Solan MC seeks waiver of Rs 127.57 cr water dues amid grim financial crisis
Facing an increasingly unsustainable financial crisis, the councillors of Solan Municipal Corporation (MC) have urged the state government to waive off Rs 127.57 crore pending as water supply dues to the Jal Shakti Department (JSD). This demand comes in the wake of the state Cabinet’s recent principal approval to transfer water distribution responsibilities in Solan to the JSD, a move that councillors believe will provide much-needed financial relief.
The dues have escalated significantly over the past few years, with a steep rise recorded after the JSD hiked water tariffs from Rs 27.71 to Rs 100 per 1,000 litres in September 2024. The civic body, however, did not pass this hike onto residents, resulting in mounting financial pressure.
The Solan Municipal Council was upgraded to a corporation in 2020, with elected representatives assuming office in April 2021. At that time, the water dues stood at Rs 77.5 crore. Over the 51 months since, the amount has surged by nearly 60 per cent, reaching Rs 127.57 crore. This ballooning liability has put the fund-starved MC in a dire financial bind.
With the Cabinet now giving its nod to transfer water distribution to the JSD, on lines similar to other urban areas, the Congress councillors have made a collective demand for a complete waiver of the pending amount. Mayor Usha Sharma and former deputy mayor and councillor Rajiv Kaura led the appeal, while also expressing gratitude to Chief Minister Sukhvinder Singh Sukhu, Deputy CM and Jal Shakti Minister Mukesh Agnihotri, Health Minister Dr Dhani Ram Shandil and Urban Development Minister Vikramaditya Singh for taking the crucial step.
The councillors emphasised that this transfer would bring about uniform water tariffs across urban areas and eliminate the mounting liabilities which the civic body can no longer afford to shoulder. However, the operational details of the transfer are yet to be finalised.
Currently, water supply remains a costly affair for the MC. Half of the revenue collected from water bills is spent on maintenance, repair of infrastructure and staff wages. The remainder goes toward purchasing water from the JSD. Former Deputy Mayor Kaura detailed that the MC employs 27 workers for water distribution, nine for billing and meter-related work, and two engineers. Monthly repair and maintenance costs alone stand at Rs 56 lakh, while staff salaries add another Rs 1.83 crore annually, draining already limited resources.
In areas where the JSD directly supplies water, the department charges Rs 13.82 per 1,000 litres. Residents in Solan now fear that once the JSD takes over distribution citywide, the new slab-based tariff may be implemented, ranging from Rs 19.30 to Rs 33.28 per 1,000 litres for higher usage, raising concerns of an eventual price hike.
Significantly, except for Solan and Palampur, all urban areas in Himachal Pradesh already have water distribution managed by the JSD. The move to align Solan with this model is expected to bring both operational consistency and financial stability, provided the pending dues are waived as requested.
Himachal Tribune