Chandigarh admn notifies up to 200% hike in water tariff

The rates were last revised in 2011. The proposal for further hike was first mooted in 2014

Chandigarh residents will have to shell out up to three times for water with the administration on Friday notifying the revised tariff.

The hike is between 50% and 200% depending upon the category of user and consumption level (see box). In addition to the tariff, water cess of ₹20 per month per connection is charged for maintenance of parks and green belts.

The rates were last revised in 2011. The proposal for further hike was first mooted in 2014. Another attempt was made in 2018, but the municipal corporation House rejected it while seeking additional water supply for the city first.

With Chandigarh, last year, receiving an additional 29 MGD (million gallons per day) water from Phases 5 and 6 of the Kajauli waterworks, the House approved 200-300% hike in June 2019. In face of opposition, the hike was slashed. Now, finally the administration has notified the revised tariff.

While the House had recommended 10% increase in tariff every three years, the administration has kept it at 3% annually.

‘Will also discourage wasteful use’

Justifying the increase in rates, MC commissioner KK Yadav said: “The hike was very much needed, as for nearly a decade there was no revision. The city has one of the lowest water tariffs.”

An audit department report had also asked the MC to revise the rates, since its annual losses from water supply had crossed ₹135 crore per annum from ₹41 crore in 2011. The report also observed: “As the annual recurring expenses are increasing by 10% to 15% every year, losses will further increase in the future, putting huge pressure on the MC’s coffers.”

“The MC collects ₹90 crore per annum as water charges, but expenditure incurred to maintain the supply to its 1.8 lakh consumers is ₹225 crore,” said Yadav. Struggling to even pay salaries to its employees because of a severe financial crunch, the civic body expects to earn an additional ₹60 crore from the hike.

The tariff increase will also discourage wasteful use of water. “The MC is not putting any additional burden on residents, particularly if there is no misuse. In the first two slabs, the increase is by ₹1 and ₹2 per kilolitre. Consumption of most of the households in the city is within these two slabs,” said Yadav.

Sample this: A family of five persons, consuming around 21kl water per month (at 135 litres per person per day) is paying ₹54 right now. After the hike, it will be shelling out ₹81.

Residents, Oppn decry move

Stating that the hike would further burden residents who are already reeling under Covid-19 pandemic, Hitesh Puri, chairman, Chandigarh Resident Association Welfare Federation, said: “Why is there so much urgency in revising the tariff. They could have done it next year. They have also not improved or introduced 24x 7 water supply in the city.”

Devinder Singh Babla, Congress councillor and leader of opposition, said: “What else has the BJP government done except burdening people with taxes? They could have at least left water alone. We strongly oppose this move. The MC under the current mayor is rudderless and creating only problems for residents.”