The Tribune, Chandigarh, India

Friday, November 15, 2002, Chandigarh, India

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Hike in water, sewerage charges on anvil
P.P.S. Gill
Tribune News Service

Chandigarh, November 14
The officers' committee has approved the enhanced water supply and sewerage charges, as recommended by the Department of Local Government. The committee Chairman, Mr Y.S. Ratra, confirming this to TNS said today the matter would now be placed before the Cabinet subcommittee on fiscal reforms.

This decision is in tune with the fiscal reforms being undertaken in Punjab in view of the stoppage of flow of financial support from international funding agencies, as tariffs in social and economic services were not viable.

Mr Sarvesh Kaushal Secretary, Local Government, told TNS that the recommended user charges were as follows:

Water rates for unmetered connections (domestic)

Plotsize	Rate per connection, per month (Rs)
	2002-03	2003-04	2004-05	2005-06	2006-07
Upto 5 marla	50	55	60	70	100
Above 5 marla upto 10 marla	75	80	90	100	105
Above10 marla and less than 1 kanal	100	110	120	130	140
1 kanal and above	Only metered connections

For yellow card holders, the water rates will be 50 per cent of the rate applicable up to 5 marla plot.

Water rates for metered connections (domestic)
Year	Rate in Rs per 1,000litres
2002-03	2.00
2003-04	2.60
2004-05	3.20
2005-06	3.50
2006-07	3.80

In the case of defect in water meters, the first bill shall be issued on an average basis for the past three bills and thereafter, the rate shall be three times the average charges.

Sewerage Charges
Rate per connection, per month (in Rs)

Plotsize

2002-03

2003-04

2004-05

2005-06

2006-07

Upto 5 marla

50

55

60

65

70

Above 5 marla upto 10 marla

75

80

90

100

105

Above 10 marla and less than 1 kanal

100

110

120

130

140

1 kanal and above Equal to water charges

For own sources Equal to water charges of metered supply of water supply.

For yellow card holders, the sewerage rates will be 50 per cent of the rates applicable up to a 5 marla house. For institutional, commercial and industrial connections, only metered connections to be provided and rates will be double the above rates for water supply and sewerage charges shall be equal to water charges.

Mr Kaushal said people could afford to spend Rs 15 on a mineral water bottle but were unwilling to pay just Rs 1.20 per thousand litres of water, the present user charges. At present water supply to different towns varies from 125 litres to 172 litres per capita, per day.

Most of the local bodies were spending 10 per cent to 14 per cent of their annual budget on operation and maintenance of these services, while the income was only 5 per cent to 7 per cent.

Mr Kaushal said the receipts varied between 40 per cent and 50 per cent of the total expenditure on operation and maintenance. For the present coverage, while expenditure is Rs 115 crore per annum, revenue is Rs 59 crore. The commercial, industrial institutions contribute just Rs 10 crore.

The issue of levy of user charges has been hanging fire since November 1999, as political compulsions, pulls and pressures prevented the SAD-BJP Government to implement its decision under which the water charges were to be Rs 2.50 per thousand litres for metered supply and Rs 50 to Rs 200 per connection per month for unmetered supply. For sewerage, the recommendations were Rs 50 to Rs 200 per connection, depending upon the size of the sewer connection.

The local bodies will ensure ''quality supply'' and service and has suggested privatisation, in phases of billing and collections.

Alongside, a draft on the establishment of a Punjab municipal services Regulatory Commission Act, 2002, has also been posted for consideration of the Cabinet sub-committee. This Act provides for rationalisation of the water and sewerage charges, octroi, property tax, licence fee, sanitation cess and other municipal taxes and other policies.