The State has taken up execution of major drinking water supply projects in a big way and there are excellent opportunities for investment in the sector. The major drinking water supply projects, as proposed for private investment, are basically of two configurations:

Transmission: The transmission system intends to carry water from the raw water source to different pumping stations.

Cluster Distribution: The cluster distribution system projects involve taking off water from existing transmission systems and conveying it to different villages/habitations in the project area. A number of major water supply projects have been identified for implementation under public private partnership model.

Return on Investment:
The prevalent water tariff structure in the State may not be sufficient enough to sustain proposed projects financially. The concessionaire investment in work execution shall be repaid by the State Government on annuity basis as deferred payment. It is proposed the concessionaire will recover the operation & maintenance cost from village water & sanitation committee to whom water will be supplied.