The federal government has agreed to assist in restructuring Kelantan's water industry for the benefit of its people, said Kelantan UMNO Liaison Committee chairman Datuk Seri Mustapa Mohamed.

Mustapa, who is also International Trade and Industry Minister, said an agreement will be signed between the state government and Energy, Green Technology and Water Ministry on Wednesday to allow the restructuring.

"The federal government, for the sake of the people of Kelantan, has agreed to restructure Kelantan's water industry. I received an invitation to attend the event on Wednesday in Putrajaya," he told a press conference after chairing a Kelantan UMNO Liaison meeting, here on Sunday.

Also present was Deputy Minister in the Prime Minister's Department Senator Datuk Dr Ashraf Wajdi Dusuki.

Mustapa said in themeeting, Kelantan UMNO decided to put a condition for a radical overhaul to be conducted on Air Kelantan Sdn Bhd (AKSB) to enable the restructuring process to be done well.