jusco presentation
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8/7/2019 JUSCO Presentation
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JUSCO’s Water tariff
The views expressed in this presentation are the views of the speaker and do not necessarily reflect the views or policies ofthe Asian Development Bank (ADB), or i ts Board of Governors, or the governments they represent. ADB does notguarantee the accuracy of the data included in this paper and accepts no responsibi lity for any consequence of their use.Terminology used may not necessarily be consistent with ADB official terms.
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• Jamshedpur city was created 100 years ago – in 1904 -
along with the Steel Plant set up by the Tatas at the villageof Sakchi
• The Company acquired 64 sq kms (approx 16,000 acres) tocreate a township for sustaining a high Quality of Lifenecessary to attract the best talent
• Zamindari Act, 1956 required land to be vested back toGovernment, which was given back in the 1985 on lease toTata Steel w.e.f. 1956
• As an obligation of this lease obligation with the GoJTata Steel is responsible for creation, operations,maintenance of all urban infrastructure, including water& wastewater infrastructure
Fact File
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It’s mandate is to:
• Improve internal efficiency & customer service throughCUSTOMER DRIVEN EXCELLENCE
• Address the emerging need of the nation in the field ofinfrastructure creation and management
Town Division, Tata Steel was responsible for the creation,
operation and maintenance of infrastructure services atJamshedpur for all citizens (0.7 million) and not just itsemployees
In 2004, Tata Steel spawned the Jamshedpur Utilities &Services Company Limited (JUSCO), India’s only
comprehensive urban infrastructure company
Jamshedpur Utilities & Services Company Limited
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Jamshedpur Today
• Area: 64 square kilometres
• Size: Among the 30 largest cities in India
• Law & Order: Local State Administration
• Demographic Profile: a microcosm of India; represents itsplurality in ethnic, linguistic groups, professionals, skilled andunskilled people
• Population: 0.7 million; only 20,000 of who are Tata employees
• JUSCO provides civic services on behalf of Tata Steel
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Background – JUSCO’s Vision & Objectives
Acquire competenciesCapture emerging
markets
AchieveOperational Excellence
Adopt leading processes, develop competencies and build capacityAdopt technology, create environment that fosters innovation
VisionWe shall be a provider of best-valueinfrastructure and utility services
VisionWe shall be a provider of best-valueinfrastructure and utility services
MissionBuild a process and knowledge driven enterprise where a team of happy and
empowered employees creates best value through :care for Customer, culture of Excellence & Improvement, commitment to
Safety & Environment, concern for Community.
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Backdrop : Indian Water Utilities
• Water is a politically sensitive subject
• Is highly capital intensive without adding value to customer
• Lack of effective & efficient service delivery
• Tariff does not recover cost of service and is rarely linked to consumption
• Predominately conventional treatment processes
Jamshedpur was no different
Low Willingnessto charge&
Low Willingnessto Pay
LowCollection/
Recovery LowMaintenance
Low ServiceLevel
Low Level ofInfrastructureLow
Investments
Low Equilibrium Cycle
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Backdrop : Indian Water Utilities
For bringing about transformation JUSCO opted for:
Process innovation enabled by cost effective and
economically viable technology to improveservice delivery
Leading to increased customer satisfaction
ensuring recovery of cost
Aimed at becoming financially sustainable
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Water System – ‘River-to-River’ Management
N
River Pump House
Water Treatment Plant (WTP)
Water Towers – 7 zones/ 11 towers
Sewage Pumping Stations (SPS) -10
Sewage Treatment Plant (STP)
264 MLD
190 MLD
46 MLD
64 MLD
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JUSCO: Water Value Chain
Management Process driving Excellence
Leadership StrategicPlanning
PerformanceManagement
Information& Knowledge
Management
Investment
Management
RiskManagement
HRManagement
Billing &Collection
WaterProduction
MaintenanceManagement
QualityAssurance
E nab l i ng
WaterDistribution
CustomerManagement2
1
3 4
6
5
CustomerValue &
sustainability
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Flat Rate water tariff – the historyObjectives
To bill customer an affordable price based on theirexpected consumption in intermittent supply areas.Overview
In order to achieve the above objective consumers arebilled based on two factors, one is plot area of consumer’spremises (sq. ft.) and other one is status of building
(Ground, Ground+1…..).
Consumers were divided and tariff is designed to chargeon subsidized rate to common man from past severaldecades. A total of four categories were existing as per
tariff.
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Flat rate tariff during 80s, and 90s:-
Sl No Items/Particulars Applicable
prior to
1.1.1979
Applicable
with effect
from
1.1.1979
Applicable with
effect from
1.04.1980
Applicable with
effect from
1.03.1986
Applicable with
effect from
1.12.1991
Applicable with
effect from
01.12.1998
1Bustee Holdings Rs 5/- PM Rs 5/- PM Rs 10/- PM for single
storey + Rs 10/- for
each additional floor
or part thereof for
1/2 inch ferrule upto
1600sft plot size
Rs 15/- PM for single
storey + Rs 15/- for
each additional floor
or part thereof for
1/2 inch ferrule upto
1600sft plot size
Rs 30/- PM for single
storey + Rs 30/- for
each additional floor
or part thereof for
1/2 inch ferrule upto
1600sft plot size
Rs 50/- PM for single
storey + Rs 50/- for
each additional floor
or part thereof for
1/2 inch ferrule upto
1600sft plot size
2Leased Holdings &
small houses. Plot
size- 1600 sft to
2500 sft
Rs 10/- PM Rs 15/- PM Rs 25/- PM upto
storey + Rs 15/- for
each additional floor
or part thereof.
