Committee chairman Arun Dhimdhime told media persons that the PMC would provide Rs 50 crore for the Rs 344 crore scheme every year till the entire project was completed. He pointed out that the current civic budget had already provided Rs 28 crore for the purpose, which would enable them to start the project during the present financial year.

Under the scheme, the PMC would construct three new water purification centres at Warje, Wadgaon Dhayri and Holkar bridge, nine huge water storage tanks, six high rise water storage tanks and laying of pipeline from Khadakwasla dam to Warje water purification centre.

Under sewerage treatment plan, aimed at prevention of water pollution of Mutha river, the PMC would upgrade the two existing treatment plants while two additional plants would be constructed at Bhairoba nullah and Bopodi. Besides, small water purification centres would also be constructed at all those points where nullahs meet river. The PMC is expected to spend Rs 143 crore for sewerage treatment scheme.

Dhimdhime said the project would certainly improve water supply in the city as 40 per cent of water was going waste through evaporation and leakages in absence of infrastructure. He said the first phase was expected to be completed within four years. According to Dhimdhime, the project was given priority in view of the increasing demand of water and merging of 38 villages with the PMC. Dhimdhime said the State Government would sanction 23.33 per cent subsidy for the ambitious scheme. He also said the PMC would raise funds for the scheme by way of loans, if necessary.

The scheme, originally designed by municipal commissioner Ramanath Jha in April 1997, was unanimously rejected by the general body. Jha had proposed the implementation of the entire scheme through privatisation. All the political parties had criticised the scheme, saying it was ``inflated'' and would prove a financial burden for the municipal corporation.

After the scheme was rejected by the general body, the then municipal commissioner Arun Bhatia prepared a fresh proposal encompassing maximum utilisation of the existing infrastructure. Jha had pegged the project cost at Rs 735 crore while Bhatia brought it down to Rs 344 crore.