Govt Yields To Public Opposition, Not To Set Up CIAL-Model Co Unable to overcome public opposition, the state government has finally decided to drop the proposal to set up a CIALmodel Kerala Drinking Water Supply Company. Putting an end to the speculations against privatizing drinking water supply and limiting the role of Kerala Water Authority (KWA), the water resources department has cancelled the government order (GO) issued last year to set up the company. Confirming the decision, water resources minister P J Joseph said the proposal was dropped keeping in view the public demand. “Water supply projects will remain in public sector. The privatization move has been dropped because of the public opposition,” he said. Kerala had witnessed huge protests, especially from the opposition, when the state government gave administrative sanction to set up a water supply company in December 2012. When the protests escalated, the government revised the order in March last year to clarify that there was no move to privatize drinking water supply. The order clarified that the company would supply tanker water to colonies and commercial establishments and would distribute packaged drinking water at reasonable rates. However, even the revised order could not soften the protests. The GO dated December 31, 2013, states that the government feels that there are objections and apprehensions about the company from different quarters and there have been requests to cancel the GO granting permission to set up CIAL-model company. P J Joseph, however, said the KWA and Kerala Irrigation Infrastructure Development Corporation Limited (KIIDCO) can proceed to set up bottled water plants. The GO directing the KWA and KIIDCO to set up bottled drinking water projects in Thiruvananthapuram, Kollam, Kochi, Thrissur and Kozhikode has also been issued. The bottled water projects will come up in these five places in the first phase, while the water resources department is planning to introduce similar projects in every municipality eventually. “This is absolutely necessary to ensure that safe bottled drinking water is available to the general public at reasonable rate, especially in a scenario wherein multinational companies control a significant part of the market share despite charging prices much above the cost of production,” the order stated. IN DEEP TROUBLE The major fear was that the new company would sound death knell for state-owned Kerala Water Authority, which currently distributes drinking water to households Another allegation was against the clause which enables individuals to own 51% share of the proposed water supply company Also, the state government and the Kerala Water Authority could hold 26% and 23% stake in the new company respectively