Salem Privatization Stand-off: DYFI Protesters Demand Reversal of Water Supply Contract

Escalating Tensions Over Water Management

Public dissatisfaction with the privatization of municipal services intensified on Monday, July 27, 2026, as over 50 members of the Democratic Youth Federation of India (DYFI) targeted the Salem Corporation Main Office. The demonstrators initially blocked traffic near the Rajaji statue before escalating their pressure by staging a sit-in at the corporation building's entrance. Police intervened to remove the activists, eventually detaining them in a local marriage hall.

A Contested Multi-Billion Rupee Agreement

The dispute centers on a massive 24x7 drinking water supply scheme. While the project received an initial tender authorization of ₹4,315 crore in February 2026, following political opposition, the state government reported a revised administrative sanction of ₹1,035.61 crore. However, a significant financial commitment remains. Key project details include:

• Contract Length: A 25-year management term awarded to a private entity.
• Total Maintenance Cost: Approximately ₹3,259.73 crore for the duration of the scheme.
• Formal Execution: The agreement was finalized at the secretariat on June 19, 2026, signed by the Salem Corporation Commissioner.

Policy Reversals and Future Warnings

Though Salem Mayor A. Ramachandran claimed during a June 29 council meeting that the private tender was cancelled, the project has proceeded under the state's revised framework. This discrepancy sparked the latest round of unrest. Dinesh Raja, a DYFI State executive member, stated that the organization will continue to block development if the private firm attempts to initiate field operations. The protesters demand that the city maintain public control over vital resources rather than outsourcing long-term management to corporate interests.

Source: The Hindu — Cities