Water charges for industry in Maharashtra to rise by 40%

PUNE: Water charges for industry in Maharashtra are expected to rise following the state government clearing the new rates in the next few days. Under the proposed new rates, water charges for industry could rise by 30-40% for industrial users, Bhushan Gagrani, joint CEO, MIDC, said.
Mr Gagrani, who was responding to questions from industry over the hike in water rates at a meeting organised by the Mahratta Chamber of Commerce Industries and Agriculture here today, said the hike had been necessitated by changes in royalty rates for users by the irrigation department, which controls the resource.
While the MIDC and its industrial users had an agreement under which water rates would be hiked at an annual rate of 7%, this was increased three-fold. Following protests, it was brought down to a two-fold increase in rates, although industry would like it to go back to the seven per cent per annum level.
The proposed policy will rationalise the rates, with some portion of it being recovered from domestic users. The allocation of a scarce resource among competing users has lead the state government to accord top priority to drinking water. Industry has been given a ``high priority,’’ Ajit Nimbalkar, chief secretary, government of Maharashtra, said.
Vishwas Dhumal, secretary, industry, government of Maharashtra, added that the state government proposes to create new facilities to ensure that industry gets good water at reasonable rates. Industry will have to contribute to the creation and maintenance of these facilities since the state government will have to borrow money.
The proposed policy envisages an optimal price and reward for recycling and reuse of water.