Nagpur: Nearly 14 years after the Nagpur Municipal Corporation (NMC) launched its ambitious 24x7 water supply project, the promise of uninterrupted drinking water remains largely unfulfilled despite spending over Rs2,030 crore. The civic body has also admitted to multiple shortcomings in the project's implementation.
Information submitted by NMC to the state legislature in response to a starred question by MLA Pravin Datke exposed persistent deficiencies in the city's water distribution system and raised fresh questions over the functioning of Orange City Water (OCW), the private operator entrusted with the project since 2012.
The civic body clarified that, contrary to the often-cited expenditure of Rs3,250 crore, actual payments made to OCW till October 2025 stand at Rs2,030 crore. This includes Rs386 crore spent under the Initial Performance Improvement Programme (IPIP) and Rs1,644 crore towards operation, maintenance, repairs and replacement works.
Yet residents across all 10 zones continue to grapple with erratic supply, low water pressure, leakages, contaminated water, and disputed bills. NMC acknowledged receiving complaints about polluted water and faulty meter readings. While officials found no abnormal billing pattern in Dharampeth zone, inflated bills were detected in Gandhibagh and Satranjipura. The disputed bills were subsequently withdrawn, and discrepancies were rectified.
The disclosures also reveal significant delays in infrastructure upgrades. OCW was expected to begin rehabilitation and replacement (R&R) works in 2012, including the replacement of ageing pipelines and water meters. However, the exercise reportedly commenced only in April 2019, seven years behind schedule.
Against a target of completing works worth Rs170.57 crore by March 2025, projects worth only Rs149.72 crore have been executed so far. NMC claims that 370km of pipelines and 18,088 water meters have been replaced, though many residents say the improvements remain largely invisible on the ground.
Another major concern is the high level of non-revenue water (NRW), which represents water lost through leakages, theft, and unmetered consumption. While regulatory norms prescribe losses below 15%, OCW reported NRW at 28.7% in August 2025. Civic officials sought detailed explanations and supporting documents from the operator, but these are still awaited.
Faced with mounting criticism, NMC has initiated punitive measures against the concessionaire. The per-unit water tariff payable to OCW was reduced from Rs17.66 to Rs10.81 in 2023. The corporation has also recovered over Rs26.26 crore for failure to curb water losses and for excess raw water drawal, besides withholding Rs5.66 crore for incomplete rehabilitation works. Officials further stated that nearly Rs10.5 crore was deducted over three months by reducing monthly payments by 25% for deficiencies in service delivery.
Despite these penalties and repeated assurances, Nagpur's long-promised 24x7 water supply project remains a work in progress, leaving citizens questioning how thousands of crores have been spent while reliable water supply continues to elude the city.
INFOBOX | 14 YEARS OF THE 24x7 WATER PROJECT
- Project launched: 2012
- Operator: Orange City Water (OCW)
- Total amount paid till Oct 2025: Rs2,030 crore
- IPIP works: Rs386 crore
- O&M, repairs and replacements: Rs1,644 crore
- Promised service: 24x7 water supply across Nagpur
- Current status: Yet to be implemented citywide
- Zones affected: All 10 civic zones
- Major complaints: Irregular supply, low pressure, contaminated water, leakages, incorrect meter readings, inflated bills
- R&R works target (till Mar 2025): Rs170.57 crore
- Works completed: Rs149.72 crore
- Pipeline replaced: 370 km
- Meters replaced: 18,088
- Permissible NRW: 15%
- Actual NRW (Aug 2025): 28.7%
- Penalty recovered for NRW and excess raw water use: Rs26.26 crore
- Amount withheld for incomplete works: Rs5.66 crore
- Additional penalty in three months: Rs10.5 crore
- Tariff cut imposed on OCW: Rs17.66/unit to Rs10.81/unit (2023)
TIMELINE | NAGPUR'S 24x7 WATER PROJECT
- 2012: NMC awards 24x7 water supply project to OCW. IPIP and rehabilitation/replacement (R&R) works scheduled to commence.
- 2012–2019: No significant progress on R&R works despite payments being made. Residents continue receiving intermittent supply.
- April 2019: OCW finally begins rehabilitation and replacement works, nearly seven years behind schedule.
- 2023: NMC reduces OCW's per-unit tariff from Rs17.66 to Rs10.81 for failure to meet contractual obligations.
- March 2025: Only Rs149.72 crore worth of R&R works completed against a target of Rs170.57 crore.
- August 2025: OCW reports non-revenue water losses at 28.7%, almost double the permissible limit.
- October 2025: Total payments to OCW touch Rs2,030 crore. NMC withholds Rs5.66 crore and recovers Rs26.26 crore through penalties.
