In a statement issued by A.S. Shankarapandian, General Secretary of Samuga Pothunala Iyakkam (TNSPI), he stated as follows:
An agreement was entered into on 19.6.26 with the French company SUEZ for drinking water supply in the Salem Corporation area. The project value is stated to be around Rs. 4,295 crore, and it has been decided that the specified company will implement it for 25 years. Following strong opposition to this in the Corporation Council meeting, the Mayor announced on June 29 that the specified tender would be cancelled. However, on July 9, the Tamil Nadu Government stated that since the specified project had already been contracted, it could not be abandoned.
A private company will operate only with a profit motive. There is also a possibility of consumption-based metered charges, higher deposits and tariff increases. With water supply being privatised, public taps may be closed. This could severely affect poor and ordinary people. Drinking water is an essential basic right. Handing it over to a multinational company removes the government’s direct responsibility and turns water into a market commodity.
It is the government’s fundamental duty to provide uninterrupted, quality drinking water to the people. Handing this over to the private sector is condemnable. Under the specified project, while Central and State Government funds will be used for infrastructure works, around Rs. 3,259 crore is being paid to the specified company only for maintenance over 25 years. This will create a financial burden on the Corporation, and people will be affected by tax increases imposed to compensate for it.
As a private company operates for profit, it will give priority to areas that generate revenue. The company’s past operations show that this could lead to the demands of marginalised people being ignored. In Bolivia and Argentina, contracts were cancelled following public protests over issues such as tariff increases, impacts on poor people and environmental violations. Subsequently, SUEZ approached international arbitration seeking compensation from the governments.
The company has been implementing a drinking water supply project in Coimbatore Corporation since 2018. There have been various allegations including delays in completing work and rectifying defects, sluggishness in repairing roads, failure to address public complaints and additional charges for pipe connections. Although 24-hour drinking water supply has been assured, handing over an essential public service such as drinking water to a private company will place the profit motive foremost. People’s right to water is being taken away. This raises the question: is drinking water for the people or for business?
Head Office,
Samuga Pothunala Iyakkam (TNSPI).