The MKVDC has increased its water rates for twice in the recent past, which has added to the financial burden of by about Rs six crore on the PMC. The MKVDC first increased the rate from Rs 1.50 to Rs 3 for every 10,000 litres of water in July last year while it was further increased to Rs 3.30 in April this year.

The civic officials maintain that revised rates of MKVDC would seriously affect the development works in `C' budget since the PMC would have to spend Rs 6 crore every year in addition to 20 per cent tax, being paid to the Zilla Parishad. They argue that the PMC was already spending crores of rupees on its ambitious scheme of bringing water from Khadakwasla dam to Parvati Water Works through closed pipe line.

The officials said the PMC would have to pump crores of rupees for the water supply schemes of 38 merged villages. They point out that the PMC has been forced to supply water through tankers to several villages and hamlets in the absence of permanent schemes. Stating that `C' budget was specially created to concentrate on water supply and sewerage schemes, the civic officials said that the very purpose of `C' budget would be defeated if the PMC was forced to pay the revised water rates to MKVDC.

Taking into the account the financial burden, the PMC has decided to make a special request to State Government to supply the water to the city as per the old rates.

MKVDC officials, however, strongly justify their decision to hike the water rates saying that it was expected to complete several projects by the end of next year, for which it would required massive funds. The officials said they had already sent circulars to all the local self governments, military establishments, corporations and industrial units and that they were making payments at the revised rates.

The officials point out that they were committed to supply water to PMC only for drinking purpose as per the agreement. However, the PMC was supplying water for commercial purposes with increased rates, they said and asked why should the MKDVC not expect some share of profit if the PMC was getting water at the nominal rate. They said it was supplying 9.6 TMC water to PMC every year for drinking purpose while the PMC was using 50 per cent water of it for commercial purposes.

MKVDC officials complain that PMC had not the provided break up of the water being used for commercial and domestic purposes despite several demands. They point out that Maharashtra Industrial Development Corporation (MIDC) was using 55 per cent water for drinking purpose for which a separate concessional rate had been fixed. The officials said the MKVDC was charging Rs 22.50 for every 10000 liters of water being supplied to MIDC. He said several industrial units, military establishments were making payments as per the revised rates.