PHED notifies four-fold increase in water tariff; consumers unlikely to feel the pinch

Jaipur: Despite the Public Health Engineering Department's (PHED) four-fold water tariff hike effective April 10, city residents will continue to pay 2017 rates. The state government will offset the difference by directly subsidizing PHED, shielding consumers from the steep increase.

Officials said PHED's April 10 order notified the tariff modification for the amount consumers must pay. The PHED circular stated, "Consumption amount will be recovered from various categories of drinking water consumers in the state on the basis of the previous prevailing rates (2017 tariff). The remaining differential amount will be borne by the state govt."

"Consumers with functional metres have to pay at the existing rates. PHED will recover the remaining amount – as per the notified higher tariff – from the state govt," Bhaskar A Sawant, PHED secretary, told TOI.

In 2017, the previous BJP govt notified an annual 10% hike in water tariff. However, this was later withdrawn when the Congress was elected into office. The Congress govt decided to subsidise water tariff across categories.

"Rajasthan Water Supply Policy, 2018 directs PHED to recover 100% expenditure incurred on the operations and maintenance of water supply infrastructures. PHED realises merely 35 to 40% of the cost incurred. Different types of waivers – especially those implemented under the Congress govt – have substantially reduced our revenue generation," a PHED official said.

The revised tariffs account for the sharply rising costs of maintenance, repairs, and other expenses involved in supplying treated water—now four to five times higher than in 2017.

Officials said the new subsidy arrangement will result in an additional revenue liability of approximately Rs 2,100 crore for the state govt.