Mumbaiites who enjoy water supplies at highly subsidised rates may be asked to pay more.
The hydraulic department of the Brihanmumbai Municipal Corporation (BMC) is deliberating on the need to revise the water tariff.
While it is yet to finalise the date and the quantum of hike, senior department officials said the move could be made effective in the near future.
Middle and upper middle class colonies are supplied water at
Rs3.50 per kl — almost three times the cost incurred by the BMC to deliver water to homes: Rs10.80 per kl. Slums are supplied water at Rs2.25 per kl, while commercial consumers get it at Rs18-38 per kl.
An official said the sharp increase in administrative costs and the high cost of new water projects has made the 60% plus subsidy for middle class households unviable.
The implementation of the sixth pay commission has led to a sharp increase in administrative costs. Another official pointed out that the growing water scarcity had forced the civic body to pump funds into new supply and distribution projects. Some of these projects, like the construction of a 15 km underground tunnel from Gundavali to Bhandup, replacement of corroded water mains, and the setting up of a pipeline tobring water from the Middle Vaitarna, are estimated to cost over Rs 1,000 crore each.
On the other hand, revenues from water supplies were down this year due to the 30% cut imposed after a failed monsoon.
Officials said one of the reasons for the misuse and wastage of water was its highly subsidised cost. “People do not value water as it is made available at a throwaway price in the city,” an official said.
To justify this statement, he pointed out that rural areas in the state were being supplied water at Rs 10.50 per kl.
The tariff was last revised in 2002. While the department wants to remove the entire subsidy, officials acknowledged that garnering political and public support for a steep hike will be difficult.
At a meeting scheduled for next week, department officials are also likely to deliberate a hike in water charges for slums and commercial consumers. Officials said it would be unjustified to pass on all the burden of the hike to commercial consumers.
“They only consume 8% of water supply and are presently responsible for over 80% of the department’s revenue,” an official said.
Comments