
BENGALURU: Deputy Chief Minister and Bengaluru Development Minister DK Shivakumar said on Tuesday that a hike in water tariffs is inevitable in Bengaluru.
This is to help the Bangalore Water Supply and Sewerage Board (BWSSB) improve its finances. The board incurs a loss of Rs 1,000 crore annually. The minister revealed this after a progress review meeting of various departments, including the Bangalore Development Authority and the Bangalore Electricity Supply Company.
Shivakumar said officials have been instructed to submit a report proposing a hike in water tariffs. “A decision on increasing the water tariff will be taken once the report is submitted. Action will also be taken to regularise illegal water connections and to obtain a list of the total number of water connections in the city and consumption details,” he added.
Shivakumar stated that BWSSB had not increased water tariffs since 2014. As a result, it is losing Rs 1,000 crore per year. It used to receive electricity bills amounting to Rs 35 crore earlier, but now, it is receiving bills of Rs 75 crore a month. In total, BWSSB is losing Rs 85 crore every month,” he said. Officials from BWSSB have held talks with all MLAs from the city on improving its finances.
It is not possible to take loans from banks to implement BWSSB’s projects. The banks say that BWSSB is making losses and they cannot help. Several financial organisations, including JICA, have sought guarantees for loans to be provided by them.
Hence, the water tariff hike is inevitable, he said. Those with illegal water connections should have them regularised. “We have to take some tough decisions for the survival of BWSSB,” he added. He also mentioned that 15,000 new connections had been given under the Cauvery Phase V project. BWSSB will provide 20,000 more connections soon.
Shivakumar said he has instructed officials to invite tenders for the Rs 17,780-crore tunnel road project. A deadline of three and a half years will be set for the completion of the project in two phases. The Palike and the state government will provide grants. Institutions such as the Power Finance Corporation and HUDCO have come forward to provide loans, he added.