The state government has given its nod for the registration of a private company for supplying water — which is a first for a water supply body.

The organisation, named Shahad Temghar (STEM) Water Company, has been jointly set-up by the municipal corporations of Thane, Mira-Bhayander and Bhiwandi-Nizampur along with other minor stakeholders. “The state cabinet on Wednesday gave its approval to the body, which runs STEM water supply project, to be registered as a company,” said A K Jain, principal secretary, water supply and sanitation department.

The company’s office would be located in Thane. It would be headed by a Chief Executive officer (CEO) and consist of governing board and an executive board. The company’s governing board would include its CEO, the mayors and municipal commissioners of Thane, Bhiwandi-Nizampur and Mira-Bhayander. It would also include the CEO of Zilla Parishad as the company also supplies water to several villages. Its executive board would consist, besides the CEO and the three municipal commissioners, a financial expert, a technical expert, two government nominees and one CEO’s nominee. 

Thane Municipal Commissioner (TMC) Nandkumar Jantre said that this “major policy” would help in meeting the growing water demands of three civic bodies. As an independent private company, it would be able to take prompt decisions on enhancement of the existing system and on introducing cutting edge technology to cut losses and optimize resources. “Formation of the company would help in raising the much needed capital. Besides, the decision making process would also be prompt, less tedious and in the interest of the company,” Jantre said.

TMC city engineer K D Lala said that the decision was much awaited as the proposal to form the company was initiated in 2002. “STEM was commissioned in 1987 and is more than two decades old. There is immediate need for upgradation of the system to meet the growing demands for water in the cities in Thane and others areas. It would also be easier to raise the capital for infrastructure development for a company which is making a profit of 25-30 per cent and has cash surplus of Rs 100 crore,” said Lala.