The Water and Sanitation Program June 2006 is an international partnership for improving water and sanitation sector policies, practices, and capacities to serve poor people Field Note 37285 Jamshedpur Utilities and Services Company Limited Improving WSS Services through Private Sector Partnerships Jamshedpur Utilities and Services Company Limited (JUSCO), a wholly owned subsidiary of Tata Steel, was set up in August 2003 to improve the quality of civic services in Jamshedpur. The intent has been to make it a model town with world class facilities. This initiative of converting a cost-centric service into a commercial customer-oriented company is the first of its kind in India. The purpose of setting up a separate utility was to provide integrated world class utility services including water supply, power supply, waste management, and other allied civic services to the citizens. Executive Summary Background The city of Jamshedpur in India has seen impressive Jamshedpur is located in the East improvements in utility services through the establishment of Singhbhum district of Jharkhand on a commercial and customer-oriented company, the Jamshedpur the Chota Nagpur plateau and is Utilities and Services Company Limited (JUSCO). surrounded by the Dalma Hills and the rivers Subarnarekha and Kharkhai. Municipal services were provided in Jamshedpur by Tata Steel's Home to the first private iron and Town Division Unit which operated as a cost-center for over steel company in India, Jamshedpur 97 years. However, its operations were impacted by financial or the `Steel City' spans an area of constraints, limited human resources and lack of exposure to 64 square kilometers.1 The city, initially modern technologies and processes that hampered the effective known as Sakchi, was later named provision of essential services like water supply and waste Jamshedpur in 1919 by Lord management. The Town Division was under pressure to increase Chelmsford in honor of its founder the its scale of operations given the rapid population growth in the late Jamshetji Nusserwanji Tata.2 periphery of its service area. In order to address these issues The areas surrounding Jamshedpur, Tata Steel signed a two-year technical partnership with Veolia including Jamadoba, Noamundi and Water, an international water company. The tie-up sought to West Bokaro, are rich in minerals such provide management and technical consultancy to Tata Steel. as iron ore, coal, manganese and lime. Tata Steel's decision to corporatize the Town Division Unit enabled Jamshedpur is a modern industrial city, the expansion and improvement of services, greater efficiency, with the main industries being iron and and financial viability. Thus was created JUSCO, a wholly owned steel, truck manufacturing, tinplate subsidiary of Tata Steel, on August 25, 2003. JUSCO was carved production, cement, and other small out of the Town Division for improving the quality of civic services and medium scale industries revolving and for turning Jamshedpur into a model town with world class around these products. The city has a facilities. A partnership between Tata Steel and JUSCO was total population of approximately formalized through an agreement with clearly defined 700,000 people. Currently all civic performance standards. Under its agreement with Tata Steel, amenities are provided by different Veolia Water continued to support JUSCO through 2005. subsidiaries of Tata Steel. Jamshedpur Utilities and Services Company Limited The technical tie-up with Veolia, along with JUSCO's own (JUSCO), established in August 2003, improved performance, enabled it to implement various measures provides under one roof integrated for advancing the management of its services. These resulted utility services including water, power, in impressive service improvements and efficiency gains for sewerage, drainage, and solid waste JUSCO. Today, it is the only private operator in India that provides management--the first and perhaps comprehensive municipal services to about 500,000 people one of the few private utilities in India. in Jamshedpur. This Field Note seeks to capture the initiative of converting a 1Tata Steel (formerly the Tata Iron and Steel Company Limited-- TISCO) is Asia's first and India's largest integrated private sector cost-centric service into a commercial and customer-oriented steel company. Envisioned by Jamsetji Nusserwanji Tata and established in 1907 in the city of Sakchi, Tata Steel is today a company. Based on its successful home operations, the private 4 million ton steel giant. operator is also exploring options for expanding its expertise 2Jamsetji Nusserwanji Tata (March 3, 1839-May 19, 1904) was a Parsi Zoroastrian pioneer in the field of modern industry. He beyond its own operating areas to other interested towns and was born in Navsari, Gujarat, India, and founded what would later become the Tata Group of Companies. Jamsetji Tata is cities, while continuously improving services in Jamshedpur. generally regarded as the `father of Indian industry'. 2 Jamshedpur Utilities and Services Company Limited: Improving WSS Services through Private Sector Partnerships Organization of Service Delivery: Pre-JUSCO days As a major industrial base of Tata Steel, Jamshedpur has received unique and substantive support from the industrial giant that has an excellent social ethos, under its overall corporate strategy. Municipal services in the city were being provided by Tata Steel's Town Division unit for over 97 years. The Town Division had been consistently providing all essential services including water supply and waste management. It faced financial constraints and was reportedly incurring a deficit of around Rs 40 crore (US$8.7 million) every year in operating various municipal New River Pump House. services that were considered obligatory duties. The Division also quality. As a result, the demand for was thus created in August 2003. The suffered from limited exposure to services in Jamshedpur was purpose of setting up a separate utility modern world class technologies and gradually on the rise and there was was to provide integrated world class processes. Though routine maintenance an additional pressure on the Town utility services including water supply, work was undertaken based on Division to expand its domain of power supply, waste management, and available drawings and knowledge, the operations and enhance the quality of other allied civic services to the citizens. Division maintained a decent level of services provided. JUSCO was established to evolve into customer satisfaction. Even though a full-fledged utilities provider, whose service delivery remained a non-core Creation of a gamut of services would also include business area of Tata Steel since it the supply of power in addition to ran the Division as a cost-center, the Separate Utility other services, to the entire township quality of potable water produced and and Supporting under the Jamshedpur Notified Area supplied by the Town Division was Committee.3 Today, it is the only private consistent and good. Institutional operator in the country that provides comprehensive municipal services to The 1990s in Jamshedpur saw a rapid Arrangements approximately 500,000 people in the population growth in the periphery township.4 The initiative of converting an of Tata Steel command areas as well To address these issues, meet the as in private areas. Most of these growing challenges of an expanding city, 3Jamshedpur has the status of a Notified Area Committee areas were being provided with water and further improve service delivery, which is a unit of municipal administration in urban areas in the through handpumps and deep Tata Steel envisaged a corporatization state of Jharkhand. 