India needs corporate structure for sustainable infra services delivery: World Bank Official

It is the middle class and above.Poor people are not connected to piped water, Ahmad saidaddressing an event organised by Bengal Chamber of Commerce Industry.He also said no corporate body can sustaincreditworthiness without its user charge base.In India, user charge accounts for about 20 per centof operation and maintenance cost on an average, he added.PTI BSMBDC BDC

Projects related to publicservices should be developed through a corporate-likestructure with adequate user charge base so that the entitiescan sustainably deliver such services, World Bank Indiadirector Junaid Ahmad said on Friday.

Citing examples of Eastern Dedicated Freight Corridorand Shimla water supply projects being developed through acorporate structure, he emphasised on creating entities thatfollow ''company systems in order to deliver the infrastructureservices''.

Ahmad said corporatisation of government departmentsor agencies is a challenge for India, though such a mechanismhas been introduced in the country to deliver public servicesin a sustainable manner.

The World Bank official, however, clarified that hewas not proposing for privatising public service providers butto transform them through a corporatised structure.

Mentioning that poor people pay more than middle-classhouseholds for water, he advocated increasing of charges fordelivery of public services.

''Traditionally, you cannot increase user chargesbecause the poor will suffer. Today, who benefits fromsubsidised water charges? It is the middle class and above.

Poor people are not connected to piped water,'' Ahmad saidaddressing an event organised by Bengal Chamber of Commerce &Industry.

He also said no corporate body can sustaincreditworthiness without its user charge base.

''In India, user charge accounts for about 20 per centof operation and maintenance cost on an average,'' he added.

PTI BSMBDC BDC