Water management is key to economic development: Sethi

Water management is going to hold the key to the economic development of India in coming years – whether it is drinking water project, turning sewage water into industrial use or to manage a dam which will have even bigger impact on the nearby habitats threatening or protecting environmental health or even harnessing hydro resources to generate power, says Subhash Sethi, deputy chairman and managing director of the Rs 2000-million water management major Subhash Group which has already completed over 100 water management related projects in the country.

In an interview with Chandra Sekhar Bhattacharjee of tendertimes.com, Sethi asserts that more than funds, it is the commitment of the people which is vital, no matter whether they are at the Central or state or even at village Panchayat level. The level of commitment and attitude towards the whole water management issue is amply demonstrated by Himachal Pradesh which in next few years’ time will become financially self reliant and in not too distant a future may not look for any Central assistance as the state’s hydropower sector is fast turning into a wealth generating center, asserts Sethi.

Question: What is the group’s focus area?

Sethi: Water management is our forte since conception. Ours is the only company in India, which executes mini-hydel projects from concept to commissioning basis. In the water management sector Subhash is the only group with a national presence. We undertake water supply projects – both in rural and urban sector – on turnkey basis. This is an end-to-end solution. Most of the projects we undertake are funded either by World Bank or foreign banks or international financial agencies. We participate in government-funded projects too but on a very selective basis as in many cases the funding process in govt.-aided projects is very ambiguous and is not as smooth as it should be. In case of foreign funded projects you have a nodal agency that would release funds as per the completion of the job. Payment is actual performance related and we are very happy to work under this kind of financial arrangement. The only exception is that we never participate in any non-priority projects for which funds are not specifically earmarked.

Question: Apart from water projects what are other areas of interest to you?

Sethi: Hydropower and roads. We are entering into the roads segment. In fact, we are trying to make a dent in the infrastructure sector. Primarily we are in water supply sector but now we diversifying into service sector and also giving a new thrust on the operation and maintenance of water supply projects for 10-15 years. Just operate and maintain existing plants on fixed price basis.We are also entering energy audit. Most of plants do not consume required volume of energy. Some plants which are supposed to consume 1000 kilowatt is consuming 2000 kW. No body bothers. We are now trying to do the energy audit for those and sell them the necessary technology so that the plant consumes the required energy and there is no wastage of energy. This would help an organisation’s energy cost bring down substantially.

Question: Would you throw some light on your technological strengths?

Sethi: The sectors which Subhash projects operates presently require very high degree of technical competence as even a minor aberration whether it be topographic survey or hydrological survey or soil testing could have a disastrous impact on the viability of the projects which are infrastructure related. The Group is always struggling resolutely to conquer new horizons because of the state-of-the-art technology it has to support its functions. Besides, we have a very strong in-house designing expertise. A glaring example of this is the Lunge water supply project in Mizoram, Asia’s highest single-stage water pumping project where water has to be pumped to a height of 880 meters. All odds notwithstanding, we have made and made it quite successfully.

Question: You talk about group’s technological strength. Do you have alliance with any internationally reputed agencies to have an access to the latest technology in the concerned field?

Sethi: Such alliance depends on the nature of particular projects. For example, we have forged a strategic alliance with OTV France as a partner for the 10-miilion-litre-a-day sewage treatment plant at Yelahanka for the Bangalore Water Supply and Sewerage Board. The project is being financed under a French protocol. Under this project, the sewage water, after recycling and proper treatment would be made fit for industrial use. In fact, it would be as clean as drinking water, the only thing is that you can’t drink that water. In fact, we are wasting millions of litres of water in the form of sewage water, which could be retreated and made usable by industry.We forged alliance with the eminent US technology developer, LightStream Technologies Inc also. This is aimed at making a dent in the Indian water and waste-water market with the latest technology in the field. The US partner is to provide new pulsed ultra violet (UV) light water disinfecting technology. Pulsed UV is effective in dealing not only with bacteria but also a wide range of pathogens in water such as crytosporidium which is of increasing concern to the public health officials against which chlorine has been found to be ineffective.

Question: How would you like to shape up Subhash group in next five or ten years?

Sethi: We would like to see the group emerges as a global player in the water management sector by offering world class quality products and services; entering into strategic alliances; providing total customer services and on top of all, by ensuring involvement of our people in the projects being undertaken from time to time.

Question: You talk about the commitment of the people even at the Panchayat level. Is it possible for municipalities to accept the conditionalities being imposed by international funding agencies in case those projects are being funded by such agencies?

Sethi: Why not. Many municipalities have started projects with ADB loan. Bhopal has done, Ahmedabad has done. This is a new one, yet to acquire popularity. But municipalities must have to be disciplined for utilising international funds. Today, it is no one’s job. Nobody bothers for the cost it is incurring. The cost has to be analysed. You have to charge for the services.

Question: Will the citizen have to pay more for that?

Sethi: Why? I don’t think so. It would depend how would you return the fund. ADB or the funding agency motivates utilisation. That is the reason why better control of the fund is there. They do not give foreign fund directly to the municipalities. They give it directly to the nodal agency. The nodal agency gives fund according to the actual work, Not on the projected work, but the work actually done. Earlier, funds used to be given for a particular project have in many cases been diverted into other sectors.

Question: Occasionally we hear about irregularities in the tendering processes, even in state-run organisations. Yours is one such organisation that has to go through tendering process every time you bid for any new project. What is your experience about the tendering process?

Sethi: My experience is a mixed one. There are cases (they are of course majority in number) where the tendering process is absolutely smooth and transparent and only the competent, efficient and eligible (from all aspects of bidding) gets the job. On the other hand, there are examples too where manipulations oust eligible companies. The tendering process as a whole needs to be streamlined and made more transparent. I am of the view that the FIDIC system is transparent and it has its own merits. Nothing more could be transparent if bids are floated and the subsequent process is disclosed on the Net.