Following an acute water crisis and a recent hike in fuel charges, Bengaluru residents now face the prospect of increased water tariffs.
On June 18, Deputy Chief Minister and Bengaluru Development Minister DK Shivakumar hinted at the necessity of raising monthly water charges, citing the Bengaluru Water Supply and Sewerage Board’s (BWSSB) significant financial losses. However, this move has sparked widespread criticism, with many pointing to mismanagement and poor planning by the state government as the real culprits behind the BWSSB’s financial woes.
“It has become imperative to increase the water tariff as the water board is not able to pay the electricity bill. It is also difficult to pay the salaries of the staff,” Shivakumar stated. He emphasised that water rates in Bengaluru have remained unchanged for 14 years, contributing to the BWSSB’s dire financial situation. “A gas cylinder – which was costing Rs 400 – now costs Rs 1,000. Petrol price has gone up from Rs 75 to over Rs 100. Should the water tariff be increased or not?” he questioned, attempting to justify the hike.
The BWSSB’s financial difficulties are a direct result of mismanagement and a lack of foresight by the state government. The BWSSB’s inability to cover its operational costs is not just a matter of stagnant water tariffs but also of a failure to implement effective water management strategies and address systemic inefficiencies.
The state government has been accused of poor financial planning, especially in light of the recent fuel and electricity price hikes. The increase in petrol prices by Rs 3 per litre and diesel by Rs 3.5 per litre, coupled with a Rs 2.89 per unit hike in electricity tariffs in June 2023, has already strained household budgets. The proposed water tariff increase is seen as an additional burden on citizens already grappling with rising living costs.
The financial strain on Karnataka’s government has been exacerbated by the Congress party’s pre-election promises. In a bid to secure votes, Congress pledged several freebies, including 200 units of free electricity, following the example of the Aam Aadmi Party (AAP), in Delhi and Punjab. While these promises helped them win the election, they have since become a significant financial burden.
Basavaraj Rayareddy, economic advisor to Karnataka CM Siddaramaiah, admitted that these guarantees have heavily burdened the state’s finances, estimating the cost to be between Rs 40,000 crore and Rs 50,000 crore. “As we have directed Rs 58,000 Cr for guarantees, it has become a huge financial burden to us. We are holding discussions on what to do. In the primary stage, after implementing guarantees, we look into what changes must be brought in. As an economic advisor, I’m looking into how to get funds from the state and centre to fund guarantees,” Rayareddy stated.
The potential increase in water tariffs comes from a severe water crisis in Bengaluru. In 2023, the city experienced scarce rainfall due to the El Nino effect, causing the groundwater table to plummet. Many borewells, including those owned by prominent figures like Deputy Chief Minister DK Shivakumar and Chief Minister Siddaramaiah, dried up. The situation became so dire that even high-ranking officials had to rely on water tankers.
The water crisis severely impacted daily life in Bengaluru, with residents turning to malls for basic needs like restroom use. The government imposed strict restrictions on domestic water usage for non-drinking purposes, attempting to manage the dwindling water supply. Water tankers became a common sight on Bengaluru’s streets, and the high demand led to price hikes from Rs 700 to between Rs 1,500 and Rs 1,800 per tanker.
Residents Welfare Associations (RWAs) in the city faced criticism for their perceived failure to address the crisis effectively. The water scarcity highlighted the urgent need for better water management and infrastructure improvements in the city.
The prospect of increased water tariffs has sparked a debate about the state government’s handling of resources and public funds.
Shivakumar’s hint at a water tariff hike has increased the public’s frustration, especially after recent fuel price increases. The BWSSB has not officially commented on the potential tariff increase, but reports suggest a significant hike may be imminent.
Last year, the BWSSB proposed a 10 per cent hike in water tariffs for residential buildings and a 15 per cent increase for commercial establishments. The BWSSB cited rising operational costs, particularly after an electricity bill revision that pushed their monthly expenditure to Rs 125 crore, while revenue stood at Rs 110 crore.
Despite the financial struggles, the BWSSB has faced criticism for not addressing water leakages and unaccounted-for water, which contribute to the board’s overall inefficiency and financial strain. Plugging these leakages and improving water management could alleviate some financial pressure without burdening residents with higher tariffs.
