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Taxation

Trichy municipality backs off from move to hike water tariff

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The Times of India                28.02.2013

Trichy municipality backs off from move to hike water tariff

TRICHY: The move of the Trichy municipal corporation to increase water charges and install meters for calculating the individual water consumption met with stiff opposition as the opposition councillors termed it unfair as a long-pending Rs 221.42 crore water project is yet to come to fruitionto comfort the people. As the ruling AIADMK councillors too were not ready to support the move, the corporation cancelled the agenda.

The Trichy corporation tabled the resolution in the municipal council meeting on Wednesday, seeking nod to increase the monthly charges and deposit for domestic and industrial water supply for drinking water for residences non-drinking water purpose and for factories from April 1, 2013. The proposal set tariffs of for the year 2013-14 Rs 200/pm and Rs 5,000 as usage charges and deposit respectively for domestic use. It was also proposed to charge Rs 600/pm and Rs 10,000 as deposit for non-drinking water projects and Rs 1,000/pm user fees and Rs 10,000 deposit for factories.

As the civic body's move entailed steep increase for consumers, both the ruling party councillors and the opposition found it hard to support the proposal. For instance, the current charges are Rs 100 and Rs 3,000 for domestic users. were hiked to Rs 200 and Rs 5000 respectively.

In fact, it was independent councillor M Venkatraj who raised the first voice against the new water tariff, saying a hike would ignite public anger when the water quality is poor and water scarcity remains a persistent problem in the city. At this juncture, the increase of water charges would provoke the public into agitation. So, the corporation should cancel the proposal.

Soon, the DMK councillors led by its floor leader M Anbazhagan seconded the argument and criticised the corporation for not implementing the much-needed Rs 221.42 crore water project that was launched in 2007 during the DMK regime. to meet the growing demand of the water in the corporation wards.

The project envisaged drawing water from three wells in Kollidam river and dovetailing it with the existing water scheme to augment supply to Trichy city. Had the project materialised the city residents would have received 135 litres per capita against the current availability of 90 litres per head. Moreover, the scheme included the construction of 37 overhead water tanks. With the new scheme, the corporation assured that they could supply 135 litres per capita water against the present water supply of 90 litres per capita.

As the ambitious project is yet to be implemented, many parts of the Trichy corporation regularly face water scarcity. "The corporation assured to implement the scheme in September last year and it was later postponed to December. Now, the corporation says it will be completed in March this year. While the corporation fails to put the project into operation on time, it is unfair to increase the water charges tariff," said Anbazhagan.

The corporation commissioner V P Thandapani replied that the project was stalled as the corporation was running short of funds. The proposed water tarrif hike was aimed at boosting the reserves of the civic body, said Thandapani.

the project commenced with Rs 66.43 crore subsidies from Japan Bank International Cooperation (JPIC), Rs 111.25 crore loans from Tamil Nadu Urban Development Fund Corporation (TNUDFC) and Rs 43.74 crore contribution from Trichy Corporation. But for their contribution and to repay the loans to TNUDFC. So, the corporation decided to boost the funds positions by increasing the water tariff.

The civic body proposal seeking approval to install meters to assess water consumption was also shot down by the irate councillors.

But the DMK councillor stood firm on their stand to cancel the two agendas until the corporation implements the water project in Trichy Corporation. And, the AIADMK councillors also did not support the two agendas. Hence, the corporation administration abandoned both the move to increase water tariff and install water consumption calculating meters.
Last Updated on Thursday, 28 February 2013 12:06
 

Corporation defers move to raise water tax in city

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The Hindu                    28.02.2013

Corporation defers move to raise water tax in city

war of words:Councillors engage in heated argument with Mayor A. Jaya at Tiruchi Corporation Council meeting in the city on Wednesday.Photo:M.Moorthy
war of words:Councillors engage in heated argument with Mayor A. Jaya at Tiruchi Corporation Council meeting in the city on Wednesday.Photo:M.Moorthy.
 
Cuts hike in service charge for collection of solid wastes from hotels, hospitals by 40 per cent.

Tiruchi Corporation Council on Wednesday deferred a proposal to hike the drinking water tax in the city overriding the concerns of officials who contended that the civic body was in urgent need to raise the resources to repay the loan taken for the Rs.221.42 crore drinking water supply augmentation scheme.