Rs 35/- PM for single
storey + Rs 20/- for
each additional floor
or part thereof.
Rs70/- PM for single
storey + Rs 40/- for
each additional floor
or part thereof.
Rs110/- PM for single
storey + Rs 70/- for
each additional floor
or part thereof.(Plot
area 1600 sft to 2500
sft)
3 Large houses &
Bungalows Plot size
above 2500 sft
Rs 35/- PM Rs 45/- PM Rs 50/- PM upto
double storey + Rs
25/- for each
additional floor or
part thereof.
Rs 75/- PM for single
storey + Rs 50/- for
each additional floor
or part thereof.
Rs 150/- PM for
single storey + Rs
100/- for each
additional floor or
part thereof.
Rs 240/- PM for
single storey + Rs
160/- for each
additional floor or
part thereof.Plot area
above 2500 sft.
4 Commercial Plots Rs 50/- PM. Rs 75/- PM for single
storey + Rs 500/- for
each additional floor
or part thereof.
Rs 150/- PM for
single storey + Rs
100/- for each
additional floor or
part thereof.
Rs 240/- PM for
single storey + Rs
160/- for each
additional floor or
part thereof.
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Flat rate tariff from June’2001 and existing (wef 01.04.2005):-
Sl No Items/Particulars Applicable with effect from 1.
06.2001
Applicable with effect from
01.04.2005 (Current)
1Domestic and Bulk
domestic customers
Rs 75/- PM for single storey + Rs 75/-
for each additional floor or partthereof . upto 1600sft plot size
Rs 120/- PM for single storey + Rs
110/- for each additional floor or partthereof . upto 1600sft plot size
Rs 165/- PM for single storey + Rs
105/- for each additional floor or part
thereof . upto 2500sft plot size
Rs 240/- PM for single storey + Rs
180/- for each additional floor or part
thereof . upto 2500sft plot size
Rs 360/- PM for single storey + Rs
240/- for each additional floor or part
thereof . Plot size above 4000sft
Rs 450/- PM for single storey + Rs
300/- for each additional floor or part
thereof . Plot size above 4000sft
Rs 360/- PM for single storey + Rs
240/- for each additional floor or part
thereof . Plot size 2500sft to 4000sft
Rs 540/- PM for single storey + Rs
360/- for each additional floor or part
thereof . Plot size 2500sft to 4000sft
2 Commercial and other
holdings
Rs 360/- PM for single storey + Rs
240/- for each additional floor or part
thereof . upto 1600sft plot size
Rs 450/- PM for single storey + Rs
350/- for each additional floor or part
thereof . upto 1600sft plot size
Rs 360/- PM for single storey + Rs
240/- for each additional floor or partthereof . plot size 1600 to 2500 sft.
Rs 540/- PM for single storey + Rs
360/- for each additional floor or partthereof . plot size 1600 to 2500 sft.
Rs 360/- PM for single storey + Rs
240/- for each additional floor or part
thereof . plot size above 2500 sft
Rs 600/- PM for single storey + Rs
400/- for each additional floor or part
thereof . plot size above 2500 sft
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Domestic & Domestic Bulk customers Commercial holdings/others
Area (sq. ft.)/ Bldgstatus
0 to1600
1600 to2500
2500 to5000
above5000
0 to2500
2500 to5000 above 5000
G 120 240 450 540 450 540 600
G+1 230 420 750 900 800 900 1000
G+2 340 600 1050 1260 1150 1260 1400
G+3 450 780 1350 1620 1500 1620 1800
G+4 560 960 1650 1980 1850 1980 2200
Flat Rate water charges (Current) Rs. per month
Now (from 1st Apr’2005) major two groups exist - Domestic and Domestic
Bulk Customers (under which 4 categories of plot area exist), andCommercial and other holdings (under which 3 categories of plot areaexist).
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Volumetric water tariff
• During the period 1980 – 2005, only few hundreds of potablewater customers were metered (mainly industrial and fewcommercial customers).
• We introduced new telescopic volumetric tariff for all potablewater customer from 1st Nov’2007.
• We decided to give new connections to any potable water
customer only on metered basis.• We reduced the metered rate of potable water for domesticcustomers (common people).
• We categorized all potable water customers into five groups.
• Domestic customers
• Domestic bulk customers (Flat complexes)
• Industrial customers• Commercial customers
• Institutional customers (state / central govt., bank, etc..)
