PUNE, July 12: Industries in Pune region, particularly in the Pimpri-Chinchwad belt, have got a reprieve after the decision of the Maharashtra Industrial Development Corporation (MIDC) to reduce the water charges which were earlier hiked by fifty per cent. The entire industry in the state had strongly opposed the water hike effected since April 10 this year.Although the MIDC had stated that the hike in power tariff, higher royalty payments to the irrigation department, and increasing establishment costs, had forced it to go in for the hike, the industries had disputed the claims. The MIDC said that it had not hiked water charges since September 1995.The Mahratta Chamber of Commerce and Industries (MCCI), which took up the matter even before the implementation of the hike, had urged the state government to withdraw its decision, stating that the hike was disproportionate with the increase in MIDC expenses for water supply and there was no logic behind the quantum rise in the rates. The Industries Associations from all over the state at a meeting held at the MCCI had unanimously resolved to pay water charges as per old rates.In Pune and Pimpri-Chinchwad, the rates were increased from Rs 8 to Rs 12. In Kolhapur, Satara and Sangli, they were raised from Rs 5.50 to Rs 8 and in Mahad, Roha, Jejuri and Kurkumbh industrial areas from Rs 7.75 to Rs 11. A similar proportionate increase in water rates had been made in various industrial regions categorised by the MIDC all over the state.The industries were opposed to the hike, particularly because in the last couple of years they had to face a continuous onslaught of increase in various charges and rates including the power tariff hike, the imposition of two per cent stamp duty and then the compulsive small savings drive.Dr R J Rathi, MCCI chairman, in a statement had lamented at the apathy shown by the State Government in helping the industries when they were facing numerous problems. The hike in water charges gave them an impression that the government did not want the industries to function in the state at all. The rise in water charges, would bring sluggishness in the industry and slow down the economy as a whole, he had warned.In the wake of the water hike, the MCCI had urged the State Government to revise its economic and financial policies and cautioned it not to be complacent as the industry growth in the state was considered to be at the top in the country. The complacency was resulting in a lot of overconfidence, whereas other states were taking systematic and strategic actions for promoting the growth of industries.A committee headed by MCCI vice-chairman Prataprao Pawar and others including the representatives of Roha, Mahad, and Kolhapur had been formed to make a representation to State Chief Minister Manohar Joshi, and Industries Minister Leeladhar Dake. The delegation held a couple of meetings with the ministers and also with the MIDC authorities after which the decision to reduce the water charges was made.Revenue by water charges is the only major source of income for the MIDC. In Pimpri-Chinchwad, where there are nearly 3000 industries, the MIDC gets a monthly revenue of nearly Rs 2.25 crore. Major industries such as Telco, Century Enka, Bajaj Auto Limited, SKF, Thermax etc for whom water charges amount to several lakh rupees, the effective hike (from Rs 8 to Rs 9.50) would, for the present, seem acceptable.
