Propped by tax hike, Metro Water eyes Rs 700 cr

CHENNAI: Chennai Metropolitan Water Supply and Sewerage Board (Metro Water) has estimated an income of more than Rs 700 crore through the sale of water during 2022-23 fiscal.

The water manager has estimated Rs 709 crore income from the sale of water and Rs 513 crore as water and sewerage taxes, as per the statement of income and expenditure released by it.

Also, an income of Rs 212 crore and Rs 67 crore have been estimated as grants from government and other sources respectively.

In total, an income of Rs 1,502 crore has been estimated for the year.

According to the revised estimate for 2021-2022, Metro Water had generated Rs 567 crore through the sale of water, which is around 50 per cent of the total income recorded in the year.

Metro Water sells water and treated water to industries in the city, and tanker water to residences and commercial establishments (hotels, restaurants, multiplexes, hospitals and institutions.)

For the metered consumers, Metro Water sells 10 kilolitres of water at Rs 4 to the domestic residential buildings and above 25 kilolitres at Rs 40.

For private hospitals, water charges have been fixed as Rs 1,694 for usage up to 500 kilolitres.

As much as Rs 1,452 has been collected from industries for the supply of above 500 kilolitres.

For unmetered residential buildings, Metro Water collects Rs 80 per month and for commercial establishments, Rs 1,452 is being collected on a monthly basis.

Interestingly, water and sewer tax collections were only Rs 226 crore and Rs 239 crore in 2020-2021 and 2021-2022.

The increase in water and sewer tax estimation is due to the property tax revision as the Metro Water tax is calculated based on the property tax.

Due to the increase in tax estimation and sale of water, Metro Water has prepared a surplus budget statement.

During the last two years, it had a deficit budget.

Meanwhile, Metro Water has estimated an expenditure of Rs 1,359 crore in 2022-2023 of which power charges and payments to employees amount to Rs 236 crore and Rs 299 crore respectively.