'BWSSB is running at a loss: Karnataka Deputy CM Shivakumar hints at hike in water tariff in Bengaluru

Karnataka Deputy Chief Minister D K Shivakumar has once again indicated that a possible hike in the water tariff in Bengaluru is on the cards. Shivakumar, also the Minister in-charge of Bengaluru development, on Thursday said that the loss-making Bengaluru Water Supply and Sewerage Board (BWSSB) has not been able to take up new projects, and even has no funds to pay power bills and salaries to its employees. 

"There is a proposal (to hike) water prices for eight to nine years. We have to expand (supplies), save and increase the level of underground water. Population is increasing," he said. 

"(BWSSB) is running at a loss, there is no money to pay power bills, there is no money to give salary. How to do things? There is no other option. We will look into it. We cannot hike tariffs for everyone, we may have to do it for some sections...no decision yet (on how much to hike). I will discuss in the Cabinet and with the citizens and do it," he added. 

Shivakumar in June too had suggested that a hike in the monthly water charges in the city was possible. He had said that the loss-making BWSSB had not been able to take up new projects. His statement had come just a week after the state government hiked sales tax on fuel which made petrol and diesel costlier by Rs 3 and Rs 3.5 per litre, respectively.

The deputy chief minister said that since last ten years, the water tariff in Bengaluru had not been increased. "It (BWSSB) is suffering a great loss. We have to take up new projects. No bank is coming forward to finance the BWSSB," he said. 

"70 per cent is power bill and labour cost...every year we (BWSSB) are having a big loss. So there is no option. I am working out the possibilities, we are discussing how to set the company right," the Minister said.

Even development agencies like the Japan International Cooperation Agency (JICA) and the World Bank have contended that the water tariff hike issue is being politicised, and no attempt is made to ensure that BWSSB achieves break-even, Shivakumar said. "There is no option. We want to show that it is an independent company financially and it works independently. I have asked officials to examine the possibilities of hike."

BJP's IT Cell head Amit Malviya attacked the Karnataka government, saying Rahul Gandhi"s Congress is ripping apart Kannadigas. "Steep hike in petrol and diesel prices, electricity and bus fares, registration fees and now water tariff."

(With inputs from PTI)