Groundwater charges on non-exempted users: How the Punjab policy will work

PWRDA, set up by former CM Amarinder Singh in June 2019, had formulated a policy to levy charges on usage of underground water. However, his government was not able to notify it. Now, the AAP government in Punjab has notified the policy on Saturday.

According to the directions, the extraction of groundwater by any method or technology, and known by any nomenclature such as open well, dug well, bore well, dug-cum-bore well, tube well, step well, filter point, collector well, artesian well, spring, infiltration gallery, including any machinery, equipment and instruments used for the extraction of groundwater, as well as any combination or variation of such structures; would be charged by the authority.

Who would be exempted from paying the bill?

Farmers using water for agriculture purposes, places of worship, drinking and domestic Water Supply Scheme of Government, the establishment of the military or of the central paramilitary forces, an urban local body, panchayati raj institution, cantonment board, improvement trust or area development authority, and a unit extracting not more than 300 cubic metres of groundwater per month.

What will be the charges?

Those using 300 to 1500 cubic metres per month will pay Rs 4 per cubic metre in the green zone, those in yellow and those orange zones will pay Rs 6 and Rs 8 per cubic metre, respectively. Likewise, industries extracting groundwater between 1500 cubic metre to 15,000 cubic metre will pay Rs 6, Rs 9, and Rs 12 in green, yellow and orange zones, respectively.

Those extracting water between 15,000 to 75,000 cubic metre will have to pay at the rate of Rs 10, Rs 14 and Rs 18 in green, yellow and orange zones, respectively.

The industries using more than 75,000 cubic meters will have to pay Rs 14, Rs 18 and Rs 22 in green, yellow and orange zones, respectively. The authority has provided a provision for a rebate on water conservation. Each cubic meter of water conserved will earn one Water Conservation Credit which will entitle the unit to a rebate of Rs 2.50. However, this rebate will be available to a unit only up to the upper limit.

To get the maximum rebate, a unit (using 300-1,500 cubic meters of water) will have to conserve 50% water in green zone, 100% in yellow zone and 150% in orange zone. By levying groundwater charges, the authorities expect to generate funds to the tune of Rs 1.75 crore to Rs 2 crore every month, which would be used by the PWRDA for the recharge of groundwater.

Is there any bar on water tankers?

No motor vehicle shall be used for conveyance or transportation of groundwater through a water tanker (whether installed on the vehicle or towed as a trailer etc.) with a carrying capacity in excess of 500 litres for any purpose other than drinking and domestic or agricultural usage without Permission of the Authority.

How would the permission be sought?

The permission would be required to be taken within six months of notification of the directions. Existing units seeking permission for extraction of a volume groundwater (other than brackish/saline water) more than 15,000 cubic metres per month shall submit a chemical analysis report of water of each extraction structure provided by a NABL-accredited laboratory (as per IS-10500:2012).

This report should not be older than six months from the date of application. New units granted permission to extract more than 15,000 cubic metres per month of groundwater shall provide this report within 6 months of grant of permission.

How will the authority bill the users?

Groundwater extraction charges shall be paid by the user on a self-assessment basis in accordance with the self-recorded and reported water meter readings. In addition, the authority may verify the water meter readings either periodically or at any time. Groundwater extraction charges shall be paid on a monthly basis. A user shall convey the water meter readings of the last working day of the month to the authority by the 10th day of the ensuing month and shall make payment of the charges by 20th of every month.

Who would install the meters?

A user requiring permission for groundwater extraction under the directions shall install volumetric water meters on each extraction structure. All water meters shall conform to the technical specifications, performance parameters and connectivity standards as required by the authority. It shall be the responsibility of the user to ensure that each water meter including the telemetry device (if required) is fully functional and in proper working order at all times.