4JUSCO provides services to 500,000 people out of the borewells which was leading to a model that combined improved township's total population of 700,000 people. Though the current coverage is at about 70 percent, it hopes to cover the lowering water table and poor water services with financial viability. JUSCO entire population over the next couple of years. 3 JUSCO was carved out of Tata Steel's Town Division, with the objective of providing `Quality Services for Life' and improving the quality of civic services in Jamshedpur. Management of Water and Sanitation/ Sewerage Services JUSCO provides `river-to-river' water and wastewater management in Jamshedpur, including treated raw water to meet World Health Organization (WHO) drinking water guidelines, as well as the discharge of treated effluent back into the rivers5 to meet international effluent quality standards. It operates over a service area of 64 square kilometers and serves a 500,000 population base, with 40,000 water connections. Approximately 20,000 connections JUSCO's water works. serve Tata Steel employees and the balance serve other residents of obligatory service into a commercial The initial three-year agreement the city. Raw water is extracted from customer-oriented company to provide comprised periodic half-yearly surface water sources, primarily the municipal services with a high degree reviews and an extension of the Rivers Subarnarekha and Kharkhai and, of user satisfaction is also the first of agreement period. in an emergency, from its own stand-by its kind in the country. As part of this mandate, JUSCO reservoir at Dimna.6 The volume of JUSCO is a wholly owned subsidiary has its vision set for the year 2008 water treated is 55 million gallons of Tata Steel and was created on as the preferred provider of civic and per day (MGD), distributed through August 25, 2003, under the Companies allied services, and a national leader a network system of 500 kilometers Act 1956, with the objective of in the water and sanitation business. and seven overhead water towers, providing `Quality Services for Life'. It Guided by Tata Values, it will 5WhileJUSCOprovides99millionlitersaday(MLD)ofrawwaterand was carved out of Tata Steel's Town continuously strive to delight 72MLDofclarifiedwatertoindustrialconnections,itspotablewater Division and spun off as a separate customers through a team of happy productionincludes29MLDtoindustrialconnections,19MLDto commercial connections, and 120 MLD to domestic connections. company with the mandate of and empowered employees. Today, Twopumpingstationsproducewater:theNewRiverPumpHouse (set up 20 years ago) produces clarified water for industrial use; the improving the quality of civic services JUSCO serves as a one-stop shop OldRiverPumpHouse(setupin1932,withmanyupgradations in Jamshedpur and turning it into a and provides various civic services thereafter) produces clarified water and raw water for industrial use and fortheTownwaterworksfromwherepotablewaterissuppliedto model town with world class facilities. in Jamshedpur that include water and JUSCOcustomersviawatertreatmentplants.TheOldRiverPump House has a raw water pumping capacity of 342 MLD and a clarified A partnership between Tata Steel and wastewater services, construction water pumping capacity of 136 MLD. The Town works has a water JUSCO formalized this relationship services, management of municipal treatment plant that was first commissioned in 1921 with an 11 MLD capacity and was upgraded subsequently many times. It has a potable through an agreement with clearly solid waste, power services, and waterproductioncapacityof168MLD,withpotablewaterquality conforming to Bureau of Indian Standards (BIS) and WHO norms. defined performance standards. integrated facility management. 6The Dimna Reservoir has a capacity of 34,000 million liters (ML). 4 Jamshedpur Utilities and Services Company Limited: Improving WSS Services through Private Sector Partnerships with a per capita supply of 250 liters economically backward classes is citizens, is based on a cost-sharing per day.7 To ensure quality water possible by a private water utility. model for infrastructure developed services, a continuous monitoring For years Tata Steel's Town Division, for providing piped water services to of free chlorine from taps and collection (now JUSCO) provided good poor people. To ensure reliable and of 5,000 samples is conducted every quality and free drinking water to the quality piped water services to poor year. While potable water is supplied poor through 550 public standposts people, JUSCO at its own cost has primarily to Tata Steel employee located across the city. Besides public developed necessary infrastructure connections, non-Tata Steel employees8 standposts, poor people have also for raw water intake, enhanced and industries, industrial water is been provided free water services production capacity of the water supplied to the Tata Group companies through borewells and handpumps. treatment plant and rehabilitation work and non-Tata Group companies.9 For this purpose, JUSCO has installed, of the water distribution network. Two sewerage treatment plants with commissioned and now maintains The initiative, which has been in place 10 pumping stations of 65 million about 70 borewells with submersible for the last two years, has provided liters a day (MLD) combined capacity pumpsets and more than 200 for 4,000 new water connections receive and treat effluent through a handpumps in various slum areas to poor people, covering a 22,000 network of 550 kilometers.10 While of the city. population. Today, these customers Tata Steel employees are provided To further improve the quality of water have a reliable service and are willingly water for free, other citizens pay a flat services, JUSCO has also undertaken a paying a nominal tariff for using it. fee of Rs 120 (US$3) per month unique initiative through the Citizen- JUSCO is now replicating the for water.11 In some areas where Corporate Partnership. The partnership, Citizen-Corporate Partnership model continuous water supply is being built through several engagement in other identified slum pockets provided, customers pay between processes between the company and across the city. Rs 1,000-Rs1,200 (US$22-27) on a monthly basis as the water fee for receiving improved and continuous water supply services. These comprise approximately 350 customer connections that are found in the District Metering Area (DMA) zone in the Circuit House area. JUSCO has successfully demonstrated that provision of water services to the 7Seven water towers, spread across the town, supply water to Jamshedpur through a 500-kilometer water network spread across 40 square kilometers. The water towers have a total capacity of 46 ML; they are: Tatanagar/Burmamines WT, Kadma WT, Sakchi WT, Central WT, Sidhgora WT, and Sonari WT. 8The non-Tata steel customers include markets, bagan (garden) areas, government, and subleased areas. 