Partnering means working jointly. This section provides opportunities for the government to engage in social business in partnership with private enterprises. Government is ultimately responsible for solving social problems. Partnership with social business mightenable the government to discharge its responsibility more efficiently In Tirpur, a small town of southwestern Tamil Nadu, industries and local residence suffered from scarcity of pure water due to heavy pollution in the ground water.
Realizing the insufficient capacity of old state funding scheme, the Government of Tamil Nadu formed a company called “New Tirpur Area Development Corporation Ltd” with support from experienced financing, engineering and construction companies. The new company then signed a thirty year concession with the government with an expected return on investment of 20%.
The benefits of the project were multifold. First, the project installed 8000 new connections of water supply. Second, prior to the project the Tirpur municipality supplied water once every three to four days, after the project, it was every other day. Third, in the slums water was supposed to supply free of cost. The project was able to reduced monthly water tariff from 350 to 85 Indian Rupee per month [19]. This is a good example of private and public partnership for producing public good with an affordable rate.
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