The Vijayawada Municipal Corporation embarked on a unique initiative to increase the access of urban poor to water supply by subsidizing connections and simplifying procedures. The Municipal Corporation also employed a unique communication and campaign strategy, and witnessed a fifty percent increase in the number of consumers belonging to the ‘Below Poverty Line’ category as a result.




Vijayawada is the third largest city, and a commercial hub, of Andhra Pradesh. It is located on the banks of the Krishna river. It has the largest railway junction in South India, with a well-connected road network. The population of the city as per the 2001 Census is around 10 lakh, spread over 58 sq. km, with approximately 2,63,973 people living in slums.
Prior to the initiative (April 2006), only about 25% of the households i.e., 56,204 out of 1,95,000, in Vijayawada, had access to the piped water supply network. The majority were dependent on public stand posts, irrigation canals, bore wells, and open wells. The situation was worse in slums. Women were spending two to four hours a day fetching water from public stand posts. With a vision of providing universal access to potable water to all citizens, the Vijayawada Municipal Corporation (VMC) decided to offer water connections in a mission mode, at subsidised rates, by streamlining the procedures.
A consultant was appointed to prepare a list of all areas without network connections, and to initiate steps to cover those areas with transmission and distribution mains along with storage reservoirs. A database of the areas with proper network and potential for new connections, and areas without network but with sufficient water availability permitting expansion of coverage, was developed.

The studies indicated that the existing network covered 60% of the streets, and with limited additional investments, interconnection, re-organisation of existing supply zones and laying networks in a few areas, it was possible to cover an additional 15–20% of the streets in the city. Specific areas were targeted with promotional materials such as newspaper advertisements, the local cable network and corporate advertisements, to inform residents about the initiative. Tap melas (fairs) were conducted to encourage residents to take connections.

To encourage connection coverage among the poor, VMC decided to offer connections at Rs. 2,500 to households with a property tax limit of Rs. 175–300, and also gave them an additional discount of 25%. Connections were sanctioned across-the-counter after verification of documents, and on-spot payments for new connections were accepted. Additional labour was hired to eliminate delays in providing connections. Software was designed to monitor both the sanctioning and the physical commissioning of connections online on a daily basis by a dedicated cell. Even though the discount on connections was withdrawn after an initial encouraging response, the demand for new connections continued and even increased.
An increased standard of living for BPL families, and additional revenue to the corporation, are the two most tangible benefits of the initiative. With minimum investment, VMC was able to make optimal use of its existing distribution network, extend the network to new areas and reduce the dependence of households on ground water and public taps. Within nine months, the number of public stand posts was reduced from 4,770 to 3,350.

The VMC collected revenues of about Rs. 1.14 crore towards connection charges, and it is expected that revenue through monthly tariff will reach around Rs. 61 lakh per year. Connections were given on demand at customers' doorsteps within 48 hours of payment of connection charges. Within seven months, the number of connections increased by 14% in above-poverty-line (APL) households and increased by 50% in BPL households (7,460 new BPL connections in four months against 4,127 in five years until March 2006).

The project implementation cost primarily consisted of promotional costs, which were very limited. Apart from the revenues generated from APL connections, VMC is collecting monthly charges of Rs. 50 to Rs. 80 per connection, plus initial connection fees of Rs. 1,200 from BPL households.

Poor families with household connections have also benefited significantly in terms of time saving. Accounting for a woman’s time spent in collecting water, the average cost per kiloliter of water declined from Rs. 52 to Rs. 6, once the household enjoyed an in-house water connection. With families depending far less on public stand posts, there has been a significant reduction in non-revenue water, which has boosted the revenue of the municipal corporation.
Providing additional water connections to households, based on the existing network, is not a complex task and does not require major investments. The VMC is getting additional revenue through connection charges from new connections and monthly tariff payment. With effective monitoring and teamwork, such an initiative is sustainable as the marginal costs are very low while the returns are high. In addition, returns on health and hygiene, saving of time to the poor etc., are very high.

For further details, contact:

Commissioner
Vijayawada Municipal Corporation
Vijayawada – 522 003