NEW DELHI: In a big relief for Delhi residents, the government will waive 100% of the late payment surcharges (LPSCs) on water bills for domestic consumption and government establishments, starting next month. This move will not only directly benefit consumers who have been burdened with inflated bills thanks to compounding interest, but also strengthen the financial health of the Delhi Jal Board (DJB). The waiver scheme, which will run till March 31 next year, will benefit around 29 lakh registered DJB customers as well as government buildings and offices.
Commercial establishments like private schools and hospitals are, however, not covered under the scheme. “This is the first and final scheme on LPSC waiver. For years, Delhiites have received inflated water bills that sometimes run into lakhs of rupees, not because of water consumption but because of the compounding interest set at 5% per month,” Delhi Water Minister Parvesh Sahib Singh noted, proclaiming, “We have taken a historic step to end this injustice. By reducing the compounding rate to 2% and waiving up to 100% of the surcharge, we are ensuring fairness, transparency and relief for the people.”
It is worth noting that out of the total outstanding dues of Rs 87,589 crore, LPSCs make up a staggering Rs 80,463 crore (91%). According to Parvesh, of the Rs 16,068 crore due in water bills under the domestic category, Rs 11,069 crore comprises the late payment surcharge, while the rest is the principal amount.
Earlier, the Delhi Jal Board levied a compounding interest of 5% per billing cycle, which meant that a bill of Rs 100 would reach Rs 178. But under the new reform, the interest rate has been slashed from 5% to 2%, meaning that a bill of Rs 100 would now rise only to Rs 130.
To ensure maximum public participation, the DJB will organise awareness camps across colonies. Teams will help consumers calculate their pending dues, guide them on how to benefit from the waiver and support them in clearing outstanding dues. “We urge the residents to come forward and settle their dues while this opportunity lasts. There will be no such scheme after March 31 next year,” Parvesh stated.
Meanwhile, in another significant move, the government has decided that water bills will now be mandatory during property registration. This step will ensure that dues are not carried forward indefinitely and that accountability is fixed at the time of transfer of ownership. Additionally, the DJB has okayed measures to bring lakh of unauthorised water connections into the legal fold. Under this, the regularisation fee under the domestic category has been cut from nearly Rs 26,000 to just Rs 1,000, while the charges for the non-domestic category have been reduced from Rs 61,000 to a mere Rs 5,000. The DJB believes the decision will not only benefit households in unauthorised colonies but also curb revenue leakage.
“Our government is committed to providing every household with legal access to clean water. By lowering the regularisation fee drastically, we are encouraging people to come forward and get legal connections without fear or hesitation,” the minister expressed. Currently, the DJB has around one lakh pending water connection applications, resulting in an annual revenue loss of nearly Rs 51 crore. To address this, the board will expand its network of licensed plumbers, increasing the strength to over 1,000 licence holders to fast-track new connections.
The new policy is also an attempt to bring financial discipline and transparency to the operations of the board, which currently spends Rs 101 per litre on cleaning and supplying water in Delhi. By increasing collection efficiency and reducing dependence on surcharge-heavy bills, the DJB aims to stabilise its finances. “The DJB cannot run on mounting debt,” Parvesh stressed.
