The Hindu : Front Page : Corpn. seeks to double water charges

Online edition of India's National Newspaper
Wednesday, Jul 18, 2007
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Corpn. seeks to double water charges

K.V. Prasad

COIMBATORE: People here may have to pay more for drinking water: the Coimbatore City Corporation plans to double consumption charges for both residential and non-residential water connections.

Informed sources in the civic body say that as against the current minimum rate of Rs. 3.50 for 1,000 litres (up to 50,000 litres for domestic connections), the rate proposed is Rs.7.

The rates are to be doubled for both government and private establishments in the non-domestic category.

The proposals are due to be placed before the Council for approval.

The Corporation has stated in its budget that an increase is essential to put an end to the losses it makes in supplying water at rates lower than it pays the Tamil Nadu Water Supply and Sewerage Board. The minimum rate the Corporation pays the TNWSSB is Rs. 4.50 for 1,000 litres. The Corporation says it owes the TNWSSB Rs. 84 crore in arrears towards Siruvani water charges and Rs. 23 crore towards Pilloor water charges because of the difference in the rates.

The Corporation wants to double the charges in order to wipe out losses and to generate revenue for the maintenance of water schemes. It is already repaying Rs. 2.5 crore a year towards the loans it had obtained to implement Siruvani and Pilloor drinking water schemes.

The Corporation’s annual water charge revenue is Rs. 13 crore. But the total expenditure is Rs. 38 crore. This includes the cost of maintaining the main supply, local distribution and electricity consumption, charges payable to the TNWSSB, and Rs. 5 crore payable to Kerala for the maintenance of the Siruvani dam.

The Corporation is set to implement the Rs.113-crore Pilloor Phase II drinking water scheme. It will have to spend 30 per cent of the total project cost. It has to go in for loans to meet this commitment.

The State Government will provide 20 per cent of the amount as an interest-free loan. The remaining 50 per cent will be met by the Central Government in the form of a grant.

The Corporation’s loan repayment burden is expected to be over Rs.7.5 crore a year.

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