9The Tata Group companies include Tata Steel, Tata Power, Tata Cummins, Tata Motors and the non-Tata companies include BOC and Timken. 10The sewerage treatment plant consists of two separate units with a combined treatment capacity of 65 MLD and is based on the Conventional ASP and Extended Aeration process. The treated effluent quality is claimed to exceed the requirements of Pollution Control Board norms. 11JUSCO does not charge for the water that is provided to Tata Steel, on the understanding that all deficits in costs of operation and maintenance are covered by Tata Steel. Booster pumps at the water works. 5 Tata Steel signed an agreement with Veolia Water to provide management and technical consultancy for improving efficiency in the delivery of WSS services. Planning · The implementation of Total organizational restructuring and Productive Maintenance (TPM) for human resource planning. for Transition efficiency improvements in the This has meant that the company to Improved delivery of WSS services. has had to invest significant capital in Water Services · A technical tie-up with Veolia Water new equipment, technology upgrades in 2003 for improving the for underground asset management, management of drinking water modern metering facilities, and As part of its vision, JUSCO is supply and wastewater services. online process monitoring equipment constantly improving water and for the technology being used. wastewater services through various · The implementation of a GIS performance improvement measures, for an improved distribution The operator has also implemented some of which have included: network management. a remarkable round-the-clock customer complaints center with specific · The establishment of ISO 9001 and · The introduction of modern service standard guarantees. As seen 14001 standards. technology combined with in Figure 1, all of these efforts have resulted in improvements not just in Figure I: Coverage and availability of water supply services water supply coverage levels, but also in JUSCO in the daily hours of availability of water. All capital expenditures for JUSCO's 100 transformation have been routed Water Services--Coverage 90 through Tata Steel funds. Investment proposals for performance 80 71 improvement measures have had to % 70 64 66 67 go through a financial analysis and 61 60 only proposals that satisfied conditions were put up for approval. A study 50 group of experts from various 40 disciplines studied these proposals 02 03 04 05 06 Q3 and analyzed the technical, financial, FY FY FY FY FY till environmental, and regulatory aspects 24 of the investment proposals. Besides 24 Water Availablity capital expenditure, the operation and 18 maintenance costs for JUSCO's operations are met from Tata Steel 12 10.0 funds, apart from its own internal 8.0 hours/day revenues. However, the intention is 6 5.0 5.6 4 to make JUSCO a commercial and 1.5 2.0 2.5 0 revenue-generating unit that could become a financially sustainable Delhi avg. avg. Chennai Mumbai and viable operating unit. The Bangalore Developed Ahmedabad Chandigarh Indian Jamshedpur nations agreement between JUSCO and Tata Steel stipulates that the parent Source: JUSCO. January 2006. company will provide all necessary 6 Jamshedpur Utilities and Services Company Limited: Improving WSS Services through Private Sector Partnerships support in the initial years, until the necessary infrastructure, resources, and operations are ready to make JUSCO self-sustainable. Technical Tie-ups To improve the management of drinking water supply and wastewater services and its own economic performance, Tata Steel signed a two-year partnership agreement with Veolia Water12 in July 2003. The objectives of the tie-up were that Veolia Water would provide management and technical consultancy in order to improve service efficiency, optimize the efficiency of the drinking water supply system, help Tata Steel reduce its service operation deficit, and define a customer management policy. Water conservation tips displayed at various locations in the city. Accordingly, Veolia Water helped Tata Steel (and later JUSCO, after it was Unaccounted-for-Water Phase I involved (over 13 months) created in 2003) in a number of ways Management and Metering the installation of 41 bulk meters at that included the installation of meters, the supply end and up to water JUSCO is undertaking an Unaccounted- analysis of the water network operation, treatment including metering of all inlets for-Water (UFW) monitoring program upgradation of laboratory technology for and outlets at the River Pump House through systematic electromagnetic analyzing drinking water and wastewater for raw and clarified water, inlets and bulk metering at various points of its samples, provision of advice and outlets at the water treatment plant, distribution network. As part of its assistance on the development of an branches from the rising mains and strategy, the company has undertaken efficient customer management system, of the tower inlets. Phase II involved metering of the inlet connections of setting up a GIS, and training sessions the system, bulk consumers, industrial the installation of 89 bulk meters over for staff on subjects such as jar tests, connections as well as the key outlets eight months including metering the leakage detection, hygiene and safety. of the system. These bulk meters reservoir outlets (distribution mains) It also provided project management are periodically read and the data and the connections to the other and supplied modern operating downloaded for analysis. The data associated companies. equipment, including gas detectors, also form the basis for calculation electronic metal detectors, and The exercise has helped JUSCO analyze of UFW in the water treatment plant, laboratory apparatus. The tie-up also and understand the factors that affect rising mains and distribution system, assisted in setting up and training two UFW. Once bulk meters were put in which is then monitored regularly to leakage detection teams since water place, the various components and keep UFW under control. losses of 27 percent were found in the causes of UFW were estimated and supply network during the first year of The bulk metering program has been analyzed. Leakage was identified as a the agreement. undertaken by JUSCO in two phases major component of UFW and, as a at an estimated cost of Rs 3.75 crore result, the analysis included breaking up 12An international water services company. (approximately US$0.8 million), where the rising mains into smaller sections for 7 The operator has also implemented a remarkable round-the-clock customer complaints center with specific