The Hindu 26.04.2013
Water tax hike in the pipeline
Proposal on revising water tax to be put before Corporation Council again
An increase in water tax for city residents appears
imminent as the Tiruchirapalli City Corporation Council is set to take
up a proposal on this for discussion next week.
The
council had deferred a decision on the proposal in February in the wake
of a strong opposition from the Dravida Munnetra Kazhagam and with some
ruling AIADMK councillors expressing reservations.
The
DMK, while opposing the move, had contended that any increase could be
considered only after the new drinking water augmentation scheme,
currently under execution, was commissioned.
The
corporation has proposed to increase the minimum water charge for
domestic connections from Rs. 100 to Rs. 200 a month. The deposit for
new connection is also proposed to be increased from Rs. 3,000 to Rs.
5,000.
A sharp increase has been proposed for non-domestic use, industries, and other establishments.
For
non-domestic use (for purposes other than drinking), the minimum water
charge will be Rs. 600 a month and the deposit is to be increased from
Rs.6,000 to Rs.10,000.
For industries, the minimum levy will be Rs.1,000 a month.
The
corporation has proposed to increase the charge for supply of water
through tankers under different slabs based on the distance covered.
In
April 2008, the council had approved a revision in water tax in a
phased manner in view of the implementation of the new scheme.
Despite the opposition in the council, the increase appears inevitable given the resource crunch faced by the civic body.
Officials
have been pointing out that the corporation is in urgent need to raise
the resources to repay the loan taken for the Rs. 221.42-crore drinking
water supply augmentation scheme.
The corporation has
been justifying the move by pointing to a huge gap between the
expenditure incurred on water supply and the revenue realised through
water charge.
The civic body spends Rs. 28.97 crore annually on drinking water supply and gets just Rs.19.97 crore from water tax.
The
corporation has to service the debt raised for implementing the new
drinking water scheme taken up with loans to the extent of Rs. 111.25
crore raised through Tamil Nadu Urban Infrastructure Financial Services
Limited.
Besides, the Third State Finance Commission
has recommended revision of water charge once in three years and the
State audit has pointed out that this recommendation should be
implemented.
There are indications that although the
opposition DMK is expected to strongly resist any increase in water
charge, the proposal is expected to go through paving the way for the
implementation of the new water charge in the city with effect from
April 1.