The Maharashtra government has hiked bulk water tariff for all industries that draw water as raw material, like bottled water companies, breweries, soft drink and liquor manufacturers, by 25 times as compared to other industries.
So, while most industries will get it at Rs 4.80 per 1,000 litres (earlier Rs 3.20), for the water-intensive units the rate will be Rs 120 (Rs 16). The hike, which comes into force from February 1, is expected to marginally affect the price of liquor and bottled water.
A source in the liquor industry estimated only about a 12 paise per litre hike. "A 650ml bottle of beer requires almost a litre of water. There will be small rectifications in selling price and taxation," said one of them.
The cess hike will have little impact on Mumbai's drinking water tariffs too. It has been hiked by 16% of the 25 paise standard rate, but only one dam supplying water to the city, Bhatsa, is state-owned, and even then BMC contributed.
K P Bakshi, chairman of the Maharashtra Water Resources Regulatory Authority, said the last hike was in 2010-2011. Tariff has also been increased for domestic and agricultural use by 17%. But agriculture and allied industries have been given a 25% relief compared to industries.
Officials said for the first time, they have proposed differential pricing on the lines of 'pay what you use' mechanism. If a person or industry uses more that their pre-decided per capita consumption, he/it will be charged more.
"Currently, there is a blanket charge for water usage. This new feature will help reduce water wastage," said V M Kulkarni, member of the authority.Officials estimated that this hike will bring a revenue of Rs 400-500 crore.
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