The Hindu             25.06.2013

BWSSB hopes State will agree on tariff hike

BWSSB chairperson Gaurav Gupta, who has apprised Chief Minister Siddaramaiah about the board’s financial condition, told The Hindu Monday the monthly power, operation and maintenance costs would go up drastically after the new Cauvery Stage IV Phase II project is fully commissioned.

Although the new project has been planned to augment the city’s supply of 900 million litres of water per day (mld) by 500 mld, the BWSSB is drawing only 200 mld. “But once the project is fully commissioned, our expenses will go up drastically. But nothing can be said about when the rates will be hiked and by how much.”

The BWSSB, which has spent Rs. 1,759 crore on the project with assistance from the Japan International Cooperation Agency (JICA), has been pushing for a hike for several years. Although the power tariff was revised more than twice since 2005, the water tariff has remained the same in the last eight years.

Although the former BWSSB Minister Katta Subramanya Naidu had in April 2011 announced that water rates would be hiked, the proposal was not approved by the Cabinet.

Appeal for grants

A source said the Board has also requested the government to either sanction annual grants or permit it to hike water tariff. The Board has not been receiving any government grants so far. “We cannot compromise on operation and maintenance of existing lines. We need money to replace and rehabilitate the old lines.”

BWSSB spends Rs. 28 crore a month on power to pump water to the city from its reservoirs. “As this cost is likely to increase by another Rs. 20 crore (Rs. 240 crore annually) after pumping of the extra 500 mld starts, we are asking for an annual grant of Rs. 200 crore,” the official said.