The Hindu : Water tariff raised for local bodies

Online edition of India's National Newspaper
Thursday, Nov 21, 2002

Southern States

Southern States - Tamil Nadu

Water tariff raised for local bodies

By T. Ramakrishnan

CHENNAI NOV. 20. The State Government has increased water tariff for urban and rural local bodies and industrial units, barring those located in Chennai.

Apart from the tariff rise, a new element in this exercise is introduction of a water tax in rural areas.

The increase ranges from around 30 per cent (in municipalities and village panchayats) to 43 per cent for industry. The revision came into force with immediate effect, according to an order issued last month by the Municipal Administration and Water Supply Department.

This order is applicable to those of the five municipal corporations, 102 municipalities and 611 town panchayats, besides 12,619 village panchayats, which buy water in bulk from the Tamil Nadu Water Supply and Drainage Board, and collect charges from those who secure connections. Some urban local bodies manage their own water supply systems.

As part of the focus by the administration on cost recovery, a suitable surcharge on property tax will be levied as water tax for supplies made through public fountains in rural areas and the amount collected should be maintained in a separate account at the village panchayat level. The Directors of Rural Development and Town Panchayats have been directed to take follow-up action.

According to the order, the revision was made because of the proposed increase in power charges, for which the Tamil Nadu Electricity Board has moved the State Electricity Regulatory Commission, with a plea to effect the revision from December 1.

If the power tariff revision proposal is implemented as it is, the cost of water production will go up by 79 paise per 1,000 litres.

The decision to revise the water tariff has been made based on a proposal from the TWAD Board Managing Director.

With the increase in the rates, the local bodies may have to pass on the burden to consumers.

In the municipal corporations and municipalities, the existing monthly flat rate for domestic consumption varies from Rs. 40 to 60, while in town panchayats and village panchayats, it is Rs. 20-30.

These charges have been in force for the past four-five years.

To increase the consumption charges, the local bodies will have to adopt resolutions, specifying revised rates. But many chairpersons and councillors are not willing to take the ``unpopular decision'' and want the Government to issue another order on the charges to be collected from the consumers, say sources.

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