Kerala to relax cap on water consumption

The move comes as there has been a strong protest against the decision within the ruling UDF, especially from Congress

In a move benefiting the 800,000 consumers in the state, Kerala Cabinet today decided to raise the cap for the hike in water charges.

As per the latest decision, the hike in charges announced last week, will be applicable only to households consuming a monthly 15,000 litres. The earlier decision was to impose the increase on households consuming above 10,000 litres a month.

The move comes as there has been a strong protest against the decision within the ruling United Democratic Front (UDF), especially from the Congress.

KPCC president VM Sudheeran also expressed displeasure over the decision and asked the chief minister to re-examine the decision. The Cabinet also decided to revise various slabs applicable for water charges.

The state Cabinet last week decided to increase the charges for piped-water 50 per cent on account of serious financial crisis that gripped the state.

The opposition Left Democratic Front (LDF) has kicked-off agitation against the state's decision. The LDF has decided to boycott the hike and urged people not to remit the revised charges.

KPCC president VM Sudheeran also expressed displeasure over the decision and asked the chief minister to re-examine the decision. The Cabinet also decided to revise various slabs applicable for water charges.

Luxury houses to pay more
In order to overcome the financial constraints, the Cabinet has cleared an increase in the building tax for individual houses spread in an area above 3000 sft and on flats an area above 2000 sft. The tax on cars priced above Rs 20 lakh will also go up.

The Cabinet has rejected recommendation of a panel of government secretaries to reduce the number of working days to 5 in a week from the current 6. The panel recommended with a view to reduce expenses including water and electricity charges, usage of vehicles in various government offices.

Last week, state government has announced a set of tax hikes, especially on Indian-made foreign liqour, wine, beer, cigarets and other tobaco products. These measures would allow the state to raise revenue by roughly Rs 2,300 crore.