After several failed attempts in the past, the water distribution system in the city is likely to undergo a complete transformation with the state government approving the privatisation of its management in Malviya Nagar, Vasant Vihar and Mehrauli of South Delhi amid protests of Resident Welfare Associations (RWAs). A pilot project for the private distribution of water in these areas has been sanctioned by the Delhi Jal Board (DJB). The Malviya Nagar area is being handed over to a consortium of SPML Infra and French MNC Suez Degremont, one of the world's largest water corporations which are already running the Sonia Vihar water treatment plant in Delhi. A combine of SPML Infra, Tahal Consulting Engineers and Israel's Hagihon Jerusalem Water and Wastewater Works, has been awarded the Mehrauli and Vasant Vihar areas. The pilot project is said to involve management contracts for water distribution, related repair and maintenance for around 10 years with the fee and other costs to be about Rs 730 crore. The government has been arguing that the privatization will ensure 24x7 supply and that the contract is limited only to the management of water distribution, which was given to some reputed private parties after a tendering process whereas the ownership of all water sources, treatment and distribution assets will remain with the government. The pilot project in these areas has been kicked off with a promise to extend the scheme to other areas later. However, the RWAs of the affected areas are vehemently opposing the project. "The private parties are interested in making profits. They will manage water in terms of its price. Water will become just a commodity," said SP Arya, president, Malviya Nagar RWA. The approximate water demand of the city is around 3375 MLD (million litres daily) against which the DJB supplies only around 2700 MLD after accounting for all the losses during the treatment and distribution, leaving a shortfall of about 675 MLD. Though the DJB asserted that all the stakeholders were consulted prior to taking a decision on implementing the privatisation of water projects in these areas, the RWAs have refuted the claims, saying that they were not consulted before taking any decision in the matter. "We have passed a resolution to stop work on the privatisation of water in our area without first carrying out substantive consultations with all the RWAs through the resident ward committees and municipal councillors," said Satish Upadhya, Councillor, Malviya Nagar. Earlier in 2005 also, the government tried to privatise water in Delhi and even applied for a loan to the World Bank, but its attempts were foiled by the opposition and trade unions.