COIMBATORE: After hiking UGD charges, the city corporation is all set to give another shocker to residents with an upward revision of drinking water charges.

Residents would be shelling out two to three fold more in charges for drinking water to the corporation once the 24X7 water project materializes. The civic body has decided to implement the project at a cost of Rs556.57cr with loans obtained from various institutions including the World Bank . Corporation authorities indicated that the water charges would be hiked to facilitate its loan repayment efforts.

The 24X7 drinking water project was drafted in 2013 at an estimated cost of Rs451.66 crore. But the civic body was unable to invite tenders for the project, allegedly due to political intervention, as few politicians wanted the contract to be awarded to their favoured contractors while the civic body preferred a global tender. The difference of opinion, among other factors, delayed the project for two years, thereby escalating the project cost to Rs556.57crore.

As of now, the scheme would be implemented in 60 of the 100 wards. "We would select the companies, under the request for qualification (RFQ) that meet the criteria for implementing a project of this scale. After selecting the companies, tenders would be invited from them," said corporation commissioner K Vijayakarthikeyan.

According to sources, the corporation would get Rs556.57 as loan from World Bank or the Japan International Cooperation Agency (JICA) or Germany based financial institution KFW.

Highly placed sources in the city corporation said that if the corporation obtained Rs556.57crore as loan, then residents would have to pay at least Rs20,000 or Rs30,000 as one-time deposit for the 24x7 drinking water connections. At present, deposit is fixed based on the property tax paid by the residents. For instance, a resident paying Rs1,000 per building as property tax would have to pay Rs2,500 only as deposit for water connection. The civic body would increase the water charges while also fixing water meters for every connection to assess the usage.

The corporation also plans to lay new pipelines in 60 wards (old corporation areas) and the operation and maintenance (O&M) would be given to a private firm. The private firm would collect water charges from 2.08lakh households.

"If the civic body increases water charges, it would burden a majority of the residents who are middle class and poor. Before implementing the project, the civic body should conduct a meeting to get suggestions from the people," said DMK councillor A Nandhakumar from ward number 52.

But corporation authorities reasoned that since meters are being installed, residents would automatically turn judicious in using the water, thereby bringing down the usage charges they would be paying.

