Water tariff to increase to Rs 6 per unit tomorrow
NAGPUR: The Nagpur Municipal Corporation (NMC) is set to hike the water tariff to Rs 6.07 per unit from April 1. This would be the fourth consecutive year when water tariff is hiked. The civic body is increasing the tariff every year since it is paying high rates to private water operator Orange City Water Private Limited (OCW).
The proposal to hike the water tariff has nothing to do with raw water cost or the power tariff, say sources. If any of these costs go up, NMC revises the water tariff immediately in the next quarter. The citizens will have to bear higher tariff in case there is a revision in raw water and power tariff in 2014-15 beginning from April 1.
The Maharashtra Water Resources Regulatory Authority (MWRRA) has already kicked off the process to hike raw water tariff and a decision likely in the coming days. Besides, power tariff hike also cannot be ruled out.
The NMC water works department proposed a 5% increase in water tariff on Saturday. The existing tariff is Rs 5.79 per unit/1,000 litres and this will increase to Rs 6.07. The rate will be applicable for consumption up to 20 units. The tariff will steeply increase to Rs 9.73 per unit for water consumption up to 30 units followed by Rs 13.37 per unit up to 80 units and Rs 18.23 per unit for over 80 units.
NMC sources told TOI the accounts and finance department approved the proposal and sent it back to the water works department. Now, the department will submit the proposal to municipal commissioner Shyam Wardhane for approval followed by implementation of new tariff.
According to the NMC data, the civic body used to bill less than 190 million litres per day (MLD) in 2010-11. However, NMC agreed to pay OCW for 250 MLD water. Also, the water tariff was Rs 5 per unit but NMC agreed to pay Rs 7.90 per unit to OCW.
To cope with the high rate promised to OCW, NMC hiked the water tariff to Rs 8 per unit in 2009-10. But the BJP-ruled civic body had to reduce the tariff to Rs 5 per unit following strong opposition from various organizations and citizens. While bringing down the tariff, a resolution was passed to give powers to the civic chief to hike the tariff by 5%, if required, every year. Since then, water tariff has been hiked 5% every year.
Unfortunately, NMC has been unable to bridge the gap between revenue and expenditure by increasing the billing and reducing high water losses. Instead, the losses have only increased in the last two years under the private operator.
Read More Here - TOI - http://timesofindia.indiatimes.com/city/nagpur/Water-tariff-to-increase-to-Rs-6-per-unit-tomorrow/articleshow/32991370.cms
The proposal to hike the water tariff has nothing to do with raw water cost or the power tariff, say sources. If any of these costs go up, NMC revises the water tariff immediately in the next quarter. The citizens will have to bear higher tariff in case there is a revision in raw water and power tariff in 2014-15 beginning from April 1.
The Maharashtra Water Resources Regulatory Authority (MWRRA) has already kicked off the process to hike raw water tariff and a decision likely in the coming days. Besides, power tariff hike also cannot be ruled out.
The NMC water works department proposed a 5% increase in water tariff on Saturday. The existing tariff is Rs 5.79 per unit/1,000 litres and this will increase to Rs 6.07. The rate will be applicable for consumption up to 20 units. The tariff will steeply increase to Rs 9.73 per unit for water consumption up to 30 units followed by Rs 13.37 per unit up to 80 units and Rs 18.23 per unit for over 80 units.
NMC sources told TOI the accounts and finance department approved the proposal and sent it back to the water works department. Now, the department will submit the proposal to municipal commissioner Shyam Wardhane for approval followed by implementation of new tariff.
According to the NMC data, the civic body used to bill less than 190 million litres per day (MLD) in 2010-11. However, NMC agreed to pay OCW for 250 MLD water. Also, the water tariff was Rs 5 per unit but NMC agreed to pay Rs 7.90 per unit to OCW.
To cope with the high rate promised to OCW, NMC hiked the water tariff to Rs 8 per unit in 2009-10. But the BJP-ruled civic body had to reduce the tariff to Rs 5 per unit following strong opposition from various organizations and citizens. While bringing down the tariff, a resolution was passed to give powers to the civic chief to hike the tariff by 5%, if required, every year. Since then, water tariff has been hiked 5% every year.
Unfortunately, NMC has been unable to bridge the gap between revenue and expenditure by increasing the billing and reducing high water losses. Instead, the losses have only increased in the last two years under the private operator.
Read More Here - TOI - http://timesofindia.indiatimes.com/city/nagpur/Water-tariff-to-increase-to-Rs-6-per-unit-tomorrow/articleshow/32991370.cms