank Assistance at a cost of Rs.778.79 crores and most of the works contemplated under this project had been completed. Some of the major works such as construction of Water Distribution stations (7 nos), Laying of Clear Water Transmission mains ( 36 km), Strengthening of Water Distribution system in 11 zones were taken up including leak detection rectification works covering about   70% of Chennai City Area.

            Installation of Vaccuum Feed Chlorinators in the Water Distribution Stations, Refurbishment of the existing Kilpauk Water Treatment Plant and installation of 44 Nos. electromagnetic flow meters were completed during the year 2004.  Expenditure in the year 2004-2005 is Rs. 12.83  crores.

  IV. IMPLEMENTATION OF GIS IN CMWSSB

            For effective operation and maintenance of water supply and sewerage system and asset management, Metrowater proposed to implement GIS based database. As a pilot study, the Consultancy work of preparing such GIS data has been taken up in nine depots from 70 to 78 in Area-V of CMWSSB, through M/s. Descon Ltd.,   Calcutta  for a contract value of Rs.58,29,660/- and the work has been completed.  The basemaps have been procured from National Remote Sensing Agency, Hyderabad..  These maps covered the operational area of CMWSSB, which is approximately 192.Sq.km.

On completion of the pilot study, it is proposed to examine and extent this GIS work for rest of the city area.

  V. CHENNAI CITY RIVER CONSERVATION PROJECT

The sewerage network in Chennai City was installed in the year 1891 and at present the sewerage network has coverage of 98% of its area.  In order to cope up with the increased sewage flow resulting from water supply augmentation schemes under implementation and to prevent the overflow of sewage into the city waterways, the Chennai City River Conservation Project has been taken up at a cost of Rs.720.15 Crores with Government of India grant Rs.491.52 Crores and Rs.228.63 Crores being borne by CMWSSB  and the work has been taken up in sixteen packages and nearing completion. All the works including construction of 4 (new)  Sewage Treatment Plant units are programmed  to be completed by March 2005. 

An amount of Rs.288.53 Crores has been spent so far towards the above Project.  NRCD has released an amount of Rs.254.42 Crores only.

            The slums located on the banks of Chennai City waterways are discharging the sewage  directly onto the waterways and polluting there. In order to prevent discharge of sullage/sewage from the slums into the waterways, it is proposed to provide sewerage facilities to the slums located on the banks of waterways in the Chennai City .  Accordingly,  it has been proposed to provide sewerage facilities to the slums on the banks of waterway by CMWSSB at an estimated  cost of Rs.1990.57 lakhs.  The expenditure for the above scheme is to be borne by the State Government.  By executing the above project overflow of raw sewage into the City waterways can be prevented.

VI .FINANCIAL ACTIVITIES

1)  E-Governance

During the Budget Session 2002-03, the Hon'ble Chief Minister of Tamilnadu has ordered that in the first phase, a scheme to implement Electronic Delivery of Services (EDS) to the citizens. Utility payment services of Tamilnadu Electricity Board, Metro Water Board and Chennai Corporation can be undertaken anytime/anywhere at the EDS Centres so as to enable and benefit the citizens to pay their dues to these utilities. 

            Accordingly, the Chennai Metropolitan Water Supply and Sewerage Board has opened EDS Counters at 10 various TNEB Counters in Chennai City.

            The EDS Collection Counters are a common collection counters to collect Water and Sewerage Tax and Charges from all the consumers of Chennai City irrespective of the locations they belongs to.  The key feature of the EDS Counters is to enable the citizens an easy way of transacting.

Water and Sewerage Tax / Charges payments are received at all the 10 EDS Counters by mode of cash / cheque / DD. By means of these 10 EDS Counters, the Chennai Metro Water Supply and Sewerage Board has so far  collected Water and Sewerage Tax / Charges around Rs. 685.15 lakhs as on 31.01.2005.

2) ONLINE COLLECTION OF WATER AND SEWERAGE TAX/CHARGES THROUGH INTERNET BY ICICI BANK. 

            At present, the Chennai Metrowater Board is collecting Water and Sewerage Tax/Water supply Charges through computerised collection centers of the Board located at 10 Area Offices, 70 Depot Offices and Head Office.  In addition to this, 22 specified branches of Canara Bank are also authorized to collect Tax/charges on behalf of the Board during the collection drive period.

