The paper is based on the initiatives taken by the Sangli-Miraj Kupwad Municipal Corporation (SMK-MC) in the state of Maharashtra. It briefly summarizes the proposed approach that introduces efficiency improvement reforms envisaged in the Government resolutions by employing an experienced private sector operator for operation and maintenance (O&M) in Phase1, which would subsequently lay the foundation for attracting private sector investment in the next phase for system rehabilitation and augmentation on a long term basis. The focus is to ensure that the initial grant given by the government results in the creation of self-sustainable system.

Since SMK-MC would be the first Corporation to access the Initiative Incentive Grants, it is expected to provide an approach that demonstrates the implementation of the reforms proposed by the government in the water and sanitation sector.  The learning experience of this effort can be more readily adopted in other corporations in Maharashtra (and India).

This includes clarity and detailing of the process activities, definition of achievable performance parameters and preparation of bidding documentation for contractual purposes. Introducing processes and undertaking activities that raise investor confidence are essential to achieve effective private sector participation.  Such an approach is expected to facilitate professional management of the services. 

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