Water tariff revision is a must in Delhi, but rationalisation of the slabs should come first. With 75 per cent municipal connections unmetered, on what basis would the Delhi Jal Board revise rates?

New Delhi, 19 January, 2004: Should the Delhi Jal Board (DJB) hike water tariffs in the capital? The question has been raised, mulled over and vigorously debated in the capital for some days now. With elections round the corner, politicians may shy away from tackling this sensitive issue just yet; but it cannot remain on the backburner for too long. Centre for Science and Environment (CSE) believes there is an urgent need to revise the existing tariff structure to ensure better demand management -- but only after certain basic conditions are met by the Board.

"The current rates are completely irrational compared to other metros. Giant commercial consumers pay a ridiculously subsidised amount for the water they use, leading to gross wastage," says Sumita Dasgupta, Coordinator, Natural Resource Management Unit, CSE. The DJB currently spends Rs 7.58 per kilolitre (kl) of water, which includes acquisition, treatment and distribution costs (see table). If the cost of treating sewage is added to this, the figure rises to Rs 8.50 per kl.

Compare this to the pittance that consumers pay. Commercial users guzzling up to 50,000 litres per month pay only Rs 5 per kl. Those who use up more are charged Rs 10 per kl. These are the lowest – and most irrational -- rates in the country. In Bangalore, commercial consumers using up water on this scale pay between Rs 51 to Rs 60 per kl. In Mumbai, the rate varies from Rs 18 to Rs 38 per kl.

"Why should the slab begin at 50,000 litres for commercial users in Delhi? This is not the case in any other metro in the country!" says Dasgupta. The DJB can ill afford such generous subsidies, especially with its dismal record in revenue collection. Its excuse for this is lack of infrastructure: out of the 14 lakh connections provided by it in Delhi, more than 10 lakh (75 per cent) are either unmetered or have meters that do not operate. Because of which, it is impossible to even make an accurate assessment of the volume consumed by different sections of users, let alone charge them for it.

The lack of a steady flow of revenue has crippled the Board financially, which in turn reflects on the services provided by it. The Board’s distribution network is in a permanent state of disrepair. It loses about 40 per cent of the total water it produces everyday -- amounting to a whopping 1,200 million litres approximately -- due to leakages in pipes and pilferage.

Fifty-six per cent of Delhi’s population still does not have metered connections. Consumers believe that unless the DJB improves its services, it cannot hope to win their support for its drive to hike tariffs.

CSE strongly believes that the only way out of this vicious cycle for the DJB is an immediate reorganisation of its slabs and tariff structure. It must ensure that consumers who use large volumes of water pay adequately for the services rendered. Only then will it be able to generate the resources required to invest in providing the much-needed facelift to its supply network.

*Cost of water treatment and supply in Delhi

*As per the revised raw Ganga water charges. Expected treatment cost in Sonia Vihar treatment plant

For more details, please contact Sumita Dasgupta or Suresh Babu of the Natural Resource Management Unit, CSE