To tide over the present financial crisis, Hyderabad Metropolitan Water Supply and Sewerage Board (HMWS&SB) is contemplating to avail a bank loan to the tune of Rs 200 crore from nationalised banks.

The board urgently needs to pay Rs 300 crore to AP Transco to clear power dues. The huge electricity arrears got piled up due to the drawing of about 320 million gallons of water per day (MGD) from   sources like Manjira Phases I and II, Singur Phases III and IV and  Krishna Drinking Water Supply Project (KDWSP) Phases I and II by pumping water at different stages for supplying drinking water to the consumers in Greater Hyderabad and villages in other districts en route. The power consumption by the water board is about 100 MW.

HMWS&SB officials told Express that the board would approach nationalised banks for loans of Rs 200 crore. The HMWS&SB’s monthly expenditure is about Rs 90 crore while the revenue is just Rs 60 crore a month, creating a monthly deficit of Rs 30 crore.

On a monthly basis, the water board incurs Rs 40 crore towards power charges but manages to pay a partial amount between Rs 20-25 crore per month to AP Transco. The remaining amount piles up as dues, they said.

The HMWS&SB revised the water tariff in December 2011 whereas the Andhra Pradesh Electricity Regulatory Commission (APERC) revised the power tariff in April 2012 which was about Rs 13 crore and Rs 20 crore in 2013. During the next financial year (2014-15), it may reach Rs 25 crore. The HMWS&SB would be in a severe financial crisis, they added.

If the state government wants to rescue HMWSS&B from the present financial crisis, they have to either allow the Board to increase the water tariff on all categories or provide funds to clear the power dues, they added.