service standard guarantees. Figure 2: Unaccounted-for-Water levels in JUSCO Water Operations--UFW (Potable Water) Water Operations--UFW (Industrial Water) 30 40 37.0 35.0 23.0 24 29.0 30 18 23.0 % 12.1 % 20 12 9.6 10.1 6.4 6.3 9.4 6 10 5.7 0 0 WTP Rising Mains Raw Clarified FY 04 FY 05 FY 06 till Q3 FY 04 FY 05 FY 06 till Q3 Source: JUSCO. January 2006. ease of analysis, installing insertion regularize these. As a result of this then be redistributed to service probes (portable type electromagnetic survey, many unknown connections areas that are not receiving adequate meters) at strategic points in the rising were found in different rising mains. water supply. JUSCO is now mains, monitoring readings of insertion These connections were immediately working on a plan to implement probes, and then analyzing data to metered or relocated after which customer meters for all its 40,000 further identify and understand JUSCO constantly monitored the household connections. where the losses were taking place system. As seen in Figure 2, JUSCO's Setting up a District in the system. loss control and management efforts Metering Area have resulted in a reduction of UFW Constant monitoring of JUSCO's rising in the rising mains and the industrial Besides rigorous monitoring of UFW mains through electromagnetic bulk and installation of electromagnetic water network. meters indicated that major losses bulk meters at all points of the existed in the system. To identify the The drive to constantly reduce UFW distribution and network system, precise location of these losses, certain levels followed JUSCO's realization JUSCO has also implemented the sections were prioritized and surveyed that every kiloliter (KL) of water lost concept of a District Metering Area for any visible leakages and unknown results in huge revenue losses for the (DMA) in certain pockets of the system connections. Once these leaks were company. Given that the total potable to provide continuous water supply. visible, the exact location of the water production is 180 MLD, even The principle is based on the pipelines was identified with the help of a 1 percent reduction in UFW per measurement and monitoring Electronic Pipe Locators and the day amounts to a saving of 1,800 KL of total flows into a pre-defined area Ground Penetrating Radar. These that has a metered source of water per day, which translates to a saving leakages were then immediately and hydraulically closed boundaries, of Rs 4.25 lakh (US$9,444) per repaired. The company also undertook where the area must be `segregated' month.13 This `saved' water could a meticulous survey program of the from the network through the rising mains for illegal and unknown operation of valves to ensure that 13This is calculated as water saved per month being 54,000 KL connections and also sought to at a cost of Rs 7.90 (US$0.18) per KL. metered supplies are the only 8 Jamshedpur Utilities and Services Company Limited: Improving WSS Services through Private Sector Partnerships water source. JUSCO has created Table 1: Total Productivity Maintenance Objectives set up one DMA zone with continuous by JUSCO water supply in an area that spans over 1.83 square kilometers and · Zero accidents and enhance employee morale. serves 350 households and the · Zero breakdowns/interruptions to increase production and productivity. network in the DMA is over 75 years · Zero customer complaint through enhancing service levels. old. This area is constantly monitored · Hundred percent conformance to quality norms. to check if the pressure and leakage levels through continuous water Source: JUSCO. January 2006. supply are at the optimum. JUSCO reports that there have been no Table 2: Total Productivity Maintenance Objectives for customer complaints of water scarcity `Kargil' Circle and poor pressure in the area since the implementation of the DMA. · Keep the plant clean. It took JUSCO approximately six · Stop water leakages, spillage of lubricants, chemicals. months to design and implement · Increase availability of equipment. the DMA. The area mostly comprises · Follow safety rules. high-end consumers who pay · Follow procedures and work instructions. Rs 1,000-Rs 1,200 (US$22-US$27) · Eliminate hard-to-access areas. a month for continuous supply of safe · Maintain clarified water quality within 15 Nephelometer Turbidity Units. drinking water. · Reduce chemical costs. GIS Mapping Source: JUSCO. January 2006. JUSCO has also set up a GIS for establishing detailed knowledge of Total Productive and detective maintenance. Currently, its underground assets that would Maintenance and the technique is carried out by all staff also eventually enable the efficient Computerized Maintenance through small group activities. operation of the network and help Management System Implemented since December 2004, control water loss levels. The GIS has the initiative targeted the involvement JUSCO has adopted the TPM principle, of the lower level staff in maximizing helped JUSCO establish the asset a manufacturing-led initiative that water production so that they felt a database and enables it in planning emphasizes the importance of people sense of ownership of the machinery future network rehabilitations and in operating technology and is a `can that they worked with. expansions, besides helping in do' and `continuous improvement' modeling for analyzing low water philosophy demonstrating the The TPM principle divides the entire pressure. The GIS technology also importance of production and service operating area into smaller helps JUSCO in improving preventive maintenance staff working together. areas of operation, called Circles. Each maintenance and planning for capital TPM is a unique Japanese system, Circle has its own specific objectives investments. The system is linked which has been developed based (Table 1) based on an analysis of its to the complaint resolution system so on productive maintenance concepts shortcomings and problem areas. For that once a complaint is made, it helps and methodologies, a technique that instance, one of the Circles--named in identifying the source of the problem looks at categorizing maintenance as `Kargil'--specified its objectives for and the exact details of the network corrective maintenance, preventive improving its operational efficiencies that are causing the problem in service. maintenance, predictive maintenance, (detailed in Table 2). 