Earlier this year, the RJP government cancelled the agreement in a bid to revise water charges. This has resulted in the VMC receiving periodic water bills, which now add up to Rs 18 crore. The agreement with the GSFC, the Gujarat Refinery and IPCL -- the other partners -- was also cancelled. When the agreement was in force, the State Government did not recover water charges from the VMC as it had initially contributed for the project by which water was to be released from the Panam dam into river Mahisagar.

The bills continued to come (one of Rs 1 crore came recently) despite assurances from senior BJP leaders, including Chief Minister Keshubhai Patel, that the Government was considering revival of the agreement. The VMC general board, however, has resolved not to pay the bill and has sent documents for signing to the State Government. Although, the agreement had come into force several years ago, the documents were not signed.

Mayor Bharati Vyas, Municipal Commissioner G R Aloria and Additional City Engineer B Trapasia will attend the meeting called on the Chief Minister's recommendation. Meanwhile, Aloria said the VMC would install floor meters at the four french wells in Mahisagar and at Ajwa to study the water table level. The meters are also expected to help in electricity, sources said.