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Principle of tariff design
Increasing block consumption charge
This design facilitates to support conservation
objectives by dividing a customer’s consumption intovarious usage blocks and charges a higher unit price
as a customer moves from one block to the next
Maximum benefit to Urban poor
Customer’s bill is calculated based on the consumption in
each block multiplied by unit price for each block
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Meter service charge:For 15 mm dia. Water meter – Rs. 25.00 per monthFor 20 mm dia. Water meter – Rs. 50.00 per month
NEW VOLUMETRIC TARIFF EFFECTIVE FROM 1ST. NOVEMBER 2007
Reduction in tariff and Telescopic slabs of tariff introduced
Sl.
No.
Customer Type Consumption Block/ Month Old Rate – Rs. / KL New Rate
(Rs./ KL)
1 DomesticConsumers
Up to 10 KL11 to 25 KL
26 to 50 KL
Above 50 KL
7.97.9
7.9
7.9
5.006.00
8.00
10.00
1A Domestic Bulk
Consumers
(Housing Complex/
Apartment)
Up to 25 KL x Nos. of units
Above 26 KL to 50 KL x No.
of units
Above 50 KL x No. of units
7.9
7.9
7.9
6.00
8.00
10.00
2 Institutional / Govt. Up to 20 KL
21 to 50 KL
Above 50 KL
4.4
4.4
4.4
4.40
6.00
7.50
3 Commercial
consumers
Up to 50 KL
51 to 100 KL
Above 100 KL
7.9
7.9
7.9
8.00
10.00
12.00
4 Industrial
Consumers
Up to 500KL
Above 500 KL
9.9
9.9
12.50
15.00
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Further Reduction in Metered water tariff from 1st Aug’2008:-
It was done - to subsidize the lowest tariff for common man- to accept changes of flat rate to metered connections
For Individual domestic customers
Existing tariff Revised tariff
Slab in
KL
Rate in
Rs. PerKL
Slab in
KL
Rate in Rs.
Per KL
0 - 10 5 0 - 30 5
> 10 to
25
6 > 30 to
50
6
> 25 to
50
8 > 50 to
70
8
> 50 10 > 70 10
For Bulk domestic customers
Existing tariff Revised tariff
Slab in KL Rate
in Rs.
Per
KL
Slab in
KL
Rate
in Rs. Per
KL
Up to 25
x Nos. of
units
6
Up to 30
x Nos. of
units
5
Above 26
to 50
x No. of
units
8
Above 30
to 50
x No. of
units
6
Above 50
KL
x No. of
units
10
Above 50
KL
x No. of
units
10
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Affordable tariffs
Tariff comparison amongst prominent Indian Cities
0
10
20
30
40
50
60
70
80
90
Hyderabad
Vizag
Bangalore
Chennai
Delhi
Guwahati
Jamshedpur
Rs/1000L
Jamshedpur has one of the lower bands of water tariff. For the 1st time in the EasternIndia and among few top cities in India, Telescopic volumetric water tariff introduced inJamshedpur for various customer categories
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How have we become able to sustain recoveries even
after reducing our tariff for most of the customers(during past five years, i.e. from FY’05 to FY’10)
• By investing for the replenishment of very old waternetwork.
• Reducing Unaccounted for water / Non revenue water(UFW / NRW).
• Reducing Specific Chemical consumption / Specific power
consumption (SCC / SPC).
• Keeping cost per KL almost constant (avg. CAGR – 7%).
• Increasing the revenue from water sale (avg. CAGR-17%).
• Reducing operating ratio (avg. CAGR – (6%)).
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2.5
7.4
5.3
4.2
2.01.0
0.0
1.0
2.0
3.0
4.0
5.0
6.0
7.0
8.0
FY'05 FY'06 FY'07 FY'08 FY'09 FY'10
Reduced Non RevenueWater (NRW)
Reduced Specific PowerConsumption (SPC)
Reduced Specific ChemicalConsumption (SCC)
Improved Quality
Investment on Infrastructure &Technology - Rs. Crore
Impact on process efficiency due to
use of Technology & good practiceadoption in project area
Results
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Process efficiency drives financial sustainability
Reduced NRW
Reduced SPC
Reduced SCC
Improved Quality
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Financial sustainability drives customer value
Satisfacion level of consumers -
Water tariff
27
54 6550
40
010203040506070
Bangalore
Chandigarh
Jamshedpur
Pune
Bhubaneshw
ar
%
Source: Survey by AC Nielsen ORG Marg in2006
7.9 7.9 7.9
6.0 6.0 5.0
0.02.04.06.08.0
FY'05 FY'06 FY'07 FY'08 FY'09 FY'10
Potable water tariff (Rs./KL)
Sustenance volume tariff: 30Kl/Month
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Customer value in turn drives financial sustainability
15.5
21.0
23.124.1
25.5
27.4
5.0
10.0
15.0
20.0
25.0
30.0
FY'05 FY'06 FY'07 FY'08 FY'09 FY'10
Total Water Revenue (Rs.crores)
7.9 7.9 7.96.0 6.0
5.0
0.02.04.06.08.0
FY'05 FY'06 FY'07 FY'08 FY'09 FY'10
Potable water tariff (Rs./KL)
Sustenance volume tariff: 30Kl/Month
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Thank You
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