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Tamil Nadu
By T. Ramakrishnan
The rates will come into force from July 1 and cover those agriculturists, who raise irrigated crops coming under certain classifications. The charges will be Rs. 70 an acre for wet crops and Rs. 60 for dry crops, if water supply is made for 8-12 months, say officials. The levy decision is part of the government commitments to the World Bank for taking a loan of around Rs. 1,060 crores for the Water Resources Consolidation Project (WRCP). Recently, the multilateral agency announced extension of the project by one more year. A team of the Bank officials is expected here in the first week of May. The water rates have been prescribed in the amendment to the Tamil Nadu Additional Assessment and Additional Water-Cess Act, approved by the Assembly late last year. According to a March 18 government order, the amendment will take effect from July 1. The charges are called `additional' for, under the present arrangement, water rates form part of land revenue (LR), collected by village administrative officers from the farmers. Given the drought conditions and the Government's announcement of a relief package for the farmers including `kist' remission for the current irrigation year (July 2002-June 2003), there is an element of uncertainty whether the levy of the new rates will indeed be given effect to this year. Explaining the objective, an official says the levy bridges the gap between the realisation of water cess (forming part of land revenue) and the cost of operation and maintenance. "At present, we get around Rs. 30 a hectare through water cess collection, though the average cost of operation and maintenance is Rs. 250," the official points out, adding the situation has prevailed for years. Successive governments have been thinking of hiking the water rates for decades now. But, since 1962, the charges have remained "untouched". As part of the WRCP, the Government constituted the Water Service Charges Committee in December 1996 to rationalise water rates for agriculture. The panel, comprising the Commissioner of Revenue Administration and the Secretaries of various departments, held 15 meetings and took six years to finalise its position. Once, it even thought of delinking water rates from LR but subsequently, revised the opinion. At its last meeting in June 2002, the WSCC enhanced the local cess and local cess surcharge. A month later, when the Cabinet met, it decided not to accept this recommendation, as the State Finance Commission had already covered the point. Instead, the Cabinet gave approval for levy of the additional water rates. Subsequently, the Assembly carried out an amendment. And now, the Government is seeking to implement the decision. However, considering the severe drought in the State, it remains to be seen whether the additional levy will be collected this year. Officials explain that maintenance of irrigation systems remains a national question. One reason attributed by water managers and experts to poor maintenance is the low budgetary support for operation of irrigation systems, coupled with low water rates which have remained unchanged for decades, in view of a possible adverse political fallout.
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