Delhi Jal Board to waive 100% late payment surcharge on water bills

The Delhi Jal Board (DJB) on Friday approved a comprehensive scheme waiving late payment surcharge (LPSC) on pending water bills. The move will not only offer huge relief to lakhs of households, but also strengthen the financial health of the Board. The decision was taken at a Board meeting chaired by Water Minister Parvesh Verma. The waiver scheme will come into effect next month and remain open until March 31, 2026.

Out of the total outstanding dues of Rs 87,589 crore, as much as Rs 80,463 crore — nearly 91 per cent — comprises LPSC accumulated over years of compounding interest at 5 per cent per billing cycle.

Under the new scheme, domestic and government consumers will be eligible for 100 per cent surcharge waiver in the first phase, running until January 31, 2026. The waiver applies only to the surcharge component, not the principal amount. Verma said consumers had long been receiving inflated bills, sometimes in lakhs, not because of actual consumption but due to heavy compounding charges. “By reducing the compounding rate from 5 per cent to 2 per cent and waiving up to 100 per cent surcharge, we are ensuring fairness, transparency and genuine relief. This is the first and final waiver scheme, and we urge citizens to take full advantage of it,” he said.

Earlier, a bill of Rs 100 would escalate to Rs 178 under 5 per cent compounding. With the revised rate of 2 per cent, the same bill will now rise only to Rs 130, significantly reducing consumer burden. To ensure maximum participation, the Board will organise awareness and facilitation camps across colonies to help residents calculate their dues, understand the waiver process and settle pending bills. Singh emphasised that after March 31, 2026, no similar scheme will be offered.

The Delhi Government has also made water bill clearance mandatory at the time of property registration, ensuring accountability and preventing dues from being indefinitely carried forward. The Board also approved measures to regularise lakhs of unauthorised water connections. Domestic connections will now require a fee of Rs 1,000, reduced from Rs 26,000, while non-domestic connections will be regularised for Rs 5,000 instead of the earlier Rs 61,000. This scheme will remain open until March 31, 2026.

Addressing the backlog of nearly 1 lakh pending new water connection applications, the DJB plans to expand its network of licensed plumbers to over 1,000 professionals, speeding up new connections and preventing annual revenue losses of around Rs 51 crore.

The reforms also aim to bring financial discipline and transparency. Currently, the DJB spends Rs 101 per litre on cleaning and supplying water in Delhi. Officials said improving collection efficiency and reducing reliance on surcharge-heavy billing would help stabilise finances.

“This is about giving citizens a clean slate while ensuring the DJB runs sustainably,” Verma said. “We are turning the Jal Board into a financially sound institution that delivers quality service without passing the burden of inefficiency onto consumers,” he said.

The scheme is expected to relieve lakhs of households of inflated arrears, encourage regularization of illegal connections, improve revenue collection, and reduce disputes between DJB and consumers.

Delhi BJP president Virendra Sachdeva described the move as a “Diwali gift” for Delhiites. He said the BJP-led government under Chief Minister Rekha Gupta has acted decisively to resolve long-standing disputes over water bills, contrasting it with the previous administration.