Water bills in Chandigarh set to swell as MC planning sewerage cess hike
Currently, a ₹2,500 water bill currently incurs a cess of ₹500 (20% of the bill), making the total ₹3,000. Under the new proposal, the same bill will rise to ₹3,250 due to a ₹750 cess (30% of the bill)
After slashing the sewerage cess to 20% last year, the cash-strapped Chandigarh municipal corporation (MC) is now planning to raise the levy again, increasing it to 30%.
The move, which will result in higher water bills for consumers, is set to be discussed and approved in the upcoming General House meeting on February 17.
The sewerage cess charged depends on a consumer’s water bill. For example, a ₹2,500 water bill currently incurs a cess of ₹500 (20% of the bill), making the total ₹3,000. Under the new proposal, the same bill will rise to ₹3,250 due to a ₹750 cess (30% of the bill).
With 1.83 lakh water connections in the city, MC hopes to generate an additional ₹11 crore monthly from the increase, helping address its long-standing financial shortfall. At present, MC generates ₹12-13 crore monthly from water bills, contributing to an annual revenue of ₹160 crore.
Sewerage cess is being charged from consumers as per the notification of Chandigarh administration, dated July 24, 2023.
Notably, MC had initially imposed a 30% sewerage cess in June 2019. However, following complaints of inflated water bills, the General House in March 2023 had slashed the cess to 10%. Later, in July 2023, then UT administrator Banwarilal Purohit revised the cess to 25% for the remaining fiscal, but reduced it to 20% for 2024-25.
The proposal, however, is expected to spark political debate, as AAP and Congress councillors have been pushing for free 20,000 litres of water per household, while the BJP-led administration, under mayor Harpreet Kaur Babla, is pushing for the hike.
Interestingly, Babla had last week rejected a proposal to hike property taxes, which was also aimed at bolstering MC’s finances. However, she has now approved the agenda to hike the sewerage cess.
“The sewerage cess was reduced from 30% to 25% and further to 20% from financial year 2024. However, Chandigarh MC is facing a financial crunch at present. Thus, MC is proposing 30% sewerage cess on all residential buildings, hotels, commercial establishments, and institutions,” the agenda says.
After approval from the House, the agenda will be sent to the administration for amendment in Chandigarh Water Supply Bye-Laws, 2011, it further adds, highlighting that MC will earn additional revenue of about ₹11 crore per year after the hike.
Mayor proposes temporary water connections outside Lal Dora
Mayor Hapreet Kaur Babla has also proposed an agenda to provide temporary water connections to people living outside Lal Dora in 22 villages to further bolster MC’s financial position.
The mayor had taken up the issue vociferously in the Administrator’s Advisory Council meeting held earlier this month under the chairmanship of UT administrator Gulab Chand Kataria and also followed up with him during her visit to Punjab Raj Bhawan.
The agenda reads, “The agenda was first placed in the House meeting in 2020 but due to technical clarifications and framing of rules and regulations, the proposal got stuck for approval from UT administration. There are approximately 2,563 connections outside Lal Dora and residents are arranging water for drinking and sewerage purposes free of cost with no revenue to MC. Hence, the proposal is to give temporary connections and not provisory connections (regular connections). The 2,563 water connections can provide water revenue to the tune of ₹3 crore annually to MC.”
“These residents are currently dependent on expensive water tankers, despite having been provided electricity connections. The decision will benefit more than 1 lakh households. Water is a basic necessity and I urge the UT administration to take necessary decisions in this regard at the earliest,” Babla said.