The Hindu Business Line : Kerala Govt hikes water tariffs

The Kerala Cabinet has decided to increase water tariffs with effect from September 1, even as those below the poverty line (BPL) and using less than 10,000 litres a month have been exempted from paying any charge.

The Chief Minister, Mr V.S. Achuthanandan, told newspersons after the Cabinet meeting on Wednesday that those being given free water supply had been paying Rs 20 a month till now. The exemption extended is in line with the Water Policy announced by the Government recently.

This apart, the water connection charge for new consumers in the BPL category has been reduced by 50 per cent. As of now, the new water connection charge is Rs 500 and this has been brought down to Rs 250. Also, the arrears of BPL consumers till August 31, 2008, will be written off.

The Minister for Water Resources, Mr N. K. Premachandran, said that since 1999, the electricity tariffs had been increased many a time and as per the latest electricity tariffs, the Kerala Water Authority would have to bear an additional burden of Rs 16 crore a month. It was in these circumstances that the water tariffs have been raised, he added.

More revenue

The revised tariff structure will bring in an additional revenue of Rs 135 crore annually for the Water Authority.

Under the revised tariff structure, there will be no change in the rate for domestic consumption between 1,000 litres and 5,000 litres, which will remain at Rs 20 per month. For consumption between 5,001 litres and 10, 000 litres, the increase in monthly payments will be between 20 per cent and 100 per cent.

For industrial purposes, the increase will be between 25 per cent and 135 per cent.

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