Water tariff up, soft drinks likely to get dearer

A nearly seven-fold hike in tariff on water for bulk users may push the prices of beer and soft drinks in the state.

Starting February 1, water cost for manufacturers of packaged drinking water, distilleries producing molasses and ethanol, soft drinks makers and the beer industry will go up from Rs 16 to Rs 120 for every 1,000 litres, according the Maharashtra Water Resources Regulatory Authority.

According to the water regulator’s estimates, it takes four litres of water to produce a litre of beer, and it takes 15 cubic meters of water to make 1,000 litres of alcohol.

MWRRA chairman, former additional chief secretary (home) KP Bakshi, said there have been marginal revisions in rates – between 15 paise and Rs 1.25 per 1,000 litres – for gram panchayats, nagar palikas, townships and municipal corporations. “These bodies can pass on the rate hike to consumers or reduce losses (in the distribution network).”

Tariffs for other industries that process water sourced from dams and irrigation projects will rise to Rs 4.8 per 1,000 litres from Rs 3.20.

This hike is expected to generate revenue of Rs 400 to Rs 500 crore and will augment the operations and maintenance of the irrigation and water supply network.

VM Kulkarni, member (engineering), MWRRA, said while tariffs for agricultural and domestic users had been hiked by nearly 17 per cent and that for industries by 50 per cent, the rise in the price index in the same period (since 2010-11) was 63 per cent. He that the use of a differential pricing or pay per use mechanism would help reduce water wastage and ensure better water management.