Water Tariff / Funding Pattern

The Government had accorded administrative approval in principle to 35 water supply and 6 under ground drainage schemes vide G.O. No.HUD 10 UWS 94 dated : 11.8.1994. The funding pattern for the water supply schemes and also the minimum uniform water tariff throughout Karnataka were also indicated in the said G.O. and the were as under :

Funding pattern :

Minimum Uniform water rates :

In partial modification of the Government Order read at G.O. No.HUD 10 UWS 94 dated : 11.8.1994
Government vide G.O. read at G.O. No.HUD 10 UWS 94 dated : 22.41995
accorded approval to revise the water rates in respect of urban local bodies as follows :

Amount to be remitted by the local bodies to K.U.W.S. & D. Board (Rs.   /  1000 litres)

The minimum water tariffs prescribed in the G.O. dated 11.08.1994 has come into effect from 1.07.1995. The levy of minimum charges for metered and un-metered connections and levy of charges for non-domestic, commercial and industrial connections as indicated in G.O. dated 11.08.1994 has also become effective from 1.07.1995.

The Karnataka Urban Water Supply and Drainage Board has already been directed to hand over the maintenance of water supply schemes maintained by it upto the consumer point to the urban local bodies with effect from 1.07.1995. It may however continue to maintain the water supply schemes upto the bulk supply provided the conditions stipulated in the following paras are satisfied.

In cases wherein the Karnataka Urban Water Supply & Drainage Board is entrusted with the bulk supply, the Karnataka Urban Water Supply & Drainage Board is permitted to levy the actual operation and maintenance cost, if the same is more than the prescribed rates. In all such cases, it is directed that the Karnataka Urban Water Supply & Drainage Board and the local body concerned shall enter into a memorandum of understanding which would cover the water rate to be levied, the amount that would be remitted to Karnataka Urban Water Supply & Drainage Board towards operation and maintenance costs and debts servicing, the mode of remittance of the amounts etc. The points which may be covered in the memorandum of understanding between the local bodies and the Board is as indicated in the Annexure-III. Accordingly, Annexure-II to the G.O. dated 11.08.1994 which indicates the amounts to be remitted by the local bodies to Karnataka Urban Water Supply & Drainage Board is modified as follows

Amounts to be remitted by the local bodies to the Karnataka Urban Water Supply & Drainage Board
(Rs. / 1000 litres)

4)  The local bodies are directed to collect one time connection charges for each new connection serviced from 1.07.1995 at the following rates :

Several representations were received stating that the enhanced water rates are quite high and needs reconsideration by the Government. Therefore, the Govt. in the circular dated 7.07.1995 read at G.O No. HUD 10 UWS 94 dated : 7.7.1995 stayed orders and for re-examining the issue by the Government. Further, several local bodies have also expressed their inability to pay their share of contribution as per the sanctioned funding pattern and requested for modifying the funding pattern also.

Government studied in depth the prescribed water rates and the pattern of funding for water supply schemes in Maharashtra, Gujarat and Tamil Nadu Etc. The funding pattern for the Stage-IV water supply scheme from Cauvery to Bangalore City was also studied wherein the State Government has provided a sum of Rs. 134.00 crores as its contribution besides providing moratorium of 10 years on a sum of Rs. 103.00 crores provided to Bangalore Water Supply & Sewerage Board as non-interest bearing loan. The Karnataka Urban Water Supply & Drainage Board is executing water supply schemes obtaining financial assistance from LIC/HUDCO/Asian Development Banks etc. and therefore, it is necessary that the Board has to recover the charges in water tariff for servicing the debt charges to the financial institutions. The Asia Development Bank has approved the water supply and under ground drainage schemes to Mysore / Tumkur / Ramanagaram and Channapatna and one of the conditions is that the Government should revise and implement the water rates in the above urban local bodies for the maintenance of the schemes. Accordingly, government in G.O. No. UDD 204 UMS 95 (P.II) Bangalore dated 12^th March 1996 has approved the minimum water rate as given in Annexure – I

Government after detailed examination has found it necessary to revise the minimum water tariff in all the local bodies to ensure repayment of loans and proper maintenance and also to revise the funding pattern for the water supply schemes to reduce the liability of the local body considerably.

ORDERS THEREON : -

After careful consideration of all the issues mentioned in the preamble, Government are pleased to accord approval to the following.

(A) Approval to financial pattern for water supply schemes.

To continue the existing funding pattern for under ground Drainage schemes executed by Karnataka Urban Water Supply & Drainage Board as stipulated in G.O.No. HUD 10 UWS 94 dated 11.8.1994. 

To treat the loans raised on behalf of the T.M.Cs / C.M.Cs for various completed and on-going schemes amounting to Rs.90.94 crores as subordinate loans.

Rationalisation of Water Rates

The consumer water tariff prevelent in the urban areas (except Bangalore City) will be revised as follows with effect from 15.10.1996

To provide individual house connections in the urban local bodies to each house irrespective whether they are tenants/owners and irrespective of holding khatas wholly or individually.

To permit the Karnataka Urban water supply & Drainage Board to levy the actual operation & maintenance cost. If the same is higher than the prescribed rates, wherever the Board is entrusted with the bulk supply. The Karnataka Urban Water supply & Drainage Board and the Urban Local Bodies concerned will be required to conclude a memorandum of understanding covering the points given in the Annexure - III.

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