9 JUSCO is also undertaking a monthly benchmarking exercise of its own operational performance for the water services that it provides. These benchmarks include employee productivities achieved in terms of water and sewage treated per employee. Based on these objectives, specific plant machinery. For instance, some Circle further improve the efficiency of actions are taken so that the Circle initiatives undertaken in the `Kargil' pumps and other machinery. successfully meets its specified Circle for bringing about improvements Whether these improvement initiatives performance targets. These targets in machinery efficiency included are having an impact on the overall are monitored continuously on a monitoring the availability and efficiency operations of water services is also monthly basis to understand the impact of pumps on a monthly basis and of the actions and whether any comparing efficiency levels to the being monitored by JUSCO on a improvements are being realized as a previous year's achievements, periodic basis through productivity result of these interventions. Besides undertaking various measures for benchmarks. These benchmarks constant monitoring of machinery improving efficiency of pumps like include employee productivities performance standards, the TPM stopping spillage and leakages, achieved for water and sewage initiative also stresses the importance constant repairing of pumps to arrest treatment by looking at the quantity of of recording the status of the wear and tear, and so on. A monthly water and sewage treated per machinery prior to and after specific monitoring of these efficiency levels and employee. These indicators are also actions are undertaken for improving performance targets helped the `Kargil' compared with international benchmark standards so as to further drive performance improvements to reach international benchmarks.14 Besides TPM, the Computerized Maintenance Management System ensures efficient management of daily tasks and resource allocation while recording the experience of maintenance technicians on a day-to-day basis. The system also helps capture and analyze data through work order modules as well as monitor asset condition and serviceability through Equipment Modules. The initiative helps in inventory control, equipment management and work order details, and to keep a tighter control over work obligations of various vendors that JUSCO engages with. Benchmarking Own Operational Performance JUSCO is also undertaking a monthly benchmarking exercise of its own operational performance for the water services that it provides. This is being 14These benchmarks were adopted from the Qualserve Benchmarking Program--a joint program of the American Water Works Association (AWWA) and the World Economic Forum One of the seven water towers in the city. (WEF)--on benchmarking 202 American water utilities. 10 Jamshedpur Utilities and Services Company Limited: Improving WSS Services through Private Sector Partnerships undertaken through the Balance achieved on a yearly basis as part of a also against target levels that are Scorecard that helps JUSCO monitor business operating unit, with specific set by JUSCO on a yearly basis. The its performance on four aspects, that is, indicators or strategic measure areas data are published and are common financial aspects, service delivery that are to be monitored to bring about knowledge to the consumer as well. aspects for the customer, internal performance improvements within the Details of the Balance Scorecard along business processes, and community operating practices of JUSCO. Each with the specific measures to introduce concerns. Each aspect is defined indicator or benchmark is monitored operational and commercial efficiencies through an objective that is to be against the previous year's data and are given in Table 3. Table 3: Details on JUSCO's Balance Scorecard Perspective Business Unit Objective Strategic Measure Unit Financial Maximize revenue generation Revenue from potable water in command area Rs lakhsa from water supply within Revenue from other businesses Rs lakhs Jamshedpur service area Revenue from potable water in bagan area Rs lakhs Revenue from clarified water Rs lakhs Revenue from raw water Rs lakhs Customer- Improve quality and speed Customer Satisfaction Index % related service in service levels Complaints related to water supply and % water & sewerage delivery sewerage services connections Repeat complaints (water supply and % of total complaints sewerage) Compliance within time (water supply % of total complaints and sewerage) Potable water quality at customer's tap % conformance (free chlorine content = 0.2 mg/l) Potable water quality at customer's tap % conformance (bacteriological [coliform] content <2.2 MPN/100 ml)b Modernize and upgrade potable Service availability water supply Hours per day water distribution network Number of 24x7 customers Numbers and ensure equitable potable UFW (distribution network) % water supply Leakage pipe breaks/pipe bursts Breaks/km/year Maximize/expand potable water Water supply service coverage % of population service coverage in Jamshedpur New customers (includes regularization) Numbers Ensure 100% sewage collection Sewerage service coverage % of population and treatment in Jamshedpur Notes: (a) 10 lakh = 1 million; (b) MPN stands for `Most Probable Number' of coliform bacteria. Continued on next page 11 To meet international standards, and specific water quality tests, JUSCO also conducts regular surveys on water quality and customer satisfaction to bring about customer focused improvements in service delivery. Perspective Business Unit Objective Strategic Measure Unit Internal Modernize and upgrade Pump availability (overall) % Business operating facilities for sustenance Drawn from Dimna MLD (annual average) Processes (water production and sewage Potable water production MLD (annual average) treatment) Raw water production MLD (annual average) Clarified water production MLD (annual average) Sewerage blockages Blockage/km/year Sewage treated MLD (annual average) Improve operation and SPC potable watera MWh/MLb maintenance efficiencies and SPC raw water MWh/ML practices with optimized cost SPC clarified water MWh/ML SPC Bara Sewerage Treatment Plant MWh/ML SPC Kharkhai Sewerage Treatment Plant MWh/ML Power costs % of operating costs Expenditure on capital % of approved expenses Processing of contractor's bills % processed w/i 15 days Chemical cost at Water Treatment Plant Rs/MLc Chemical cost at River Pump House Rs/ML UFW (rising mains) % UFW (raw water to associated companies) % UFW (clarified water) % Develop skills to provide Number of reportable accidents Numbers employees with saleable skills Employee skill enhancement % Personal Development Plan complianced % Small Group Activities (Total Productive % Maintenance Circles) involvement Circles solved Numbers/Circle/quarter Knowledge Management Index Index/Officer Knowledge Management Knowledge Sub-community Index Management Index Suggestions accepted No/employee/year Suggestions implementation No/employee/year Savings from suggestion implementation Rs/employee Community Conserve water resources Implement rain water harvesting projects Number of locations in community Notes: (a) SPC stands for Specific Power Consumption; (b) MWh/ML stands for million watt hour per million liter; (c) Rs/ML stands for rupees per million liter; (d) Personal Development Plan refers to training programs undertaken for staff to address and improve their functional and management gaps. Source: JUSCO. January 2006. 