Chandigarh Announces Steep Hike in Civic Service Charges
Residents of Chandigarh are bracing for another round of increased costs for essential civic services. Starting from April, water supply charges will rise by 5% across all categories, including domestic, commercial, institutional, and TT water consumers. This hike is accompanied by a sewerage cess that, while maintaining its rate at 20% of water charges, will effectively become more expensive due to the higher base water bills.
Garbage Collection Fees Also on the Rise
In addition to water and sewerage, garbage collection charges are set to increase. Commercial establishments will face a 5% hike in their garbage bills from April 1, following a similar revision for residential properties that took effect in January. The municipal corporation (MC) bundles residential garbage charges with water bills, whereas commercial units pay through property tax bills.
Revenue Boost Expected from Tariff Revisions
These adjustments are part of the MC's annual tariff revision cycle and are projected to significantly enhance its revenue streams. Currently, the engineering department reports that the MC earns between ₹150 and 160 crore annually from water charges, including arrears. The 5% increase in water rates is estimated to add an additional ₹7.5 to 8 crore to this revenue.
Similarly, the sewerage cess, which was previously reduced from 30% to 25% and then to the current 20% over recent years, will see a proportional rise in amount due to the higher water charges. Garbage collection, another key revenue source, currently brings in ₹20 to 22 crore per year. With the 5% hike, the MC anticipates an extra ₹1 to 1.20 crore in the upcoming fiscal year.
Criticism Over Service Quality Amid Rising Costs
Baljinder Singh Bittu, chairman of the Federation of Sector Welfare Associations Chandigarh (FOSWAC), has voiced strong criticism against the hikes. He argues that the quality of civic services has not kept pace with the increasing charges. "The authorities in Chandigarh are acting like private companies whose only motive is to extract money from residents," Bittu stated. He highlighted ongoing issues such as irregular water supply, contamination, and inefficient garbage collection, where collectors often fail to arrive daily or on time.
Bittu emphasized, "Instead of improving basic services, the MC keeps increasing charges. The corporation must focus on service quality rather than money-minting exercises." This sentiment reflects broader concerns among residents about whether the additional revenue will translate into better infrastructure and more reliable services.
Background on the Municipal Corporation's Financial Strategy
The Chandigarh municipal corporation regularly reviews and adjusts its tariffs to align with operational costs and revenue targets. This latest round of increases follows a pattern of incremental adjustments aimed at sustaining civic operations without compromising on essential services. However, as costs rise, the pressure mounts on the MC to demonstrate tangible improvements in service delivery to justify the financial burden on citizens.
