Solan MC seeks rationalisation of water charges amid mounting dues

The Municipal Corporation (MC) of Solan is working to rationalise water charges in the city as varying rates have been levied on residents. With an outstanding liability of Rs 107 crore to the Jal Shakti Department (JSD), which supplies water to the city, the MC is struggling to manage these surmounting dues. Despite repeated requests to the state government to waive off this amount, little progress has been made.

Over 50% of water charges collected are spent on repair, maintenance and upkeep of water tanks, along with staff wages. The remaining amount is paid to the JSD for water supply. The MC employs a junior engineer, a supervisor, 20 permanent staff, and 10 contractual workers for water distribution tasks. An additional nine employees handle billing and collection of water charges. According to Mayor Usha Sharma, water distribution alone costs the MC Rs 8 crore annually, further straining its limited resources.

Interestingly, apart from Palampur and Solan, no other urban local body handles water distribution directly; this responsibility lies with the JSD in other cities. To ease the financial burden, the Solan MC has passed a resolution requesting that the JSD takes over water distribution in the city.

Currently, the JSD charges the MC a commercial rate of Rs 29.88 per 1,000 litre, while supplying water to some residents at Rs 13.85 per 1,000 litre. The MC, in turn, charges domestic consumers Rs 27.71 per 1,000 litre and applies commercial rates to businesses based on their consumption. This pricing disparity results in a loss of Rs 16.03 per 1,000 litre for the MC.

The civic body has urged that it also be charged Rs 13.85 per 1,000 litre for domestic supply, reserving the commercial rate for businesses. Such a measure could significantly reduce the MC’s payments to the JSD, alleviating its financial woes.

The Vidhan Sabha’s Local Fund Accounts Committee has given the MC a one-month deadline to resolve the issue. Mayor Sharma highlighted that the Congress-led government’s promise of subsidised water for residents has remained unfulfilled, leaving the MC to repeatedly plead for waiving off its dues. Rationalising water charges remains critical to addressing the civic body’s financial challenges.

Water charge conundrum

• Outstanding liability: Rs 107 crore to Jal Shakti Department (JSD)
• Water distribution costs: Rs 8 crore annually, straining MC’s resources
• Staff strength: 40 employees for water distribution and billing
• Pricing disparity: MC pays Rs 29.88/1,000L, charges residents Rs 27.71/1,000L
• Loss per 1,000L: Rs 16.03 due to commercial rate difference