However, a hike in the water tax seems imminent in the next few months as the subject is likely to be brought before the council again after examination by a committee, as suggested by the AIADMK members. The council, in April 2008, had approved a revision in the water tax revision in a phased manner in view of the implementation of the new scheme.

On Wednesday, an official resolution proposing a steep hike in the water tax, tabled at an urgent meeting of the council chaired by A.Jaya, Mayor, was kept in abeyance owing to stiff opposition from Dravida Munnetra Kazhagam (DMK) and the apparent indecisiveness among the AIADMK councillors.

The resolution pointed out that the corporation had to contribute Rs.43.74 crore for the drinking water augmentation scheme, a project supported by Japan International Cooperation Agency. The project is currently under execution in the city and is expected to be completed over the next few months. The scheme was taken up with loans to the extent of Rs.111.25 crore raised through Tamil Nadu Urban Infrastructure Financial Services Limited.

The corporation was currently incurring an expenditure of Rs.28.97 crore annually for drinking water supply against a revenue realisation of Rs.19.97 crore.

As the corporation had to make its contribution and also begin servicing the debt, the official resolution proposed doubling of the water tax for domestic connections from the existing Rs.100 a month. Step hikes were also proposed for non-domestic uses, industries and other establishments. Besides, the deposits for water connections were proposed to be hiked for various categories.

However, the resolution met with stiff resistance from the DMK members, who maintained that no hike should be effected until the new water scheme was fully commissioned. M.Venkataraj, independent, and M.Anbazahgan, DMK, contended that people were already reeling under the general price rise, rise in the price of petroleum products, bus fare and electricity charges, and demanded that the resolution be cancelled.

J.Srinivasan, AIADMK, pointed out that the scheme and the decision to raise the loan was taken during the previous DMK regime in 2008 and the AIADMK had then objected to any hike in the water tax on account of the project. He suggested that a committee be formed to study the matter.

Corporation Commissioner V.P.Thandapani made a strong pitch for the council’s nod pointing out that the corporation had to pay Rs.13 crore annually towards interest for the loan taken by the project. Or else, the council should come with a plan of action to raise the resources, he said. Mayor A.Jaya, however, suggested that the resolution could be deferred and the civic body could explore alternatives to raise the required funds.

The council also deferred a resolution proposing the installation of water metres for the 95,385 water connections in the city to measure the water consumption by the users.

Service charge reduced

A proposal to hike the service charges for solid waste collection and handling from hotels, hospitals, tea shops and roadside eateries in marriage halls in the city also ran into stiff opposition from the DMK benches.

After a brief wrangling, the council gave its nod to the proposal after effecting a 40 per cent cut in the revised rates proposed in the official resolution. Accordingly, star hotels would pay the maximum service charge of Rs.60 a day instead of the existing annual fee of Rs.3,600. Cinema halls, small workshops and sticker shops (of less than 1,000 square feet in area) would attract the minimum at Rs.4 a day. All other establishments generating solid wastes in the city would be required to pay the service charge.

Last Updated on Thursday, 28 February 2013 06:36
 

No change in property tax for five new wards

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The Hindu                    28.02.2013

No change in property tax for five new wards

Special Correspondent

Residents in the five newly added wards, from ward 61 to 65 in the city, could heave a sigh of relief as there will be no change in the property tax for them immediately.

The five new wards were added to the city following the merger of the erstwhile Tiruverumbur Town Panchayat and the Pappakurichi, Ellakudi, Alathur and Keezha Kalkandarkottai panchayats following delimitation last year.

There has been apprehension among residents in these wards that they would have to shell out higher sums as property tax on a par with residents in the other 60 wards of the city. However, an official resolution tabled at an ordinary meeting of the Corporation Council on Wednesday said that the government has issued orders stating that the tax for residents in the newly added areas could be levied based on the existing rates approved by the erstwhile local bodies. There will be no change in the property tax for these residents until further orders from the government.

Accordingly, residents under the erstwhile Tiruverumbur town panchayat and Pappakurichi and Ellakudi panchayats will pay the tax at the rates fixed by the respective local bodies in 2008 and those in Alathur and Keezha Kalkandarkottai at the rates fixed in 2007.

Last Updated on Thursday, 28 February 2013 06:28
 


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