The royal palace has rejected the Asian Development Bank's proposal to bring a law through ordinance for the transfer of the management of the Nepal Water Supply Corporation. The rejection comes as a big blow to the donors' desire to enter the drinking water supply business in Kathmandu. For its assistance in the Melamchi water supply project aimed at supplying water to Kathmandu Valley, the ADB had stipulated that the management of the NWSC be privatised. The government had planned to bring an ordinance for the privatisation of the management in a bid to avoid legal hassles. The bank and the government had sent the ordinance to the palace but it was returned because it didn't clearly state details like the fee for drinking water. A revised proposal is being readied.