CMWSSB's operations and services were initially carried out by departmental staff except for major construction activities. Frequent absenteeism and long leaves of the employees (staff at sewage pumping stations, water distribution stations, security personnel, water tanker drivers etc.) affected the quality of service delivery and increased the cost of operation. Hence, the board took an initiative of outsourcing various operations in stages.
The board had outsourced the operation of water tankers (on an annual rate contract based on no. of trips and distance covered fully controlled by the board), security arrangements at water and waste water treatment plants, O&M and minor repairs of sewage pumping stations, and O&M and minor repairs of water and waste water treatment plants - for O&M of sewage pumping stations, WTPs, water distribution stations and well field operations. The contract was settled for a specific period of a minimum of 3 years, with a condition of providing minimum staff for operation and no. of shifts to be operated. Reimbursements are made for minor repairs based on actual work.

The maintenance of the new water supply project (Veeranam Project) including major and minor repairs, the O&M of new sewage treatment plant and new water treatment plant of 530 mld (Chembarambakkam) was outsourced. In these cases the staff required should be provided, and quality parameters to be maintained are fixed. In all the installations, incentives and penalties are imposed for the maintenance of power factor within the prescribed level. All the operations are as per the directions of the board supervisory staff, and include timing of operation, quantity of water to be treated, quality of water to be distributed etc. Further, the maintenance/repair works in water supply and sewerage system for civil/electrical/mechanical works are outsourced on an annual rate contract through a tender process. For major pipe repair works, materials will be supplied by the board, and labour is outsourced.

The conveyance of the staff is also privatized by outsourcing the vehicles on a rate contract base on the distance covered and hours of operation. Extraction of ground water from the private agricultural wells are hired on an hourly basis, and the O&M of departmental well is also outsourced. Annual rates have been fixed for maintenance of the air condition units, and computers installed in various offices of CMWSSB.

On an experimental basis, Manali New Town with population of 12,850 has been privatized for O&M of water and sewerage system, including collection of water charges and maintenance of installations.

• The efficiency of the O&M of the above sector has improved.
• Effectiveness and efficiency of operation have been achieved through close monitoring, supervision and enforcement of contract conditions by the board.
• Resulted in cost savings compared to direct recruitment of staff.
• Initial investment and maintenance cost on vehicles have been minimized.
• Outsourcing mobile tankers benefited the poor as they are getting the required quantity of water at their doorsteps at a specified time.
• Cost savings through private sector participation was significant. The O&M of WTP is 10%, water distribution stations 30%, mobile water tanker operations 32%, STPs 33%, sewage pumping stations 50% and all activities in Manali town 25%.

For further details, contact:
Mr. Shiv Das Meena, IAS
Managing Director
CMWSSB