Tata group executives said Tata Steel intends to have a controlling stake in the venture, while the balance will be with Vivendi.

The joint venture will manage Jamshedpur's water and waste-water services as part of Tata Steels plans to reduce its social costs.

The alliance is Vivendi's first major venture in India and it is looking forward to create a successful model in Jameshdpur, which will be later extended to the rest of the country.

Vivendi Water, which entered India in 1999, has undertaken several pioneering projects, including a study of the urban water supply and waste water-treatment in the country.

It is currently working with the Kolkata Municipal Corporation to improve the city's water supply system (by maximising the potential of existing assets).

Vivendi Water is also a consultant to the Chennai Water Board for the entire water management cycle, water supply and wastewater, for the city.

Vivendi Water, a subsidiary of Vivendi Environment, is the leading global provider of water and wastewater services for municipal authorities, industrial companies, and consumers.

The company provides the entire range of outsourcing and design-build services as well as equipment and systems. With operations in more than 100 countries, Vivendi Water serves over 110 million consumers and 40,000 industrial customers.