12 Jamshedpur Utilities and Services Company Limited: Improving WSS Services through Private Sector Partnerships Service Standard Monitoring Table 4: Categorization of the various water quality sample tests undertaken by JUSCO JUSCO's water management services are ISO:9001-2000 certified. To ensure that water quality is up Sample Type Prior to 2004 2004 Onwards to the mark, the company analyzes Bacteriological samples 3,500 5,650 over 5,000 samples every year Chlorine analysis 3,500 11,500 from customer taps, storage tanks, treatment works, and water tankers Chemical analysis (water) 1,000 3,000 (Table 4) to ensure consistent water Chemical analysis (sewage) 700 1,600 quality that conforms to the Bureau of Indian Standards and World Health Source: JUSCO. January 2006. Organization guidelines. Some of the water quality indicators that are Figure 3: Water quality standards monitored include Biological Oxygen Demand, turbidity, pH, Total Suspended Solids, Total Dissolved Potable Water: Bacteriological Quality (BIS Norm--95% samples conforming to standard) Solids, alkalinity, hardness, chloride, iron, calcium, magnesium, sulphate, 100 95.6 flouride, ammonia, nitrate, nitrite, 93 93 <2.2) Dissolved Oxygen, arsenic, cadmium, 90 ml cyanide, E. Coli, fecal coliform and 80 Chemical Oxygen Demand. As samples demonstrated in Figure 3, there 70 % coliform/100 has been a continuous improvement of 60 in water quality and, currently, more than (MPN 95 percent of the potable water 50 FY 04 FY 05 FY 06 till Q3 samples tested for free chlorine and bacteriological quality conform to the standard norms. Potable Water: Free Chlorine Besides specific water quality tests, (BIS Norm--95% samples free chlorine 0.2 ppm) JUSCO also conducts regular customer satisfaction surveys to 100 97.4 bring about customer focused ppm) improvements in service delivery. 0.2 90 86 JUSCO has so far conducted three 80 sample surveys. The specific areas chlorine 71 of service satisfaction are then 70 (free monitored by comparing performance 60 standards from international and samples national best practice utilities so as % 50 FY 04 FY 05 FY 06 till Q3 to drive and trigger performance improvements within JUSCO to meet these best practice standards. Source: JUSCO. January 2006. 13 Besides the customer keeping a check on whether the complaints are being redressed, JUSCO Sahyog Kendra has an effective monitoring system to understand the effectiveness of such a system and its compliance to specific service standards. Table 5: Categorization of water management complaints by JUSCO Sahyog Kendra Service Category Sub-category Complaint Area Job Code Water Management Water Management Jobs Plumbing outside the house WPW01 Contamination of water WPW02 Water scarcity WPW03 Pipe leakage outside the house WPW04 Pipe burst outside the house WPW05 Masonry work outside the house WPW06 Sewer obstruction outside the house WPW07 Repairs to drains behind the house WPW08 Repairs to manhole WPW09 Overflow from overhead tank WPW10 Inlet pipe leakage coming from outside WPW11 the house Cleaning of overhead tank WPW12 Source: JUSCO Sahyog Kendra. January 2006. For instance, an area where customer capita water consumption, and services being provided. This caused feedback is received is inadequate proportion of investments in operating dissatisfaction among consumers as water supply or customer revenues. These `in-process' and complaints were being redressed but dissatisfaction with the duration of `end-process' indicators are then with varying response time and quality water supply. In such a case, feedback compared to similar national of service response. JUSCO Sahyog is sought on the areas of dissatisfaction benchmarks to see where JUSCO Kendra (or JUSCO Assistance Center) with water supply services. stands, so that constant operational was hence set up as a single window Simultaneously JUSCO also identifies improvements can be undertaken for complaint logging and follow-up system the related process that could be bettering these benchmarks. that would provide greater care to the impacting the water service network, residents of Tata Steel's service area A Best Practice Example on and hence services, including the water with the facility being available 24 hours Customer Grievance Service distribution network, the management a day, seven days a week. Set up as an of water service delivery, and JUSCO also set up an effective round- interface between the customer and the infrastructure refurbishments. Each of the-clock complaint resolution cell in service provider, the initiative ensures these identified related processes are November 2004 for effectively that all requests are lodged, tracked, then looked into and the performance addressing the grievances of its and monitored from a single point to of each process is monitored through 500,000 customers. Prior to the enable the creation of a centralized `in-process' indicators like UFW, pipe initiative, customers had to lodge database that provides facts and breaks, and compliance to plans or complaints through 15 different figures about the service levels that are through `end process' indicators such complaint numbers to different units being provided by JUSCO, so that as daily hours of water supply, per that were responsible for the various service deficiencies can be identified and 14 Jamshedpur Utilities and Services Company Limited: Improving WSS Services through Private Sector Partnerships service quality continuously improved. Regional team's visit to Jamshedpur The entire operating area is divided into seven customer complaint zones based A team of senior government and utility officials from Pakistan and on the physical proximity of the delivery Bangladesh visited Jamshedpur in January 2006 to see the operations of the points.15 There is an efficient follow-up town's private water supply provider, JUSCO. This Field Note is based on system for customers to check the their findings and experience gathered during the exposure visit. status of their requests, with effective tracking of customer feedback for continuous improvement of services and for improvements in response time for redressing complaints. A consumer makes a call to the complaint number--2146000--and is required to identify herself/himself by a phone number, a customer ID, and the location from where she/he is calling. The location is GIS mapped to any one of the seven consumer complaint zones. Next the consumer lodges the complaint by specifying the details and the particular complaint code as listed in the JUSCO Sahyog Kendra complaint booklet.16 The complaint booklet lists complaints according to eight different service categories classified as Town Electrical, Integrated Customer Service, Water utility managers from cities in Bangladesh and Pakistan with WSP staff. Water Management, Planning Engineering and Construction, Public Health, Fleet Management, Billing and particular job codes for each area. by categorizing the complaint Customer Care, and Horticulture. Each The management of water services is according to the relevant department of these service categories are further also similarly categorized, details of and sending it to the relevant categorized into respective areas of which are found in Table 5 along with department for consideration. A work. For instance, the service their respective job codes. job card is simultaneously printed at category Town Electrical is further the concerned zone and is sent to subcategorized into four categories-- After the consumer has made a the allocated employee/contractor House Maintenance, Street Light, complaint regarding a particular for complaint redressal. In case of Meter in House, and Service and service that she/he is dissatisfied with, infrastructure problems, the Transmissions--which then have the JUSCO Sahyog Kendra first complaint resolution system is registers the complaint in its central inked to the GIS mapping system 15These complaint zones include Sonari, Kadma, Central, database, with a customer ID and the of JUSCO, which helps to pin down Bistupur, Sakchi, Sidhgora, and Burma Mines. nature of the complaint as identified by the location specifics of the complaint. 