The Delhi government has begun the process of rationalising the water infrastructure charges levied by the Delhi Jal Board (DJB), a move that could bring much-needed relief to thousands of households across the national capital. These charges, payable during house construction or when applying for a new water connection, vary significantly depending on whether a property lies in a planned or unplanned colony and whether it is residential, commercial, or institutional in nature.
At present, the disparities are stark: domestic users in A and B category colonies, regularised, high-value neighbourhoods, pay Rs 255.27 per sq ft, while residents in E, F, G and H category areas, many of which remain unregularised, pay a much lower Rs 63.81 per sq ft. The difference becomes even more pronounced in commercial categories, where occupants of A and B colonies pay Rs 446.70 per sq ft compared with Rs 127.63 in lower-category colonies. Institutional users, too, pay widely different amounts, with Rs 319.07 per sq ft in higher-category colonies and Rs 95.72 in the lower ones.
According to a report in the Times of India (TOI), this uneven structure has long forced people with similar water consumption needs to pay wildly different amounts simply because of where they live. A senior DJB official told TOI that the government is actively exploring ways to smooth out these long-standing inequities. A high-level meeting was recently held to discuss how the system can be redesigned in line with the government’s larger water-sector reforms. One major step under consideration is the removal of the rule that mandates a 10 percent annual hike in water infrastructure charges.
This yearly increase has steadily raised the cost of applying for new water connections and has discouraged many households from seeking piped water access. Officials argue that discontinuing the annual hike would offer immediate relief and encourage more residents to formalise their water connections.
As part of the reform process, the Delhi government is evaluating two possible models to replace or run parallel to the existing category-based structure. The first model proposes a consumption-based framework in which the infrastructure charge would be linked directly to the number of residents in a household, rather than the colony or the size of the built-up property.
In the case of multi-floor buildings, DJB would assume a minimum of five people per floor to calculate the expected consumption. This approach, officials note, would align Delhi with global best practices where infrastructure fees are calculated based on usage rather than postal codes. It also proposes a one-time payment structure that would eliminate the long-term burden of annual increases, simplify billing mechanisms, and reduce disputes between residents and the water board.
The second model retains the existing A-to-H colony classification system but introduces major rate reductions for the highest-paying colonies. Under this option, A-category colonies could see their infrastructure rates reduced by as much as 50 percent, dramatically lowering the initial cost of applying for a water connection in upscale neighbourhoods.
Additionally, plots up to 200 square metres could be fully exempted from paying water infrastructure charges, a move intended to relieve smaller households that often face disproportionate burdens under the current system. According to officials, both models are being evaluated not only for financial viability but also for fairness, ease of implementation, and their ability to reduce the sharp cost disparities that have existed for decades.
These proposed reforms follow a tumultuous history of water infrastructure charges in Delhi. In 2019, the charges were completely abolished, offering much-needed relief to residents. But in 2020, shortly after the assembly elections, the charges were reinstated based on built-up area and colony classification. Because the charges were calculated on the constructed area, the cost skyrocketed for many households, with residents in some cases being asked to pay up to Rs 15 lakh just to obtain a legal water connection. The steep hikes caused widespread public anger and brought allegations of corruption and manipulation.
TOI reported that, in several cases, built-up areas were deliberately under-reported in official documents to reduce the payable charge, creating opportunities for middlemen and officials to profit from illegal adjustments.
The need for reform is being driven by several interconnected factors. High upfront costs in A and B category colonies have discouraged many families from applying for legal water connections, even though these households have similar usage patterns to those in lower-category colonies. The annual 10 percent escalation rule has turned the infrastructure fee into a recurring financial burden, making long-term planning difficult for property owners.
Colony-based classification has created inequity across neighbourhoods, leaving some residents paying four to five times more than others despite comparable needs. Meanwhile, loopholes in the built-up-area system have fuelled corruption and undermined public trust in the DJB. Beyond these immediate concerns, Delhi’s growing population and rising demand for water require a transparent, fair, and predictable pricing framework that encourages formal access to piped water.
Officials familiar with the matter told TOI that both proposed models are now in an advanced evaluation stage, and the government will soon place a final proposal before the DJB and the Delhi cabinet. Public consultations are also likely, allowing residents, RWAs, urban planners, and consumer-rights groups to weigh in before the new structure is finalised. If approved, the reforms would mark one of the most significant overhauls of Delhi’s water governance system in recent years, potentially easing financial pressure for thousands of households and improving transparency in service delivery.
The Delhi government’s attempt to rationalise water infrastructure charges reflects a larger push toward equity and accountability in the capital’s urban-services framework. By rethinking colony-based rates, removing the unpopular annual hike, and considering consumption-linked alternatives, policymakers hope to create a system that reflects real usage patterns and reduces the financial strain on families.
As highlighted by the TOI report, the current system has long been a source of frustration for residents, leading to unfair billing and corruption. The proposed reforms, if implemented, could mark a major shift toward fairness, making clean, piped water more accessible, affordable, and transparent for the people of Delhi.
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