The Board has launched its own website www.chennaimetrowater.com during 1998. Hence, the Board proposed to improve the collection network by other means,it introduced online payment of water tax and water supply charges through Internet.  ICICI Bank has undertaken this assignment on behalf of the Board.  Hence, the Board tied up with ICICI Bank to facilitate on-line payment of water taxes and charges by customers.  This will allow all Metrowater consumers who also have an ICICI Bank account either savings or credit card to log onto Metrowater website www.chennaimetrowater.com ascertain their dues and make payment through a direct link to ICICI Bank’s website www.icicibank.com.  Metrowater has also tied up with ICICI Bank for “pay seal’ payment gateway to enable any Master or Visa Card holder to pay water taxes and charges through Metrowater Website..

            The water & sewerage tax / charges have been collected by ICICI bank through Internet on-line payment around Rs. 4.53 lakhs from September’03 to January ’05.

Apart from the above, the Board has proposed to install E.D.C. machines of ICICI Bank to its selective collection Offices of Metrowater Board customer desirous of paying charges through their credit cards (as against cash and cheque payments) at the collection offices may do so through the E.D.Cs. installed by ICICI Bank.

3)       ISSUE OF TAX FREE MUNICIPAL BONDS

            `The Board made its entry into the Municipal Bond market in 2003-04 to part finance the execution of CWSAP - I. by way of issue of Tax Free Bonds to the tune of Rs.50.00 crore by obtaining permission from Govt of India. Government of India permitted the Board to issue Tax Free Bond to the tune of Rs.42.00 crore .CMWSSB obtained a  AA (so) rating from the Credit Rating and Investment Services of India Ltd. (CRISIL) who are one of the  leading rating agencies in India. This rating depicted a strong stand-alone credit quality and high safety for the investor. The coupon rate is 5.20% for 7-year bond, which is the lowest coupon rate on tax-free bonds in India. This issue was completed in record time and fully subscribed successfully. 

                    Based on the successful issue of Tax Free Bonds for CWSAP -I , to part finance the project of 530 MLD Treatment Plant, Board has proposed to issue Tax Free Bonds to the tune of Rs.50.00. crore with the approval of Government of India during 2004 - 2005. The issue is proposed to be completed by 31st March 2005. The coupon rate for the proposed 7 year bond issue is expected to be 5.20%.. As per the stipulated guidelines of Securities and Exchange Board of India other formalities like appointment of Trustee, Registrar etc. are under progress to raise the issue successfully before 31.03.2005.

4)         IMPLEMENTATION OF ISTP

            The Board has taken up a ISTP (Information System and Technology Planning) Project for Online Billing and collection,  Accounts and Stores by using the ERP (Enterprice Resource Planning)  software and Sun Solaris Operating System under the World Bank Funds for a value of Rs.2.41 Crores.

            As a pilot study, Area-V Office - Anna Nagar and its 18 Depot Offices in and around Anna Nagar and store have been connected through leased lines with Head office server.

            After parallel run using ERP system, the live run had been commenced from the month of August 2004.

            Now, consumers coming under jurisdiction of Area Office-V are paying their dues in any one of the 22 collection centers (18 Depot Offices and four in Area Office-V) irrespective of their dwelling place.  As far as financial accounting is concerned, all the sections involved in financial accounting process including process and payments of bills have been implemented through LAN.  Using Microsoft Exchange, office automation has been implemented in Head Office by connecting 127 users.

            CMWSSB is the first Water Board in India to implement a ERP package for its Billing and Collection.

PROPOSALS FOR THE FUTURE:

I. THIRD CHENNAI PROJECT

            CMWSSB has proposed to take up further systemic improvement projects in water supply, both for Chennai city and Adjacent Urbanised Local Bodies as a                 “Third Chennai Project” with World Bank assistance at a cost of Rs.750.00 crores.  The Project  has been forwarded to World Bank by the Government of India for loan assistance. In order to improve  the sources, works are proposed for deepening and desilting of Ambattur tank, Korattur tank and Madhavaram tank and for Rehabilitation of Porur tank besides formation of Checkdams. It is also proposed to install water meters to all the consumers to achieve sustainable revenue. The following are some of the major  works envisaged under the proposed Third Chennai Project.

   (1)            Strengthening of water Distribution system in the left out 5 zones :

Strengthening of water Distribution system in the left out 5 zones Anna Poonga, Kilpauk, Triplicane, Southern Headworks and KK Nagar.

The total length of pipelines to be laid is about 305 km. at a total cost of Rs.150.00 Crores. A provision has also been made for providing valves in all the 16 zones towards isolation of zones in order to have effective control over distribution. 

