While this merger issue seems to be the best move to take. There is going to be a problem because there are over 5000 employees that are employeed by the Water board and all of them will most likely lose their jobs.
Really. That is too much. Like those projects were over some 15 years ago and the HMWS&SB are still paying interest on loans for over 100 crore rupees of loans. The immense amount of power that was needed for this too left the board with no monwy.
And the way they went about it. to get the money to fund these projects, it had been using money from different sources which also included HUDCO loans.Even though that project is over now, the board is still paying interests.
Do you know how much power bill the water board gets? The Telangana State Southern Power Distribution Company Limited has been issuing a power bill of nearly Rs 60 crore per month, while its arrears had mounted to Rs 250 crore.
You know during this time the demand for water coupled with growing population grew a lot. To meet this growing demand, the water board had to take up new drinking water supply projects like Krishna drinking water supply project-III and Godavari-I.
That is not all, the water board had to supply water to 12 peripheral circles in the city which was too much to take for the battered and bruised board. This increased its water and power bills which mounted like anything.
This board was actually doing quiet well for a couple of years now but then the trouble began some time in the last decade. When the then united AP government took up drinking and sewerage network projects in and around the city.
You know how the HMWS&SB started out? The HMWS&SB was constituted in 1989 under a separate Act. Earlier, a small wing in the MCH which was there back then, used to handle water supply and other related issues of the city.
Telangana CM K Chandra Shekara Rao, who is the chairman of the water board, might take a final decision on the merger plan after the budget session as the cabinet sub-committee felt that there was no other option but to merge the water board with GHMC.
The cabinet sub-committee that was headed by the roads and buildings (R&B) minister Thummala Nageswara Rao, recommended to the government to take up the issue of merging water board with GHMC due to its financial condition and debt burden.
A committee appointed by the Telangana government came up with this suggestion. This committee came up with this when they were asked to prepare a roadmap of development for all the municipalities in Hyderabad and other places.
Yes the HMWS&SB is actually fund-starved right now and barely has any money to run the board right now. So the news right now is that it might get merged with the GHMC to get them out of their misery.