CITIES LEAK MONEY SUPPLYING TAP WATER
Since 2019, India has provided tap water connections to 50 million rural households.
Of its 192 million rural households, 42.8 per cent now have a tap water connection. Till 2019, only 16.8 per cent did.
As more people get water at home, Jal Boards, state-run utilities that supply water in cities, are leaking money.
The Delhi Jal Board (DJB), which controls water and sewage management in the national capital, had its deficit ballooning 23 per cent between 2015-16 and 2019-20. DJB’S budget data shows that its gross deficit was ~4,204 crore in 2019-20. The utility does not have enough money to service interest on its loans. Water utilities in Bengaluru, Chennai, Kolkata and Mumbai haven’t performed any better. The problem is over-subsidising water.
Delhi spent ~87.7 in supplying 1,000 litres (1 kilolitre or kl) of water, but it earned just ~60.86. Bengaluru spent ~70 per kl and earned ~41.9. Chennai spent ~59.2 per kl and earned ~44.4.
Delhi charges businesses more than it does households for water supply — a practice common in other cities. Delhi provides free water to households if their water consumption does not exceed 20 kl in a month. That means 530,000 households do not pay a penny, while the city spends ~1,754 every month on each of these households (assuming each uses 20 kl).
Even households that consume more than 20 kl in Delhi pay a pittance. The charge per kilolitre for a household using 20-30 kl of water is ~26.36. Delhi adds a service charge of ~219.6: at the highest consumption level (30kl), it would only amount to an additional ~7.3 per kl. For households using over 30 kl of water, the charge
The Delhi Jal Board (DJB), which controls water and sewage management in the capital, had its deficit ballooning 23 per cent between 2015-16 and 2019-20. DJB’S budget data shows that its gross deficit was ~4,204 crore in 2019-20
is ~43.93 per litre, with an additional service charge of ~292.8.
For Bengaluru, the lowest category pays onetenth the cost of water supply; the second-lowest pays one-seventh; and the second-highest, one-third. The highest category could only cover two-thirds of the cost.
Chennai’s charges are similar to those in Bengaluru. Mumbai has a flat rate for different categories of customers. The municipal corporation last year put on hold a plan to introduce telescopic rates — bills rise as consumption increases.
Cities need to rationalise water prices, but they also must improve supply and recycling. Delhi recycles just over a quarter of its wastewater. As more households get tap drinking water, the government must keep pricing in check. Privatisation is one solution, but it cannot be a silver bullet. Issues like subsidies, illegal groundwater extraction and recycling need to be addressed as well.