Delhi govt plans to waive 100 pc late payment charges on water bills

In a significant move to bring relief to scores of customers getting inflated water bills, the Delhi government is planning to waive off complete late payment charges for domestic and government users, officials said on Wednesday.

The Delhi Jal Board (DJB), which is in charge of water supply across the city, has around 29 lakh registered customers and many city residents have complained about improper billing.

''Soon we are planning to waive the entire late payment surcharges for domestic and government categories by 100 per cent. After this scheme, there will be no other amnesty scheme for five years. After this, as per our estimates, DJB is going to gain Rs 6,000-Rs 7,000 crore in funds,'' Water Minister Parvesh Verma told PTI.

Verma held a board meeting of the DJB on Wednesday where the decision to extend the contract of the company handling its software for three months was also approved.

''This decision is closely linked to the LPSC (late payment surcharge) waiver scheme. The current billing system is being restructured, software for this is being developed and the new company will take some time, after which the scheme will be introduced in the next few days,'' the minister added.

The one-time water bill settlement scheme was first announced by the previous government in June 2023. Later, the scheme became a point of friction between bureaucrats and ministers.

The Finance Department argued that people who were habitual defaulters for the past 11 years should not be included in the scheme as it would defeat its purpose.

According to officials, there is also an issue of high compound interest rates on late bills, which are around 18 per cent, which increases the total bill amount significantly.

''The government plans to rework the billing system and rework the charges in the future. A final decision on this is yet to be taken,'' an official said.

In a bid to tackle mounting financial losses and improve sewer connectivity across the city, the Delhi government is also considering making water bills a mandatory document for property registration in the city, they added.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)