THIRUVANANTHAPURAM: The Kerala Water Authority (KWA) recorded a loss of Rs.119.15 crores in 2004-05, according to Minister for Water Resources Thiruvanchiyoor Radhakrishnan.

In a statement here on Sunday, he said still the Government was willing to examine the demands of the KWA employees and take appropriate decision after the byelection to the Thiruvananthapuram Lok Sabha constituency.

His statement is in the context of an agitation announced by some of the employees' organisations demanding better wages and service conditions in the KWA.

Mr. Radhakrishnan said the Government could not take a decision on their demands at the moment because of the code of conduct in connection with the election.

Explaining the financial difficulties of the KWA, he said a staggering sum of Rs. 573.33 crores was due to the institution from the panchayats, municipalities and the corporations as on March 31, 2005.

Various medical colleges and Government institutions owed the KWA another Rs. 80.82 crores. On the other hand, the KWA had to pay the Kerala State Electricity Board Rs. 287.91 crores towards electricity bills as on July 31, this year. Interest on these dues was an additional liability.

He said the operating expenses of the KWA were going up day by day. "The KWA incurs an average expense of Rs. 9 to purify and distribute one kilolitre of water, against Rs. 2 it gets from consumers. Water charges in Kerala are far below the rates prevailing in the other States."

The Government does not want to even consider hiking the water charges since pipe water supply is a primary need of the people. However, the Government has taken measures to streamline the machinery for collecting the charges due from consumers. And this has started bringing dividends. The KWA's revenue from consumers went up by Rs. 9.07 crores last year.

The Government was also able to win more assistance from the Centre this year for water supply schemes. The State is expecting a grant of Rs. 60 crores from the World Bank and another grant of Rs. 48 crores from the Asian Development Bank this year for various water supply schemes.

"Several new water supply schemes could be completed this year. However, the KWA's losses are also bound to increase as the new schemes come into effect, supplying more water to the people," Mr. Radhakrishnan said.

He said a majority of the employees of the KWA were aware of the difficulties of their institution and the Government's predicament. If some of their unions announced an agitation during the election time, it could be taken only as a politically motivated move. He said the Government would definitely protect the interests of employees.

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