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.