A global consortium of companies - Shapoorji Pallonji Limited, Northambian Water Group, Macquire Bank of England and Bovis International Limited, will conduct the feasibility study, free of cost.

If the feasibility report is accepted, the PCMC will sign a Memorandum of Understanding (MoU) with the companies willing to take over the water supply and sewerage network. The municipal corporation would probably the first one in the State to go for entire privatisation of the water supply system.

Municipal commissioner Ganesh Thakur told The Indian Express that privatisation was being considered because advanced technology could be used in the augmentation works. He stressed that the technology could be particularly used to check water seepage for which no proper system is in place at present. ``We will examine the feasibility report and then take a decision,'' Thakur said.

The PCMC will seek permission from the State Government for privatisation. The work of maintenance, augmentation of the water supply and drainage network, collection of the water cess and other taxes will be alloted to the company for a period of 30 years.

The corporation currently incurs heavy losses due to poor recovery of water taxes. The domestic water cess for thousand litres is a mere 75 paise as against the water supply cost of Rs 5.25. The annual expenditure on maintenance works is Rs 22 crore while the recovery of water tax is Rs four crore. The dues have reached over Rs seven crore. The corporation till now has invested over Rs 200 crore on the water supply and drainage works.

The representatives of the global consortium of companies were appraised of all the aspects of the water supply and drainage system at a meeting held today.

Business development officer of Shapoorji Pallonji Company Col Ashok Sopori said that the feasibility report will consider the projected development of the industry and the township and suggest the estimated investment costs for augmentation works.