The Times of India  13.08.2010

NAGPUR: In a major jolt to corporators, the state government has overruled the NMC house and increased the water tariff. Consumer organisation Jan Akrosh had been apprehensive about this happening ever since NMC sent its proposal to the government for approval.

The NMC house had increased the water tariff threefold in August 2009. However, following a sustained campaign against the hike by Jan Akrosh and other organisations, NMC reduced the water rates in February 2010. It sent the proposal for approval to the state government. However, the then municipal commissionerAseem Gupta had added a dissent note to the NMC proposal, stating that the proposed water tariff was unrealistic.

The latest tariff approved by the government will benefit lower-end domestic consumers as compared to the existing tariff. However, if consumption is high the bill will not be much less if the levy is at existing tariff. The GR mentioning the new rates is expected to reach NMC in 3-4 days. It is certain to lead to a spate of protests by consumer organisations as witnessed earlier.

NMC sources said that the government officials told NMC officials that while subsidising the poor people made sense, people who consumed more water and had the capacity to pay should not be given too much subsidy. Hence, NMC's second water tariff proposal was deemed unrealistic.

One of the mandatory conditions of the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) was 100% recovery of expenses incurred in water supply from consumers. Most local bodies are nowhere near achieving the target and hence both state and central governments are in no mood to entertain populism, NMC sources added.

The government has abolished monthly service charge of Rs 56 in the new tariff. For the first twenty units the rate will be Rs 5 per unit as proposed by NMC. It will be Rs 8 per unit for 21 to 30 units slab, Rs 11 per unit for 31-80 unit and Rs 15 per unit for 81 units and above.