Delhi Jal Board Faces ₹1.42 Lakh Cr. Dues Crisis, Govt Plans Waivers

Delhi Jal Board (DJB) faces a financial crisis with pending water bills of ₹1.42 lakh crore, with commercial category having the highest dues of ₹66,000 crore. The government plans to waive late payment surcharge, aiming to collect ₹6,000 crore through waivers. DJB also has a debt of over ₹70,000 crore, including interest on loans. The Delhi government has approached the Centre for assistance in recovering dues.

The Delhi Jal Board (DJB), responsible for water supply and sewage management in Delhi, is grappling with a severe financial crisis. According to Water Minister Parvesh Verma, the DJB is staring at an unprecedented financial crisis with pending water bills amounting to Rs 1.42 lakh crore across the city [1].

The DJB has identified three categories with significant unpaid dues: commercial, government, and domestic. The commercial category holds the highest amount of dues, at Rs 66,000 crore, followed by the government category at Rs 61,000 crore, and the domestic category at Rs 15,000 crore. These dues primarily consist of Late Payment Surcharge (LPSC) charges [1].

The government has plans to waive off LPSC charges for the domestic and government categories, aiming to collect at least Rs 6,000 to Rs 7,000 crore through these waivers. The establishments included under the commercial category are private schools, hospitals, government buildings, and offices [1].

In addition to the unpaid dues, the DJB also has a debt exceeding Rs 70,000 crore, including principal and interest amounts. The Delhi government has approached the Centre to assist in recovering dues from various government establishments. The DJB urgently needs funds to execute several infrastructure projects, including the cleaning of the Yamuna and upgrading the water supply network [1].

The DJB is also planning to replace all mechanical water meters with smart water meters to reduce consumer disputes regarding faulty meters and meter reading issues. This initiative aims to enhance the accuracy of billing and reduce the financial burden on the DJB [1].

The financial crisis faced by the DJB highlights the urgent need for effective management of water resources and the importance of timely payment of water bills. The government's plan to waive LPSC charges for certain categories is a step towards addressing the financial crisis, but it remains to be seen how successful this initiative will be in the long run.

References:

[1] https://www.business-standard.com/india-news/delhi-jal-board-faces-rs-1-42-trillion-unpaid-dues-parvesh-verma-125071200684_1.html