Government scraps resolution on subsidised water supply

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Solan, March 5

The state Urban Development Department (UDD) today suspended the execution a resolution to provide water at subsidised rates in the local Municipal Corporation area, terming it as a huge financial burden.

An official order issued by the Director of the UDD stated that the resolution dated August 27, 2021, to provide water at Rs 100 per month was contrary to the provisions of Section-170 (2) of the HP Municipal Corporation Act, 1994.

The councillors of the MC had already raised objections to passing such a resolution saying that it would affect the financial position of the civic body.

The Solan MC has a pending liability of Rs 76.33 crore towards the Jal Shakti Vibhag (JSV) till October 2021. It is providing bulk water supply to the MC at the rate of Rs 27.71 per 1,000 litre, whereas it charges Rs 22 per 1,000 litre and the MC incurs a loss of Rs 5.71 per 1,000 litre. Any further slashing of the tariff would not only invite additional losses but would also adversely hit the financial position of the civic body.

Rajiv Kumar, Commissioner, Solan MC, said, “As per an order received from the UDD Director, the resolution passed by the House to provide water at Rs 100 has been suspended. Slashing the tariff will lead to additional financial loss of Rs 80.55 lakh annually and will worsen the financial position of the civic body. It is also contrary to the HP Municipal Corporation Act, 1994.”

MC officials have requested the state government to waive its pending liability of Rs 76.33 crore.

The suspension of the resolution proposing to slash water tariff has come as a setback to the Congress-led MC. The party had promised free water in its manifesto during the civic body poll last year. The Congress-supported councillors had resolved to provide 12,500 litres of water at Rs 100 per month to domestic consumers. Additional water usage, however, was supposed to be billed at the existing rates.

As per the present arrangement, there are two parameters for water charges in the MC area. While Rs 22 is charged per 1,000 litre in a majority of wards, residents of the newly merged areas, as well as some other wards like Ward number 1, pay Rs 13 per 1,000 litre.