BENGALURU : The proposal of the Bangalore Water Supply and Sewerage Board (BWSSB) to automatically hike the tariff on Cauvery water supplied across the city whenever it is unable to meet its operational costs is unlikely to be approved.
The state government is of the view that the public, already reeling under reduced income and financial losses due to the Covid-19 pandemic, should not be burdened further, said a senior government official.
On the proposal waiting for approval for long, the official said, “At least 50 per cent of Bengalureans are suffering from some form of economic stress at present. We think that this is not the right time for any additional burden.” He said that the Centre has, in fact, recommended such utility tariff hikes, but the state wants to show some leniency to its citizens.
The Union Finance Ministry on May 17 wrote to all state governments to proactively undertake reforms to augment their revenues which had suffered a huge slump as a fallout of the pandemic. Revision of property tax in urban local bodies, in line with prevailing guidance values, as well as user charges for water, drainage and sanitary facilities were among steps it suggested. It also called for putting in place a system by states that will permit a periodic increase in property tax rates and user charges of utilities.
In line with this notification, BWSSB had requested the state government in June to allow it to hike the water tariff to meet its operational costs. Asked about it, a senior BWSSB official said, “We have submitted our request to the government. We are waiting for the green signal.” He added that it has been six years since the water tariff hiked. “Power bills are frequently revised. Whenever it is increased, our operational costs shoot up as we pump water to the city from a distance of over 90 km. Sewage Treatment Plants too consume a lot of power,” he said.
Of the monthly revenues of Rs 100-110 crore, the board spends up to Rs 65 crore in paying the present power bills and arrears. “Apart from Bescom, Mysuru’s Cescom too needs to be paid as water is pumped from Mandya district,” the official said.
There is a revenue shortfall of nearly Rs 20 crore per month. “At least to sustain our operations, the water tariff needs to be increased. Even a 10 per cent hike will help us enormously. We want permission to hike our tariff on our own whenever our operational costs go up,” he stressed.