Date:21/09/2007 URL: http://www.thehindu.com/2007/09/21/stories/2007092150360100.htm

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Water tax, deposits to be raised in Tiruchi

Special Correspondent

TIRUCHI: The Tiruchi Corporation has decided to increase water tax and deposits for new water connections to meet conditions imposed by funding agencies for the proposed Rs.143-crore drinking water supply augmentation scheme.

Water tax for domestic connections will go up from Rs.85 to Rs.160 a month. For non-domestic connections, it is being increased to Rs.600 from Rs.250. A decision to this effect was arrived at an urgent meeting of the corporation council here on Thursday.

Deposits for new connections will be increased from Rs.3,000 to Rs. 5,000 for domestic and from Rs.6, 000 to Rs.10,000 for non-domestic categories.

Tax payers with existing connections under the two categories have to pay the difference of Rs.2, 000 and Rs.4,000 respectively.

The revised rates will come into effect after the commissioning of the new scheme. But the increase in deposits for new connections will come into effect immediately. The revision in user charges comes after three years. The new water scheme, expected to be commissioned in about 18 months, aims at increasing the supply to 145 litres per capita a day (LPCD) from the current 40-90 LPCD and to ensure equitable distribution to all parts of the city.

The Corporation will raise a major portion of the project cost through loans — Rs.93 crore from the Japan Bank for International Cooperation through Tamil Nadu Urban Infrastructure and Financial Services Limited (TNUIFSL). The State government will provide a grant of Rs.25 crore and the rest Rs.24 crore will be the public (users) / Corporation contribution.

The civic body will also have to meet some conditions, including provision of at least 1.10 lakh connections within a specified timeframe. Of these, 20,000 new connections must be provided at the time of commissioning.