NTADCL : A Water Revolution or A Blow to Sustainable Water Management?
The New Tirupur Area Development Corporation Limited (NTADCL) is the first
public private partnership, set up in 1995 primarily to supply industrial water
to Tirupur, a major export centre for knitwear, in India. This water supply and
sewerage project is also the first project to be structured on a commercial
format; first concession by a state government to a public limited company to
draw raw water for domestic and industrial uses and to collect revenues; the
first index-based user charges and direct cost recovery for urban environmental
services. Said to "herald a water revolution" in India, it is also the first
water project backed by IFC in India. This BOOT experiment, which began
functioning in 2005, is responsible for transmission, treatment of water
supply, distribution of water to industries and the municipality for domestic
consumption, and treatment of the collected sewage, and maintenance of the
sewage treatment plants.
However, NTADCL's water supply scheme typifies an incongruity in water resource management and prioritization. Pollution caused due to industrial waste
continues to plague Tirupur, even as state of the art technology is being
installed to extract and transport from distant sources, clean water for the
textile industry. This case study highlights that the scheme, in effect, has a
direct bearing on the efforts to ensure recycling of waste water and 'zero
effluents discharge' and in turn, the broader agenda of sustainable water
management and conservation. It must be noted that though the bulk of the water supplied under this project is for industrial purposes, the scheme also
supplies water for domestic use to limited urban and rural populace. Further,
this case study seeks to examine the functioning of the water supply scheme -
both domestic and industrial, and the new and emerging legal arrangements in
promoting public-private partnerships, in the water sector.