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Jal Board to discuss water tariff hike

By Our Staff Reporter

NEW DELHI DEC. 29. A meeting of the Delhi Jal Board (DJB) on Tuesday - the first after the recent Delhi Assembly elections - will discuss the crucial issue of an increase in water charges for the Capital. The charges were last revised in 1998.

The Board meeting, to be chaired by the Delhi Chief Minister, Sheila Dikshit, in her capacity as Minister of Water Resources, would deliberate on the DJB proposal to hike water tariff. Though the Chief Minister would take a final decision, sources in the DJB said a hike was now inevitable given that the organisation was fast becoming financially unviable. Over the years, the DJB has accumulated an outstanding loan of more than Rs. 6,000 crores and its annual revenue gap this year was Rs. 316 crores.

Senior DJB officials, however, feel that the forthcoming Parliamentary elections might deter Ms. Dikshit from agreeing to the hike. "It is now more a political decision rather than administrative one. The Chief Minister would also have to give her consent on the percentage of tariff increase,'' they said.

The financial managers of the DJB have argued for an increase in the tariff by at least two to three times. In Delhi, the drinking water is supplied to domestic consumers at 53 paise per 1,000 litre -- which is the lowest slab, while the highest slab is Rs. 4.50. "The water rates here are lowest compared to other metropolitan cities in the country,'' claims a senior official.

In Mumbai, water is supplied at a uniform rate of Rs. 3 per 1,000 litres to the consumers, while in Bangalore the tariff varies from Rs. 5 to Rs. 30, Chennai (Rs. 2.5 to Rs. 25) and Chandigarh (Rs. 2 to Rs. 8). Also the monthly bill per connection in Delhi is the lowest, officials claim. While in the Capital it is said to be Rs. 31.50 per month, in Chennai it is Rs. 225, Bangalore (Rs. 140), Mumbai (Rs. 75) and Chandigarh (Rs. 67.50).

"The receipt of DJB on the basis of this billing is not sufficient to meet even the average cost of production of water. Immediate rationalisation of tariff is the most essential steps for ensuring self-sustainability in the water supply,'' officials said.

Arguing for an upward revision of water tariff at the earliest, senior DJB officials said with no revision of tariff since 1998, their revenue gap now was Rs. 316 crores, which is filled up by the Delhi Government through financial aid. "The revenue collection of Rs. 254 crores per annum is hardly enough for the electricity bills,'' officials said.

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