The existing Water Distribution Head works at Anna Poonga, Kilpauk, Triplicane and K.K.Nagar will also be refurbished.

 (2)            Infrastructure facility to draw additional ground water from A. K Basin  :

Under the Second Chennai Project, the consultancy Study by M/s. Scottwilson Ltd (Knight Piesold) to reassess the Ground water potential in Araniar Koratalaiyar Basin was started and  studies regarding transfer of water use  will be carried over into the Third Chennai Project.

(3)  Unaccounted For Water In Left Out Areas

Earlier studies have indicated that there was considerable loss of water in the system both in the mains and in house service connections.  Hence the Leak Detection and Rectification works were taken up to reduce the level of unaccounted of water in phases with World Bank funding under Second Chennai Project.  Under this project, 1,95,000 Nos. of house service connections have been  renewed and renewal of choked up mains for a length of 585 km was  completed.

It is proposed to take up renewal of choked up AC/PVC/CI mains in the left out areas to a length of about 300 kms. and to renew the balance house service connections ( about 80,000 Nos.)

(4)        Water supply infrastructure facilities in Adjacent Urbanised Areas

    (AUA) and Distant Urbanised Areas (DUA)

            Pending finalisation of Master Plan, works in 12 local bodies have been completed towards strengthening of transmission mains and storage capacity.            The distribution system in most of the local bodies is to be provided so as to effect house service connection. 

In view of providing   water supply to AUAs and DUAs, water supply distribution system for a length of 898 kms and water distribution stations are to be provided after finalising the funding arrangements.

II. NEW VEERANAM EXTENSION PROJECT:

During the years of deficit rainfall, water in the Veeranam Lake may not be sufficient.  However, water supply to Chennai has to be maintained during this period also.  So, it was decided to implement a project called New Veeranam Extension Project to draw sub surface water in Kollidam riverbed pumped to Sethiathope and then to Chennai through the New Veeranam Project infrastructure.  The Government has accorded Administrative approval for this Project to be implemented in five Packages vide G.O.Ms.No.9, dated 28.1.2005 for Rs.300.00 Crore.  Out of this Rs.300 Crores, 1/3rd of the expenditure will be met out by the Government and the balance 2/3rd will be met by Chennai Metropolitan Water Supply and Sewerage Board by raising loans from the TUFIDCO/Commercial Banks.

The proposed scheme is to draw 150 mld sub surface water from the Kollidam river by constructing     6 Nos. of Collector Wells between mileages 39/3 and 59/0 in the Kollidam river. This proposal envisages that the water from the Collector Wells will be pumped to a sump and then conveyed by the pipeline to Sethiathope Raw Water Pumping Station constructed under the Chennai Water Supply Augmentation Project-I for onward transmission to Chennai City through the pumping and pipeline arrangements of Chennai Water Supply Augmentation Project - I (New Veeranam Project). This project will be executed in 12 months time.

III. CHENNAI WATER SUPPLY AUGMENTATION PROJECT - II

            The Government accorded administrative approval in the G.O.Ms.No.45,        M.A. & W.S. (Metrowater) Dept., dated 3.4.2002 for implementing the Chennai Water Supply Augmentation Project-II at an estimated cost of Rs.493.00 Crores for constructing checkdams, reservoirs, percolation tanks etc., to store surplus water for enhancing recharge in Kortalaiyar, Cooum, Adyar and Palar river.  After a detailed discussion, revised proposals have been considered by the Government, by deferring of some of the proposal and revised administrative sanction has been accorded for an estimated amount of Rs.124.00 Crore under CWSAP-II. The Government also provided 1/3rd of the project cost as capital grant and released Rs.10.00 Crores towards the grant. It is proposed to tap about 60 mld of ground water from the above sources by implementing the following works.

a)      Construction of check dam across Palar river at Vayalur and conveying the water to the proposed water treatment plant at Mangalam and inject the same in the existing CWSAP-I pipeline after treatment.               

b)      Construction of 4 Check dams across Adyar at Manapakkam, Nandambakkam, Anakaputhur and Cowl Bazar.

c)      Rehabilitation of 2 check dams across Cooum at Paruthipattu and Kannapalayam.

d)      Construction of Water Treatment Plant of 20 mld capacity at Mangalam.

e)      Construction of transmission main for conveying 20 mld of water from Vayalur to Water Treatment Plant at Mangalam with injection arrangement to CWSAP pipeline.

 

An amount of Rs.7.9 Crores has already been released by Metrowater to PWD on 20.12.2004 as an advance for taking up the works which are to be executed by PWD.  Tenders were called for by PWD and the works are programmed to be completed in 18 months time from April 2005.