16The JUSCO Sahyog Kendra customer complaint booklet contains a comprehensive listing of services/jobs that are being the relevant job code. It then puts in a This helps in identifying the exact provided by JUSCO. It helps the consumer give the exact job code details while lodging her/his complaint. request for addressing the complaint area of concern and taking 15 A unique feature about the working of complaint resolution under JUSCO Sahyog Kendra is that, once the complaint is registered, the consumer is given a Service Level Guarantee that is the maximum time that the respective service department is expected to take to redress the complaint. corrective action to prevent the Table 6: Service Level Guarantees for water occurrence of similar problems in management services the future. Once the job is completed, the job card must be filled in by Job Type Service Level Guarantee the consumer indicating her/his satisfaction with the actions taken to Overflow from overhead tank 3 days resolve the complaint. The job card Drinking water scarcity 3 days must also be signed by the concerned Inlet pipe leakage coming from outside the house 3 days employee contractor before being Pipe leakage/burst outside the house 3 days handed back to the department/ Sullage water/wastewater/backside drain 15 days employee who was responsible for resolving the complaint. The Cleaning of overhead tank 3 days employee/department regularly Storm water/rain water/front side drain repair 15 days updates the database for the review at the Kendra. Source: JUSCO Sahyog Kendra. January 2006. In addition to the customer keeping a check on whether the complaints are being redressed, JUSCO Sahyog Kendra has an effective monitoring process to understand the effectiveness of such a system and its compliance to specific service standards. The unit randomly picks up about 100 cards daily and calls the concerned customers to check if the problem was addressed and whether the customer was satisfied with the action that was taken for addressing the complaint. Typically about 850 complaints are registered on a daily basis, and the time taken, in peak hours, to register a complaint is about 90 seconds. Of the total complaints received, about 85 percent are related to civil works and the remaining are engineering complaints. JUSCO Sahyog Kendra also has a system for registering repeat complaints and recurrence of already addressed complaints. In such a case, a detailed analysis is undertaken of when the complaint was initially addressed, what the 16 Jamshedpur Utilities and Services Company Limited: Improving WSS Services through Private Sector Partnerships Table 7: Indicators for monitoring the complaint resolution system Indicator Definition SLG: Service Level Guarantee Maximum time that service departments expect to take to redress a complaint. Also called expected compliance time SLP: Service Level Performance Actual performance against SLG, called compliance within time Number of complaints within SLG SLP = Total number of complaints with defined SLG SLE: Service Level Expectation Average time a customer can tolerate to get his complaint redressed ATAT: Actual Turnaround Time Time taken by JUSCO service departments to resolve a particular customer complaint CG: Capability Gap Inability of JUSCO services to promise a service level that matches customer expectation Capability Gap = SLG-SLE SG: Service Gap Gap between ATAT and SLG, also called compliance beyond time Service Gap = ATAT-SLG QG: Quality Gap Sum total of capability gap and service gap Quality Gap = ATAT-SLE Source: JUSCO Sahyog Kendra. January 2006. perceptions of the customer were them. These SLGs are defined for Performance which indicates the and why the complaint was not a specific set of complaint redressal actual performance against SLG. satisfactorily addressed. being undertaken by JUSCO Sahyog This is also termed as compliance Kendra. SLGs for the water services within time and is defined as the ratio A unique feature about the working complaint redressals are indicated in of the number of complaints that were of complaint resolution under JUSCO Table 6. resolved within the SLGs to the total Sahyog Kendra is that once the number of complaints with defined complaint is registered the consumer The customer is also given a SLGs. Another means of monitoring is given a Service Level Guarantee complaint reference number to check whether complaints are meeting the (SLG) that is the maximum time that on the status of complaint redressal. SLGs has been to track and monitor the respective service department Tata Steel employees can check the Service Gap which is the gap is expected to take to redress the status of the complaint on the between Actual Turnaround Time, for company's intranet. Besides this, the the complaint. example, how long it took JUSCO to unit also monitors the compliance resolve the complaint and the In April 2005, 8 percent complaints time within which customer complaints respective SLG. logged by the Kendra fell off the are being solved. Once the SLGs are system since there was either no indicated on the job cards and in the The unit also tries to estimate the defined SLG for some complaints or database system, JUSCO Sahyog Service Level Expectation (SLE) which no review mechanism was instituted for Kendra also monitors Service Level indicates the average time a customer 17 JUSCO's operations have demonstrated that the provision of urban services needs to be looked at as a viable business activity and not merely as an obligation. Table 8: Monitoring complaints for water management services Job Type Service Service Actual Capability Service Quality Level Level Turn- Gap Gap Gap Guarantee Expectation around (SLG- (ATAT- (ATAT- Time SLE) SLG) SLE) Overflow from overhead tank 3 days 1 day 3 days 2 days 0 days 2 days Drinking water scarcity 3 days 1 day 6 days 2 days 3 days 5 days Inlet pipe leakage coming from 3 days 1 day 4 days 2 days 1 day 3 days outside house Pipe leakage/burst outside 3 days 1 day 5 days 2 days 2 days 4 days the house Sullage water/wastewater/ 15 days 5 days 21 days 10 days 6 days 16 days backside drain Cleaning of overhead tank 3 days 3 days 4 days 0 days 1 day 1 day Storm water/rain water/ frontside drain repair 15 days 5 days 16 days 10 days 1 day 11 days Source: JUSCO Sahyog Kendra. January 2006. tolerates the problem before it is SLE. JUSCO Sahyog Kendra monitors the inability of JUSCO services redressed. Constant feedback from the this continuously by keeping track of the to promise a service level that customer, either from job cards or from Capability Gap, which is defined as the matches customer expectation. customer surveys undertaken by difference between the SLG and the Finally, the unit also monitors the JUSCO periodically, helps estimate the SLE. The Capability Gap is a result of Quality Gap, which is the sum total of Capability Gap and the Service Gap and is the difference between Figure 4: Compliance of overhead tank overflow complaints Actual Turnaround Time and SLE. Compliance This indicator is constantly reviewed and revised so that service levels can TAT = 1 day TAT = 3 days be brought closer to customer 100 96.7 96.5 97.4 95.0 expectations. These indicators, as 86.9 88.0 83.6 monitored for water services 80 70.5 66.4 operations, are given in Table 8. 