The Punjab Cabinet has given the approval for the creation of a Special Purpose Vehicle (SPV) for the operation and maintenance of large multi-village surface water supply schemes across the State in a bid to ensure sustainably long-term supply of potable water in rural areas of districts where water quality has been adversely affected. The decision was taken at a meeting chaired by Chief Minister Amarinder Singh.
This first such Special Purpose Vehicle in India will be a utility company, the ‘Punjab Rural Water (Utility) Company’, under the Water Supply and Sanitation Department, said an official statement.
The CM also approved the opening of an account in the name of the SPV, with seed money of Rs25 crore allocated from The World Bank’s funds (64 percent) and the State budget (36 percent). They will support the functioning of the Special Purpose Vehicle in the initial five years of its operations.
The allocation will help meet the shortfall in revenue collection, if any, to fulfill contractual obligations of the vehicles, and its administrative expenses added the statement.
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