Mumbai’s Water Tax Increase: Here’s Everything You Need To Know About The 2025-26 Proposal

In a move to manage soaring expenses, the Brihanmumbai Municipal Corporation (BMC) is proposing a water tax hike for the financial year 2025-26. This decision comes after a failed attempt to increase charges in the 2023-24 fiscal year, a proposal that was retracted following an intervention by then-Chief Minister Eknath Shinde.

Civic chief Bhushan Gagrani has forwarded the new proposal for legal scrutiny before implementing any changes. Presently, residents are charged ₹6 per 1,000 liters of water, while commercial and industrial consumers pay ₹50 for the same amount.

The proposed increase stems from a 15% rise in the water department’s operational costs. Under a 2012 policy, the BMC is permitted to raise water taxes by up to 8% annually. However, the water tax has remained unchanged for the past two years.

The proposed hike accounts for:

• Administrative costs
• Royalties paid to the state government for Bhatsa dam water supply
• Purification and infrastructure expenses, including electricity for water extraction

Despite these increasing costs, the BMC supplies approximately 3,950 MLD (million liters daily) of water to Mumbai.

The proposal’s future remains uncertain due to the upcoming BMC elections, which could stall its approval. Gagrani clarified, “We have no immediate plans to increase water charges. The proposal has been sent to the legal department for review.” Previously, the BMC raised water charges by 7.12% in 2022-23 and by 5.29% in 2021.

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