60 within In fact, after receiving continuous % 40 customer feedback, and after reviewing 20 and monitoring each of these service indicators, JUSCO has taken stringent 0 measures. In many cases, SLGs have Apr 05 May 05 Jun 05 Jul 05 Aug 05 Sep 05 Oct 05 Nov 05 Dec 05 been revised to bring them closer to Source: JUSCO. January 2006. customer expectations. As seen in 18 Jamshedpur Utilities and Services Company Limited: Improving WSS Services through Private Sector Partnerships Figure 4, after monitoring response services were of the water There has also been a fall in the time to resolving complaints on wastage type, of which 31 percent number of repeat repair complaints overhead tank overflows, JUSCO has complaints were due to overflow. registered with JUSCO Sahyog Kendra, now amended its Actual Turnaround This has helped the company as demonstrated in Figure 6. Time from three days in the first three focus more strongly on measures quarters of 2005, to the present level to reduce UFW. As a result of Conclusion of one day. constant monitoring of service standards, JUSCO has improved Performance improvement measures By closely monitoring the complaints its services. implemented by JUSCO have resulted being registered for the services that in impressive service delivery outcomes it provides to its customers, JUSCO As seen in Figure 5, JUSCO's including increase in water services is able to identify the operational compliance with the stipulated SLG coverage, availability, reliability, inefficiencies of many of its service for water supply and sewerage has efficiency, and customer orientation. departments. For instance, for water increased over the last two years management services, 62 percent and, in fact, in the current fiscal has JUSCO's operations have complaints in this fiscal for water superseded its own target level. demonstrated the benefits of treating Figure 5: Compliance with customer complaints on water supply and sewerage services Compliance Within Time 100 96 96 89 89 97 90 80 78 80 75 70 70 61 61 60 complaints) 50 46 40 total 30 (of %20 10 0 FY 05 FY 06 FY 06 Apr 05 May 05 Jun 05 Jul 05 Aug 05 Sep 05 Oct 05 Nov 05 Dec 05 (Actual) (Target) (YTD) Figure 6: Repeat complaints for water supply and sewerage services 8 Repeat Complaints 7 7.1 6 5 complaints) 4.1 4 3.2 2.88 2.9 2.7 total 3 2.54 (of 1.94 2 1.92 1.42 % 1.32 1 0 0 FY 05 FY 06 FY 06 Apr 05 May 05 Jun 05 Jul 05 Aug 05 Sep 05 Oct 05 Nov 05 Dec 05 (Actual) (Target) (YTD) Source: JUSCO. January 2006. 19 Water and Sanitation Program- South Asia World Bank 55 Lodi Estate New Delhi 110 003 India Phone: (91-11) 24690488, 24690489 Fax: (91-11) 24628250 E-mail: wspsa@worldbank.org Web site: www.wsp.org consumption-based tariffs in most ABOUT THE SERIES of its service areas. As a result of its commercialized WSP Field Notes describe and operations, JUSCO's revenues for analyze projects and activities water service operations have in water and sanitation that increased by more than 35 percent provide lessons for sector leaders, from Rs 15.5 crore (approximately administrators, and individuals US$3.4 million) in fiscal 2005 to tackling the water and sanitation Rs 21 crore (approximately US$4.6 challenges in urban and rural million) in fiscal 2006, and it is areas. The criteria for selection June 2006 implementing a program for of stories included in this series WSP MISSION improved cost recovery and are large-scale impact, To help the poor gain sustained access to financial viability. Currently JUSCO's demonstrable sustainability, improved water and sanitation services. parent company, Tata Steel, good cost recovery, replicable subsidizes any revenue shortfall due WSP FUNDING PARTNERS conditions, and leadership. The The Governments of Australia, Austria, to free provision of water to its purpose of this series is to Belgium, Canada, Denmark, France, Ireland, document and draw on the employees and provides an operating Luxembourg, the Netherlands, Norway, successful private sector subsidy to JUSCO until it achieves Sweden, Switzerland, the United Kingdom, experiences being undertaken financial viability. the United States; the United Nations in the WSS sector in the region. Development Programme, The World Bank, The experience in Jamshedpur is and the Bill and Melinda Gates Foundation. already benefiting other cities and towns in the region. Some of the study AusAID provides WSP-SA programmatic support. the provision of urban services tour participants from Bangladesh as a viable commercial activity and and Pakistan (see Box on page 15) PREPARED BY not merely as an obligation. report that they are implementing Pronita Chakrabarti Agrawal This was enabled through the customer service improvements based ACKNOWLEDGMENTS establishment of a separate on what they saw in Jamshedpur. The author would like to acknowledge professional and focused group Further, other government and semi- the valuable peer review provided by: in JUSCO with civic and allied government bodies like the Haldia Khawaja M. Minnatullah, Masroor Ahmed, services as its core business that Development Authority along with the G.S. Basu, Sanjiv Paul, Catherine J. Revels, and Anup Wadhawan. was to deliver and manage municipal Public Health Engineering Department, services in Jamshedpur. However, West Bengal, have recognized the JUSCO does not yet provide benefits of JUSCO's initiatives and are continuous water supply in all exploring options for tying up with areas of operation due to the JUSCO to improve their own water and absence of customer meters and wastewater management. The findings, interpretations, and conclusions expressed are entirely those of the author and should not be attributed in any manner to Photographs: Provided by JUSCO The World Bank, to its affiliated organizations, or to members of its Board of Executive Directors or the companies they represent. Created by: Write Media Printed at: PS Press Services Pvt Ltd Jamshedpur Utilities and Services Company Limited: Improving WSS Services through Private Sector Partnerships FEEDBACK FORM 1. Is the format of this field note easy to read? ¨Yes ¨No 2. 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