The Hindu : Hefty hike in water charges for bulk clients

Online edition of India's National Newspaper
Tuesday, Feb 04, 2003

Southern States

Southern States - Tamil Nadu-Chennai

Hefty hike in water charges for bulk clients

By T. Ramakrishnan

CHENNAI FEB. 3. Metrowater has hiked water charges for commercial establishments, hospitals and educational institutions.

Municipalities and other local bodies have also been administered the "dosage of increase in the charges". The hike ranges from 40 per cent in respect of industry to 100 per cent for private educational institutions and hospitals.

Sewerage service charges have also been enhanced, but for those who have taken only sewer connections, a segment of customers numbering around 3,500. The revision came into effect from January 1, according to an official release issued today. Significantly, domestic consumers and partly-commercial establishments, such as petty shops, have been spared. The two groups account for nearly 3.3 lakhs out of a total of 3.6 lakh consumers.

The reason why domestic consumers and partially-commercial establishments have been left out is that they have been getting "alternate day supply", says an official. But those who are affected in the wake of the tariff increase are outside the arrangement.

The previous revision was carried out in October 1998. Since then, the cost of major inputs, such as power and chemicals, increased `considerably', necessitating a tariff raise for "bulk consumers only", the release added.

The tariff revision means an additional flow of Rs. 50 crores in a full financial year. Prior to the hike, annual collections from water charges were Rs. 100 crores out of the total 180 crores. Besides, the levy of water tax nets approximately Rs. 40 crores annually. Sources say Metrowater would have incurred a net loss of around Rs. 5 crores in the current financial year if the revision had not been effected.

It was only last week that a team of World Bank officials met senior Metrowater officials and advised them to hike the tariff. However, the sources argue that the revision announcement should not be linked to the meeting, as the Board of Directors took the decision to raise the tariff sometime in November.

To defend the move, the release also stated that several major schemes, worth about Rs. 2,500 crores, to improve supply and sewer networks were being implemented. On account of this, the revenue expenditure and debt service charges were rising. In a few years, they would touch nearly Rs. 900-1,000 crores.

Revised rates

The details of the revised rates per kilo litre (with old rates given in brackets) are as follows:

Commercial (metered): private hospitals - Rs. 50 (Rs.25) and others - Rs. 35 (Rs.25) for consumption up to 500 KL; private hospitals - Rs. 80 (40) and others - Rs. 60 (Rs.40) above 500 KL.

Monthly flat rates: non-water intensive customers - Rs. 400 (Rs.200) and for water intensive, private hospitals - Rs. 800 (Rs.400) and others - Rs. 650 (Rs.400). Institutional (metered): private educational institutions - Rs. 40 (Rs.20) and others - Rs. 30 (Rs. 20). Monthly flat rates: private educational institutions - Rs. 400 (Rs.200) and others - Rs.300 (Rs.200).

Municipal bulk supply: Rs. 7 (Rs.5). Sewerage service charges/month: non-domestic consumers where water mains have been laid - Rs. 650 (Rs.75) and in respect of those without water mains - Rs. 150 (Rs.75).

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