Pune Municipal Corporation and Irrigation Department Clash Over Rs 667 Crore Water Bills

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Pune, 12th September 2023: The Pune Municipal Corporation (PMC) and the Irrigation Department are locked in a dispute over water bills, leading to tensions in the city’s administrative corridors. The Irrigation Department recently sent a bill totaling a staggering 667 crores to the PMC, including arrears, a move that has left municipal authorities astonished.

In response to the hefty bill, the PMC has flatly rejected it, contending that only 11 crores are legitimately owed for the utilization of water from the Bhama Askhed Dam. To address this contentious issue, a meeting is scheduled between the Municipal Corporation and the Executive Director of the Irrigation Department.

Pune has been grappling with water-related challenges, including a long-standing demand for a 20 TMC (Thousand Million Cubic Feet) water quota, which is yet to receive official approval. Additionally, the city’s water consumption has surged due to the inclusion of 34 villages within the municipal corporation’s jurisdiction.

The water consumption in Pune encompasses residential, commercial, and industrial sectors. Water rates for these sectors were initially fixed in 2011 and later revised in 2018 by the Maharashtra Water Resources Regulatory Authority. These rates categorize water consumption into two main types: residential and industrial. Consequently, any water use not falling within the residential category is considered industrial, leading to substantial surcharges.

Following the 2022 revision of water rates by the Maharashtra Water Resources Regulatory Authority, the Municipal Corporation categorized water consumption into three groups: residential, commercial, and industrial. Each category now faces specific water restrictions.

The revised water rates stand at 55 paise per kiloliter (one thousand liters) for residential water consumption, Rs 2.75 per kiloliter for commercial use, and Rs. 11 per kiloliter for industrial water consumption.

The dispute between the PMC and the Irrigation Department hinges on the application of industrial water consumption rates for commercial water usage, resulting in a contentious outstanding bill of Rs 333 crores. Opposition to this rate arises from Pune’s predominantly residential and commercial character, with limited industrial areas.

In another development, the Irrigation Department imposed a penalty of Rs 334 crores on the PMC for allegedly discharging sewage into the Mulamutha River. However, the Municipal Corporation contends that it has submitted a time-bound program to prevent water pollution two years in advance, in accordance with regulations. Therefore, it believes the penalty is unjust and has called for its cancellation, initiating correspondence on this matter.

Anirudh Pavaskar, Head of the Water Supply Department, emphasized the need to amend the contentious water bill, asserting that discussions would be held during the upcoming meeting with the Executive Director of the Irrigation Department. The outcome of these deliberations will play a crucial role in resolving the brewing dispute between the two entities.