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Metrowater planning verification drive

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The Hindu 15.03.2010

Metrowater planning verification drive

K. Lakshmi

CHENNAI: Chennai Metrowater proposes to conduct a verification drive of water and sewer connections which do not contribute to its revenue, to bridge the revenue gap.

The drive will help in checking the connections for which demand has not been raised and also ensure that there are no unauthorised connections.

Metrowater has 5.98 lakh water and sewer connections.

Officials said that the net deficit, which is the difference between total income and total expenditure, recorded in 2008-2009 was Rs.75.49 crore, against Rs.33.69 crore in 2007-2008.

The water, sewerage tax and charges collected till March 10 this fiscal is Rs.278 crore against an estimated demand, including arrears, of Rs.419 crore.

Of this, Metrowater is aiming to collect at least Rs.350 crore. Metrowater is likely to incur revenue deficit this fiscal too owing to 30 per cent increase in expenditure.

Besides having to mobilise 50 per cent of the project cost to implement various water and sewerage improvement works, it incurred additional expense this fiscal on account of implementation of the Sixth Pay Commission recommendations.

The expenditure towards salary disbursement has shot up from Rs.7.80 crore last fiscal to Rs.10.40 crore in 2009-10, officials said.

The operational expenditure has increased from Rs.78 crore in 2005-06 to Rs.110 crore in 2008-09 owing to various factors such as hike in labour charges and infrastructure development.

Officials said that disputes pending in the court pertaining to property tax assessment and disagreement between owners and tenants regarding payment of water, sewerage tax and charges also contributed to the shortfall in collection.

In a bid to reduce the revenue deficit, Metrowater has sent 200 letters and its officials have decided to visit consumers who owe a large amount as arrears.

Another survey

Another survey would be conducted to assess connections obtained by residents of multi-storeyed and special buildings and fix water meters.

The measure is essential to comply with the norms laid by the Union government to procure funds under the Jawaharlal Nehru National Urban Renewal Mission to take up developmental works in the city and its suburbs. Implementation of metering system was one of the conditions laid by the Centre to fund Nemmeli desalination plant, said an official.