The financial reform initiated in Hubli-Dharwad by the Karnataka Urban Water Supply and Drainage Board (KUWS&DB) is a model to replicate and implement in other ULBs or utilities. Its central principle is internal reform by improving efficiencies. The other key element is the internal generation of financial resources resulting in improved cash flows, facilitating funding for service improvements. The simple use of technology for basic computerization, customer-friendly measures like 'tap cards', and transparent targeted subsidies to the urban poor, coupled with structured and sustained communication efforts, have won the consumer's trust and improved the image of the utility.
Hubli-Dharwad Municipal Corporation (HDMC) undertook the water-supply service provision in the twin cities until March 2003. The residents were provided with an average of a three-hour water supply once in ten days, due to several technical and institutional reasons. HDMC faced heavy losses in the distribution system due to unaccounted loss of water, leaking pipes, illegal connections, etc. This resulted in unequal distribution, and citizens were not provided water supply for long intervals. The GoK ordered that the operation and maintenance be managed by the Karnataka Urban Water Supply and Drainage Board (KUWS&DB) from April 2003.
In order to improve the situation and increase operational efficiency, it is felt that the management of the bulk and retail distribution of water be vested with a single agency, KUWS&DW. The agency is already managing the bulk water supply in Hubli-Dharwad, and has the necessary technical expertise in managing water-supply systems. The gap between expenditure on water supply and recovery from water charges is substantial. It is assumed that KUWS&DB would be in a position to make suitable improvements to the system and thereby reduce losses during distribution.
The two key principles in the entire financial reforms are that it is based on customer requirements, and improves service delivery during the first two years. The reforms target at improving the efficiency in billing, accounting and collection systems, IT enabling in all operations, structured and sustained communication efforts for ensuring the involvement of the customer, effective connection charges for the poor and the rich alike, and continuous motivation of staff through regular meetings, discussions on customer management etc.
Good customer relations played a major role in proper management of the water supply system, especially in revenue management and achieving cost recovery. Smooth transition into volumetric billing from a flat-tariff framework reduced customer apprehensions and disputes. Along with service improvement measures, tariff revisions were also implemented. Customer-friendly measures and computerization played a major role in gaining the confidence of customers. Innovative ideas like the issue of tap cards, sufficient cash counters across the city etc., created a visible presence of the water department in the city and improved its image. A structured communication campaign for increasing consumer awareness with regard to illegal connections, avoiding wastage of water etc., also supported better management.

For further details, contact:

Mr. Jairam
Executive Engineer
Karnataka Water Board, HDWS
Maintenance Division, Hubli
Mobile: 0944984555