IV. PROVIDING SEWERAGE SCHEME TO AUAs & DUAs

            Urbanisation of adjacent areas surrounding the city is  increasing day by day.  20 such Adjacent Urbanised Areas surrounding the city have been listed.  These Adjacent Areas are administered by Municipalities, Town Panchayat, Village Panchayat, etc.  To improve the public health and environmental conditions, proposals are under formulation for providing comprehensive sewerage schemes to these areas.  A Master Plan for furnishing the Detailed Report on technical and financial aspects of providing sewerage scheme is to be prepared. 

            The probable cost for providing sewerage system including conveyance of sewage to nearby STPs has been worked out as  Rs.631.00 Crores and land and capital cost for constructing additional treatment units at the STPs of Metro system as Rs.616.00 Crores with an additional O&M Cost of Rs.17.56 Crores per annum.

Incidentally some of the Local Bodies have formulated proposals for providing sewerage schemes to their areas by availing funds from the financial institutions like TNUIFSL, TUFIDCO, etc. The works will be executed by CMWSSB as deposit works once the respective Local Bodies make  available the funds for the work.

            The Detailed Project Reports for providing sewerage schemes to Thiruvottriyur, Avadi, Ambattur, Pallavaram, Porur, Madhavaram, Kathivakkam etc., have been received by CMWSSB for scrutiny.

V.            PROVIDING SEWER LINES TO UNCOVERED STREETS

            About 98% of the streets/roads in the city have been provided with sewer lines by CMWSSB.  Still some streets are found to be uncovered with sewer lines.  Public representations are being received from such streets.  During the current financial year  estimates for providing sewer lines for a length of 10.46 k.m. have been prepared at a total cost of Rs.1.78 crores.  The works are under various stages of implementation.  This work is being continued for coverage of 100% of the City area.

VI.                LAYING CLEAR WATER TRANSMISSION MAIN FROM CHEMBARAMBAKKAM WATER TREATMENT PLANT TO CITY GRID

            One of the components which is to be implemented under Krishna water supply Project stage-II is laying clear water transmission main from the Chembarambakkam Water Treatment Plant to the city transmission main grid.  As per the project proposal, this component is to lay 2000mm/1900mm dia MS pipe line from Chembarambakkam Water Treatment Plant to integrate with City transmission grid at Porur Junction, Koyambedu Junction and Vanagaram Junction.  An estimate for implementing this work was technically sanctioned for Rs.105.42 crores, during August 2003.  The tenders were invited and the successful tenderer was issued the work order.   The successful tenderer did not take up the work  and approached the Madras High Court praying for  price escalation . The Court dismissed the Writ petition and Judgement pronounced in favour of CMWSSB. As per the tender condition the E.M.D. amount of Rs. 43.80 lakhs has encashed by CMWSSB.  Retenders are to be invited shortly.

VII.    INFORMATION SYSTEM AND TECHNOLOGY PLANNING (ISTP)

            In continuation to the pilot project already completed in Area V the ISTP would be extended  to the remaining nine Area Offices and 140 depot Offices by procuring required communication equipments, cash counter computers, license for Oracle ERP application and upgrading the existing sunserver.

            Under the expansion project, about 5.50 lakh consumers will be benefited and a consumer residing in any part of the city can pay their dues in anyone of 200 collection centers that would function under networked basis.  For the departmental functions and office automation purposes, there will be 460 networked users.

VIII.   SEA WATER DESALINATION PLANT

Keeping in view the chronic problem of water scarcity in Chennai and adjoining areas due to frequent failure of the monsoons, Government decided to set up a sea water desalination plant  as a viable source for all seasons for supply of potable water to the residents of Chennai and adjoining areas.Accordingly CMWSS Board has proposed to construct a Sea Water Desalination Plant of 100MLD/200MLD capacity at Minjur on Design, Build, Own, Operate and Transfer (DBOOT) basis with any of bidders technology from their own funds.  The required land of 60 acres has also been identified at the northern outskrits of Chennai City near Minjur.

Accordingly  tender was  floated on 18.11.2004 fixing the due date as 16.2.2005, and  4 bids were received. The technical bids were opened and evaluation of the bids is under process..   After completion of technical/financial  evaluation of the responsive bidders by the  consultants, decision on the capacity  of the plant to be built will be taken by the Competent Authority and the work order will be issued to the successful developer. 

The successful developer has to construct and commission the plant in stages within 15 months from the date of issue of work order.