Proposal to Increase Mumbai’s Water Rates by Eight Percent Submitted to Municipal Commissioner

Mumbai, 18th November 2023: A proposal aiming possibility of an eight percent increase in water rates for Mumbai residents has been sent from the Water Engineering Department to the Municipal Commissioner of Mumbai, Mr. Iqbal Singh Chahal. Upon receiving this proposal, a decision might be taken on 25th November. If approved, the rate hike will come into effect from 1st December.

A resolution to hike water rates by up to eight percent annually in the Mumbai water supply system was approved by a permanent committee in 2012. Accordingly, each June, there is a possibility of a few percentage points increase in the water rates. The Department of Accounts had previously sent its proposal on expenses to the administration. The Water Engineering Department has prepared its proposal for the fiscal year 2023-24, which was forwarded for administrative approval. The Municipal Commissioner’s office has received this proposal, and a decision is expected by 25th November, as conveyed by the Municipal Commissioner.

The distribution of water to Mumbai through seven types of reservoirs – Tansa, Middle Vaitarna, Bhatsa, Vihar, and Tulsi – amounts to 3,850 million liters per day. After being transported over several kilometers, this water undergoes purification processes before being supplied to the citizens. Several tasks like water purification, improvement in water supply machinery, replacement of old and worn-out pipelines, leak repairs, maintenance, and improvements are carried out for this purpose. The cost incurred by the municipality for all these tasks contributes to the increase in water rates for Mumbai residents each year. Last year, the municipal administration had increased rates by 7.12 percent. However, this year, there is a proposal to increase the water rates by 8 percent.

The Department of Accounts initiated reviewing the water supply expenses in June for this fiscal year. Previously, political parties opposed the water rate hikes, but based on detailed expenditure reports from the Accounts Department, the proposal for the water rate hike was formulated, as conveyed by officials from the Water Engineering Department. Due to the pandemic, the state government’s two-year term had not seen an increase in water rates. Political pressure on the municipal administration regarding water rate hikes during the parliamentary elections led the administration to handle this matter cautiously.