BMC Considers 6–7% Water Tariff Hike As Mumbai Reservoir Levels Cross 95% Capacity

Mumbai: With the reservoirs supplying water to Mumbai crossing 95 per cent of their total capacity, the BMC administration has begun reviewing the possibility of increasing water charges, as it does annually. The civic administration has once again initiated moves to propose an increase in water charges by 6–7%, considering the rising expenditure involved in maintaining, repairing and laying new pipelines to ensure clean and sufficient water supplied to Mumbai. The city recieves around 4000 million litres water daily from seven reservoirs located several kilometres away.

Higher Costs Drive Proposed Water Charge Increase

As per civic sources, the administration has undertaken the annual review of the existing tariff structure and proposed hike. While the proposal is still at lower levels of administration, it is expected to be submitted to the Municipal Commissioner soon.

In 2012, the BMC Standing Committee had approved a resolution allowing an annual increase of up to 8% in the water tax charged to Mumbaikars. Accordingly, the water tariff is generally revised by a certain percentage every June. However, the water tariff has remained unchanged since 2022, the year when administrative rule came into effect in the BMC. As a result, the civic body has already foregone around Rs 100 crore in annual revenue.

Earlier Water Hike Proposal Was Deferred

Post 2026 BMC elections, when Ritu Tawde took charge as the mayor of Mumbai, she announced in her first speech that the proposed water tariff hike had been put on hold. However, a proposal to increase water charges was prepared to help balance the civic body's finances earlier this year, and was tabled before the House. Leader of the Opposition Kishori Pednekar the raised objections, following which Standing Committee Chairman Prabhakar Shinde stated in the House that there would be no increase in water charges. The proposed hike was therefore deferred at the time.

However, the civic administration has now once again begun the process of preparing a fresh proposal to increase water charges. If the water charges are not increased this year either, the civic administration may have to forgo revenue of around Rs 100–125 crore.

To get details on exclusive and budget-friendly property deals in Mumbai & surrounding regions, do visit: https://budgetproperties.in/