This story is from June 5, 2021

Nagpur: No hike in water tariff for first time in 11 years

The distress, anxiety and financial crisis in several families during the pandemic of over one year has otherwise brought some relief to the city residents in the form of annual water tariff. The civic body this year has decided not to increase the tariff of 5%, an annual feature since Orange City Water Private Limited (OCW) took charge of the supply in 2010-11.
Nagpur: No hike in water tariff for first time in 11 years
The civic body is doing what it can do the best for the people of this city by deciding not to raise tariff, says Nagpur Municipal Commissioner. (Representative image)
NAGPUR: The distress, anxiety and financial crisis in several families during the pandemic of over one year has otherwise brought some relief to the city residents in the form of annual water tariff. The civic body this year has decided not to increase the tariff of 5%, an annual feature since Orange City Water Private Limited (OCW) took charge of the supply in 2010-11.
Nagpur Municipal Corporation commissioner Radhakrishnan B has taken the decision despite the fact that the civic body has been incurring a loss of over Rs 70-80 crore per annum from water supply and it will further increase the loss with the decision.

“The pandemic has not only left its impact on people’s mind but has hit many of them economically also since March last year. The civic body is doing what it can do the best for the people of this city by deciding not to raise tariff,” he said.
He further said, “So far as loss to the civic body is concerned, all measures are being taken to prevent it. Directives have been given to regularize illegal water connections. Also, the authorities concerned as well as the OCW have been directed to increase recovery,” he said.
Intrestingly, BJP-led ruling party in the NMC has time and again claimed to take decision in the general body directing the administration not to hike water tariff. But the decision is yet to be taken. Radhakrishnan has given some relief to the people before that.
The NMC’s water works department had tabled a proposal before the civic chief in the last week of March this year seeking permission to increase water tariff by 5% from April 1. Radhakrishnan rejected the proposal citing pandemic.

The NMC had decided to hand over entire drinking water supply to the OCW in 2010-11. Minimum water tariff which is recovered from the consumers was Rs 5 per unit in 2010-11. The civic body had finalized to pay rate of Rs 7.90 per unit to the OCW which was Rs 2.90 per unit more than what was being collected from consumers. Also, the OCW’s rate was linked with wholesale price index (WPI) and consumer price index (CPI) which is bound to increase every year.
The OCW had taken over water supply from March 1, 2012. Then, NMC increased tariff by 5% in 2011-12. The general body had taken a decision to give powers of increasing water tariff by 5% every year to the civic chief.
Accordingly, all civic chiefs have been increasing the tariff by 5% every year for the last 10 years. Even the last municipal commissioner, Tukaram Mundhe, had also increased the tariff by 5% when the pandemic started last year. Radhakrishnan has become the first civic chief to halt the spree of the tariff hike.
In a nutshell
*Decision was taken to hand over entire drinking water supply to in 2010-11
*Minimum water tariff was Rs 5 per unit
*NMC accepted to pay rate of Rs 7.90 per unit to the OCW
*The OCW’s rate was also linked with the WPI and the CPI which is bound to increase every year
*The NMC increased tariff by 5% in 2011-12 and gave powers to civic chief for increasing by 5% every year
*All civic chiefs increased water tariff by 5% every year for the last 10 years
*District started to witness pandemic from March 2020
*Full lockdown was also in effect from March 2020 causing financial loss to the people
*Still, the then civic chief had increased water tariff by 5%
*Radhakrishnan B rejected the department’s proposal seeking hike citing pandemic
author
About the Author
Anjaya Anparthi

Anjaya Rajam Anparthi, 33, is a principal correspondent with The Times of India, Nagpur edition and looking after civic beat. He also likes to write stories from power and mining beats. He is a fond lover of city’s environment and highlight stories related to trees, greenery, rivers, lakes, sewage system, water treatment plants, and pollution-level. The issues related to civic amenities takes him to various parts of the city, slum areas, posh localities and meet citizens, social activists, NGOs, corporators and political leaders. Daylong visit to the NMC’s administrative offices makes him easy in learning various planning and developments of the city. He too likes to visit the developmental projects being undertaken under JNNURM Scheme once in a week. Maintaining a good contact with 145 corporators and officials, he like to highlight various issues related to the city spread in over 217 sq.km.

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