Kerala - Thiruvananthapuram   

Restructuring package for KWA

Thiruvananthapuram: Finance Minister T.M. Thomas Issac has announced a comprehensive restructuring package for Kerala Water Authority (KWA), envisaging writing off interest on loans worth Rs.1,006 crores, besides converting loan amount of Rs.839.60 crore as an interest-free fund.

Dr. Issac said in his budget speech that the package will be implemented this year itself, which is also KWA’s sliver jubilee year.

The Finance Minister hopes to equip KWA to raise commercial loans by cleaning its balance sheet. He has promised reduction of distribution loss from 35 per cent to 15 per cent by improving efficiency, collection of arrears, and quality of water, besides building up a healthy interface with consumers. These measures would eventually enable KWA to function on a no-loss no-profit basis.

Dr. Issac announced measures to revive several stalled drinking water projects through additional loans and financial assistance available from the Centre.

Terming the incomplete projects worth Rs.2,000 crore like the Rameswaram tonsure, the Finance Minister said that projects worth Rs.288 crore covering seven drinking water schemes had been submitted to Nabard. In order to ensure that work is not disrupted owing to delays in the Nabard, he has provided an additional Rs.4 crore for the Ancharakkandi project over and above the Rs.40 crore already spent on it.

Some of the other announcements include a Rs.1 crore allocation for renovation of the Wellington Water Supply Scheme and the Peppara dam that are observing their platinum and silver jubilees respectively, a Rs.4 crore help for extending the Cochin Water Supply scheme to Thevara and Kadavanthara.

Cheekode project would get Rs.2 crore additionally, while the bottled water project, announced in last year’s Budget would get Rs.1 crore. The Minister also provided Rs.1 crore for opening a PVC pipe manufacturing unit in Chavara.

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